Astana, Kazakhstan, June 4
By Daniar Mukhtarov - Trend:
Kazakhstan is working to increase oil production at other fields in order to compensate losses from the idle Kashagan field, according to Kazakh Economy and Budget Planning Minister, Yerbolat Dossayev.
Dossayev made the remarks at a plenary session of the Kazak parliament's lower chamber (Majilis).
The minister said that today, Kazakh Oil and Gas Ministry, jointly with the national company KazMunaiGas, is seeking additional sources to increase production at other fields, in order to compensate the volume loss at the Kashagan field due to the problems, that are being handled by the consortium that operates this field.
Dossayev stressed that no revenues from Kashagan project are envisaged to go to the budget, as all proceeds were to be sent to the National Fund of Kazakhstan.
Addressing the deputies of the Kazakh parliament's lower chamber Dossayev said, "Therefore, we have two forms of relations as part of our cooperation with the National Fund: these include the issue of guaranteed annual transfer approved by you here and coordinated by us with the president, and also the issue of resource transfers."
Dossayev went on to add that 150 billion tenges (183.49 tenge = $1) were allocated to develop and realize the infrastructure projects, and so, no additional revenues from Kashagan project have been planned.
The production volume under the project, which was provided in Kazakhstan's socio-economic development outlook for 2015, stood at 2.4 million tons of crude oil, and it affects the growth of GDP, according to the minister.
The reserves of the Kashagan field are estimated at 35 billion barrels of oil, some 11 billion of which are considered recoverable.
Oil production at Kashagan started on September 11, 2013, but in October it was suspended due to a gas leak on one of the main pipelines.
NCOC consortium, which develops Kashagan field, earlier said the production at the field is not expected to be resumed in 2014.
The consortium's shareholders are Eni, Royal Dutch Shell, Exxon Mobil, Total, KazMunaiGas, CNPC and Inpex.
Edited by S.I.
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