Kashagan Field
Kashagan Field is an oil field located in Kazakhstan. The field is situated in the northern part of the Caspian sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000. The field is operated by Eni under the North Caspian Sea Production Sharing Agreement. The Agreement is made up of 7 companies consisting of Eni (18.52%), Shell (18.52%) , Total (18.52%), ExxonMobil (18.52%), ConocoPhillips (9.26%), KazMunayGas (8.33%), Inpex (8.33%). The original group included BG Group instead of KazMunayGas; however BG sold its stake to the partners in 2004. Eni operates this project under the JV company name of AgipKCO (Agip Kazakhstan North Caspian Operating Company N.V.)
One of the larger discoveries of this decade, it is estimated that the Kashagan Field has commercial reserves from 9 to 16 billion barrels of oil. The field is offshore in a harsh environment, where sea ice is present in the winter and temperatures from -35 °C (-31 °F) to 40 °C (104 °F)can be encountered. Production is expected to begin either in 2008 or 2009, later than the initial plan date of 2005. Currently (2006) the original concept is being redesigned and first oil may be even later. It has designated as the main source of supply for the Kazakhstan-China oil pipeline.[1]
Field History
The Kashagan Contract area covers an area of over 5,500 square km in the Caspian Sea. The field contract area consists of five separate fields, producing formations from the Precaspian Basin. These fields are Kashgan, Kalamkas A, Kashagan Southwest, Aktote and the Kairan. Kashgan was discovered first in 2000 and Kairan most recently in 2003. However some of the later find have yet to be declared commercial such is the extent of the work with just developing Kashgan.
The area covering the Kashagan Contract area has changed hands several times since independence of Kazakhstan. Interest in the Caspian Sea first began in 1992 when an exploration program was begun by the Kazakhstan government. They sought the interest of over 30 companies to partake in the exploration. In 1993 the Kazakhstancaspiishelf (KCS) was formed which consisted of Eni, BG, BP/Statoil, Mobil, Shell and Total,along with the Kazakh government . This consortium lasted 4 years until 1997 while the seismic exploration of the Caspian Sea was undertaken.
Upon completion of seismic exploration in 1997, KCS became the Offshore Kazakhstan International Operating Company (OKIOC). In 1998 Phillips Petroleum and Inpex bought into the consortium. The consortium changed again slightly when it was decided that one company was to operate the field instead of the joint operatorship as agreed before. Eni was named the new Operator in 2001. In 2001 BP/Statoil also chose to sell their stake in the project with the remaining partners buying their share.
As Eni was now the operator the project underwent another change in name to Agip Kazakhstan North Caspian Operating Company (Agip KCO).
BG Group in 2003 attempted to sell their stake in the project to two Chinese companies CNOOC and Sinopec. This however did not go through due to the partners exercising their pre-emption privileges. Eventfully the Kazakhstan Government bought half of BG's stake in the contract with the other half going to the partners. The sale was worth approximately $1.2 billion.
On 27 August 2007, Kazakhstan government suspended work at the Kashagan development for at least three months due to environmental violations.[2]
See also
References
- ^ "Caspian oil exports heading east". Asia Times. 2005-02-09. Retrieved 2007-05-20.
{{cite news}}: Check date values in:|date=(help) - ^ "Astana calls halt at Kashagan". Upstream Online. 2007-08-27. Retrieved 2007-08-27.
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- "Rigzone Field Development Projects". Rigzone. Retrieved April 26.
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