Kazakhstan "Disappointed" Over Kashagan Setback

Posted by Michelle Howard
Thursday, April 17, 2014
Caspian Sea (Photo: Wiki Commons)

Kazakhstan's oil and gas minister said on Thursday he was disappointed over the slow development of the giant Kashagan oilfield, but he saw no legal reasons to put pressure on the consortium which oversees the offshore project.

The Central Asian nation of 17 million relies heavily on oil exports, and the setback in development of the huge Kashagan field could be a drag on state coffers.

Delayed output at Kashagan has unsettled Kazakh authorities, which have already sued the consortium operating the field for 134 billion tenge ($737 million) over ecological damage, but on Thursday they signalled the possibility of no further penalties.

"We can't push (the consortium). This is a huge and dangerous field, and we can't pressure legally," Uzakbai Karabalin said after meeting members of the North Caspian Operating Company (NCOC) consortium, which include Eni, Exxon Mobil, Royal Dutch Shell and Kazakh state-run KazMunaiGas.

"I said that we are hugely disappointed by the way the project is progressing," the minister said.

NCOC also includes Japan's Inpex with 7.56 percent and China National Petroleum Corp (CNPC) with 8.33 percent, which it bought from ConocoPhillips last year.

The consortium said last month it would challenge the fine, potentially raising tensions with the government, which in recent years has become more assertive in dealing with foreign investors and has used legal action as leverage to increase participation in some energy projects.

Production at the offshore deposit, the world's biggest oil find in 35 years, started in September but was halted in early October after the detection of gas leaks in the $50 billion project's pipeline network.

The government had great expectations for Kashagan to start producing oil last year and officials had said they hoped to see it produce 22 million barrels of crude by the end of the year.

The minister didn't comment about the possible costs of the repair work, reiterating that the authorities expect the results of the pipeline examination by the end of May.

"If it is confirmed that there are cracks in the sea part of the pipeline, then it will indicate the situation is getting worse as the sea section of the pipe should also be replaced. Then, there will be no output this year," Karabalin said.

(Reporting by Raushan Nurshayeva; writing by Vladimir Soldatkin, editing by Megan Davies and David Evans)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Sea Trucks Returns to the Gulf of Mexico

Offshore installation services provider Sea Trucks Group announced it has been awarded a charter contract for its accommodation construction vessel Jascon 31 to operate in the Gulf of Mexico,

Next Wave of FLNG Projects on the Horizon

There will be significant growth in both investment and activity in the FLNG market over the next seven years, with Douglas-Westwood (DW) forecasting total expenditure of $58.

IRSHAD Acquires Damen Shoalbuster 2308

Abu Dhabi Petroleum Ports Operating Company (IRSHAD), a part of the ADNOC Group of Companies, has taken delivery of a Damen Shoalbuster 2308, named Al Marfa 1.

Energy

Côte D’Ivoire Invests in O&G Safety Training

Thegrowth in oil and gas activity in Côte D’Ivoire has seen investment in standardized safety training in the region far outstrip that of other hydrocarbon-rich West African countries,

Next Wave of FLNG Projects on the Horizon

There will be significant growth in both investment and activity in the FLNG market over the next seven years, with Douglas-Westwood (DW) forecasting total expenditure of $58.

Philippines Mulls Massive Military Spend

Philippine generals on Wednesday asked Congress to almost triple annual defence spending over the next five years to upgrade equipment amid an escalating marine dispute with giant neighbour China.

News

Matson Pumps $30 Million into Alaska Operations

Ocean cargo shipper Matson, Inc. said it is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

Côte D’Ivoire Invests in O&G Safety Training

Thegrowth in oil and gas activity in Côte D’Ivoire has seen investment in standardized safety training in the region far outstrip that of other hydrocarbon-rich West African countries,

Sea Trucks Returns to the Gulf of Mexico

Offshore installation services provider Sea Trucks Group announced it has been awarded a charter contract for its accommodation construction vessel Jascon 31 to operate in the Gulf of Mexico,

Offshore Energy

Sea Trucks Returns to the Gulf of Mexico

Offshore installation services provider Sea Trucks Group announced it has been awarded a charter contract for its accommodation construction vessel Jascon 31 to operate in the Gulf of Mexico,

Next Wave of FLNG Projects on the Horizon

There will be significant growth in both investment and activity in the FLNG market over the next seven years, with Douglas-Westwood (DW) forecasting total expenditure of $58.

'Kayaktivists' to Launch Blockade of Shell Icebreaker

A small group of protesters and activists are gathering at the Cathedral Park boat ramp in Portland, preparing to stay for a 24-hour vigil as they wait for Royal Dutch Shell Oil's icebreaker ship,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1817 sec (6 req/sec)