Two major Caspian Sea oil fields scheduled to come on stream this year will together produce at least 200,000 barrels of crude per day (bpd) by the end of 2016, according to industry sources and a loading schedule seen by Reuters.
The production plans, for the Kashagan field in Kazakhstan’s sector and Lukoil’s Filanovsky field in the Russian sector, are the clearest sign yet that significant volumes from the projects will be going imminently on to a world market that already has a glut of supply, possibly pushing down prices.
By the end of next year, according to targets previously announced by the fields’ operators, Kashagan and Filanovsky will between them produce about 500,000 bpd, equivalent to about 0.5 percent of global production.
Production at the long-delayed Kashagan offshore project will start in October this year, according to industry sources who have seen Kazakh Energy Ministry documents on the field.
Output will initially be 75,000 bpd in October, rising to between 150,000 and 180,000 in the November-December period of this year, the sources told Reuters, citing the ministry documents.
Asked about the plan, a spokeswoman for North Caspian Oil Company, the Kashagan operator, declined to give a breakdown of production figures for this year.
The Kashagan consortium comprises China National Petroleum Corp., Exxon Mobil, Eni, Royal Dutch Shell, Total, Inpex and Kazakh firm KazMunaiGas.
Filanovsky will export around 50,000 bpd of CPC blend, a light Caspian crude, between October and December this year, according to a loading schedule, a copy of which was obtained by Reuters.
Representatives of Lukoil confirmed that production would start this year, but declined to give figures for production volumes.