The Kashagan Project. Image courtesy of Total.

Royal Dutch Shell said Friday that production at its giant Kashagan oilfield in offshore Kazakhstan is expected to restart in 2017.

Production at the field was halted three years ago due to a pipeline leak.

The field is located in the Caspian Sea and first went online in September 2013.

Production was stopped a month later after gas leaks from a sour gas pipeline were discovered.

Output at the field is expected to reach a peak production rate of 300,000 barrels per day.

Shell said in its annual report that replacement activities at the site are ongoing, “with production expected to restart in 2017.”

Italian service player Saipem won a $1.8 billion contract last month to replace the field’s pipelines.

Saipem, through its subsidiary ERSAI Caspian Contractor LLC, will construct two 59 mile long pipelines that will connect D island in the Caspian Sea to the Karabatan onshore plant in Kazakhstan.

The company said work on the project is expected to be complete by the end of 2016.

Shell holds a 16.81 percent  stake in the field.

ExxonMobil holds a 16.81 percent stake, France’s Total holds a 16.81 percent stake, Kazakhstan’s KazMunaiGas holds a 16.81 percent stake, Italy’s Eni holds a 16.81 percent stake, China National Petroleum Corporation holds an 8.33 percent stake and Japan’s Inpex holds a 7.56 percent stake.


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