Commercial production begins at Kashagan field
On December 7, in Atyrau with the participation of the President of Kazakhstan Nursultan Nazarbayev the official launch of Kashagan was carried out, one of the largest oil fields in the world and the first offshore field in Kazakhstan.
On November 1, 2016, the production at Kashagan has reached the commercial level - 75 thousand barrels of oil per day. Currently the works are carried out aimed at increase of production level and its stabilization at the level of 180 thous. barrels per day. Before the end of 2016 it is planned to produce 1 mln tons of oils and 680 mln m3 of gas, in 2017 - 8.9 mln tons of oil and 5.6 bln m3 of gas. In subsequent years it is planned to increase production to 13 million tons of oil and 9 billion m3 of gas per year.
At the presentation of the project in Atyrau, the President of Kazakhstan Nursultan Nazarbayev congratulated oil workers with the long-awaited launch of the field. “Today, on behalf of Kazakhstan, on behalf of Consortium, from all oil workers announce that begins the operation of one of the world’s largest oil and gas fields - Kashagan, for that reason I would like to congratulate all people of Kazakhstan and all of you”, said the President.
The authorities of Kazakhstan put high hopes on the field and its contribution to the country’s economy. So, in an interview to Bloomberg, Nursultan Nazarbayev said that with the introduction of Kashagan the Republic will enter the top 10 countries with largest oil and gas reserves. "We are going to produce and export from 80 to 120 million tons of oil”, the President noted.
Already before the end of the year, the Government may get first profit from the sale of its share of Kashagan oil. “First oil, the share of Kazakhstan, we will sell this year. PSA (PSA LLP serves as an authoritative body in production sharing agreements for the North Caspian Project - IF-K), I hope, will sell the first batch of oil, and immediately there will be a deposit to the National Fund”, told the Minister of Energy Kanat Bozumbayev.
According to the Minister, with the oil price $50 per barrel, the taxes alone from Kashagan oil will give Kazakhstan more than $20 billion before the PSA expires, perhaps up to $25 billion. If the price of oil will rise to $70 per barrel, the amount of tax deductions will increase to $46 -47 billion.
The President of Kazakhstan Nursultan Nazarbayev said in Atyrau that for 20 years over $60 billion has been invested into the project. “Since 1997, when we established the Consortium, 20 years already have passed. Building artificial islands, laying pipes, providing adequate quality - it was all very complicated”, he said, speaking in Atyrau. The geology and technology of this field is very complicated, the President added. "When we received the first oil, we have faced some unforeseen circumstances. This, of course, disappointed us, but, nevertheless, we all understand that this is a very challenging project”, the President said. Nursultan Nazarbayev said that Kazakhstan will continue to cooperate closely with the investors of the Kashagan project. «We cooperate fruitfully, and will continue to work with you for the benefit of you and us», said the Head of State.
Thanks to the development of Kashagan, a national maritime service infrastructure that meets international standards was created:
Ersai plants are built that manufacture large steel structures (Kuryk village) and Caspian Offshore and Marine Construction (Aktau seaport); shipyard in Bautino village;
marine support base is created (Bautino village), as well as oil spills respond base and other objects.