Kashagan revenues come on stream with 2017 production set to double

After years of delay, Kazakhstan’s giant Kashagan oil field  is finally delivering on its promise, with  production levels set to double from 180,000 to 370,000 barrels a day, netting the Samruk-Kazyna National Fund and KazMunaiGas $180m in cashflow between them, according to the gas company’s Finance Director Dauren Karabayev.
Developed by the North Caspian Operating Company (NCOC) consortium that also includes Exxon, Shell, Eni, Total, CNPC and Japan’s Inpex, the $50bn Kashagan field first began operations back in 2013, but production had to be suspended barely a month later due to a gas leak.
A subsequent  inspection revealed that the whole 200-km stretch of pipeline that had been laid  to transport oil and gas to shore was riddled with micro-cracks caused by the high sulfur content in the field’s gas and needed to be replaced at an estimated  cost of between $1.6bn and $3.6bn. Full-scale production resumed in October 2016 at a rate of 90,000 bpd.
A total of 8.9m  tons of oil and 5.6bcm of gas are expected to be pumped from the field in 2017, rising  to 13m tons and 9bcm in subsequent years.

Source: TREND