• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 14 minutes Saudi Fund Wants to Take Tesla Private?
  • 18 minutes California Solar Mandate Based on False Facts
  • 3 hours Starvation, horror in Venezuela
  • 3 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 27 mins Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour Oil prices---Tug of War: Sanctions vs. Trade War
  • 6 hours Why hydrogen economics is does not work
  • 2 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 10 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 9 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 hour Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 15 hours What Turkey Sanctions Are Really About
  • 14 hours Saudi Production Cut or Demand Drop?
  • 12 hours Merkel, Putin to discuss Syria, Ukraine, Nord Stream 2
  • 8 hours Saudi Aramco IPO Seems Unlikely
Saudi Arabia And Iran Reignite The Oil Price War

Saudi Arabia And Iran Reignite The Oil Price War

As U.S. sanctions on Tehran…

What Happens To Syrian Oil Post-Civil War?

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Oil Production Starts At Giant Kashagan Field

Kashagan

Commercial-scale production at Kazakhstan’s giant Kashagan field in the Caspian Sea has started at a daily rate of 90,000 barrels, the country’s Energy Minister Qanat Bozumbaev said. The field is operated by a consortium including Exxon, Shell, Eni, Total, CNPC, and Japan’s Inpex, along with Kazakh state oil company Kazmunaygaz.

Kashagan, the biggest oil discovery in Kazakhstan in about four decades, holds an estimated 38 billion barrels of crude and a trillion cubic meters of natural gas. Of the oil reserves, 10 billion barrels are recoverable.

The field was first put into operation three years ago, but just a month later production was suspended because of a gas leak. An inspection revealed 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.

Kazakhstan is the largest oil producer in Central Asia and ranks 18th in the world, with annual production of 1.72 million barrels per day as of two years ago. This year, however, according to OPEC, production is set for a decline to 1.56 million bpd, from the 2015 daily average of 1.6 million barrels.

The revision comes after in August, Kazakhstan pumped around 1.27 million bpd, down 300,000 bpd from July on the back of scheduled maintenance at the TengizChevroil field, also in the Caspian.

Again according to OPEC, production at Kashagan should reach 370,000 bpd by June next year, and the country’s overall growth in oil production should average 220,000 bpd through the end of 2017.

Kazakhstan is not a member of OPEC, and as such is not taking part in the number-one news item in global energy these days: the freeze agreement that OPEC is discussing with Russia. It’s not as big of a producer as Russia is, but if output at Kashagan rises as OPEC expects, this will be an increase in global production that trumps the 160,000-bpd OPEC rise in August that curbed the upward movement in international oil benchmarks caused by the news about the freeze.

By Irina Slav 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