Kashagan operators consider way to restart oil production

|By:, SA News Editor

Operators of Kazakhstan's huge Kashagan oil field reportedly are considering a temporary solution to resume output, halted indefinitely since mid-October after a series of dangerous gas leaks.

Exxon Mobil (XOM), Shell (RDS.A, RDS.B) and other members of the NCOC consortium are looking into a makeshift solution that would involve re-injecting the gas into the ground; although it could take several months to install the necessary compressors at the $50B project, the plan would help NCOC to minimize revenue losses while figuring out a permanent solution.

The consortium had planned to rely on gas re-injection - often used in the industry to manage pressure inside underground reservoirs and enhance oil recovery - only in a later stage of the Kashagan project.