LONDON – Two major offshore projects will boost production later this decade in the Caspian Sea, according to consultants GlobalData.
Anna Belova, senior upstream analyst covering the Former Soviet Union, said both Kazakhstan and Azerbaijan have focused their growth strategy on giant offshore fields.
In Azerbaijan’s case, however, the Azeri-Chirag-Guneshli (ACG) project has already reached peak production and is declining, although further development and injection well drilling should sustain recovery under the contractual terms.
With the Shah Deniz 2 expansion scheduled for first gas in 2018, additional condensate volumes will partially offset the overall crude decline forecast for Azerbaijan in the mid-term, she added.
“In Kazakhstan, the giant offshore Kashagan project is expected to start commercial flows in late 2017, following the resolution of leakages in pipelines due to the produced fluids’ high sulfur content.
“By 2020, Kashagan is expected to add around 400,000 b/d of crude to Kazakhstan’s production, before adding over 1 MMbbl daily to the global supply once the field is fully online.”