Kashagan, Kazakhstan's colossal oil field, reached an extraordinary milestone on January 11, surpassing 100 mn tons in oil production since the commencement of its operations, the North Caspian Operating Company (NCOC), reported.

The Kashagan oil field stands as one of the most significant oil discoveries in the last four decades, boasting estimated recoverable reserves ranging from 9 to 13 bn barrels of oil. Positioned 80km offshore from the city of Atyrau, the Kashagan reservoir is situated in 3-4 meters of water and extends more than 4km deep, reaching depths of 4,200 meters. Commercial oil production initiated at the Kashagan offshore field in 2016. 

The NCOC, responsible for managing the project, expressed their pride in achieving this substantial milestone, highlighting its implications for the consistent growth and development of the company. The NCOC continues to play a vital role in contributing to the socio-economic progress of Kazakhstan.

NCOC Managing Director, Olivier Lazare, attributed this remarkable achievement to the unwavering dedication and expertise of the NCOC staff and contractors. Emphasizing their commitment to safety as the foremost priority, Lazare extended gratitude to the North Caspian Sea Production Sharing Agreement (NCSPSA) shareholders, as well as local and central government bodies for their steadfast support.

"This achievement is a testament to the teamwork, professionalism, and commitment of everyone involved," Lazare remarked, recognizing the collective effort that contributed to this success.

Last year, Kazakh Prime Minister Alikhan Smailov urged the NCOC to intensify production volumes at the Kashagan field, emphasizing its strategic importance in the country's energy landscape.

About the North Caspian Project

The North Caspian Project's development traces back to 1997 when Kazakhstan signed a production-sharing agreement with an international consortium comprising seven of the world's largest energy companies. KazMunayGas leads the consortium with a 16.88% stake, followed by Eni, Shell, ExxonMobil, TotalEnergies, CNPC, and Inpex.

The initial significant offshore oil and gas development in Kazakhstan is known as the North Caspian Project. Encompassing three fields—Kashagan, Kairan, and Aktoty—the project is notable for its pioneering role in the country's energy sector.

The first million tonnes were exported within the initial days of 2017, and by mid-2017, NCOC had safely achieved actual production levels surpassing 200,000 barrels per day. Given its extensive scale and technical intricacies, the North Caspian project will be developed gradually in phases. The estimated cost of Kashagan Phase 1, which commenced commercial production in 2016, stands at around $55bn.

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