KazMunaiGas to invest $8 Billion into Kashagan Project in 2010-2014
Kazakhstan’s national oil and gas company KazMunaiGas (KMG) will invest 8$ billion in the Kashagan development project by 2015.
“KazMunaiGas’s investments in 2010-2014 will come to $20 billion, including $8 billion in Kashagan, $4 in the refinery upgrading project”, Kairgeldy Kabyldin, the president of KazMunaiGas, told Samruk-Kazyna Board of Directors in Astana on Thursday.
In January 2009 the partners of the project agreed to create a new company to become the operator of the Kashagan project and the same month North Caspian Operating Company (NCOC) took over the Kashagan project from Agip KCO, all the shareholders still having the same stakes in the new operating company as follows: Shell, KazMunaiGas, Eni, ExxonMobil, Total with a 16.81% stake each, ConocoPhillips 8.4% and Inpex 7.56%.
NCOC overviews all activities and manages planning, coordination, reservoir simulation, conceptual studies and early development plans, government interfaces for the whole venture.
Under PSA the licensed area will also include the three oil-bearing structures Kalamkas, Aktoty, Kairan in addition to Kashagan. These 4 structures consist of 11 marine blocks, which occupy an area of about 5,600 square kilometers.
NCOC estimates the recoverable oil reserves of the Kashagan field at 11 billion barrels and the total oil in-place at 35 billion barrels, according to Kazworld.info.com.