Despite setbacks with launch of oil production at Kashagan, the government of Kazakhstan is optimistic that the project will work and will significantly increase oil production.
Kazakhstan’s First Deputy Energy Minister Uzakbai Karabalin said recently that the former Soviet republic is expected to increase oil production to 86 million tonnes in 2017 and up to 104 million tonnes in 2020.
According to him, this increase will be associated “mainly with expansion of production at the field of Tengiz and resumption of offshore oil production at Kashagan field”.
Production at Kashagan started September 11, 2013. However, the operations had to be stopped after two weeks, since a leak was detected in the gas pipeline. The defective sectors were replaced. But having restarted, oil production at Kashagan was again suspended on October 9, 2013, after revelation of new spills. A thorough investigation was launched for that incident.
Karabalin has repeatedly told reporters that resumption of production at Kashagan is planned for the second half of next year after replacing pipelines.
See also: Beset by low oil prices, the Kashagan saga continues
According to Karabalin, new pipes are to be delivered before the end of the first quarter of 2015 so that the works on replacement of pipelines could begin in spring.
As the Deputy Managing Director of North Caspian Operating Company (NCOC) Zhakyp Marabayev said on March 4 at the conference Kazneftegazservis-2015, the consortium NCOC (North Caspian Operating Company) buys 200 kilometres of Japanese and German pipes, worth over $1 billion. Among them, 70 kilometres of pipes will be purchased from the Japanese company Marubeni Itochu Steel Inc specialising in manufacture and sale of steel products. The remaining 130 kilometres are ordered from the German company Butting GmbH and Co. KG, which specialises in manufacture of longitudinally, welded pipes, tube fitting, tanks, and so on.
The failed pipes for previous pipelines were supplied by Japanese companies Sumitomo and JFE. The commission’s investigation on the leakage has not yet been completed.
New pipes will be made of steel with a corrosion resistant alloy coating, they will meet requirements of operation taking into account the sulfur oil and gas.
According to Marabayev, due to long period of manufacturing, the contracts with companies were signed in August and October of last year.
As for the contract works, Marabayev said that ERSAI Caspian Contraktor LLC will lay the pipelines with a contract of $1.2 billion in 2015.
The contract for repair works on the failed section of the pipeline on land was received by alliance of Isker - Bonatti Kazakhstan LLP and Kazakhstan Caspian Offshore Industries LLP ($11 million).
KKS-Sicim LLP ($25 million) will provide inspection of pipelines, Lloyds Register Kazakhstan LLP ($11 million) will present services for independent verification on the territory of Kazakhstan.
Caspian Ocean LLP will provide a residential barge at $1 million. In addition, there are ongoing tenders for contracts for forwarding services abroad and within the country, including customs clearance when transporting pipes, the contract costs $58.6 million, for concrete and anodes for new pipelines - $60 million, works on pig receivers - $55 million.
The Kashagan field is one of the largest oil discoveries of the last.
http://www.neurope.eu/article/kashagan-resume-oil-production-after-pipe-replacement