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I have been getting various emails about this for the last couple weeks.. thought it was interesting and worth sharing...Just say it is one of those project filles with Hydrogen Sulphide.. costs associated with this hC are phenomental as at 200 ppm it is letal, it is an acid gas that requires chrome steel as other metals are degraded by it. H2S gas is one of the few things man made things that scares me... (Well that and celebral maleria, heamoragic fever but those are god made!)
During WWI it was first tried as posion gas but because it was so lethal they had to change to chroline and phosene based derivatives.. it degrades rubber rapidly....
interestingly the plant that produces the most chrome steel is in Japan, owned by Nippon Steel and has been shut down...
From stratfor
Royal Dutch/Shell Leaves Major Kazakh Energy Project
May 29, 2011 | 1257 GMT
STANISLAV FILIPPOV/AFP/Getty Images
Chinese President Hu Jintao (L) and Kazakh President Nursultan Nazarbayev (R) push the symbolic start button at a pipeline opening ceremony in Astana on Dec. 12, 2009
Summary
Royal Dutch/Shell will close its offices in Kazakhstan on May 30 after withdrawing from the Kashagan oil field development project. Shell was the only member of the Kashagan consortium with the technical expertise needed to develop the field, which is located in an inhospitable environment. Unless a replacement firm is found, the project will remain frozen. This means Kazakhstan’s oil production will remain flat, and the country will not be able to diversify its oil exports.
Analysis
Related Links
· Central Asia: A Shifting Regional Dynamic
· Central Asian Energy (Special Series), Part 1: Problems Within the Region
· Kazakhstan’s Succession Crisis: A Special Report
Energy giant Royal Dutch/Shell will close its offices in Kazakhstan on May 30, after laying off its staff over the past few weeks. Shell is a critical member of the Kashagan oil project in Kazakhstan’s section of the Caspian Sea — one of the so-called “Big 3” energy projects in the country. Shell’s decision has put the future of the massive energy project in doubt, along with much of Kazakhstan’s future oil expansion and ability to supply strategic projects like the Kazakhstan-China oil pipeline.
One of the largest oil fields discovered in the past 30 years, Kashagan is also one of the most technically challenging fields. It is located in the northern Caspian region — a hostile environment with more than 70 mile-per-hour winds and flying ice chunks the size of boulders. However, the lure of 30 billion barrels in reserves attracted many Western and other firms into the project. The consortium currently comprises Shell, Eni, ExxonMobil, Total, ConocoPhillips, Inpex and KazMunaiGaz. Kashagan received even more incentive to produce when the Chinese announced they would build a massive pipeline system across Kazakhstan and through China, with Kashagan as the source to fill the bulk of the multi-trunked, 1.2 million barrel-per-day pipeline.
(click here to enlarge image)
Kashagan initially was meant to be running by 2007, but the consortium members underestimated the difficulty of developing the field. Costs soared, and the deadline for production was pushed back to 2014. However, around 2007, the Kazakh government began to follow the example of its Russian neighbor and target foreign energy companies, charging higher taxes and collecting fees for alleged violations while trying to increase government shares in energy projects. Kashagan was already problematic; the government’s aggression made the production delays worse.
Recently, Kazakh Prime Minister Karim Massimov warned the Kashagan consortium members that if they do not get costs under control and the project back on a proper timeline, the project will be frozen. Shell then decided it was done with the project.
Shell did most of the complex technical work on the project. The Kashagan consortium contains many large and skilled firms, but few energy firms have the expertise needed for a project as difficult as Kashagan. Two such firms are BP and ExxonMobil. BP was a founding member of the project, but walked away in anticipation of the current problems. ExxonMobil — a consortium member — has made it clear in the past (after BP’s exit) that it does not want the lead role and responsibility in the project. No other firms in the consortium can replace Shell’s expertise, nor can any firm in Russia or China. Until a replacement can be found, Kashagan will remain on hold. Even if a replacement is found, the future of the project would be uncertain, as all its other problems remain.
For now, this means two things. First, Kazakhstan’s oil production is now flat at 1.5 million barrels per day (bpd), just as its natural gas production stopped growing after a government tussle with the consortium for the country’s major natural gas project, Karachaganak. On May 18, Astana announced that Karachaganak’s development would be put on hold while the government struggles with the consortium for a share of the project. Kazakhstan’s oil and natural gas sectors will thus not see the anticipated doubling of production that was expected in the next few years.
Second, Kazakhstan’s goal of diversifying its oil exports will be more difficult to attain. Currently, most Kazakh oil goes to Russia; the new production was meant to help Kazakhstan send almost as much oil to China as it does to Russia. China has focused on Kazakhstan as a new source for energy. Kazakhstan is a particularly attractive source, as imports to China would follow an overland route from a bordering state — unlike most of China’s energy imports, which travel via sea. Once all the trunks of the Kazakhstan-China pipeline are constructed in 2013, the line would carry approximately 20 percent of China’s oil imports.
Currently, China receives about 200,000 bpd from the first phase of the line, which runs from Kazakhstan’s Kumkol and Aktobe fields. However, in the past year, Aktobe has increased its supplies to Kazakhstan’s oil pipeline to Russia — the Caspian Pipeline Consortium. Because of this, Russia has stepped in to make up for the lower supplies going to China, sending approximately 75,000 bpd through the Kazakhstan-China pipeline from Omsk in Russia. This arrangement can continue indefinitely, but without Kashagan, Kazakhstan cannot supply the planned 1.2 million barrels for the line to China, let alone fully diversify its exports.
