Kazakhstan, Astana, April 6 /Trend, A.Maratov/
Kashagan full-field development phase II project in Kazakhstan's sector of the Caspian Sea is postponed for more three years, a source close to oil and gas circles said Tuesday, having confirmed the information spread by the British Telegraph.
The newspaper writes that Kazakhstan is planning a three-year halt to work on the main phase of the super-giant Kashagan oil field development, as international oil companies Royal Dutch Shell and Exxon Mobil fight to convince the country's oil ministry to back a simplified design, which would slash costs by $18 billion to $50 billion.
The North Caspian Operating Company (NCOC) developing the world's largest oil-field -- Kashagan - is considering various different projects, which are aimed at maximizing economic efficiency, the company told Trend. The company commented on media reports about delays in the second stage of the Kashagan project. "The work on the Reference Design of the Kashagan Phase-2 was launched in 2009. A thorough analysis of various design decisions was initiated parallel [to the project's initiation]," the company reported.
The company stressed that "the analysis, under the guidance of NCOC and support by Shell Development Kashagan (SHDK) as the company's agent, was requested in an attempt to maximize the economic efficiency of Phase-2, as well as to determine how to achieve long-term benefits for Kazakhstan and the Consortium members.
"Following completion of the analysis by the end of 2011, the chosen design solution will be presented for approval by the shareholders and authorities. If the project is approved, work on the Reference Design of the Kashagan Phase-2 will continue to determine the costs, timing and final design solutions," the company reported.
The concept of the second phase of the Kashagan project will be presented to the consideration of the consortium in late 2011. As previously reported, the timing of the second phase development of the Kashagan field will be postponed to 2018-2019. The beginning of the commercial production from the field was repeatedly postponed, the last time it was postponed to the end of 2012.
North-Caspian project is implemented under a production sharing agreement on the North Caspian Sea, signed Nov. 18, 1997, and includes the fields of Kashagan, Kairan, Aktoty, Kalamkas. Kashagan field is one of the largest fields in the world opened in the last 30 years with geological oil reserves of 4.8 billion tons.
North Caspian Operating Company BV (NCOC) is the only operator of the North-Caspian project. Shareholders to NCOC are Agip Caspian Sea BV (16.81%), KMG Kashagan B.V. (16.81%), Conocophillips North Caspian Ltd. (8.40%), ExxonMobil Kazakhstan Inc. (16.81%), Inpex North Caspian Sea Ltd. (7.56%), Shell Kazakhstan Development B.V. (16.81%) and Total E&P Kazakhstan (16.81%).