Caspian pipeline expansion running up to a year late


A major expansion of the first private pipeline in the former Soviet Union is running up to one year behind schedule, Reuters reports, complicating oil exports from the Caspian Sea region.

Russian pipeline monopoly Transneft is a major shareholder in the pipeline alongside Kazakhstan's state pipeline firm and Chevron (CVX).

Oil majors such as Eni (E), Shell (RDS.A, RDS.B), Exxon (XOM) and Total (TOT) are preparing to launch the huge Kashagan field in Kazakhstan and hope to obtain access to as many export routes as they can.

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Comments (3)
  • Dividend Garden
    , contributor
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    The article doesn't really say why the expansion is behind schedule or what they are doing to address it. It did mention that they are meeting next week to discuss it. Hopefully, they will provide an update with more substance.
    10 Sep 2013, 12:49 PM Reply Like
  • FreeStateYank
    , contributor
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    DG, one issue I read about, is that each partner took a time heading up the project. When Eni's turn came up... they dropped the ball, big time. So much so, iirc, one of the others, perhaps RDX, XOM, CVX [?] took over. It was quite unfortunate as the time slot Eni drew was quite critical as it was the buildout phase.

     

    Hope this helps.
    11 Sep 2013, 12:41 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (488) | Send Message
     
    Thanks ,FreeStateYank. Why would they rotate who is managing the project? That seems like there is so much room for error. In any kind of project management, the biggest opportunity for error is where things are manually handed over from one system/person to another.
    11 Sep 2013, 01:22 PM Reply Like
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