Cheap Oil Devalues Offshore Projects
Kazakhstan’s offshore projects are only profitable if the oil price is $ 80-100 per barrel
Offers Below $80 Are Not Accepted!
Sauat Mynbayev,Chairman of the Board of the National Company KazMunayGas stated this spring that the oil production at the largest offshore Kashagan field is feasible only if the minimum corridor in the global prices varies from 80 to 100 dollars per barrel. Though the cracked pipeline prevent the operations, it means that given the current level of prices it would be unprofitable to produce oil. The same concerns the other Caspian projects, which are currently in process of exploration: N, Zhambyl, Pearl (Zhemchuzhina). Mr. Mynbayev, speaking at the first international forum “Kazakhstan Geology Forum, Oil and Gas, 2015” said that N and Zhambyl project participants now take a decision on the future viability of these projects. Two years ago, in August 2013, the Head of the Ministry of Oil & Gas Uzakbai Karabalin declared the successful outcome of exploratory drilling at Zhambyl project.