Azernews.Az

Kazakhstan-based North Caspian Operating Company (NCOC) is working on a project to re-injection of gas at Kashagan offshore field, the company told Trend news agency.

"NCOC is working on the development of the gas re-injection project and discussions are ongoing with the PSA Authority," the source said, responding to request to comment on the information of the Bloomberg news agency with regard to the delay of oil production increase from the field.

According to the spokesman, the work on the project, which includes the injection of natural gas into the reservoir, would begin this year.

Bloomberg reported, citing its sources, that the plan to increase oil production by 20 percent at Kashagan may be postponed, which will reduce the time to recoup the costs of a project worth $46 billion, which was already late for 8 years.

"Kazakhstan recommended partners to suspend plan worth $ 5 billion on production increase from 370 000 barrels to 450 000 barrels per day until the partners learn how the start of production will affect the field," the sources, who asked to remain unnamed, told the agency.

According to the source the project of gas injection into the reservoir should help to increase oil production. "The consortium is holding negotiations with the competent authority - the Ministry of Oil and Gas of Kazakhstan on this project."

Production at the Kashagan field was initially planned to start in 2005, but it was postponed to the end of 2012 - beginning of 2013 due to technical difficulties.

At present the Kashagan project participants are Eni, Royal Dutch Shell, Exxon Mobil, Total and KazMunaiGas, which owns equal shares (16.81 per cent), as well as ConocoPhillips - 8.4 per cent and Japan's Inpex - 7.55 per cent.