Kazakhstan is planning a three-year halt to work on the main phase of the super-giant Kashagan oil field development, as international oil companies Royal Dutch Shell and Exxon Mobil fight to convince the country’s oil ministry to back a simplified design, which would slash costs by $18bn (£11bn) to $50bn.
The Kazakhs are considering shelving the new simplified design, and keeping the field producing at its initial rate of 375,000 barrels per day (bpd) for at least three years. Photo: Getty
By Richard Orange, in Astana 11:30PM BST 04 Apr 2011
The delay, if approved, could push the start of full production from the field well into the next decade, making it all but impossible for Shell and its partners to make an acceptable profit before the contract expires in 2037.
The Kazakhs are considering shelving the new simplified design, and keeping the field producing at its initial rate of 375,000 barrels per day (bpd) for at least three years, after which the NCOC consortium could use a greater understanding of the geology to produce a better design for the second phase, when production is expected to hit 1.5m bpd. read more
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