Kashagan Reserves Put At 7-9Bn Barrels Of Crude

VOL. XLV

No 27

8-July-2002

CASPIAN

Kashagan Reserves Put At 7-9Bn Barrels Of Crude

Partners in the international consortium working in Kazakstan’s offshore Kashagan oilfield announced on 28 June that the 5,600 sq km area contained 7-9bn barrels of recoverable crude and that drilling conducted so far showed that there were some 38bn barrels of oil-in-place, making this one of the largest crude discoveries in recent decades. Further appraisal work will continue and test production is scheduled to begin in 2005, while commercial production is to get under way in 2006. Some $1.2bn has been invested in the field already, and a further $7bn is expected to be invested during 2003-2006. The consortium, previously known as the Offshore Kazakstan International Operating Company (OKIOC), is led by Eni’s Agip subsidiary in Kazakstan. The group’s name was changed to Agip Kazakstan North Caspian Operating Company NV (Agip KCO) after Agip took over as operator in February last year (MEES, 19 February 2001). The partners restructured the shareholding in the company in mid-June, dividing shares sold by BP and Statoil among themselves (MEES, 24 June). Eni (Agip), BG Group, ExxonMobil, Shell, and TotalFinaElf each hold 16.67% in the consortium, while partners Phillips of the US and Inpex of Japan each hold 8.33%.