• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 13 hours DUMB IT DOWN-IMPEACHMENT
  • 1 hour POTUS Trump signs the HK Bill
  • 16 hours Greta named Time Magazine "Person of the Year"
  • 8 mins Tories on course to win majority
  • 25 mins americavchina.com
  • 3 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 59 mins Winter Storms Hitting Continental US
  • 11 hours Everything you think you know about economics is WRONG!
  • 21 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 52 mins Aramco Raises $25.6B in World's Biggest IPO
  • 1 day Can Renewable Natural Gas Compete With Diesel?
Canada's Oil Crisis Isn't As Bad As It Seems

Canada's Oil Crisis Isn't As Bad As It Seems

Alberta’s oil industry has faced…

Kashagan Production Ramping Up To 180,000 Bpd

Kashagan oil field

North Caspian Operating Company, the joint venture operating Kazakhstan’s giant Kashagan oil and gas project in the Caspian Sea, said on Friday that it is currently ramping up production at the field to a capacity of 180,000 bpd, following the resumption of output in September last year.

Plans are that Kashagan Phase 1 would reach a production capacity of 370,000 bpd, once associated (sour) gas reinjection is started up and optimized, the company operating the field said. Exxon, Shell, Eni, Total, CNPC, and Japan’s Inpex, along with Kazakh state oil company Kazmunaygaz, are co-venturers in the development of the giant field.

Kashagan was first put into operation in 2013, but just a month later, production was suspended because of a gas leak. An inspection revealed that the whole 200-km stretch of pipelines set to transport oil and gas from Kashagan needed to be replaced because of micro-cracks, the result of high-sulfur associated gas running through them. Commercial-scale production resumed in October 2016 at a rate of 90,000 bpd, at the project which has cost US$50 billion to develop so far.

At the end of last year, the operating company said that it had obtained the approval of Kazakhstan’s government to begin early engineering and design work for further expansion of Phase 1 production at Kashagan. Once the project is completed, it could increase Phase 1 production capacity to a target level of 450,000 bpd.

Related: The Top 5 Places To Work In U.S. Oil And Gas

Increased daily production from Kashagan - thought to contain up to 13 billion barrels of recoverable oil – comes at a time when oversupply concerns continue to persist even after OPEC and non-OPEC producers, including Kazakhstan, have pledged to curtail global supply by a total of 1.8 million bpd in a bid to prop up oil prices.

Kazakhstan’s contribution to the cuts is just 20,000 bpd, and the country’s energy ministry said earlier this week it had already reduced supply by that amount since the beginning of January.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play