Kashagan to Meet Deadline for First Oil, Kazakh President Says

Sep 19. Bloomberg

By Nariman Gizitdinov

Kashagan to Meet Deadline for First Oil, Kazakh President SaysKazakh President Nursultan Nazarbayev said the first oil at the Eni SpA-led Kashagan offshore oil deposit will be produced on time, followed by expansion, Kazinform reported.

“We are on the eve of the first oil production in the end of 2012,” the state-run news service said, citing Nazarbayev on Sept. 16 during a visit to the artificial D island, built to help produce oil at Kashagan in the Caspian Sea.

Kashagan output will increase to 75 million metric tons of oil a year by 2018 or 2019, from a planned 50 million tons a year in the first phase, Nazarbayev said, according to the report. That will help turn Kazakhstan into one of the world’s five largest oil exporters, Kazinform said.

The Kashagan partners have invested $33 billion in the development of Caspian Sea oil deposit, Kazinform said.

Eni, Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp. (XOM) and Total SA (FP) each hold a 16.8 percent stake in the field, as does KazMunaiGaz National Co., the Kazakh state energy company, according to the website of the North Caspian Operating Co. venture. ConocoPhillips (COP) holds 8.4 percent and Japan’s Inpex Corp. (1605) has 7.56 percent.