During WWI it was first tried as posion gas but because it was so lethal they had to change to chroline and phosene based derivatives.. it degrades rubber rapidly....
interestingly the plant that produces the most chrome steel is in Japan, owned by Nippon Steel and has been shut down...
From stratfor
Royal Dutch/Shell Leaves Major Kazakh Energy Project
May 29, 2011 | 1257 GMT
STANISLAV FILIPPOV/AFP/Getty Images
Chinese President Hu Jintao (L) and Kazakh President Nursultan Nazarbayev (R) push the symbolic start button at a pipeline opening ceremony in Astana on Dec. 12, 2009
Summary
Royal Dutch/Shell will close its offices in Kazakhstan on May 30 after withdrawing from the Kashagan oil field development project. Shell was the only member of the Kashagan consortium with the technical expertise needed to develop the field, which is located in an inhospitable environment. Unless a replacement firm is found, the project will remain frozen. This means Kazakhstan’s oil production will remain flat, and the country will not be able to diversify its oil exports.
Analysis
Related Links
· Central Asia: A Shifting Regional Dynamic
· Central Asian Energy (Special Series), Part 1: Problems Within the Region
· Kazakhstan’s Succession Crisis: A Special Report
Energy giant Royal Dutch/Shell will close its offices in Kazakhstan on May 30, after laying off its staff over the past few weeks. Shell is a critical member of the Kashagan oil project in Kazakhstan’s section of the Caspian Sea — one of the so-called “Big 3” energy projects in the country. Shell’s decision has put the future of the massive energy project in doubt, along with much of Kazakhstan’s future oil expansion and ability to supply strategic projects like the Kazakhstan-China oil pipeline.
One of the largest oil fields discovered in the past 30 years, Kashagan is also one of the most technically challenging fields. It is located in the northern Caspian region — a hostile environment with more than 70 mile-per-hour winds and flying ice chunks the size of boulders. However, the lure of 30 billion barrels in reserves attracted many Western and other firms into the project. The consortium currently comprises Shell, Eni, ExxonMobil, Total, ConocoPhillips, Inpex and KazMunaiGaz. Kashagan received even more incentive to produce when the Chinese announced they would build a massive pipeline system across Kazakhstan and through China, with Kashagan as the source to fill the bulk of the multi-trunked, 1.2 million barrel-per-day pipeline.
(click here to enlarge image)
Kashagan initially was meant to be running by 2007, but the consortium members underestimated the difficulty of developing the field. Costs soared, and the deadline for production was pushed back to 2014. However, around 2007, the Kazakh government began to follow the example of its Russian neighbor and target foreign energy companies, charging higher taxes and collecting fees for alleged violations while trying to increase government shares in energy projects. Kashagan was already problematic; the government’s aggression made the production delays worse.
Recently, Kazakh Prime Minister Karim Massimov warned the Kashagan consortium members that if they do not get costs under control and the project back on a proper timeline, the project will be frozen. Shell then decided it was done with the project.
Shell did most of the complex technical work on the project. The Kashagan consortium contains many large and skilled firms, but few energy firms have the expertise needed for a project as difficult as Kashagan. Two such firms are BP and ExxonMobil. BP was a founding member of the project, but walked away in anticipation of the current problems. ExxonMobil — a consortium member — has made it clear in the past (after BP’s exit) that it does not want the lead role and responsibility in the project. No other firms in the consortium can replace Shell’s expertise, nor can any firm in Russia or China. Until a replacement can be found, Kashagan will remain on hold. Even if a replacement is found, the future of the project would be uncertain, as all its other problems remain.
For now, this means two things. First, Kazakhstan’s oil production is now flat at 1.5 million barrels per day (bpd), just as its natural gas production stopped growing after a government tussle with the consortium for the country’s major natural gas project, Karachaganak. On May 18, Astana announced that Karachaganak’s development would be put on hold while the government struggles with the consortium for a share of the project. Kazakhstan’s oil and natural gas sectors will thus not see the anticipated doubling of production that was expected in the next few years.
Second, Kazakhstan’s goal of diversifying its oil exports will be more difficult to attain. Currently, most Kazakh oil goes to Russia; the new production was meant to help Kazakhstan send almost as much oil to China as it does to Russia. China has focused on Kazakhstan as a new source for energy. Kazakhstan is a particularly attractive source, as imports to China would follow an overland route from a bordering state — unlike most of China’s energy imports, which travel via sea. Once all the trunks of the Kazakhstan-China pipeline are constructed in 2013, the line would carry approximately 20 percent of China’s oil imports.
Currently, China receives about 200,000 bpd from the first phase of the line, which runs from Kazakhstan’s Kumkol and Aktobe fields. However, in the past year, Aktobe has increased its supplies to Kazakhstan’s oil pipeline to Russia — the Caspian Pipeline Consortium. Because of this, Russia has stepped in to make up for the lower supplies going to China, sending approximately 75,000 bpd through the Kazakhstan-China pipeline from Omsk in Russia. This arrangement can continue indefinitely, but without Kashagan, Kazakhstan cannot supply the planned 1.2 million barrels for the line to China, let alone fully diversify its exports.
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