Kashagan Oil Output To Average 150,000 Bpd In 2017 -WoodMac

Kazakhstan Seeks New Deal To Develop Delayed Kashagan Field

Production from the giant Kashagan oilfield in Kazakhstan is expected to average more than 150,000 barrels per day in 2017 and 230,000 bpd in 2018, according to consultancy Wood Mackenzie

Within 18 months of restart, it will already be Kazakhstan’s second largest oil producer after Tengiz, it said

“Kashagan full-cycle economics will remain negative, owing to the time passed since discovery in 2000 and the sheer scale of cost overruns,” WoodMac said

“However, despite the current oil price, the PSC (production sharing contract) will soon generate material cash flow for key partners – Eni, Total, Shell and ExxonMobil – as they start to recover investment to date of about $55 billion.”

The field started test pumping last month and its output is expected to reach about 75,000 bpd by late October

The Kashagan consortium comprises China National Petroleum Corp, Exxon Mobil, Eni, Royal Dutch Shell, Total, Inpex and KazMunaiGas (Reporting by Ron Bousso)