A consortium operating Kazakhstan’s giant Kashagan oil field is considering the joint development of two smaller nearby fields, one of which is co-owned by Oman Oil Co., its senior executive said on Feb. 23.
Apart from Kashagan itself, the consortium known as North Caspian Operating Co. (NCOC) holds rights to develop three smaller nearby fields in the Caspian Sea. One of those fields, Kalamkas, is adjacent to the Khazar field which is outside of NCOC contract territory.
“We have identified a number of opportunities to reduce the cost of the project that could make it economically viable,” Bruno Jardin, managing director of NCOC, told a meeting at the energy ministry, referring to the idea of co-developing Kalamkas and Khazar.
Khazar is part of a different project known as Pearls, although some of the investors in Kashagan and Pearls overlap.
Shell and KazMunayGaz are also shareholders in the Pearls project alongside Oman Oil Co.
Jardin provided no details of the potential deal.
Kashagan, the former Soviet republic’s biggest oil asset, started production at the end of 2016 and is now in the process of ramping up output from about 200,000 barrels per day (bbl/d) to 370,000 bbl/d.
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