The Kashagan field has produced its first oil, the consortium behind the project has confirmed – eight years overdue.
The Kazakh prospect – one of the largest in the world – is expected to hold an estimated 35billion barrels of oil.
Reserves were discovered in 2000 and the first production was planned for 2005 at the development cost of $10billion (£6.36billion).
“Today the first well was opened and the initial volumes of oil are being produced,” the North Caspian Operating Company (NCOC), comprising of such industry majors as Eni, Total, ExxonMobil and Shell, said in a statement.
The initial phase output from the field is estimated at 180,000 barrels per day and expected to grow up to 370,000 barrels of oil equivalent per day.
Currently the bill for the delayed project is said to exceed $40billion.