WSJ: Production at Kashagan oil field halted until at least 2016


Kazakhstan's giant Kashagan oil field will not produce any oil until at least 2016 while workers attempt to complete massive repairs, sources tell WSJ.

The Kashagan partners - which include Eni (E), Total (TOT), Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (XOM) - reportedly have concluded they must entirely replace two 55-mile pipelines before they can restart production at the troubled project.

Production was halted indefinitely in October when the pipeline conveying gas rich in highly corrosive and deadly components to the shore sprung multiple leaks; repair work is difficult in the Caspian Sea area, because ice envelopes facilities in the winter and extreme heat radiates across the field in the summer.

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Comments (5)
  • john001
    , contributor
    Comments (1211) | Send Message
     
    "reportedly have concluded they must entirely replace two 55-mile pipelines before they can restart production at the troubled project." ....sounds like they used non sour service pipe. If that is correct then it begs the question..."did they also use non sour service pipe in the field (casing, production tubing)? Lets hope not, or it will be well past 2016 before production resumes.
    10 Jun 2014, 09:25 AM Reply Like
  • Wim53
    , contributor
    Comments (2) | Send Message
     
    Anyone an idea who of the partners was responsible for the pipelines??
    10 Jun 2014, 09:51 AM Reply Like
  • sgraham005
    , contributor
    Comments (5) | Send Message
     
    ENI
    10 Jun 2014, 11:36 AM Reply Like
  • aeroguy48
    , contributor
    Comments (904) | Send Message
     
    What I understand it was the Kazakhstan government who first was the main operator and they insisted on 'local content' Can you say corruption and cronyism?
    10 Jun 2014, 11:38 AM Reply Like
  • john001
    , contributor
    Comments (1211) | Send Message
     
    aero....you may be right on the C & C issue. But, what about the R - factor, namely partner responsibility to shareholders? They must have known what was going in the ground and, if the steel was of the incorrect specs, they had a responsibility to speak up.
    10 Jun 2014, 01:35 PM Reply Like
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