Summary on the North Caspian Project
The North Caspian Sea Production Sharing Agreement (NCS PSA) was signed by the Republic of Kazakhstan and an international consortium in November, 1997. In 1998 exploration of hydrocarbons within the 5,600 square kilometers of the NCS PSA area was started.
Within the NCS PSA there were the following discoveries: the giant Kashagan field – discovered in 2000, Kalamkas offshore – in 2002, Aktoty – in 2003, Kairan – in 2003 and Kashagan South-West – in 2003.
North Caspian Operating Company (NCOC) acts as the Operator of the project on behalf of a Consortium of seven oil and gas companies with the following shares in the project:
- JSC NC “KazMunayGas” (KMG Kashagan B.V.) -16.88%;
- ENI S.p.A. (Agip Caspian Sea B.V.) – 16.81%;
- Exxon Mobil Corporation (ExxonMobil Kazakhstan Inc.) - 16.81%;
- Royal Dutch Shell plc.(Shell Kazakhstan Development B.V.) - 16.81%;
- Total S.A. (Total E&P Kazakhstan) - 16.81%;
- CNPC (CNPC Kazakhstan B.V.) - 8.33%;
- INPEX Corporation (INPEX North Caspian Sea) - 7.56%.
The Kashagan Field is located in the northern part of the Caspian Sea, in the territorial waters of the Republic of Kazakhstan, and extends over a surface area of approximately 75 km x 45 km. It is estimated that Kashagan contains approximately 4.5 billion tons of oil.
The development of the giant Kashagan field, in the harsh offshore environment of the northern part of the Caspian Sea, represents a unique combination of technical and supply chain complexity. The combined safety, engineering, logistical and environmental challenges make this Kazakhstan’s first large-scale offshore oil project one of the biggest and most complex industrial projects being currently developed anywhere in the world.
Given its size and technical complexity, the Kashagan field will be developed in phases. Currently, Kashagan is in Phase 1, known as the Experimental Programme (EP). Future Phases are currently at the concept review stage.
Functions of the Authority on behalf of the RoK’s Ministry of Energy are carried out by the PSA LLP (www.psa.kz).