Kashagan to enter production by year end, 13 years after discovery.

FT: The entry of oil from the 40 billion barrel supergaint field will make Kazakhstan one of the top five global oil exporters by the 2020s. Its oil production will increase by 1m barrels a day over the next decade, rising from 1.6m b/d to 2.7m b/d in 2025. “Another complication is the unwieldy nature of the consortium developing the field, a roll-call of supermajors that includes ExxonMobil, Royal Dutch Shell, Total, Eni and KMG – each with 16.81 per cent: ConocoPhillips with 8.4 per cent; and Inpex with 7.56 per cent. No one company has a big enough stake to fully take charge, which has slowed decision making.”  It is the world’s most expensive oil development. “The first phase alone, which will bring production to 300,000 barrels a day, has cost $40.6bn. It is not surprising that at one point, the project’s nickname in the industry was “cash all gone”. ….In theory, Kashagan could reach a plateau of 1.5m b/d some time next decade. But it will only become clear when the taps are finally turned on later this year whether that target is achievable. One big constraint on any ramp-up: landlocked Kazakhstan’s chronic lack of export capacity.”