Net cash flow from Kashagan may reach $180M in 2017
By Kamila Aliyeva
The net cash flow from the Kashagan project is expected to reach $180 million in 2017, Executive Vice President and Financial Director of Kazakh national oil and gas company KazMunaiGaz Dauren Karabayev said at a briefing, Kazakhstan Today news agency reported.
The rate of production at Kashagan is about 180,000 barrels per day. By the end of the year, this figure will increase to 370,000 bpd, according to Karabayev.
"Preliminary estimates show that Samruk-Kazyna fund and KazMunayGaz Company will jointly receive net cash flow of about $180 million in 2017 after investing in Kashagan," he said.
Karabayev noted that the project already covers its operating costs and capital investments for maintaining and increasing production rates and generates a positive cash flow for its partners.
More than 2 million tons of oil has been produced so far at this largest oil field discovered in the last 40 years.
Oil is the main export product of Kazakhstan, and the country made every possible effort to increase oil production. The production at the Kashagan field was re launched in autumn 2016.
Kashagan, first discovered in 2000 and located in the north of the Caspian Sea, is considered to be the world's largest discovery in the last 30 years, combined with the Tengiz Field.
Kashagan field, which earned the unfortunate nickname “cash-all-gone” due to a series of expensive overruns, finally started up in October 2016. The field, located in the north of the Caspian Sea is the biggest oil field opened in the last 40 years, while its recoverable oil reserves are assessed at 9-13 billion barrels.
The 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. (nearly 16.81 percent), Shell Kazakhstan Development BV (nearly 16.81 percent), and Total E&P Kazakhstan (nearly 16.81 percent). The field is operated by North Caspian Operating Company BV (NCOC).
Currently, Kashagan oil is exported via pipelines of the Caspian Pipeline Consortium and the Kazakh national company KazTransOil.
Kazakhstan's proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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