Project Profile
Value: US$25,000 Million
Location: Caspian Sea, Kazakhstan
Reserves: unknown
Area: unknown
Production: 1.2 million bopd by the end of the third phase
Startup Year: 2018
The project will see the future full field development of the Kashagan. The offshore facilities will be connected to onshore facilities via three pipelines, a 28\" oil trunk pipeline designed for 450,000 bopd, a 28\" gas trunk pipeline designed for 6.6.bcmy and a 18\" fuel gas line designed for 1.8 bcmy. The project is the first increment of what will be a multistage program. The Full Field Development (FFD) refers to the second and third development phases of Kashagan that will follow the successful completion of the Experimental Program. It is currently envisaged that during the FFD production will be increased from 450,000 bopd to 900,000 bopd at the end of the second phase and to the plateau of 1.2 million bopd by the end of the third phase.
The development of the Kashagan field represents one of the greatest current challenges of the petroleum industry due to the following: deep, high-pressure reservoir; high (16-20%) sulphur content with associated production of hydrogen sulphide; shallow waters that range from 3 to 4 meters and freeze from November to March and sea-level fluctuation during the rest of the year; wide temperature variations from -30C to +40C and a very sensitive environment with a variety of internationally protected species of fauna and flora. Production from Kazakhstan\\\'s giant Kashagan oilfield is expected to resume in 2017, more than three years after being suspended due to a pipeline leak. Operations at the major field, expected to reach production of 300,000 barrels of oil equivalent, started in September 2013 and were halted a month later due to gas leaks from the sour gas pipeline. Replacement activities are ongoing, with production expected to restart in 2017. On February 2015, Saipem won a contract to lay the replacement pipelines at Kashagan worth around US$1.8 billion. It planned to finish the work by the end of 2016. In October 2015, KazMunaiGas sold half of its stake in the Kashagan oil field, in the Caspian Sea, to the sovereign wealth fund Samruk-Kazyna for US$4.7 billion.
Operator:
North Caspian Sea Operating Company (NCSOC)
Eni: 16.81% interest
ExxonMobil: 16.81% interest
KazMunaiGaz (KMG): 8.41% interest
Samruk-Kazyna: 8.4% interest
Shell: 16.81% interest
Total: 16.81% interest
ConocoPhillips: 8.4% interest
Inpex Corporation: 7.56% interest
Contractors:
Consortium for early FEED:
Fluor
WorleyParsons
Joint Venture for FEED:
Aker Solutions
CB&I
WorleyParsons
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.