Kazakhstan’s largest oilfield looks set to not produce any output this year as investigations into a leak that has kept the facility shut down continue.
The Kashagan facility, which finally started up last September after years of delays, may not produce any oil until next year, admitted project partner Total.
“No production can be expected in 2014,” said the French oil giant’s upstream president Yves-Louis Darricarrere. An investigation into the cause of the leak is nearing completion and there may be a “little” production in 2015, he said.
Kashagan, which began operations in September after years of delays, was producing about 60,000 barrels a day before the leak in early October.
The project involved drilling from a man-made island to unlock crude 2.6 miles under the seabed in a pressurised reservoir with a high concentration of poisonous sour gas.
Total, ExxonMobil, Shell and Eni each hold 16.81 percent in the project. Japan’s Inpex Corp. owns 7.56 percent, while state-owned KazMunaiGaz National Co. has retained 16.88 percent. China National Petroleum Corp. bought an 8.33 percent stake in September.
The probe into the Kashagan leak depends on inspection of offshore installations that has to wait until ice melts on the Caspian Sea, according to Total. The investigation could enable stakeholders to gauge the problem and the time needed to fix it.
Kazakhstan is seeking to increase oil output from existing fields to make up for Kashagan, a government minister has said.
The International Energy Agency said in its most recent monthly report that it does not expect Kashagan to resume output until the second quarter of next year at the earliest.
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