Kazakhstan consortium achieves first oil production from. Kashagan oil field development project in the north of the caspian sea manmade islands, kazakhstan enka and jv partner bechtel were awarded several contracts, beginning in. The giant kazakhstani oilfield, kashagan, is one of the worlds biggest oil finds and the biggest oil discovery of recent times 1. An aerial view shows the artificial islands at the kashagan offshore oil field in the caspian sea in western kazakhstan october 16. The kashagan field in kazakhstan covers 1,034 square miles and is located at a depth of four to six meters.
The kashagan consortium will have to buy pipes adding up to a total length of 200 km 125 miles to replace the entire network of the fields oil and gas pipelines, the ministry added. Kashagan, offshore of kazakhstan, produces oil and gas and is one of the biggest fields we have discovered in the past 40 years, with reserves of 35 billion barrels of oil on site. Rising kashagan output weighs on kazakhstans cpc oil. Kashagan is probably the largest oil field outside the middle east and the fifth largest in terms of reserves, and may account for onethird of kazakhstans current oil reserves. Kashagan may start pumping oil over the next year or so and quickly achieve a sustained output over the following year, the cost of producing oil in the field continues to agitate market watchers. For your convenience, we publish a condensed version of that report outlining the said issues with. Kashagan oil field project why has the global kashagan oil field project gone over budget and how could the situation been prevented. The case of an offshore field development in kazakhstan.
Kashagan is crucial for the future oil and gas output of kazakhstan, but represents one of the most complicated oil field developments to date. Kazakhstans kashagan oil field increases production rogtec. Sulphide stress corrosion was identified as the cause of the leaks. This report is about the story of kashagan and offshore oil development in kazakhstan. With the start of the project being delayed for years now the start date has been moved to 2016 due to several environment, legal, and investment. Kashagan oil field seen by total producing 2017 at latest.
May 17, 2017 in april 2017, crude accountability presented the report, the kashagan oil bubble. The field, discovered in 2000, is located in the northern part of the caspian sea close to atyrau and is considered the worlds largest discovery in the last 30 years, combined with the tengiz field it is estimated that the kashagan field has. The reservoir is saturated by overpressured light oil, and the development is. Kashagan field is an offshore oil field discovered in the kazakhstan sector of the caspian sea in 2000. Most notably, the endangered sturgeon migrate through this area to their spawning grounds, the endangered caspian seals whelping grounds are found here, and numerous bird species migrate through this area. Pdf case study of the kashagan oil field project vlad ilie. The worlds largest offshore oil field is back in action. Kashagan worlds most important new field delayed by dolanbaker. The kashagan field is estimated to contain 35 bbo in place, of which 10 bb is recoverable oil, using gas reinjection. My experience is the tendency these days in big projects is to not over engineer facilities i. Kashagan oil field development friends of the earth europe.
The first production from the field was achieved in september 20. Kashagan and tengiz castor and pollux daniel johnston and david johnston adapted from petromin magazine 15 december, 2001. Introduction the kashagan oil field is located in the northern caspian sea, western kazakhstan fig. Kashagan and tengiz are the two largest fields in kazakhstantheir oil reserves alone rival the united states 22 billion barrels of oil, yet they have hardly. Akhil prabhakar subrat sundarayabhinav singh sunita mohapatraankit khaitan tanmay biswas. The field is situated in the northern part of the caspian sea close to the city of atyrau, offshore in 10 22 feet. Northcaspian regionshowing kashaganand adjoining oilfields 3. Agip kco, a local subsidiary, is responsible for developing. Oil and gas exports from central asia should bypass russia.
Evaluation of saltsection and interpretation of wells in the. The kashagan oil field is located within a protected territorythe shallow nature reserve zone of the north caspian sea. The recently announced super giant kashagan discovery in the kazakhstan sector of the north caspian sea is the worlds largest discovery in three decades. The field, discovered in 2000, is located in the northern part of the caspian sea close to atyrau and is considered the worlds largest discovery in the last 30 years, combined with the tengiz field. The field, discovered in 2000, is located in the northern part of the caspian sea close to atyrau and is considered the worlds largest discovery in the last 30 years, comb. Problems mount at kashagan oil field by james burgess apr 02, 2014, 5. Kashagan field is a carboniferous isolated platform complex that features a structurally elevated margin 100200 m higher than the platform interior.
The consortium planned to produce 180,000bpd of oil from kashagan by the end of 20, which was expected to rise up to 370,000bpd upon completion of the second phase, but production has since been suspended due to the replacement of pipeline. Without much international fanfare, the worlds largest offshore oil field and the largest discovered in the last 40 years, kazakhstans kashagan field, is on the verge of finally moving. Karachaganak field, but it is at a lessadvanced stage of planning. Kazakhstans kashagan field is increasing production, it is likely that the cpc alone will not be able to handle this extra volume. Kashagan offshore oil field offshore technology oil. Geological survey world energy assessment team, 2000. Kashagan is the most important field in the 11 blocks falling under the north caspian sea. As many of the production group members are also part of the caspian pipeline consortium cpc and have rights along the pipeline of the same name, the cpc may be the likeliest. Kashagan oil field and the consortium that has been developing it since 1997. The kashagan oil field is located under the sea approximately 80 km southeast of the town of atyrau. Pdf the kashagan field is a huge carbonate formation located 4.
