Azerbaijan, Astana / corr Trend K.Konirova / The international consortium Agip KCO defined a concept on development on the Kashagan field, the biggest in Kazakhstan, to define optimal variant to attain the stable level of production at 1.5mln barrels of oil a day, Vugar Vusalov, an official of Agip KCO, said.
"We plan to conclude researches into selection of a concept by the end of 2007 or beginning of 2008 and select a concept so that to launch initial projecting, he said.
The production from the Kashagan field is scheduled for 2010. Expenses on industrial development are estimated to $19bln. Expenses for the project will be considerably higher than the figure indicated by the Consortium, according to the Government of Kazakhstan.
"Taking into consideration the factor of indefiniteness, related to the development of the field and future state of the market, it is premature to predict the estimate of expenses," Vusalov said.
PSA Agip KCO was to commence the industrial development of the field in 2005. However, the sides were to talk over the delay in the field development because the terms of the contract were not implemented. In February 2004 the alliance achieved an agreement with the Government of Kazakhstan on postponement of the industrial development of Kashagan from 2005 to 2007-2008. Agip KCO was committed to pay to Kazakhstan $150mln in compensation for delay in the commencement of the industrial development of the field.
Along with Kashagan, the contract includes three more oil fields: Kalamkas, Aktoti, Kayran. They consisted of 11 offshore blocs covering the are of approximately 5,600 sq km.
According to Agip KCO, the recoverable oil reserves of Kashagan are estimated to 7-9bln as minimum and total geological reserves equal 38bln barrels.
Participants in Agip KCO are as follows: Eni, Total, ExxonMobil, Royal Dutch/Shell each holding a 18.52% stake, ConocoPhillips with 9.26%, Inpex and KazMunayGas with 8.33%.