Kazakhstan: Capsian venture

Fluor Corporation has announced that a Fluor-led joint venture known as North Caspian Constructors (NCC) has been awarded the onshore construction of Kashagan Experimental Program facilities by Agip KCO, a company wholly owned by Eni through Agip Caspian Sea BV, the single Operator of the appraisal and development operations in the Kazakhstan sector of the North Caspian Sea. Kashagan is the largest oil field discovered in the North Caspian Sea PSA contract area. It is located offshore, about 80km from Atyrau and extends over a surface of approximately 75km by 45km. Kashagan is one of the largest oilfields discovered over the last 30 years. Development of Kashagan represents one of the greatest current challenges of the petroleum industry given the following characteristics: deep, high-pressure reservoir; high (16-20%) sulphur content with associated production of hydrogen sulphide; shallow waters that range from 3 to 4 meters and freeze from November to March and sea-level fluctuation during the rest of the year; wide temperature variations from -30C to +40C and a very sensitive environment with a variety of internationally protected species of fauna and flora. Construction is due to commence in October 2005 with completion scheduled for September 2008.

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