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Posts Tagged ‘Kashagan’

Kashagan to Start Production in 2017, Says Royal Dutch Shell Report

BY MICHELLE WITTE in BUSINESS on 13 APRIL ASTANA – Production at Kazakhstan’s giant Kashagan offshore oil field is expected to restart in 2017, Royal Dutch Shell stated in its 2014 annual report. “After the start of production from the Kashagan field in September 2013, operations had to be stopped in October 2013 due to […]

Project Delays Will Cost These Oil Majors Billions

Extracts from a Motley Fool article by Rupert Hargreaves published 28 July 2014 In total, Kashagan is now expect to cost a total of $136 billion, more than 140% above initial estimates. Production has been consistently delayed; the most recent delay, which occurred at the end of last year, concerns the project’s pipelines. At present, […]

Kashagan delays mar outlook for Eni, Total and Shell

Extract from FT article by Guy Chazan published 20 July 2014 Three of Europe’s largest oil companies could take a $1.5bn hit to earnings as a result of delays to Kashagan, the $50bn oil project in the Caspian Sea that has been bedevilled by hold-ups and cost over-runs. FULL FT ARTICLE Copyright The Financial Times […]

Reflections on the notorious Kashagan ‘Cash All Gone” project 

By John Donovan In view of the recent shattering news from the jinxed Kashagan project… Production at Kazakhstan’s Kashagan Oil Field Halted Until 2016 …it is interesting to reflect back on the situation as it was in 2007, reported in this Reuters article by Tom Bergin. It seems that not much has changed. It also […]

Pipeline problems cloud Kashagan oil outlook

Extract from a Geoff Hiscock article published by The Australian on 2 July 2014 A YEAR ago, one of the world’s biggest oil and gas projects, the massive Kashagan field in Kazakhstan’s part of the Caspian Sea, was on the verge of starting production after more than a decade of development and US$40 billion in […]

Report: Exxon May Take Over as Kashagan Operator

Extract from a Reuters/Rigzone article by Dmitry Zhdannikov, published Friday 6 June 2014 LONDON, June 6 (Reuters) – U.S. oil major Exxon Mobil is in line to take over as operator of the giant Kashagan field in an attempt to fix the beleaguered $50 billion project offshore Kazakhstan, industry publication Nefte Compass reported on Friday. The Kashagan […]

Kashagan ‘Cash All Gone’ Pipeline Debacle

Shell has been a key participant in the Kashagan project consortium which includes Eni and ExxonMobil. Given its notorious track record of over-promise and under delivery, having Shell involved is a bad omen for any elephant project. By John Donovan The latest news from the “Cash All Gone” project (as it is widely known) is […]

Kashagan oilfield may not restart until 2016

Extracts from a Reuters article by Mariya Gordeyeva published 21 May 2014 under the headline: Kashagan oilfield may not restart until 2016, Kazakh minister says May 21 (Reuters) – Oil output at Kazakhstan’s giant Kashagan field may not resume until early 2016, Kazakh Oil and Gas Minister Uzakbai Karabalin said on Wednesday, urging foreign partners […]

Kazakh Minister: All Kashagan Pipelines To Be Replaced

Extracts from a Reuters article by Olesya Astakhova published 15 May 2014 MOSCOW, May 15 (Reuters) – The consortium developing the giant Kashagan oilfield will have to replace the entire pipeline system at the deposit, Kazakhstan’s oil minister said on Thursday, confirming that output there would not resume this year. The North Caspian Operating Company (NCOC) developing […]

Kashagan project closed indefinitely

Extract from article by James Burgess published 23 April 2014 under the headline: “Kashagan Field Plans Pipeline Replacement” After weeks of review, the operators of Kazakhstan’s giant Kashagan oil field have concluded that pipelines carrying oil and gas will need to be replaced due to extensive damage. The consortium — which includes Eni, Total, […]

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 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 […]

Eni CEO Doesn’t See Kashagan Output Stoppage Running into 2015

December 6, 2013 A prolonged halt at the Kashagan oil field, which has been plagued by years of delays and cost overruns, could be a drag on the finances of the consortium behind the project, which includes Exxon Mobil Corp, France’s Total SA, Eni and Royal Dutch Shell PLC). FULL ARTICLE RELATED REUTERS ARTICLE World’s […]

Kashagan field commercial production delayed until 2014

Kashagan field commercial production delayed until 2014 08 November 2013 Kashagan is a major oil and gas field in the Kazakh sector of the Caspian Sea with reserves estimated at 38 billion barrels (six billion tonnes) of which eleven billion barrels are recoverable. The field also has over one trillion cubic metres of gas. The […]

China Gains New Friends in Its Quest for Energy

A version of this article appears in print on September 24, 2013, on page A4 of the New York edition By JANE PERLEZ and BREE FENG ATYRAU, Kazakhstan — On the northern reaches of the Caspian Sea, not far from this old Soviet town known for its oil and sturgeon, lies a vast new oil […]

