Official startup of Kashagan will be held on October 23rd

Altynay IbraimovaSeptember 13, 2016

According to the News-Kazakhstan, the Acting Minister of Energy of the Republic of Kazakhstan, Kanat Bozumbayev, announced that the official start of the Kashagan will be held on 23 October, in accordance with the previous plans.

According to the forecasts of the Ministry of Energy, commercial production at Kashagan will begin in late October-early November.

Earlier, during an expanded meeting of the Government of the Republic of Kazakhstan under the chairmanship of the President Nursultan Nazarbayev, Sauat Mynbayev, the Chairman of the Board of NC KMG announced a possible start of oil production at Kashagan at the end of September.

Our view

We view the news as neutral because the expected start date of Kashagan project has not changed significantly. A positive aspect remains immutability in plans to launch the project in the current year, given its scale.

Startup of Kashagan is making a significant contribution in predicting the prospects of not only Kazakhstan's economy but also the global oil industry. According to Reuters, OPEC revised up its 2017 non-OPEC supply forecasts, citing factors including the startup of Kashagan. OPEC expects non-OPEC supply to rise by 200 ths bpd in 2017, versus a previously forecast of 150 ths bpd decline.