Kashagan discovery in North Caspian Sea declared commercial

Petroleum News Alaska Staff

Partners in the North Caspian Sea production sharing agreement, in conjunction with KazMunaiGas which represents the government of the Republic of Kazakhstan, have declared the 7-9 billion barrel Kashagan discovery in the northern Caspian Sea to be commercial.

The partners in the production sharing agreement are Eni (operating through Agip KCO, 16.67 percent); BG (16.67 percent); Exxon Mobil Corp. (16.67 percent); Shell International Exploration & Production (16.67 percent); TotalFinaElf (16.67 percent); Inpex (8.33 percent) and Phillips Petroleum Co. (8.33 percent.)

Kashagan was discovered in 2000 and a two-year appraisal program indicates producible reserves at 7-9 billion barrels of oil.

The companies are preparing a development plan for the Kashagan field and will continue to explore other structures in the North Caspian Sea contract area by drilling Kalamkas (2002), Kashagan South West (2003), Aktote (2003), and Kairan (2003).

The North Caspian Sea PSA covers almost 1.4 million gross acres.