Project Profile
Value: US$55 billion
Location: Caspian Sea, Kazakhstan
Start-up Year: October 2016
Water Depth: 4 metres
Reserves: 9-13 billion barrels of recoverable oil
Production output: 200,000 bpd (March 2018)
Peak production: 370,000 bpd (under first development stage)
Area: 1,000 square km
The Kashagan field contains 9-13 billion barrels of recoverable oil reserves at an average depth of 4,300 metres below the seabed. It is characterised by high-pressure, high-pressure geological conditions and its oil contains 16-20% hydrogen sulphide (H2S). It is located in shallow waters of between 3 and 4 metres that freeze between November and March. Temperatures at the site during the year can vary from -30 to +40 degrees Celsius.
Under the field’s development plan, the use of conventional drilling and production technologies, such as concrete structures or jacket platforms was not possible because of the difficult environmental conditions at Kashagan. As such, its development required the construction of artificial islands. Under phase-one development, half of Kashagan’s gas is being re-injected back into its oil reservoir. Separated liquid and raw gas are transported via pipeline to the Bolashak onshore processing plant in Kazakhstan’s Atyrau region, where export-quality oil is produced. Some of the processed gas is being back offshore for use in power generation while some will be used to generate power at the process plant itself.
Kashagan was brought online in late 2013, only for production to be halted weeks later after extensive corrosion was discovered in its pipeline system, caused by sulphur in the field’s oil. The pipelines were replaced and the field started production again in 2016. Output is slated to reach 370,000 bpd before the end of 2018.
Operators:
North Caspian Sea Operating Company (NCSOC) Joint Venture consisting of:
Eni: 16.81% interest
ExxonMobil: 16.81% interest
KazMunaiGaz (KMG): 16.88% interest
Shell: 16.81% interest
Total: 16.81% interest
China National Petroleum Corp. (CNPC): 8.33% interest
Inpex Corporation: 7.56% interest
Contractors:
Bateman Engineering: Utilities contract
KBR: FEED contract
KTR-WG Turbine Services LLP: contract for six GE frame 6B, two GE frame 5D, three Siemens SGT-600 and four Rolls-Royce RB211 gas turbines plus all driven equipment, steam turbines, standby diesels and compressors, fully utilising the diverse range of experience on these engine types the joint venture is equipped to deal with
MIS Group: H2S Safety Services for ExxonMobil
Reservoir Exploration Technology: 4C seismic acquistion
Joint Venture for revised FEED contract:
WorleyParsons
Aker Solutions
CB&I
Joint venture for hook-up work:
Saipem
Aker Solutions
Saipem: US$1.8 billion contract to construct two 95 km pipelines at the giant Kashagan project in Kazakhstan's Caspian Sea region. Saipem won the new pipeline deal through its subsidiary ERSAI Caspian Contractor LLC, which is co-owned by Kazak company ERC Holdings. Saipem will construct two pipelines to connect an onshore plant in Kazakhstan with an artificial island built in the Caspian Sea. The scope of work includes the engineering, the welding materials, the conversion and the preparation of vessels, the dredging, the installation, the burial and the pre-commissioning of the two 28-inch diameter pipelines. The construction will be completed by end of 2016.
Fluor: Will provide conceptual studies and front-end engineering and design services.