Kazakhstan Suspends Kashagan Development for Three Years

April 6, 2011
Kazakhstan plans to suspend work on the main stage of the Kashagan project for three years, Gazeta.kz reports.

"Kazakhstan plans to stop work on the giant Kashagan field for three years, since the international companies Shell and ExxonMobil intend to try to convince the government to support a simplified project which will cut their expenditures by $18 billion to $50 billion", the paper reported Monday.

If the delays are approved, this could push the beginning of production into the next decade making it nearly impossible for Shell and its partners to see acceptable profits as their contracts on the project are due to expire in 2037.

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