This is the latest in a series of obstacles that the consortium behind Kashagan"s development—led by Agip Kazakhstan North Caspian Operating Co. NV (Agip KCO), a unit of Italy"s Eni SPA—has had to contend with. Most recently work in Kashagan was snagged by alleged environmental violations that threatened to revoke the consortium"s license (OGJ, Aug. 27, 2007, p. 26).

Eni is sole operator and holds an 18.52% interest in the North Caspian Sea production-sharing agreement to carry out exploration, development, and production activities in an offshore area in the northern part of the Caspian Sea, where giant Kashagan field was discovered.

To carry out operations, Eni created Agip KCO, which acts on behalf of the consortium.

The group plans to develop the field by drilling about 280 wells and building offshore platforms and artificial islands.

Oil and part of the natural gas produced will be sent in two separate trains to the treatment plant of Bolashak near Atyrau. Export options for production being considered include using an oil pipeline owned and operated by Caspian Pipeline Consortium, in which Eni holds a 2% interest, that links Atyrau, in Kazakhstan, to the Russian oil terminal of Novorossisysk, in the Black Sea.

Eni also is cooperator and holds a 32.5% interest in Karachaganak Petroleum Operating BV, a consortium created to develop and operate the Karachaganak field, one of the world"s largest oil and gas fields, in northwestern Kazakhstan.

PIN/OGJ.COM