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Shipment of the first oil from Kashagan via CPC is planned to begin at the end of October

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Kashagan_CPCThe Caspian Pipeline Consortium (CPC) hopes to begin shipment of oil from Kashagan at the end of October, reported http://oilnews/kz.
In October 93,500 tons of Kashagan oil will be shipped to ExxonMobil and Shell via the CPC terminal in the Black Sea. According to the traders, this will be the first oil delivery from Kashagan via CPC.
CPC owns 1511-km-long Tengiz-Novorossiysk oil pipeline, which connects the fields on the west of Kazakhstan with the Russian coast of the Black Sea. In 2012 CPC pumped 33.3 million tons of oil. After expansion, the pipeline capacity will be gradually increased up to 67 million tons. The project envisages upgrade of five operating and construction of 10 additional oil pumping stations: 2 ones in Kazakhstan and 8 ones in Russia. It is also planned to build 6 reservoirs (100,000 cub.m. each) for oil storage near Novorossiysk and the third remote mooring facility on the CPC offshore terminal and replace 88-km-long pipeline section in Kazakhstan with the pipe bigger in diameter.
The CPC shareholders are Russia (represented by Transneft 24% and CPC Company – 7%) -31%, Kazakhstan (represented by KazMunaiGas -19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%, Chevron Caspian Pipeline Consortium Company — 15%, LUKARCO B.V. — 12.5%, Mobil Caspian Pipeline Company — 7.5%, Rosneft-Shell Caspian Ventures Limited — 7.5%, BG Overseas Holding Limited — 2%, Eni International N.A. N.V. — 2% and Oryx Caspian Pipeline LLC — 1.75%.
The oil production on Kashagan started on September 11, 2013. The period from launching to the beginning of commercial oil production could take up to three weeks. Kazakhstan hopes that commercial oil production will begin in time before October 1, 2013, as it is stipulated by the production sharing agreement (PSA).
At the end of August representatives of Kazakhstan have asked Transneft to transport Kashagan oil via the Atyrau-Samara oil pipeline. Transneft could begin Kashagan oil transportation via the pipeline in October, oil could be delivered to Ust-Looga or Novorossiysk.
* Kashagan oil and gas field is being developed by NCOC, shareholder of which are
AgipCaspian Sea B.V. (16.81%), KMG Kashagan B.V. (16.81%), ConocoPhillips North Caspian Ltd. (8.4%), ExxonMobil Kazakhstan Inc. (16.81%), Inpex NorthCaspian Sea Ltd. (7.56%), Shell Kazakhstan Development B.V. (16.81%) and Total EP Kazakhstan (16.81%). ConocoPhillips had left the project and its share was bought by KazMunaiGas for its re-sale to Chinese CNPC.
Extractible oil resources of Kashagan are estimated by NCOC at 11 billion barrels and total geological resources of this oil bearing field at 35 billion barrels. This is considered to be the world biggest oil field after Prudo Bay field in Alaska discovered in 1968.

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