Oil prices on the rise joining the positive movement on equities markets despite a new forecast from producing countries for 2017.
The project is likely to be regarded as ad addition to the current economic growth model that has been recently shaped: S&P’s Associate Director Karen Vartapetov.
Kashagan oil project in the Caspian offshore will be economically viable with oil rices standing at $100 per barrel, a Tengrinews.kz journalist reported earlier, citing Sauat Mynbayev, KazMunaiGas Chairman of the Board.
KazMunayGas JCS (KMG) is selling 50% of the company’s share in Kashagan to the National Welfare Fund Samruk-Kazyna of Kazakhstan for almost $4.7 billion.
Commercial production at Kashagan started September 11, 2013. However, it was suspended 2 weeks later due to a gas leakage. The production process was resumed shortly. However, another leakage was detected in October.
President Nursultan Nazarbayev believes Kazakhstan has enough oil even without Kashagan oil field at the Caspian sea.
Kazakhstan’s President Nursultan Nazarbayev has met with the CEO of French oil giant Total Patrick Pouyanne on Tuesday, April 14.
Standard & Poor’s has lowered Kazakhstan long-term ratings over dwindling revenues of the oil-rich country amid the global oil turbulence.
Both Tengiz and Karachaganak oilfields are effective projects, with the break even point being much lower that of Kashagan: Sauat Mynbayev, KazMunaiGas Chairman of the Board.
Production at Kashagan field remains halted for an unspecified time; the need to replace pipes threatens the future of the oil project.
The falling oil prices put the entire Kashagan project in question. Kashagan is a huge oil field located in Kazakhstan's sector of the Caspian Sea.
According to the Energy Minister, of today the project subcontractors have purchased around 45 kilometers of pipelines.
Tragic death of the CEO of French oil giant Total Christophe de Margerie will not affect the development of Kashagan field in Kazakhstan.
The cost of Kashagan project is estimated to rise by another $4 billion, Financial Times reports.
Last year we planned this year’s crude production output would make up 83 million tons. We plan the figure to make up 81.8 million tons, with exports standing at 54 million tons: Finance Minister Bakhyt Sultanov.
According to him, at Kashagan both the oil and gas pipes have to be fully changed. 200 km of pipes have to be purchased to replace the damaged pipes.
Kashagan will be developed by a consolidated joint venture company.
700 percent is the estimated increase in the original cost of the Kashagan oil field project after the complete replacement of its pipelines.
Kazakh Minister of Economy and Budget Planning Yerbolat Dossayev said that the ongoing crisis in Ukraine and the slowdown of the Russian economy posed risks to the Kazakhstan economy.
Dozens of workers launched the campaign to demand the salaries owed to them since December 2013.
- Standard & Poor's
- Samruk Kazyna
- Caspian Sea
- Nursultan Nazarbayev
- Central Asia
- National Bank