Azernews.Az

By Aynur Jafarova

Production of first oil at the Kashagan offshore field in Kazakhstan has been postponed from March till June, Kazinform news agency quoted Managing Director of Agip KCO Umberto Carrara as saying on Tuesday.

Kashagan is being developed by the NCOC consortium, whose shareholders are Agip Caspian Sea BV (16.81 percent), KMG Kashagan B.V. (16.81 percent), ConocoPhillips North Caspian Ltd. (8.4 percent), ExxonMobil Kazakhstan Inc. (16.81 percent), Inpex North Caspian Sea Ltd. (7.56 percent), Shell Kazakhstan Development BV (16.81 percent) and Total EP Kazakhstan (16.81 percent).

Agip KCO, an Eni subsidiary, acts as an agent for the operator of the North Caspian Sea Production Sharing Agreement of 1997. It is responsible for the execution of the first phase and for the project implementation of the onshore elements of the second phase of the Kashagan field development.

Earlier the companies developing the project planned to begin commercial production at Kashagan in March 2013.

Managing Director of North Caspian Operating Company (NCOC) Pierre Offant earlier said that the first volumes of oil production at the Kashagan field will be 370,000 barrels per day while in the later stage this figure will rise to 450,000 barrels per day.

According to the PSA, four oil-bearing structures -- Kashagan, Kalamkas, Aktoty and Kayran -- are included in the contract area where the consortium carries out drilling work.

These structures consist of 11 offshore blocks which occupy an area of about 5,600 square meters.

Recoverable oil reserves of Kashagan are estimated by NCOC at 11 billion barrels, whereas total geological raw material reserves stand at 35 billion barrels. It is believed to be the largest oil field in the world after Prudo Bay in Alaska.

The commencement of commercial production at Kashagan is expected by mid-2013. The first phase of the project envisions the volume of production at around 370,000 barrels of oil per day with a possible increase to 450,000 barrels. The second phase envisages increasing production to 375,000 barrels per day within at least three years.

Kazakhstan has high hopes for the development of the giant field. According to EBRD, Kazakhstan's GDP growth in 2013 will amount to 6 percent due to the introduction of a new phase at Kashagan.