Kazakhstan downgrades long-term outlook for oil production

Kazakhstan has downgraded its long-term oil output forecast because of delays at Caspian oil developments, senior Kazakh officials said.
Kazakhstan's Energy and Mineral Resources Minister Baktykozha Izmukhambetov said that planned oil production will reach only 130 mm tons, or 2.6 mm bpd, by 2015. Earlier in June, he had said that Kazakhstan had planned to reach the production of 3 mm bpd, or 150 mm tons, by that time.

Kazakh Prime Minister Daniyal Akhmetov said that the downgrade of long-term production forecast was related to delays in starting production at offshore fields.
"We have to realize that we have a delay in the program of developing the Caspian," Akhmetov was quoted as saying. "All our plans to reach oil production of 120 tons by 2010-2012 and 150 mm tons by 2015 are in doubt because of it." Akhmetov said that the delay would also affect Kazakhstan's macroeconomic indicators.

Production at giant Kashagan oil field in the Caspian is unlikely to start before 2009-2010 because of technological difficulties related to the development.
There have also been periodic tensions between the government and the developing consortium, led by Italy's ENI, over issues such as Kazakhstan's acquisition of a stake in the project.