Kashagan production pushed back to June 2013
March 05. Universal Newswires
Production at giant Kazakh oilfield Kashagan has been pushed back from March 2013 to June 2013, the Italian energy firm Eni said on Tuesday.
Eni subsidiary Agip KCO is responsible for the execution of Kashagan’s first phase of development. Eni holds 16.81 percent shares in the oilfield, as do Total, ExxonMobil, Shell, and KazMunaiGas (KMG).
No specific reason has been given for the holdup.
“There are certain issues to be addressed,” Kazakh state media reported Agip KCO Managing Director Umberto Carrara as saying.
“But the company is making every effort to fulfill this condition.”
Production has been delayed on the Caspian field for eight years. Production was initially supposed to begin in 2008, but was then delayed to 2011.
The latest delay is thought to be due to difficult weather conditions.
Energy analyst Andrew Neff, from IHS Energy, told the Kazakh business portal Kursiv.kz that he believes the March estimate was too optimistic.
He also thinks the decision will have an impact on Kazakhstan’s decision over whether to allow Indian energy firm ONGC Videsh to acquire ConocoPhillips’ 8.4 percent share in the field.
“I’m willing to bet that this also means that the Kazakh government will postpone any decision to acquire Conoco shares until the end of June,” Neff said.