The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 1-Kashagan oilfield may not restart until 2016, Kazakh minister says

Wed, 21st May 2014 08:53

(Adds quotes, details, background)

By Mariya Gordeyeva

ASTANA, May 21 (Reuters) - Oil output at Kazakhstan's giantKashagan field may not resume until early 2016, Kazakh Oil andGas Minister Uzakbai Karabalin said on Wednesday, urging foreignpartners to start replacing leaky pipelines at the deposit.

Production at Kashagan, the world's biggest oil find in 35years, started last September but halted in early October afterthe discovery of gas leaks in the $50 billion project's pipelinenetwork.

The North Caspian Operating Company (NCOC), which developsthe offshore field in the Caspian Sea, said last month that itdid not expect to produce oil this year due to the leaks.

"It (production) may restart by the end of 2015 if all goeswell," Karabalin told Reuters on the sidelines of the AstanaEconomic Forum. "Otherwise, it may turn out to be early 2016."

Kazakhstan is the second-largest post-Soviet oil producerafter Russia. The government had originally hoped Kashagan wouldproduce 8 million tonnes of crude in 2014.

Citing the results of an investigation, NCOC did not ruleout that oil and gas pipelines might have to be fully replaced,a possibility raised by Reuters in April.

NCOC has identified stress cracking due to sulphur-ladengases as "the root cause of the pipeline issues" at Kashagan.

The field's oil is 4,200 metres (4,590 yards) below theseabed at very high pressure, and associated gas reaching thesurface is mixed with some of the highest concentrations oftoxic, metal-eating hydrogen sulphide ever encountered.

"The investigation is over," Karabalin said. "We are nowwaiting for proposals from the consortium members."

"We must receive their working plans, which would contain adetailed description of everything - when and what they willpurchase, who they will hire and how fast they will be."

Karabalin, formerly a professional oilman with decades ofexperience in the industry, said he believed the fullreplacement of the pipelines could take up to two years.

Much of Kashagan is built on artificial islands to avoiddamage from pack ice in the Caspian, which freezes for fivemonths a year in temperatures that drop below minus 30 Celsius(-22F).

NCOC includes Eni, Exxon Mobil, Royal DutchShell, Total, China's CNPC,Japan's Inpex and Kazakh state-run company KazMunaiGas. (Writing by Dmitry Solovyov; Editing by William Hardy and DaleHudson)

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

Read more
21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Read more
15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, part of an ongoing retreat of long-time producers from the ageing basin.

Read more
7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating the firm was "on a roll".

Read more
31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Read more
31 Jan 2022 07:48

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

Read more
28 Jan 2022 11:25

Shell's renewables boss steps down after less than two years

* Elisabeth Brinton leaves for new role, she says* Shell creates two new renewables leadership roles* Thomas Brostrøm to head renewables generation* Steve Hill to head energy marketingBy Ron BoussoLONDON, Jan 28 (Reuters) - Shell's head of renewable...

Read more
27 Jan 2022 16:14

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
26 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

Read more
26 Jan 2022 14:36

China's Sinopec awards fewer cargoes in recent LNG tender

By Chen Aizhu and Marwa RashadSINGAPORE/LONDON, Jan 26 (Reuters) - Unipec, the oil and gas trading arm of China's Sinopec Corp has awarded fewer-than-planned cargoes in a recent tender to sell up to 45 cargoes of liquefied natural gas for 2022 del...

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 09:33

UPDATE 2-Commodity, bank stocks lead FTSE 100 higher; Playtech drops

* Oil and banking shares top gainers* Wizz Air reports Q3 loss, expects improvement in spring* FTSE 100 up 1.3%, FTSE 250 add 1.1% (Updates to market close)By Shashank Nayar and Ambar WarrickJan 26 (Reuters) - London's FTSE 100 rose on Wednesday wit...

Read more
26 Jan 2022 09:12

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Read more
25 Jan 2022 21:13

UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

Read more
25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies.The companies are Shell Trading US, 4.2 million ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.