An artist's impression: of the Kashagan project in Kazakhstan
Kazakhstan wants to slash Kashagan cost
Kazakhstan wants to reduce the cost of developing its giant Kashagan oilfield by 30%, the chief executive of Kazakh state oil company KazMunaiGas said today.
The oilfield, in the north-east of the Caspian Sea, is due to come on stream in 2012. Kazakhstan's government had earlier estimated its total cost at $136 billion.
"30% would be great," KazMunaiGas president and chief executive Kairgeldy Kabyldin told reporters. "I can say that this is our position."
He did not provide any other figures.
"We need to talk to contractors, suppliers to cut (costs)," Kabyldin said. "I think this 30% (target) is achievable."
Kashagan is run by Eni, Shell, ExxonMobil, Total, ConocoPhillips, KazMunaiGas and Japan's Inpex.
KazMunaiGas and the foreign companies said this month the global economic crisis could drive down the cost of the project.
Kazakh Energy Minister Sauat Mynbayev has since said that the $32 billion cost of the initial development phase would be cut by $1 billion, reported Reuters.