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

Eni CEO Doesnt See Kashagan Output Stoppage Running into 2015
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Παρ, 6 Δεκεμβρίου 2013 - 17:38
Eni SpA (E), Italy's biggest energy company, doesn't expect the temporary stoppage of output at a giant Kazakh oil field to run into 2015, said Chief Executive Paolo Scaroni Friday, even as the consortium that runs it carries out tests after natural gas leaks.
Eni SpA (E), Italy 's biggest energy company, doesn't expect the temporary stoppage of output at a giant Kazakh oil field to run into 2015, said Chief Executive Paolo Scaroni Friday, even as the consortium that runs it carries out tests after natural gas leaks.

"Until the investigation [into the leaks] is completed it is useless talking about it [when output can restart]," Mr. Scaroni told reporters on the sidelines of a conference in
Milan . "Within a few weeks we will understand what the problem is, it won't take that long."

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. (XOM), France's Total SA (TOT), Eni and Royal Dutch Shell PLC (RDSA.LN).

The North Caspian Operating Co. consortium, or NCOC, began producing crude oil on Sept. 11 as part of a process to commission the oil field, but output was halted on Sept. 24 after a leak on the onshore section of a gas pipe was detected. Production restarted soon after, but NCOC stopped it for a second time on Oct. 9 after detecting a seep.

Following the shutdown in October, the consortium launched an in-depth investigation.

The visual inspection showed "additional locations" on the onshore part of the gas pipeline that provided "doubtful visual results," the consortium said Thursday. These areas will require further investigation before being finally assessed for integrity, it added.

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