Eni SpA (E - Free Report) recently announced that the first batch of export crude oil has been dispatched from the onshore processing plant of the massive Kashagan oil field.
The field was re-opened a little while back, upon successful replacement of pipelines. Production is now estimated to increase up to a first level of 180,000 barrels per day. The consortium for the development of Kashagan aims for a production level of 370,000 barrels per day by the end of 2017.
Located in the North Caspian Sea, the giant oilfield is about 80 kilometers southeast of Atyrau, in Kazakhstan. Kashagan is one of the largest oil fields discovered in the last four decades and is estimated to hold reserves of 35 billion barrels of oil in place. In fact, the oil field is considered to be one of the most complex and challenging industrial projects worldwide in terms of its size, the specifications, as well as the environmental and logistical characteristics involved.
Kashagan is operated by NCOC (North Caspian Operating Company) which operates within the North Caspian Sea Production Sharing Agreement (NCSPSA). Eni has a stake of 16.81% in the project. Other partners include KazMunayGas, ExxonMobil Corporation (XOM - Free Report) , Royal Dutch Shell plc (RDS.A - Free Report) , Total SA (TOT - Free Report) , CNPC and Inpex holding 16.88%, 16.81%, 16.81%, 16.81%, 8.33% and 7.56%, respectively.
Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are Exploration and Production (E&P), Gas and Power, and Refining and Marketing. The company conducts its major exploration and production activities for hydrocarbons. Eni operates these activities out of Italy, Croatia, North Africa, West Africa, the North Sea, the Gulf of Mexico, the Middle and Far East, the Caspian Sea, Australia and Latin America.
Currently, Eni carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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