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Kashagan oil production to resume in 2017 – Shell

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London, 13 March 2015

Screen Shot 2014-10-30 at 09.22.43(Reuters) – Production from Kazakhstan’s giant Kashagan oilfield is expected to resume in 2017, more than three years after being suspended due to a pipeline leak, stake holder Royal Dutch Shell said.

Operations at the major field, expected to reach production of 300,000 barrels of oil equivalent, started in September 2013 and were halted a month later due to gas leaks from the sour gas pipeline.

In its annual report on Thursday, Shell said “replacement activities are ongoing, with production expected to restart in 2017.”

Italian oil service company Saipem said last month it had won a contract to lay the replacement pipelines at Kashagan worth around $1.8 billion. It said it planned to finish the work by the end of 2016.

Shell holds an 16.8 percent stake in the offshore field in the Caspian sea which is operated by a consortium of international oil companies and Kazakh state oil and gas firm KazMunaiGas.

(Reporting by Ron Bousso, editing by William Hardy)


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