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07 января 2015 01:43
Pipeline havoc at Kashagan: no losses for Kazakhstan, no refund for NCOC
Kashagan is an gigantic oil and gas field located in Kazakhstan’s section of the Caspian Sea and is one of the largest and most complex hydrocarbon development projects in the world.
Commercial production at Kashagan was supposed to kick off and start brining profit to Kazakhstan more than a year ago but gas leakages were discovered shortly after the long-delayed pilot start in September 2013, and the production was suspended. It was later concluded that all the pipes at the field needed replacement. According to preliminary estimates, the replacement of the entire pipeline will cost as much as $3 billion.
The field is developed by an international consortium of oil majors under a Production Sharing Agreement (PSA) with Kazakhstan. According to its terms Kazakhstan will not reimburse the costs associated with resumption of the production at the field, Tengrinews reports citing Ak Zhaik.
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