Italian oil and gas company
) announced that the giant Kashagan oil field in Kazakhstan has
started producing oil.
Located in the North Caspian Sea, approximately 80 kilometers
southeast of Atyrau, in Kazakhstan - the Kashagan oil field -
remains one of the largest finds. Since the field was discovered
back in 2000, it clearly hints at the challenges faced by
companies in discovering such vast resources today.
The production from the field got delayed by almost a decade.
Moreover, its $41.2 billion cost makes it the most expensive oil
project. Various technical problems, dispute with the Kazakh
government and disagreement among oil companies were the main
reasons for the delay.
Eni has a stake of 16.81% in the consortium for the development
of Kashagan. The company is also accountable for development and
start of production of the field through Agip Kazakhstan North
Caspian Operating Company.
The consortium is represented by NCOC (North Caspian Operating
Company), which operates within the North Caspian Sea Production
Sharing Agreement (NCSPSA). Other partners include KazMunayGas,
), Royal Dutch Shell plc (RDS.A),
) and Inpex, holding 16.81%, 16.81%, 16.81%, 16.81%, 8.4% and
Inspite of having drilled several wells, the initial yield was
just 26,000 barrels a day. Eventually, the project is expected to
add around 1.5 million barrels of oil per day to the global
yield. This amount will be equivalent to around 1.6% of the
world's total or roughly the amount Libya produces.
The yield is projected to grow up to 180,000 barrels per day, in
the initial phase, until the spring of 2014 and gradually
increase to about 370,000 barrels of oil equivalent per day by
the end of 2014 and the beginning of 2015.
Considered as one of the most complex and challenging industrial
projects worldwide, the oilfield is estimated to hold recoverable
resources of 35 billion barrels of oil in place.
Eni carries a Zacks Rank #3 (Hold).
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