The international consortium developing the giant Kashagan oil field in Kazakhstan will cut spending on the project due to the global economic crisis, the Kazakh state energy company said Thursday. But the decision should not delay the start of production at Kashagan, which is one of the world's largest oil fields and which has already experienced repeated delays, national oil and gas firm KazMunaiGaz said.
"KazMunaiGaz and the participants of the Kashagan consortium presented an initiative to lower spending on the Kashagan oil field," the company said in a statement. "These decisions will allow Kazakhstan and the Kashagan consortium members to substantially lower project expenses while adhering to the confirmed stage of development and the agreed time frames for the start of oil extraction."
The company blamed the global economic crisis and its "substantial effect on the world market" for the decision. Kashagan, located off the northern shores of the Caspian Sea, has recoverable oil reserves estimated at 13 billion barrels. It is being developed by a consortium that includes KazMunaiGaz, Italy's ENI, US oil major ExxonMobil, the British-Dutch group Royal Dutch Shell and France's Total, each of which have a stake of 16.81 percent, as well as US company ConocoPhillips (8.40 percent) and Japan's Inpex (7.56 percent). Last summer the Kazakh government said production at Kashagan would begin in 2013, pushing it back from the previous planned launch date of 2011.
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