Dec 15, 2012 field statistics worlds largest oil field discovered in the past three decades. Because kashagan is located in the northern section of the landlocked caspian sea, bringing oil from the field to market also presents significant logistical hurdles. Petroleum geology and resources of the north caspian basin. With the start of the project being delayed for years now the start date has been moved to 2016 due to several environment, legal, and investmentassociated complications, it is also the worlds most expensive standalone project 2. Daily oil production at the kashagan offshore field in kazakhstans atyrau region has increased, said antonia vella, chief operational director of eni at the meeting with the head of atyrau region nurlan nogayev, kazakh media outlets reported. Jun 08, 2017 rising kashagan output weighs on kazakhstans cpc oil price. May, 20 kashagan oil field analysis of geology, geophysics and petroleum system 1. Enka kashagan oil field development project 01 youtube. Origin of the raised rim in the kashagan buildup, kazakhstan. The second section examines the specifics of the existing production sharing agreements and the key domestic legislative. Akhil prabhakar subrat sundarayabhinav singh sunita mohapatraankit khaitan tanmay biswas 2. The giant field covers an area of 75 km x 45 km and it is currently estimated that the field holds up to 38 billion barrels of oilinplace, of which 9 billion are potentially recoverable. The production had to be, however, halted for a few weeks as gas leaks were detected from a pipeline connecting the field to the onshore processing facility. The shallow water offshore development consists of 35 drilling centers, five processing trains, two offshore processing hubs, three offshore gas plants, an onshore terminal comprising multiple oil trains and gas sweetening plants for fuel gas, 1,000.
Kashagan pipeline replacement project bonatti projects. Discovered in july, 2000 its considered to be the largest field of kazhakhastan. In april 2017, crude accountability presented the report, the kashagan oil bubble. Evaluation of saltsection and interpretation of wells in. Sovereign kazakhstan has become hostage to its oil sector and can face serious economic loss and an environmental disaster in the region by developing an oilfield as challenging as kashagan. Kashaganoil fielddevelopment kazakhstan introduction 3 1 executivesummary 4 2 politicalandeconomiccontext 5 3 kashaganoilfield 6 fielddescription 6. The kashagan field, the largest known oil field outside the middle east and the fifth largest in the world in terms of reserves, is located off the northern shore of the caspian sea near the city of atyrau, kazakhstan. Enka kashagan oil field development project 03 youtube. Following the successful pipelines replacement, the field has been recently reopened. Dec 01, 2007 toxic chemicals linked to development of the kashagan oil field in kazakhstan are polluting the caspian sea environment and damaging the health and livelihoods of local communities. Rising kashagan output weighs on kazakhstans cpc oil price. The massive kashagan oil project in the caspian sea has suffered from huge cost overruns and delays, and the. Kashagan oil field analysis of geology, geophysics and petroleum system 1.
Pdf advanced upscaling for kashagan reservoir modeling. The kashagan field in the caspian sea is considered the single most important discovery in the past 30 years and is the fifth largest oil field in the world. Nov 10, 2014 kashagan oil field seen by total producing 2017 at latest. The facility, plagued by logistical delays and malfunctioning equipment, has yet to begin normal operations. Kashagan and tengiz, kazakhstans largest onshore field, together account for a significant part of nearly 4 million bbld of oil production that eias 20 international energy outlook projects kazakhstan will reach in 2040. Kashagan field is one of the largest oil fields discovered in the last 30 years.
Kazakh authorities are reluctant to specify the production costs of oil at specific fields, but karabalin said in october 2014 that the average. Kashagan oil field has been developed by a consortium of china national petroleum corp cnpet. Kashagan field development project experimental program. Kashagan oil field, kazakhstan july 14, 2016 this enormous facility in the caspian sea was built to draw oil and gas from the kashagan oil fieldone of the largest contemporary oil discoveries. The kashagan story is about geopolitical gambling with big oil in the caspian sea and inflating the oil bubble in global markets. Pdf case study of the kashagan oil field project vlad. Kashagans recoverable reserves are estimated at 7 to billion barrels of crude oil. The kashagan oil field is located in the northern caspian sea, western kazakhstan fig. Stateowned kazmunaigaz national co held 75 per cent interest in the block with an estimated 387 million tons of resources 2.
Toxic chemicals linked to development of the kashagan oil field in kazakhstan are polluting the caspian sea environment and damaging the health and livelihoods of local communities. United arab emirates energy minister suhail al mazrouei told bloomberg oct. The margin contains fractured, mechanically rigid facies that were more resistant to compaction than the facies in the interior. Apr 15, 2015 kashagan oil field development project in the north of the caspian sea manmade islands, kazakhstan enka and jv partner bechtel were awarded several contracts, beginning in 1998, for the.
Kashagan offshore oil field project for the worlds largest oil field discovery in the past forty years, only proven coating protection would do. The report examines the main reasons that led to the failure of the kashagan oil field development project promoted by the government of kazakhstan. It is a large, isolated carbonate bank, one of the biggest buildups in an archipelago that characterized the precaspian basin from the. A test case for kazakhstans governance of its oil and gas sector. It explains the background to production geology in the context of oil field subsurface operations. Kashagan field wikimili, the best wikipedia reader.
Kashagan field, kashagan east 1 and west 1 geology. Kashagan oil field analysis of geology, geophysics and. Production sharing agreement psa, covering a total of 5,600 km. Ul, exxon mobil, eni, royal dutch shell, total, inpex and. Institute of oil and gas, kazakh national technical university named after k. Field development includes production of crude oil and associated sour gas 15% h2s from the reservoir by a combination of offshore processing facilities and pipeline systems to transport the crude oil and gas to the onshore processing facility opf, 40 km east of atyrau. Field statistics worlds largest oil field discovered in the past three decades. Kashagan offshore oil field offshore technology oil and. The recent, potentially supergiant oil discovery in the kashagan prospect in the northern caspian sea can substantially increase the amount of the basins reserves. When discovered in the 1990s, the kashagan oil field was the second largest oil field in the world. Update 1new pipelines to cost kashagan oil project up to.