Kashagan profitability could be assessed not earlier than 2017

By Trend
The profitability of Kashagan oil field could be correctly assessed
not earlier than in 2017, Kazakh Energy Minister Vladimir Shkolnik
told Kazinform.
The noted that the replacement of the affected pipelines is
underway at the field and this work is scheduled to be completed in
Dec. 2016. Then the project operator should launch commercial oil
production at the field.
"It will be possible to say if the field profitable or not at that
time. It depends on oil prices two years from now and later," said
Shkolnik.
Meanwhile he noted that oil prime cost at large fields in
Kazakhstan, such as Karachaganak and Tengiz, is the lowest in the
country.
"I am sure that Kashagan oil prime cost will be low too," the
minister said.
Earlier an expert of the Institute of Political Solutions of
Kazakhstan, Sergey Smirnov told Trend that oil production at
Kashagan field would be unprofitable if the oil prices remain at
the current level.
“Given the difficult geological conditions at the field, the price
of the Kashagan oil will clearly be above $50, given the costs that
have already been realized. Therefore, at $50-$60 per barrel, the
production will be unprofitable,” said Smirnov.
The world oil prices dropped from almost $110 per barrel to below
$50 in recent months.
Kashagan is a large oil and gas field in Kazakhstan, located in the
north of the Caspian Sea. The geological reserves of Kashagan are
estimated at 4.8 billion metric tons of oil. The total oil reserves
amount to 38 billion barrels, some 10 billion out of them are
recoverable reserves. There are large natural gas reserves at the
Kashagan field - over one trillion cubic meters.
The production at the Kashagan field started Sept. 2013, but in
October, it was ceased after a gas leak in one of the main
pipelines. The analysis revealed numerous cracks in the pipeline,
which needed to be completely replaced. The replacement was said to
take at least two years
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