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BUZZ-Kashagan oil output to average 150,000 bpd in 2017 -WoodMac
October 7, 2016 / 11:32 AM / a year ago

BUZZ-Kashagan oil output to average 150,000 bpd in 2017 -WoodMac

** Production from the giant Kashagan oilfield in Kazakhstan is expected to average more than 150,000 barrels per day in 2017 and 230,000 bpd in 2018, according to consultancy Wood Mackenzie

** Within 18 months of restart, it will already be Kazakhstan’s second largest oil producer after Tengiz, it said

** “Kashagan full-cycle economics will remain negative, owing to the time passed since discovery in 2000 and the sheer scale of cost overruns,” WoodMac said

** “However, despite the current oil price, the PSC (production sharing contract) will soon generate material cash flow for key partners - Eni, Total, Shell and ExxonMobil - as they start to recover investment to date of about $55 billion.”

** The field started test pumping last month and its output is expected to reach about 75,000 bpd by late October

** The Kashagan consortium comprises China National Petroleum Corp, Exxon Mobil, Eni, Royal Dutch Shell, Total, Inpex and KazMunaiGas (Reporting by Ron Bousso)

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