Operations run smoothly in Kashagan
By Nigar Abbasova
Kazakhstan, the country with huge oil reserves, continues oil production at Kashagan, a large oil and gas field located in the north of the Caspian Sea. The volume of oil production at the field amounted to 90,000 barrels per day as of October 12.
Energy Minister of Kazakhstan Kanat Bozumbayev said that the oil extraction at the field in running smoothly, mentioning that Bolashak onshore oil and gas processing plant, which receives oil from Kashagan, is also functional.
Bozumbayev said that the first batch of the processed commercial oil has already been delivered from Bolashak to the tanks of KazTransOil, adding that oil will be gradually filled and operator and shareholders will announce first export contracts soon.
The geological reserves of Kashagan are estimated at 4.8 billion tons of oil, while total oil reserves amount to 38 billion barrels with some 10 billion out of them being recoverable reserves. Moreover, there are also large natural gas reserves at the Kashagan field (over one trillion cubic meters).
Kashagan is expected to increase oil production in the country, but it is considered to be a negative factor for the global oil market which suffers from oil glut.
The Organization of the Petroleum Exporting Countries (OPEC), which aims to cut production by 700,000 barrels per day to 32.5 million to 33.0 million bpd, recently raised its forecast of oil supplies from non-member countries in 2017. The cartel increased the volume of expected production in 2017 up to 200,000 (bpd), mostly due to start up of Kazakhstan's Kashagan oilfield.
Bozumbayev, however, repeatedly reiterated that reducing oil output in line with OPEC plans was "not on the agenda" for Kazakhstan.
Kashagan, which is considered to be one of the world's biggest discoveries of the past decades is initially expected to produce some 75,000 barrels per day (bpd) in October, raising the figures to the volume of 150,000 and 180,000 bpd in November and December respectively.
Operator of the project is North Caspian Operating Company BV (NCOC), while project participants are KMG Kashagan BV (16.88 percent), AGIP Caspian Sea BV (nearly 16.81 percent), CNPC Kazakhstan BV (8.33 percent), Exxon Mobil Kazakhstan Inc. (nearly 16.81 percent), INPEX North Caspian Sea Ltd., Shell Kazakhstan Development BV (nearly 16.81 percent), and Total E&P Kazakhstan (nearly 16.81 percent).
--
Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
Follow us on Twitter @AzerNewsAz