Kazakhstan expects Kashagan to resume oil production in December 2016

By bne IntelliNews December 9, 2015

Oil production in the embattled offshore Kashagan field will be relaunched in December 2016, Deputy Minister of Energy Magzum Mirzagaliyev told the government on December 8. He added that pipelines linking Kashagan with onshore facilities were being replaced ahead of schedule. In 2020, production at Kashagan is expected to reach 13mn tonnes of oil a year.

The repeated delays in oil production in the field have prompted many observers to abandon the inclusion of projected production figures for Kashagan in Kazakhstan's economic outlook. Standard & Poor's has said that it will not consider Kashagan's impact on the country's economy until 2018 by which the field will eventually start producing oil.

Production at Kashagan, under development by the international consortium NCOC, was launched on September 11, 2013, but a leak on the gas pipeline running to the onshore processing facility at Bolashak led production to be halted on September 24. An attempt to restart operations was abandoned on October 9. The consortium is now replacing the pipelines at a cost of $3bn although low global price of oil and uncertainty over the production costs make the field prospects blurred.

Stake holders in Kashagan are Eni, Shell, Total and ExxonMobil, each holding a 16.81% stake in the project and Japan's Inpex with a 7.56% stake. US major ConocoPhilips sold its 8.33% stake to KMG for $5.4bn in 2013, which in turn sold it to China's CNPC. Kazakhstan holds a 16.81% stake in the project through national oil and gas company KazMunayGas and the national sovereign wealth fund Samruk-Kazyna. Kashagan is the the second largest field in the world. 

Related Articles

Overlooked carbon costs spell financial trouble for Western Balkan coal power plants

Ten coal-fired power plant projects across the Western Balkans are facing serious financial problems as they have not taken properly into account carbon costs, according to ... more

Poland eyeing second LNG terminal

Gaz-System has selected a contractor to carry out a feasibility study on the construction of a second Polish LNG terminal, the state-owned gas grid operator said on March 27. Poland has recently ... more

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss