Kashagan oil field won't restart output before next year

Oil production at the giant Kashagan field in Kazakhstan, halted since mid-October because of a dangerous gas leak, won't resume before next year, WSJ reports.

The prolonged stoppage is another setback for the NCOC consortium, which has invested ~$40B over more than a decade to develop one of the largest hydrocarbon discoveries of the last 30 years.

Ramping up production to 370K bbl/day in 2015 and eventually to 1.5M bbl/day is crucial for some members of the consortium, such as Total (TOT), which is relying on Kashagan to help offset output declines in other parts of the world.

In addition to TOT, the consortium includes Kazakhstan's KazMunaigas, Exxon Mobil (XOM), Royal Dutch Shell (RDS.A, [RDS.B]]) and Eni (E), which each hold a 16.81% interest; Japan's Inpex owns a 7.56% stake, and China National Petroleum (PTR) recently acquired an 8.33% tranche from ConocoPhillips.

From other sites
Comments (3)
  • Michael Fitzsimmons
    , contributor
    Comments (11183) | Send Message
    Makes COP's decision to bail look wise in retrospect. That said, Kashagan is a huge field so once they get it right, it will be online for decades.
    8 Nov 2013, 08:15 AM Reply Like
  • theparadigm
    , contributor
    Comments (46) | Send Message
    Yes, it's a huge field but faced with many technical-limit challenges, a fractured, poorly-aligned multi-national operatorship, and an unreasonable time-line that was sure to fail.
    8 Nov 2013, 09:30 AM Reply Like
  • john001
    , contributor
    Comments (1214) | Send Message
    I would be interested in knowing what was the cause of the H2S gas leak. Are there potential production issues that weren't accounted for in developing this sour oil reservoir that contains about 18 per cent corrosive H2S sour gas?


    8 Nov 2013, 12:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs