The kashagan oil field

Essay by adriano1691 November 2014

download word file, 17 pages 0.0

Downloaded 2 times
Keywords

KASHAGAN An Offshore Oil Field Project in Kazakhstan

wais anwari wais.anwari@gmail.com

Abstract International Oil and Gas Markets provided by Olga Garanina

Content

1. Introduction ............................................................................................................................ 1

1.1 Key Field/Project indicators .................................................................................................. 1

2. Project Overview ..................................................................................................................... 2

2.1 The Project ............................................................................................................................. 2

2.2 Project Development and Sponsors ..................................................................................... 4

2.3 Kashagan North Caspian Production Sharing Agreement (PSA) ......................................... 5

3. Role of the Field for Regional oil/gas Supplies and for the companies ..................................... 6

4. Project Risks and Solutions ...................................................................................................... 9

5. Conclusion ............................................................................................................................. 11

6. Appendix ............................................................................................................................... 12

7. Bibliography .......................................................................................................................... 14

Map of the Caucasus and Central Asia

Source: Source: http://www.lib.utexas.edu/maps/commonwealth/caucasus_cntrl_asia_pol_2003.jpg, accessed

October 29, 2011

Kashagan Oil Field Project Wais Anwari

1

1. Introduction

Kashagan field refers to an offshore oil field in Kazakhstan's zone of the Caspian Sea.

The field, discovered in 2000, is located in the northern part of the Caspian Sea close

to Atyrau and is considered the world's largest discovery in the last 30 years. It is estimated

that the Kashagan Field has recoverable reserves of about 13 billion barrels of crude oil. Harsh

conditions, including sea ice during the winter, temperature variation from −35 to 40 °C,

extremely shallow water and high levels of hydrogen sulfide, project delays together with

mismanagement and disputes, make it one of the most challenging oil megaprojects. Although

the Kashagan oil field was supposed to be completed and pumping oil by 2005, it was still under

construction in early 2007. In July 2007, one of the project sponsors Eni (the Italian energy

company) confirmed the rumors that the production would not start until late 2010, and there

was going to be a significant cost increase from $10b tot $19b for the first phase of the project,

and from $57b to as much as $136 billion for the total...