Kazakhstan: Green light at last for Kashagan

THE GIANT offshore Kashagan project received its long-awaited green light in February, just in time for the launch of the 2004 construction season in the north Caspian Sea. Any delay to the approval could have set back start-up at the field for another year. The development plan calls for production in the northeastern part of Kashagan to begin in 2007-2008 and to build to 450,000 barrels a day (b/d) by 2010. Expansion of the eastern part of the project will boost yields to 0.9m b/d by 2013. Peak production of 1.2m b/d is expected in 2016, according to state-owned KazMunaiGaz. The Eni-operated North Caspian Sea Production Sharing Agreement (Agip KCO) expects to invest around $29bn tapping up