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Posts Tagged ‘Kashagan’

Royal Dutch Shell bets on LNG, on an epic scale

By John Donovan The comments below are from a Motley Fool article that draws attention to the fact that Shell’s Prelude FLNG project represents a bet “on an epic scale.”  The author is right. The project is an uninsured, uninsurable risk, which like Shell’s Alaskan ambitions, could potentially destroy Shell.  As to the likelihood of […]

Yet More Problems Hit the World’s Largest Oil Project

Extract from an article by Rupert Hargreaves published 16 April 2014 by The Motley Fool Simply put, H2S is eating away at the undersea pipelines, causing cracks and fractures. Gas needs to travel through these lines for the project to start production, and engineers can’t just patch the system up; the whole pipeline network may […]

Controversial Corrib field to pump gas by next year

Extracts from an article by Sarah McCabe published 10 April 2014 by the Irish Independent The development of the field off the north-west coast has been plagued by setbacks, which have delayed it for more than 13 years. Construction of a 4.9km tunnel under Sruwaddacon Bay, a special conversation area, is also progressing, new company […]

Kashagan Debacle: Not enough engineers, too many idiots

When John Stubbs was assigned to the Kashagan project, he was confronted by an over-budget hopelessly out-of-control shambles and advised Shell senior management that he did not want the job. He was bluntly told by Shell EP boss Malcolm Brinded, to take it, or leave the company. Stubbs, an engineer and project manager highly regarded by […]

Another blow to Royal Dutch Shell

Extract from a Steve LeVine article published 6 April 2014 by qz.com under the headline: “Kazakhstan’s largest oilfield will be shut down for at least two years” Kashagan will be shut for at least two years while specialty pipelines are made to resist the unforeseen impact of toxic gas, according to a source close to […]

Kashagan oil field: Stuck between ‘a widow maker’ and ‘a rotating bomb’

Extracts from a Reuters INSIGHT article by Oleg Vukmanovic and Stephen Jewkes published 3 April 2014 Western oil majors struggling to restart production at one of the world’s biggest offshore oilfields in Kazakhstan have found that whole kilometres of pipeline are defective, two people recently returned from the $50 billion project say. Oil company investigators […]

Kashagan aka Cash All Gone

Extracts from an article by Rupert Hargreaves published by The Motley Fool on Mar 31st 2014 under the headline: ExxonMobil Is Spending Plenty but Growth Is Just Around the Corner The Kashagan field is the largest oil discovery in 40 years, and the project to develop the field has required so much investment and expertise […]

How a Giant Kazakh Oil Project Went Awry

Extracts from a highly informative Wall Street Journal article by Selina Williams, Géraldine Amiel and Justin Scheck published 30 March 2014 …the project has been plagued by budget blowouts, engineering missteps and management disputes extending from offshore roughnecks to top government and corporate leaders. Miles of leaky pipeline make up what is arguably the world’s […]

Pipelines and welding risks for Shell: Kashagan and Prelude

…customers of certain Far Eastern shipyards have found that in spite of vessels being delivered with all of the necessary certification, unsurveyed welds have not always been up to the standards of the specific “randomly selected” welds on which the certification had been based. This may have interesting implications for the Prelude vessel…. Since Shell […]

Cash All Gone

Extracts from an article by Jim Landers published on 10 March 2014 by The Dallas Morning News under the headline: “Petroleum project costs worldwide benefit Texas prospect” The cost of developing the world’s largest oil and natural gas fields has reached heights straining the budgets of even the largest oil companies. Royal Dutch Shell, Exxon […]

Kazakhstan sues Kashagan oil group for $737 mln in pollution case

Extracts from article by Dmitry Solovyov published on 7 March 2014 by Reuters ASTANA, March 7 (Reuters) – Kazakhstan is suing the multinational consortium developing the huge Kashagan oilfield in the Caspian Sea for 134.2 billion tenge ($737 million) over damage to the environment, the Environment Protection Ministry said on Friday. Production at Kashagan, the […]

Kashagan Oilfield To Reach Original Production Estimate By 2015

LONDON SOUTH EAST: Thursday, 13th Feb 2014 Costs at the Kashagan site have spiralled in recent years and it has taken 13 years since the beginning of development to reach this point. Once oil starts to flow at the site, Shell, which owns 16.81% of the Kashagan development, is expected to take over management of […]

Shell’s Recent Profit Warning Won’t Be the Last

Thanks to upstream cost overruns and downstream overcapacity, 2013 probably will not be the last year Shell faces low earnings. Not only is Gorgon facing big challenges, the Shell-ExxonMobil-Total-KazMunaiGas-Eni Kashagan project was recently shut down due to pipeline leaks. The field’s current $50 billion cost is more than five times its original price By Joshua Bondy: January […]

Crippled Kashagan oil project a bureaucratic “nightmare”

The consortium, which includes ExxonMobil, Royal Dutch Shell, Total and Kazakh state oil firm KazMunaiGas, first put one of the smaller partners – Italy’s Eni – in charge of construction and delivery in 2001/02. They retreated from that decision in 2008/09 after years of delays and cost escalation, opting instead for collective responsibility. “It’s a […]