ASTANA (TCA) — The Ministry of Energy of Kazakhstan has officially confirmed the start of commercial oil production at huge Kashagan oil field located in the Kazakh sector of the Caspian Sea. This indicates the transition of the North-Caspian oil and gas project from the pilot development phase to production phase, the official website of the Prime Minister of Kazakhstan reports.
“The start of commercial production at Kashagan field on the eve of the 25th anniversary of independence of Kazakhstan is a significant step in the development of the North-Caspian project,” Minister of Energy of Kazakhstan Kanat Bozumbayev said in parliament on November 21. “The first stage of its development has had a significant positive impact on Kazakhstan’s economy through the creation of new jobs for Kazakhstani specialists, their training, professional development of domestic workers, as well as the overall development of local content for local companies involved in the project. Today, after the commencement of commercial production, Kazakhstan will also be the recipient of its share of production at Kashagan.”
The frequently delayed Kashagan project suspended work in September 2013, weeks after production finally kicked off, when the two 90-kilometer pipelines linking the Caspian offshore site to Kazakhstan’s mainland started leaking.
Oil production at Kashagan was resumed on September 28 and the first batch of export oil was piped on October 14, 2016.
Energy Minister Bozumbayev said late in October that oil production at Kashagan is expected to be at four to seven million tons in 2017.
Kashagan’s oil reserves are estimated at 38 billion barrels including around 10 billion barrels of recoverable reserves.
But the project is a decade behind schedule and the estimated cost of the project has shot up from $50 billion originally to $135 billion.
The North Caspian Operating Company (NCOC), the international consortium running the Kashagan project, includes Kazakhstan’s national oil and gas company Kazmunaygas, Eni, ExxonMobil, Royal Dutch Shell, Total, Inpex, and CNPC.
