Kashagan Development
Total S.A.
25 February 2004
Kazakhstan: Kashagan development plan approved and first phase of
Investment launched
Paris, February 25, 2004 - Total announces the approval of the Kashagan field
development plan and the launch of the first phase of Investment. The Kashagan
field is in northern area of the Caspian Sea and is considered one of the
largest discoveries in the last thirty years. Following the approval of the
Kashagan development plan, the members of the consortium will sanction the
financing of the first phase of the project for an amount of around $10 billion.
The development of the Kashagan field will proceed in phases. First oil is
expected in 2008 with an initial production of 75,000 barrels of oil per day
gradually building to 450,000 barrels per day. Further development phases will
raise the full field production to its plateau level currently estimated at
around 1,200,000 barrels of oil per day.
The project plans for the re-injection of gas into the reservoir in order to
maximize oil recovery while reducing sulphur handling.
'The approval of the Kashagan development plan by local authorities and partners
is an important marker which will permit the project to move forward with the
technically challenging field development while respecting the environment.
Total is pleased to be associated with this project which confirms the
development objectives of the Group in this region and notably in Kazakhstan.'
said Christophe de Margerie, President of Exploration and Production.
The development of this field will bring a major contribution to the Kazakh
economy in the next decade in terms of employment, training, development of
local industry and revenues for the state. The Kashagan field is held by a
consortium with a production sharing contract in the northern area of the
Caspian Sea (Total 20.37%*).
* Given the sale of BG International's interest.
Total is a partner in the association operated by Agip KCO that groups six
International companies: Eni, Exxonmobil, Shell, Total, ConocoPhillips and
Inpex, after BG's exit.
*****
Total is the fourth largest oil and gas company in the world with operations in
more than 130 countries. Total's activities cover the whole energy chain of the
petroleum industry: exploration, oil and gas production, refining and marketing,
trading and power generation. The Group is also a major player in chemicals
through its chemicals branch, Atofina. Total has 121,500 employees worldwide.
More information can be found on the company's website: www.total.com
This information is provided by RNS
The company news service from the London Stock Exchange
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