Tests Results At Kashagan Exceed 120,000 B/D, Says Agip KCO
Agip Kazakhstan North Caspian Operating Company (Agip KCO), operator of Kazakhstan’s giant offshore Kashagan concession, on 23 May reported progress in its preparation to begin production through the expansion of development drilling during 2007. The company said a test carried out on well KE-A07, on the offshore A-Island and the fourth well to be tested, showed an initial flow rate of 35,000 b/d. Added to data acquired from three previously tested wells, this gives an estimated initial flow rate from A-Island of more than 120,000 b/d. So far seven wells have been drilled and four completed and tested from this location. Agip KCO said drilling was continuing on A-Island using one land rig and that drilling had started on D-Island using two rigs.
Italy’s Eni leads the Kashagan consortium through Agip KCO and through Agip Caspian Sea holds 18.52% in the Joint Operating Agreement (JOA). Other JOA participants are Kazakh state oil company KazMunaiGaz (8.33%), ExxonMobil Kazakhstan (18.52%), Shell Kazakhstan Development (18.52%), Total E&P Kazakhstan (18.52%), Conoco Phillips (Phillips Petroleum Kazakhstan – 9.26%) and Inpex North Caspian Sea (8.33%).
Eni’s CEO Paolo Scaroni said in February that Kashagan would come on-stream in late 2010 at a rate of around 300,000-350,000 b/d and rise to 450,000 b/d shortly thereafter (MEES, 5 March). Peak production is to exceed 1.5mn b/d by 2019, he said, adding that Eni would soon produce a timeframe and cost structure for the project. Development of the concession, where the first discovery was made in 2000, has faced a number of technical and environmental problems causing delays. These have required the Kazakh government to adjust its aggregate long-term production target to 2.6mn b/d by 2015. Kashagan and surrounding structures, covering 11 blocks in a 5,600 sq km area, are conservatively estimated to hold recoverable reserves of 13bn barrels. The estimated cost of development is $29-31bn.
