Shell, Consortium Exit Two Kazakh Offshore Projects

Source: Reuters 10/21/2019, Location: Asia

Royal Dutch Shell (RDSa.L) has pulled out of the Khazar offshore project next to the giant Kashagan field in Kazakhstan and a multinational consortium including Shell is also dropping plans for the adjoining Kalamkas block, officials said on Monday.

“The (Khazar) project was not competitive enough versus other opportunities in Shell’s global portfolio,” the company said.

Shell had invested about $900 million in Khazar, a unit of Kazakh state energy firm KazMunayGaz KMGZ.KZ said in a statement.

Shell, KazMunayGaz and Oman Oil Co were partners in Khazar, part of the Pearls offshore block. It was not immediately unclear if either of its two partners planned to buy Shell’s stake.

Kazakh authorities said a consortium including Shell, Eni (ENI.MI), ExxonMobil (XOM.N), CNPC [CNPET.UL], Total (TOTF.PA), Inpex (1605.T) and KazMunayGaz was also quitting Kalamkas, for which it holds the license.

The Kalamkas-Khazar project costs were estimated at $5 billion with production starting in the late 2020s, according to Wood Mackenzie analyst Ashley Sherman.

“Whether it’s because of tough logistics or complex geology, the shallow waters of Kazakhstan’s offshore face obstacles to full competitiveness against lower-cost deepwater opportunities elsewhere in the world,” Sherman said.

Energy companies have spent more than $50 billion on developing Kashagan which has been plagued by delays and cost overruns.

Kazakhstan hopes Kashagan and its infrastructure will serve as an anchor for the development of smaller satellite fields.


Germany >>  8/15/2022 - The ALH Group is indirectly acquiring 49.9% of a portfolio of sixteen solar farms with a total capacity of 597 megawatts belonging to EnBW Energie Bad...
Norway >>  8/15/2022 - Vår Energi has acquired 30% ownership in production licenses (PL) 820S and PL 820 SB (north of the Balder field in the North Sea) from Lime Petroleum,...

United States >>  8/15/2022 - Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG”) today announced the closing of its previously announced acquisition of non-operated Williston Basin ass...
Spain >>  8/12/2022 - F2i, Italy's leading infrastructure fund, and Crédit Agricole Assurances have signed an agreement to acquire from the Villar Mir Group wind farms in o...

Brazil >>  8/11/2022 - Petrobras informs that it has begun the opportunity disclosure stage (teaser), referring to the sale of its mining rights for research and mining of p...
Angola >>  8/10/2022 - Afentra plc, an upstream oil and gas company listed on AIM and focused on acquiring production and development assets in Africa, is pleased to announc...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.