ExxonMobil
confirms approval of Kashagan development plan
Posted: 26 February 2004
Exxon Mobil Corporation confirmed Kazmunaygaz (KMG), the petroleum
authority for the Republic of Kazakhstan, and the Consortium companies
of the North Caspian Production Sharing Agreement, ExxonMobil Kazakhstan
Inc.(16.67 per cent), Agip Caspian Sea B.V (16.67 per cent), British
Gas (16.67 per cent), Shell Kazakhstan Development BV (16.67 per
cent), Total (16.67 percent), ConocoPhillips (8.33 per cent) and
Inpex (8.33 per cent) have announced approval of the development
plan for the world-class Kashagan oil field.
Production startup of the Kashagan field is expected in 2008 with
an initial output of 75,000 barrels of oil per day, ramping up to
450,000 barrels of oil per day. Further development phases will
raise the full field production to its plateau level currently estimated
at 1.2 million barrels of oil per day. The capital investment for
full field development is currently estimated at about $30 billion,
with projected ultimate production of up to 13 billion barrels of
oil.
"The approval of the Kashagan development plan by KMG and
the consortium companies is a significant milestone that allows
all parties to cooperatively move this project forward," said
Rex Tillerson, senior vice president of Exxon Mobil Corporation.
Approval of the plan was critical, given the size of the partners'
investment to develop the giant Kashagan oil field, one of the largest
discoveries in the past 30 years. The plan addresses the field's
relative remoteness, lack of established infrastructure and unique
technical challenges.
This huge endeavor will positively impact Kazakhstan nationally
and locally through tax and royalty revenues, both direct and indirect
employment and contractor opportunities for Kazakh companies and
individuals, local infrastructure development and community assistance
programs.
ExxonMobil subsidiaries' interests in Kazakhstan also include a
25 per cent interest in the giant Tengiz oil field, 7.5 per cent
interest in the Caspian Pipeline Consortium (CPC) pipeline, fuels
marketing in Almaty and automotive and industrial lubricants through
a nationwide distribution network.
For more information see www.exxonmobil.com
Posted by Richard Price,
Editor Pipeline Magazine
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