Kazakhstan: Kashagan Crude Oil Field Will Remain Intact

Kazakhstan: Kashagan Crude Oil Field Will Remain Intact

Kazakhstan has decided how the country will implement the oil production cut agreement that the non-OPEC countries reached on December 10, reports KazWorld.info with reference to the website EconomicCalendar.com.

According to the deal, Kazakhstan will cut its output to 1.68 million barrels a day and will maintain this level for the next 6 months. In order to meet the deal’s requirements, Kazakhstan will lower production volumes at several minor fields, while major projects of Tengiz, Karachaganak and Kashagan will not be touched by the cutbacks.

Kazakhstan’s hope for the future – the Kashagan offshore oil field, was relaunched in October 2016 following several years of delays due to the high sulphur content in associated gas that was corroding the pipeline that connected the field with the onshore terminal. By November 1, output at Kashagan stood at 75,000 barrels per day and was 100,000-120,000 barrels per day by the end of the month.

The overall costs of the Kashagan project amount to $5 billion.

Kazakhstan expects the field to be the driving force behind the country’s goal of entering the world’s top ten crude oil exporting countries. Kazakhstan is also actively investing in modernization of the country’s crude oil refining plants to bring gasoline and diesel production up to speed with its domestic demand, something that Kazakhstan has been struggling with since attaining independence from the USSR in 1991.