• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 8 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 5 hours Socialists want to exorcise the O&G demon by 2030
  • 39 mins Russian Message: Oil Price War With U.S. Would Be Too Costly
  • 10 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 23 hours Cheermongering about O&G in 2019
  • 1 day Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 15 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 23 mins Oil CEOs See Market Rebalancing as Outlook Blurred by China Risk
  • 2 days North Sea Rocks Could Store Months Of Renewable Energy
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 5 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
Hitachi Halts Nuclear Megaproject In The UK

Hitachi Halts Nuclear Megaproject In The UK

In what could be another…

What’s Driving Oil Prices Down?

What’s Driving Oil Prices Down?

Oil prices slipped on Tuesday…

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