Kazakhstan, Astana, Oct. 1 /Trend D.Mukhtarov/
The further development of the Kashagan field in Kazakhstan will be discussed at the KazEnergy, VII Eurasian Forum, which will be held in Astana on October 2-3. This was reported to Trend by deputy chairman of administration on corporate development of the KazMunaiGas national oil and gas company.
"The budget of the South Caspian project (Kashagan) is not being discussed anymore. Negotiations will be held on the future conception of project development," Berlibayev said.
He noted that the project is 'close' to extraction of the first oil, the date being set for 2013.
"We, the project participants, have to determine how the project is going to develop after extraction of the first oil. Experience based and industrial exploitation has to settle this question," Berlibayev stated.
He said the participants of the North Caspian Operating Company (NCOC)international consortium which is conducting the project on the Kashagan development, will be able to receive all the necessary data for construction of the project's future development only after an experience based and industrial exploitation of the field takes place.
"We have to consider these results of the project realisation and injection of gas to the reservoir and its effect. After receiving this data, we will be able to plan Kashagan's future development.
The opinion of experts will be considered with a whole section within the KazEnergy forum being dedicated to that issue," Belibayev noted.
Last week Kazakh president Nursultan Nazarbayev held a meeting on the development of the oil and gas complex of the country.
According to the president the future development of the Kashagan field has to be thoroughly researched.
According to the meeting, Nazarbayev gave specific instructions on the settlement of a number of issues in oil and gas field and implementation of the set goals.
The companies, developing Kashagan are planning to start commercial extraction in the first quarter of 2013.
Kashagan is major oil and gas field in Kazakhstan located in the north part of Caspian Sea. According to Kazakh geologists, Kashagan's geological reserves are estimated at 4.8 billion tons of oil. According to the project's operator, total oil reserves amount to 38 billion barrels, or six billion tons, 10 billion barrels from which are extracted. Kashagan holds huge natural gas reserves amounting to more than one trillion cubic meters.
Agreement to the settlement of some issues of the North Caspian project between Kazakhstan and the contracting companies, according to the agreements, the parties approved changes to the plan and budget of Kashanag's development, enabling a commercial profit from December 2012 to June 2013.
The launch dates of Kashagan oil extraction in have been postponed several times. The consortium of foreign companies headed by Italian Eni initially promised to provide commercial extraction in 2008. During discussions of commercial extraction postponement dates, Kazakhstan increased its share in the project from eight to 16.8 per cent and received royalty payments which weren't present in original agreement. Late in June 2008 another memorandum was signed which postponed the dates of commercial extraction at Kashagan field till 2013.
Partner companies on the project are: Eni, KMG Kashagan B.V (the branch of KazMunaiGas), Total and ExxonMobil. Dutch Shell holds 16.81 per cent of the shares, ConocoPhillips- 8.4 per cent and Inpex- 7.65 per cent.