Economics
Shell Quits Kazakh Projects After Judging Them Uneconomic
- Company exits Khazar and Kalamkas oil ventures in Caspian Sea
- Kazakhstan may seek new investors for both developments
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Royal Dutch Shell Plc abandoned two oil projects off Kazakhstan after stubbornly high costs made them uneconomic.
Shell has exited the Khazar field, while North Caspian Operating Co. -- a joint venture including Shell -- has quit the Kalamkas-Sea project, according to TOO PSA, an entity run by the Kazakh Energy Ministry. The retreat from the fields -- both in the Kashagan area -- reflects an industry-wide push to cut break-even costs as megaprojects give way to smaller endeavors with quicker returns.