Kashagan oil field seen unlikely to restart this summer

|By:, SA News Editor

Production at the giant Kashagan oil field in Kazakhstan is unlikely to restart this summer, as the companies involved in the consortium running the project are still awaiting a report on a gas leak that closed the field last October, WSJ reports.

Resuming output is important, so the companies - which include Exxon (XOM), Shell (RDS.A, RDS.B), Total (TOT) and Eni (E) - can start generating revenue to recoup some of the $50B they have spent on Kashagan over the last 17 years.

It may be even more critical for the Kazakh government, which had based its economic forecasts on revenue from Kashagan, where output was expected to ramp up to 370K bbl/day from 180K bbl/day initially.