Kazakhstan: Development of Kashagan Field Will Proceed as Planned

Development of the Kashagan oil field in north-western Kazakhstan will go ahead as planned, despite the ongoing global financial crisis, the US ambassador to Kazakhstan, Richard Hoagland, has announced.

After speaking with representatives of the Kashagan consortium in Atyrau, Ambassador Hoagland said, "I have been assured that partner shareholders have sufficient funds for implementing the project and even expanding it. Of course the global financial crisis will slow down the flow of investments [into the Kashagan project] a little. Much depends on the solidity of companies' assets. But we think that as soon as the crisis diminishes, then investments will increase."

The Kazakh Ministry of Energy and Mineral Resources and other oil majors with stakes in the Agip KCO consortium -- state-owned KazMunayGaz, Eni, ExxonMobil, Total, ConocoPhillips, Shell and Inpex -- reached a final agreement on a new development plan for the Kashagan project in late October, Interfax-Kazakhstan reported.