LUKoil and Gasprom are close to obtaining a new license for Central field on the Caspian shelf, development of which has been delayed for six years, because of red tape.
The Russian government has approved changes of the agreement with Kazakhstan, which allows the Russian companies jointly with Kasmunaigas obtaining a license for the field, including the right to geological exploration for seven years. But the project has a new problem: the technological perspectives of development of the field are under question, because of the western sanctions. The sanctions could affect the Caspian fields most of all.
Central field is located 150 km away from the Russian sector of the Caspian Sea and the sea depth here is between 100 and 600 meters. According to 3D seismic survey, the extractible resources are estimated at 101 million tons of oil, 7.5 million tons of condensate and 162 billion cub.m. of gas. Another exploration well is needed for a more accurate evaluation of the resources.
Operator of the project evaluated approximate capital investments at $8 billion. In its presentation for the investors in June LUKoil company said it plans to launch the field in 2020.
