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Kashagan to produce 1.2 million barrels a day

The Kashagan oil field in Kazakhstan will produce an average of 1.2 million barrels a day between 2010 and 2041, according to Uzakbai Karabalin, president of the country's national oil and gas company.

It will take until the middle of next decade to reach that average figure, the head of KazMunaiGaz National Co. said in a speech in Florence, Italy, yesterday. The figure is made possible thanks to the technique of re-injecting natural gas into wells to increase pressure, he said.

Italy's Eni SpA, Europe's fourth-largest oil company, is leading the development of Kashagan and said in October the $29 billion project would miss its target of pumping oil by 2008 would and run over budget. Eni has estimated the field's reserves at 13 billion barrels of oil, a figure confirmed by KazMunaiGaz in Florence yesterday.

Eni said on January 25 it will announce in coming weeks when oil will start to flow from the field, the world's biggest oil discovery in three decades. Karabalin confirmed yesterday that total Kazakh production will reach 3 million barrels a day in 2015. (Bloomberg)