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Giant Kashagan oil field starts pumping

  • The giant Kashagan oil field in Kazakhstan begins pumping its first oil, marking the end of nearly a decade of delays and cost overruns that have pushed the cost up to more than $40B.
  • Eni (E) says the field would grow up to a peak of 180K bbl/day in the first phase, then steadily grow up to 370K bbl/day.
  • Kazakh state energy company KazMunaiGaz, Eni, ExxonMobil (XOM), Royal Dutch Shell (RDS.A, RDS.B) and Total (TOT) each hold 16.8% stakes.
  • Kashagan and neighboring fields in the North Caspian Sea hold estimated reserves of ~35B barrels of oil in place.
Comments (4)
  • Michael Fitzsimmons
    , contributor
    Comments (8085) | Send Message
     
    Correction: China now holds COP's former 8.4 stake%:

     

    http://seekingalpha.co...

     

    Which reduces the Kazakh position also to 8.4%.
    11 Sep 2013, 08:30 AM Reply Like
  • TKEnergy
    , contributor
    Comment (1) | Send Message
     
    Hi Michael do you know who operate this filed
    11 Sep 2013, 10:23 AM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (8085) | Send Message
     
    Eni was named operator in 2001 but then it changed in 2009 to North Caspian Operating Company BV (NCOC) which appears to be operatorship by committee. It's complicated and the cost overruns produced some tension. More background here:

     

    http://seekingalpha.co...
    11 Sep 2013, 11:32 AM Reply Like
  • User 353732
    , contributor
    Comments (4787) | Send Message
     
    It took the EagleFord field less than four years to exceed 370k bbl/day and less than 5 years to cross 500k bbl/day with production still expanding rapidly and the Buda below the EagleFord turning into another potentially massive stack.

     

    In terms of geo strategic significance Kashagan, once very impressive, is now eclipsed by the EagleFord.
    11 Sep 2013, 12:30 PM Reply Like
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