Bad Omen for the Future of Mega-Oil Projects

Seven years and $24 billion. No, that isn’t the price tag for a major project coming online. That’s how late and how much over budget the giant Kashagan oil project in the Caspian Sea ended up being before it started flowing this week. By Tyler Crowe: September 15, 2013 Seven years and $24 billion. No, […]

World’s costliest oil field arrives, but Kazakh dreams shrivel

A consortium including Exxon Mobil, Royal Dutch Shell, Total and ENI once promised to transform the prospects of the entire country of Kazakhstan and earn massive profits for their own shareholders. But those dreams have shrivelled amid cost overruns, delays, government interference and internal disputes among partners. Source: Reuters – Wed, 11 Sep 2013 03:13 […]

Kashagan Oil Field Moves Closer to First Production

Hello John Just read this stuff below. I forgot how many years this first production is overdue but it could well be 10 years or so! Once they get it going, the production will increase a lot, there genuinely is a lot of oil there! Shell is one of the joint venture partners. By Sarah […]

Costly Risk In New Oil Exploration

By Arjun Sreekumar | June 1, 2013 | Over the past few years, the large Western oil majors have been plagued by projects running substantially over budget, and taking much longer to complete than initially estimated. These hurdles are part of the broader challenge facing oil companies — how to cope with the end of […]

A $30 Billion Hole in the Caspian Sea?

BY JUSTIN SCHECK: April 18, 2013, 8:27 p.m. ET For more than a decade, the promised bonanza from Kazakhstan’s giant offshore Kashagan oil field has been a costly mirage for its developers. And the wait still isn’t over. The companies backing the project—which include Exxon Mobil Corp., Eni Spa and Royal Dutch Shell PLC—in March […]

Development challenge of Kazakhstan’s giant oilfield

Kashagan – a giant offshore oil field in the Caspian Sea – The project is better known (in Shell circles) as “Cash all gone” 7 December 2012 By Rayhan Demytrie BBC News, Kashagan oil field, Kazakhstan t has cost $46bn (£28.8bn) to develop Kazakhstan’s most ambitious project, Kashagan – a giant offshore oil field in […]

Exxon, Shell Said to Face Delay on Kashagan Output Boost

By Nariman Gizitdinov – Nov 20, 2012 9:45 AM GMT Exxon Mobil Corp. (XOM), Royal Dutch Shell Plc (RDSA) and their partners in Kazakhstan’s Kashagan oil field face a delay of at least two years on a plan to boost output 20 percent, reducing the time they have to recoup costs in the $46 billion […]

Shell’s ‘hands off’ approach pushes up costs

From our November 2005 Shell News Archive Financial Times: Shell’s ‘hands off’ approach pushes up costs “Shell’s dependence on contractors may help explain why it has lost control over costs at some of its largest projects. This summer, the company said the price tag of Sakhalin-2, a giant natural gas project in eastern Russia, had […]

Exxon, Shell Said Seeking Control of $46 Billion Kashagan Field

By Nariman Gizitdinov on August 30, 2012 Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc (RDSA) are seeking bigger stakes in the Kashagan oil field and operating control before starting to expand the $46 billion project, according to two people with knowledge of the matter. Exxon and Shell also want Kazakhstan’s government to extend […]

Peter Voser, another Shell CEO tainted by scandal

FROM A SHELL INSIDER Hello John No doubt you are already aware, but in these Olympic times with your queen jumping out of a helicopter, one never knows. You are aware of the growing Libor scandal. I just read that other banks also were involved such as RBS and the Swiss UBS. Now, who was […]

Eni, Exxon, Shell to Fund $986 Million Kazakh Share for Kashagan

By Svetlana Antoncheva and Nariman Gizitdinov – May 28, 2012 6:48 AM GMT+0100 Eni SpA (ENI), Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc (RDSA) agreed to fund the $986 million costs owed by Kazakhstan’s state energy producer for one of the world’s biggest oil fields, Oil and Gas Minister Sauat Mynbayev said. The […]

Kashagan’s Foreign Partners to Finance State’s Share of Costs

By Nariman Gizitdinov – May 24, 2012 11:02 AM GMT+0100 Eni SpA (ENI), Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc (RDSA) agreed to shoulder the investment costs owed by Kazakhstan’s state energy producer for one of the world’s biggest oil fields this year and next. The international partners, which also include Total SA […]

Kazakhs Consider Bid to Boost Kashagan Oil Cost to $46 Billion

By Nariman Gizitdinov – Jan 11, 2012 6:00 PM GMT The Kazakh government is considering a request from Exxon Mobil Corp., Royal Dutch Shell Plc (RDSA) and other partners to raise the budget for the first phase of the Kashagan oil project by 20 percent to $46 billion, according to a person with knowledge of […]