Kashagan Field

Kashagan Field (Kazakh: Қашаған кен орны, Qaşağan ken orny) is an offshore oil field in Kazakhstan's zone of the Caspian Sea. The field, discovered in 2000, is located in the northern part of the Caspian Sea close to Atyrau and is considered the world's largest discovery in the last 30 years, combined with the Tengiz Field. When discovered, it was the second largest oil field in the world. It is estimated that the Kashagan Field has recoverable reserves of about 13 billion barrels (2.1×10^9 m3) of crude oil. Harsh conditions, including sea ice during the winter, temperature variation from −35 to 40 °C (−31 to 104 °F), extremely shallow water and high levels of hydrogen sulfide, together with mismanagement and disputes, make it one of the most challenging oil megaprojects. Commercial production began in September 2013. It has been designated as the main source of supply for the Kazakhstan-China oil pipeline. CNN Money estimates that development of the field had cost US$116 billion as of 2012, which made it the most expensive energy project in the world, while other sources report the cost at up to $50 billion. A stake in the field was acquired by the Chinese government in September 2013 after General Secretary of the Chinese Communist Party Xi Jinping struck a deal with Kazakhstan for around $5 billion.