Foreign direct investments are expected to slightly diminish in 2011 due to reduced investments into development of the giant Kashagan oilfield, Novosti Kazakhstan quoted Minister of Industry and Trade Asset Issekeshev as saying at the government sitting October 3.
Issekeshev noted that “from 2007 to 2009 amidst the global economic crisis Kazakhstan attracted record high volume of foreign direct investments, notably to development of Kashagan oilfield”.
The Minister didn’t specify how much the investments inflow will get reduced.
At the same time, according to him, “foreign investments into the processing sector are growing”.
The Kashagan field, named after a 19th century Kazakh poet from Mangistau, is located in the Kazakhstan sector of the Caspian Sea and extends over a surface area of approximately 75 kilometers by 45 kilometers. The reservoir lies some 4,200 meters below the shallow waters of the northern part of the Caspian Sea and is highly pressured (770 bar of initial pressure). The crude oil that it contains has high ‘sour gas’ content.
The development of Kashagan, in the harsh offshore environment of the northern part of the Caspian Sea, represents a unique combination of technical and supply chain complexity. The combined safety, engineering, logistical and environmental challenges make it one of the largest and most complex industrial projects currently being developed anywhere in the world.
According to Kazakhstan geologists, geological reserves of Kashagan are estimated at 4.8 billion tons of oil. According to the project’s operator, the oilfield’s reserves are estimated at 38 billion barrels, with 10 billion barrels being recoverable. Besides, natural gas reserves are estimated at over 1 trillion cubic metres.
The consortium developing the field comprises Eni, Shell, ExxonMobil, Total and KazMunaiGaz (all with a 16.81% stake) as well as ConocoPhillips (8.4%) and Japan's Inpex (7.56%).
During the talks May 18 with Kazakhstan’s President Nursultan Nazarbayev, Paolo Scaroni, Eni Chief Executive Officer and General Manager, promised that “the first oil is expected in December 2012 or two-three months later than that”.