13:32 25.02.2015

Kazakhstan still determined to increase oil output after 2017

2 min read
Kazakhstan still determined to increase oil output after 2017

Kazakhstan will stay committed to its plan to increase oil production after 2017, Kazakh First Deputy Energy Minister Uzakbai Karabalin said.

"Despite the decrease in oil production in the reporting period, Kazakhstan is still determined to increase oil output in the future. Thus, the oil output is expected to reach 86 million tonnes in 2017 and 104 million tonnes in 2020. This increase will be due to the expansion project at Tengiz and resumption of offshore oil production at Kashagan," Karabalin told a briefing in Astana.

Kazakhstan produced 80.826 million tonnes of oil in 2014, so output should fall 0.4% this year.

Oil production at Kashagan began on September 11, 2013. According to a production-sharing agreement, the field should have reached the commercial production level by October 1, 2013. On September 24, 2013, however, the gas pipeline that ran from Island D to Bolashak Unit failed leading to a gas leak. The Kashagan field was shut down for repairs until October 6, when oil production was resumed. On October 9, 2013 another gas leak was detected on the same pipeline and, once again, the oil production was suspended and has not been resumed since then. The consortium said earlier that the gas leak in the pipeline was caused by sulfide stress cracking. Research showed that the oil and gas pipelines should be fully replaced and to do so 200 km of piping is required.

Officials have given various timeframes for the resumption of production at Kashagan. Most recently, Kazakh Energy Minister Vladimir Shkolnik said production might resume by the end of 2016.

First Deputy Energy Minister Karabalin said on February 25 that the restoration work was ongoing. "So far nothing has changed, we're looking at the second half of 2016 [for production to restart]. The work continues in keeping with the program, a certain amount of piping has been procured and work is under way to prepare the trenches to lay the pipes," he said.

"This work is going smoothly. We expect to start welding the pipes this year. Most of the work will take place in the second half [of this year], but of course 2016 will be the most dynamic year, when, in the second half, we are due to prepare everything - the field, the pipes - for launch," Karabalin said.

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