KZBlog

After the recent scandal over the Kashgan oilfields, it is a bit surprising to hear that estimates of when the field will start producing
have been pushed back again, to 2012-2013. Eni, the Italian oil company which held the controlling share in the consortium that is developing the Kashgan field, was criticized and threatened with sanctions earlier this year when they announced that oil production would likely start in 2011, instead of 2007 as originally promised. In the ensuing hullabaloo, including meetings between the head of Eni and President Nazarbayev, all members of the consortium (including Eni, KazMunaiGas, Total, Exxon and Shell) agreed to double KazMunaiGas’ share in the project.

What the reaction will be now that the project is being pushed back further is unclear, but CNN quotes Interfax as saying the Minister of Energy will sanction the company if delays occur: “‘We’re trying to come to an agreement again,’ Mynbayev said.”

Some estimates claim that Kashgan holds 13 billion barrels of oil, which would make Kazakhstan a very large player on the oil scene once production begins.