Costs for the development have swelled to about $50 billion as the industry copes with lower commodity prices, prompting concern among analysts about project partners’ capex recovery.
Indonesia’s upstream sector, after a decade of production decline and several years of investor uncertainty, is finally upping its game.
Production has stabilized at 5,600 barrels per day, the company said.
Kashagan will increase the country’s oil production and Energy Minister Kanat Bozumbayev reiterated that reducing oil output in line with OPEC plans was “not on the agenda” for Kazakhstan, Central Asia’s biggest crude exporter.
BP said the project off Australia's south coast, in which it is partnered by Norway's Statoil, would not be able to compete for capital investment with other opportunities in its global portfolio for the foreseeable future.
Originally slated for development in 2013, the project has been deferred due to low oil prices and moves to reduce construction costs.
Evidence is increasingly emerging in Norway that its recent lean-and-mean approach is paying dividends, reducing previously prohibitive costs to economically viable levels.
Austria's OMV currently has a 20% stake in the license but has entered into a deal to sell its stake to Norway's state-owned Petoro, Reuters reported.
The sources said Petronas has been considering a sale for months, after it became apparent that a Canadian approval was possible, but had yet to take a final decision.
BP signed amendments to the Temsah, Ras El Barr and Nile Delta Offshore concessions in Egypt, allowing for the development of the Nooros Field, Reuters reported.
The 15-year deal for Leviathan, which holds an estimated 22 Tcf of gas, should help the U.S.-Israeli group secure funds to bring it online.
The field, Enping 18-1, is currently producing about 2,010 bbl/d of crude oil from three wells. It is located in the Pearl River Mouth Basin with an average water depth of about 90 m (292 ft).