News 2014October, 2014
All the expenses for the resumption of oil production at Kashagan field will be carried by the Contractor, informs Uzakbai Karabalin, First Deputy Minister of Energy of the RoK while visiting Atyrau.
"All the costs are not recoverable, related to the resumed production, including the replacement of almost 200 km long pipelines, from Kashagan field to the shore. The Contractor shall finance these works from own capital. It comes from the sanctions under Kashagan PSA, stipulated for the party, breaking the terms of commercial oil production. If after October 1, 2013, the Contractor fails to ensure the commercial production, further, all the works to achieve the commercial production will become the non-recoverable costs. Therefore, all the works in progress are non-recoverable", - as Mr.Karabalin shared with the correspondent of Kazinform.