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Posts under ‘Kashagan’

Project Delays Will Cost These Oil Majors Billions

Screen Shot 2014-04-06 at 21.01.34Extracts 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, the project is being overseen by Italy’s Eni, although ExxonMobil is shortly set to take over. Shell, Eni, and Total all have a 16.8% stake in the project, and Morgan Stanley’s analysts believe that as a result of the delays, these three companies will have their 2016 net income estimates reduced by $500 million each. That is a large figure, even for these oil giants. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Kashagan delays mar outlook for Eni, Total and Shell

Screen Shot 2014-02-10 at 16.29.29Extract 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 Limited 2014.

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

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 explains why Royal Dutch Shell ended up issuing a profits warning and launching a fire sale of assets, following a succession of disastrous projects mired by incompetence.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Pipeline problems cloud Kashagan oil outlook

Screen Shot 2014-04-06 at 21.01.34Extract 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 costs.

Its backers, a combination of international oil companies ExxonMobil, Shell, Total, Eni, Japan’s Inpex, the China National Petroleum Corp (CNPC) and Kazakhstan’s state-owned KazMunaiGas, had every expectation Kashagan would be producing as much as 8 million tonnes of oil this year, equivalent to 170,000 barrels a day. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan
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