By OGJ editors
HOUSTON, June 28 -- The Kashagan super giant oil discovery in the northeastern sector of the Caspian Sea off Kazakhstan was officially declared commercial Friday, opening the way for preparation of a development plan.
A 2-year appraisal program undertaken by contracting companies in the North Caspian Sea production-sharing agreement, in conjunction with the Kazakhstan government, resulted in a preliminary estimate of producible reserves in the range of 7-9 billion bbl from that field. Those figures may be from the Kashagan field seven to nine billion barrels of oil. These figures will be revised as necessary on the basis of further studies and data, officials said.
First oil from the field is expected by 2005. Meanwhile, the contracting companies will continue to explore other structures in the North Caspian Sea contract area.
Eni SpA is operator for the project through Agip KCO, formerly Offshore Kazakhstan International Operating Co. (OKIOC), with a 16.67% interest. Other contractors include BG Group 16.67%, ExxonMobil Corp. 16.67%, Inpex Masela Ltd. 8.33%, Phillips Petroleum Co. 8.33%, Royal Dutch/Shell Group 16.67%, and TotalFinaElf SA 16.67%.
The apparent super giant field was discovered in the 11-block Kashagan production-sharing contract area by the OKIOC consortium in 2000. Edinburgh analysts Wood Mackenzie last year estimated the field's potential reserves at 10 billion bbl of oil and 25 tcf of gas, although members of the consortium have not confirmed any reserves estimates (OGJ, Dec. 17, 2001, p. 18).