Kashagan is starting up Production Facilities

                Kashagan is starting up Production Facilities

  PR Newswire

  ATYRAU, Kazakhstan, June 30, 2013

ATYRAU, Kazakhstan, June 30, 2013 /PRNewswire/ --

RoK President Nursultan Nazarbayev congratulates the NCSPSA Consortium on an
important Milestone in the start-up of Kashagan

The North Caspian Operating Company (NCOC) announced today an important
milestone in the development of the Kashagan field. On the occasion of RoK
President Nursultan Nazarbayev and British Prime Minister David Cameron
visiting the Kashagan project facilities, the NCSPSA Consortium celebrated the
completion of the facilities required for initial production, marking the
commencement of the start-up of the Kashagan production facilities.

Pierre Offant, managing director NCOC, added: "Preparations for start-up both
onshore and offshore commenced in 2012 and progressed at a steady pace. Today
we celebrate the completion of a very important milestone which we have been
looking forward to: the commencement of the start-up of the production
facilities, which means from today onward, the project facilities will become
live in a staged process. It is an achievement we can be all proud of and
which will mark the beginning of safe start-up leading to the start of
production. During this complex process, safety will remain our top priority."

Due to the size and complexity of the project, the start-up of Kashagan is a
long sequence of progressive steps leading to starting production and
progressively ramping up to the intended levels. This long sequence of complex
processes includes the completion of each unit, assurance that each unit
operates safely according to design specifications, employee training and
assurance that all production systems are operational.

Once all milestones have been completed successfully, the integrated system
will receive the first oil and gas from some 4,200 meters below the North
Caspian Sea. This will be delivered by eight wells on the artificial A Island.
The wells and the pipeline system are ready for production, whereas the
offshore production and treatment facilities on D Island are in the final
stages of commissioning.

At the onshore Bolashak Processing Facility, the preparations for start-up of
the processing facilities have already been finalised some weeks ago with the
initial introduction of so-called sweet gas from the Makat gas grid. Employing
sulphur-free gas is a critical step before real gas and fluids from the
production wells are entered into the system. Along with the sweet gas
introduction, the flare at the plant was ignited.

Over the course of 2013/14, production will be progressively ramped up to the
design capacity from 180,000 b/d in the first stage to 370,000 b/d in the
second stage.

This production capacity reflects only the first phase of development;
Kashagan and the neighbouring fields in the North Caspian Sea hold estimated
reserves of some 35 billion barrels of oil in place and future development
projects bear the potential to significantly increase production volumes and
position Kashagan as an important contributor to the world energy market.

Notes for editors:

North Caspian Operating Company B.V. NCOC acts on behalf of seven co-venture
consortium partners as the designated operator appraising and developing the
hydrocarbon assets of 11 offshore blocks under the North Caspian Production
Sharing Agreement dated 18 November 1997, as amended and supplemented.

Assets within the 5,600 square kilometre North Caspian PSA Contract Area
include the giant Kashagan field, 80 km southeast of Atyrau. Other assets
include the Kalamkas Sea, Kashagan South-West, Aktote and Kairan fields.
Equity interests of the consortium partners are: KMG (KazMunayGas) 16.81%, Eni
16.81%, ExxonMobil 16.81%, Shell 16.81%, Total 16.81%, ConocoPhillips 8.40%,
and INPEX 7.56%.

The execution of operations is delegated by NCOC to four agent companies: Agip
KCO; Shell Development Kashagan (SDK); ExxonMobil Kazakhstan Inc. and NC
Production Operations Company B.V. (a KMG Kashagan B.V. and Shell Kazakhstan
Development B.V. joint venture).

NCOC is also responsible for the Consortium's Social and Infrastructure
Projects (SIP) and sponsorship and donation (S&D) programmes. Implementation
of SIP Projects is delegated to NC Production Operations Company (NCPOC).

For additional information , please contact :

Hans Wenck, NCOC External Communications Manager, +77172-35-5093 (English
language)

Gulmira Shalabekova, Ainash Chengelbayeva NCOC Media Relations +77172-35-4787
(Kazakh/Russian Language)

Sean Galvin / Jamie Robertson, FTI Consulting for NCOC, +44-7734-910715 or
jamie.robertson@fticonsulting.com

Photos of the Kashagan project can be downloaded from the following link:
http://we.tl/goD4SOGYkd
 
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