Caspian Oil Pipe to Review Expansion Timing as BG Sees DelaysEduard Gismatullin
Chevron Corp., Royal Dutch Shell Plc and other Caspian Pipeline Consortium shareholders will meet this month to review the timing of a planned expansion as BG Group Plc expects it to be delayed into 2016.
The expansion works are now expected to be finished at the end of next year, said Alexandr Baboshkin, a Moscow-based spokesman at CPC. “We are focusing, we are trying” to meet the targets, he said by phone.
The partners, who also include Exxon Mobil Corp., OAO Rosneft and OAO Lukoil and the Russian and Kazakh governments, plan to double capacity to 67 million metric tons annually, or 1.4 million barrels a day, according to CPC’s website. CPC previously said the link, which runs from northwest Kazakhstan to the Black Sea, would reach full capacity this year.
BG, which holds 2 percent in CPC, uses the link to pump crude from its Karachaganak field in Kazakhstan to a Black Sea port in Russia, according to its annual report published today. The changes won’t have a significant impact on BG’s operations in Kazakhstan, a company spokesman, who asked not to be named, said by phone.
BG in February forecast output for 2015 to be in the range of 710,000 to 750,000 barrels of oil equivalent a day, excluding portfolio changes. The outlook included expected production sharing agreement entitlement reductions in Kazakhstan.