* Production at Kashagan not expected before 2014
* Output halted several times by gas leaks
By Mariya Gordeyeva and Alla Afanasyeva
ALMATY/MOSCOW, Nov 11 (Reuters) - Oil is unlikely to flowfrom Kazakhstan's Kashagan oilfield until spring as the world'sbiggest crude discovery in half a century faces challengesincluding leaky pipes, industry sources said on Monday.
On Sunday, Christophe de Margerie, chief executive ofFrance's Total, said the field would not be able torestart before the end of 2013.
The Central Asian nation of 17 million has pinned its hopesfor energy revenues on Kashagan. Repeated delays have infuriatedthe government, which has threatened to fine the multinationalconsortium operating the project.
Production at the field, which has a projected life of 50-60years, started on Sept. 11, but came to a halt two weeks laterwhen a gas leak was found. Another leak was discovered inOctober after a brief restart.
"Kashagan oil exports will be restarted in March, in abest-case scenario," one industry source said.
The North Caspian Operating Company (NCOC), which operatesthe field, includes Kazakh state oil firm KazMunaiGas,Italy's Eni, U.S. Exxon Mobil, Royal DutchShell and Total. Each owns 16.81 percent.
Japan's Inpex owns 7.56 percent. China NationalPetroleum Corp (CNPC) acquired an 8.33 percent stakethis year.
CHALLENGES
The industry sources said there are indications - includingplans to ship crude via the Caspian Pipeline Consortium (CPC) -that oil will not flow from the Caspian Sea deposit beforespring.
"They aren't counting on volumes (from the field) in CPC.They promise to include other companies in the schedule," theearlier source said.
A CPC spokesman and Kazakhstan's Oil Ministry declined tocomment. NCOC did not return telephone calls.
Kazakhstan, which holds 3 percent of the world's recoverableoil reserves, plans to raise oil output to 83 million tonnes(1.66 million barrels per day) in 2014 from this year's expected82 million tonnes.
Driven mainly by Kashagan, oil output is forecast to climbto 110 million tonnes in 2018.
The initial target for commercial output under a contractwith the consortium developing Kashagan is 75,000 bpd.
Some sources compare oil production in Kashagan to thenearby onshore Tengiz oilfield, which has been developed by aconsortium led by Chevron Corp. Production delays arefraught with danger of heavy fines in Kazakhstan.
A fire at Tengiz, which raged for almost a year in1985-1986, was put out only by an underground explosion.
"There are high risks (for oil production at Kashagan). Thelaunch of Tengiz, which is similar in complexity, was stretchedby two years, that's why no one will be in a hurry withKashagan. Safety is paramount," a source at KazMunaiGas said.
"Let the lawyers deal with any possible fines".
