Kashagan oil to go online in 2013, sources say

August 10. Universal Newswires

Kashagan oil to go online in 2013, sources sayOil from Kazakhstan’s Kashagan deposit is slated to go on the market by the middle of next year, local media reported on Friday.

Exports from the Kashagan deposit – among the largest in the world – are expected to begin in the second quarter of 2013.

Oil will be delivered to ports on the Black Sea via Russia, the Reuters news agency reported.

State-run shipping firm Kazmortransflot is in negotiations to deliver the oil.

“Kazmortransflot is in discussion over a contract to ship oil from Kashagan in 2013…We are talking about 1-3 million tonnes [1.1 – 3.3 million tons] out of the overall output of 3-7 million tonnes [3.3 – 7.7 million tons]”, Reuters reported a shipping source as saying.

The consortium running the Kashagan enterprise includes Total, Agip, ExxonMobil, Shell, and KazMunaiGas (KMG) with each holding 16.81 percent stakes in the project. ConocoPhillips holds an 8.4 percent stake while Japan’s Inpex Holdings has 7.56 percent.

Development of the Kashagan field has been delayed due to an ongoing tax resolution issue between the Kazakh government and investors in the deposit.

Consortium partners agreed in May of this year to pay $986 million to the Kazakh government, which will be used for KMG to develop the supergiant field this year and next.