According to local press reports in Kazakhstan, Shell has decided to withdraw from the project to jointly develop the offshore Kalamkas-More field (within the North Caspian PSA framework) and the Hazar field (managed by the Caspi Meruerty Operating Company (CMOC) consortium). Public hearings of environmental impact assessment that were scheduled to be held earlier in October, have been cancelled. Shell Kazakhstan is quoted as saying that the company has taken a decision to cancel its participation in the project due to complex project economics. Shell considers the Kalamkas/Hazar project non-competitive compared to other projects in its global portfolio.  In December 2018, the Ministry of Energy of the Republic of Kazakhstan, PSA LLP as the Authorized Body and the companies participating in the North Caspian PSA as shareholders, signed an agreement on the provision of a plan for the development of the Kalamkas-More field. The agreement provided for the companies to submit a development plan for approval by the Management Committee of the North Caspian PSA before Q4 2019.  In April 2019, North Caspian Operating Companyâs (NCOC) announced that NCOC and CMOC were planning to start joint development of Kalamkas-More and Hazar. Active development operations were planned for 2021-2027. Shell, which takes part in both operating companies, said in the past that separate development of the two fields did not make sense economically.   Background Information  Kalamkas-More was discovered by NCOC in 2002. It is located around 75 km south-west of Kashagan. According to the Ministry of Energy, the fieldâs reserves in-place are 1,177 MMb (149.5 MMt) of oil, 527.5 Bcf (15.4 Bcm) of solution gas and 526 Bcf (15.36 Bcm) of non-associated gas.  Hazar was discovered by the CMOC in 2007. It is located around 40 south-west of Kalamkas-More. The fieldâs 2P reserves are estimated at 404 MMb of oil 5.7 Bcf of associated gas and 215 Bcf of solution gas.  Both fields are in the North Ustyurt Basin, i.e. in a different geological setting compared to Kashagan which is in the Precaspian Basin. Kalamkas-More and Hazarâs reservoirs are Mesozoic clastics at relatively shallow depths (1,500-2,000 m), there is no salt in the section and the oil is sweet.  The shareholders of NCOC are KMG Kashagan B.V. (16.87%), Shell Kazakhstan Development B.V. (16.81%), Total EP Kazakhstan (16.81%), AgipCaspian Sea B.V. (16.81%), ExxonMobil Kazakhstan Inc. (16.81%), CNPC Kazakhstan B.V. (8.33%), Inpex North Caspian Sea Ltd. (7.56%). CMOC comprises Shell RD Offshore Ventures
Shell has reportedly elected to withdraw from the Kalamkas-More field devt project in the North Caspian PSA and from the Hazar field (run by Caspi Meruerty Optg Co [Shell]) in the N. Ustyurt Basin), citing complex project economics and an earlier belief that separate devt of both fields did not make sense economically.