65
reserves are at 7–13 billion barrels. Production started on the field on September 11,
2013, which was 8 years after the initially scheduled date (www.eia.gov 2016a, b, c).
The latter issue poses the greatest challenge for the field on grounds that a single
breath of hydrogen sulfide can kill a person. Moreover, the shallow and freezing
water, the oil’s existence around two-and-a-half miles below the sea, the traditional
drilling and production technologies, such as concrete structures or jacket platforms
that are based on the seabed, are challenges faced during the extraction of the oil
(www.forbes.com 2016a, b, c, d).
The first phase of the development plan has produced only 400,000 bpd. The
field has been problematic as it is located in shallow water which freezes over in
winter, while the oil extracted is under high pressure and includes fatal levels of
hydrogen sulfide, which has to be extracted from the crude oil (www.forbes.com
2016a, b, c, d). The latter issue presents the biggest challenge for the field, as hydrogen sulfide can kill a person in a single breath. Given the shallow, freezing water and
the fact the oil is buried around two-and-a-half miles below the sea, conventional
drilling and production technologies, such as concrete structures or jacket platforms
that rest on the seabed are unable to assist in extraction (www.forbes.com 2016a,
b, c, d).
Prospects of Export Routes for Kashagan Oil
The Kashagan Field alone has the potential to help Kazakhstan play an important
role in the world energy market, and the resumption of oil production to full capacity will be one factor adding interest to the regional energy game (www.thediplomat.com 2016a, b, c, d, e, f, g, h, i). Since repairs were completed and production
started up again at the end of 2016, the field has put out 370,000 bpd. According to
the second phase of development, it is expected that Kashagan will produce up to a
million barrels per day (www.thediplomat.com 2016a, b, c, d, e, f, g, h, i).
Kazakhstan may transit Kashagan oil to the world oil market via a number
of routes:
• CPC West (Caspian Pipeline Consortium Oil Pipeline) over Russia to
Novorossiysk. This pipeline capacity is 1,300,000 bpd. The initial capacity of
this pipeline was 5,656,000 bpd, but the consortium has been unable to elevate
from this due to heavy traffic in the Bosphorus. Turkey has already expressed
concern about the environment risks posed by oil tankers which pass through its
Bosphorus Strait to transit Kazakh and regional oil to consume markets.
(S. Crandall 2006:83)
• Ayrau-Saransk-Samara. This pipeline helps Kazakhstan to connect to the Black
Sea and transit Kazak oil to consumer markets beyond. The 690 km route covers
the interconnected Kazakh-Russian pipeline system. The current capacity of this
pipeline is 600,000 bpd. Kazakhstan increased the capacity of the pipeline after
a boost in investment in 2009. Before the completion of the CPC, Kazakhstan
exported the majority of its oil from this pipeline (www.petronet.ir 2017).
Kazakhstan
reserves are at 7–13 billion barrels. Production started on the field on September 11,
2013, which was 8 years after the initially scheduled date (www.eia.gov 2016a, b, c).
The latter issue poses the greatest challenge for the field on grounds that a single
breath of hydrogen sulfide can kill a person. Moreover, the shallow and freezing
water, the oil’s existence around two-and-a-half miles below the sea, the traditional
drilling and production technologies, such as concrete structures or jacket platforms
that are based on the seabed, are challenges faced during the extraction of the oil
(www.forbes.com 2016a, b, c, d).
The first phase of the development plan has produced only 400,000 bpd. The
field has been problematic as it is located in shallow water which freezes over in
winter, while the oil extracted is under high pressure and includes fatal levels of
hydrogen sulfide, which has to be extracted from the crude oil (www.forbes.com
2016a, b, c, d). The latter issue presents the biggest challenge for the field, as hydrogen sulfide can kill a person in a single breath. Given the shallow, freezing water and
the fact the oil is buried around two-and-a-half miles below the sea, conventional
drilling and production technologies, such as concrete structures or jacket platforms
that rest on the seabed are unable to assist in extraction (www.forbes.com 2016a,
b, c, d).
Prospects of Export Routes for Kashagan Oil
The Kashagan Field alone has the potential to help Kazakhstan play an important
role in the world energy market, and the resumption of oil production to full capacity will be one factor adding interest to the regional energy game (www.thediplomat.com 2016a, b, c, d, e, f, g, h, i). Since repairs were completed and production
started up again at the end of 2016, the field has put out 370,000 bpd. According to
the second phase of development, it is expected that Kashagan will produce up to a
million barrels per day (www.thediplomat.com 2016a, b, c, d, e, f, g, h, i).
Kazakhstan may transit Kashagan oil to the world oil market via a number
of routes:
• CPC West (Caspian Pipeline Consortium Oil Pipeline) over Russia to
Novorossiysk. This pipeline capacity is 1,300,000 bpd. The initial capacity of
this pipeline was 5,656,000 bpd, but the consortium has been unable to elevate
from this due to heavy traffic in the Bosphorus. Turkey has already expressed
concern about the environment risks posed by oil tankers which pass through its
Bosphorus Strait to transit Kazakh and regional oil to consume markets.
(S. Crandall 2006:83)
• Ayrau-Saransk-Samara. This pipeline helps Kazakhstan to connect to the Black
Sea and transit Kazak oil to consumer markets beyond. The 690 km route covers
the interconnected Kazakh-Russian pipeline system. The current capacity of this
pipeline is 600,000 bpd. Kazakhstan increased the capacity of the pipeline after
a boost in investment in 2009. Before the completion of the CPC, Kazakhstan
exported the majority of its oil from this pipeline (www.petronet.ir 2017).
Kazakhstan