Kazakhstan's Kashagan Oil Fields Faces Problems and Soaring Costs

By John C.K. Daly (05/21/2014 issue of the CACI Analyst)

In the past two decades since the collapse of the Soviet Union, Kazakhstan has become a major oil producer. In 2013, Kazakhstan’s oil production surged to roughly 1.64 million barrels per day. A key element in Kazakhstan’s continued growth in oil exports will be the further development of its giant onshore Tengiz and Karachaganak fields and the coming online of its massive Caspian offshore Kashagan fields, along with the development of additional export capacity. But while Tengiz and Karachaganak are already up and running, Kashagan’s development has been far more troubled, and the difficulties in bringing it online persist.