After a rough start, the blood sweat and tears poured into the Kazakhstan's Kashagan oil field in the Caspian Sea are starting to
The October output for the field reached about 52,600 barrels per day, which while a promising start, is still below the estimated number of 75,000, which is the level needed for the field to hit stable production. Some oil majors had conducted test pumping in September, and a limited amount of product was exported.
Kazakhstan’s efforts to develop its resources in the Caspian have been costly in terms of money, time and work. The Caspian fields have come with a price tag of $55 million for development.
Production work in the Caspian fields actually kicked off about
Adding to the
While recent developments in the Kashagan field are good news for Kazakhstan, those investors will still be tasked with recouping their money. A Fitch Ratings report last month noted “It will be a challenge for partners to recover their investment in the project under our oil price projections, making an expansion of the project unlikely given other risks. As for many other mega-oil-and-gas projects launched over the last couple of years, it will be difficult for Kashagan to recover its capex based on our long-term Brent price assumption of [US$65/bbl], despite the weak tenge.”
Lincoln Brown for Oilprice.com
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