The North Caspian Operating Company (NCOC) has started oil production at the giant Kashagan oil field in Kazakhstan. The field was discovered in 2000 and was initially planned to start production in 2005, for a total investment of US$10bn. However, technical problems delayed the project and led to massive cost overruns, raising the required investment to US$40bn. The field is expected to porudce 75,000 bbl/d in its first month of operation. Production will be progressively raised to 180,000 bbl/d in the first stage and to 370,000 bbl/d in the second stage (2013-2014). Kashagan is estimated to hold 35 Gb of oil in place.
The NCOC is a joint venture of KazMunaiGaz (KMG), Eni, ExxonMobil, Shell and Total with 16.81% each, ConocoPhillips with 8.3% and INPEX with 7.56%. In early 2013, ConocoPhillips announced that it would sell its 8.3% stake to the Indian gas company ONGC. However, the Chinese giant CNPC is also eyeing a stake in Kashagan and could acquire a 8.3% stake in the field from KMG, which would retain its interest by pre-empting ConocoPhillip's stake.