We have a 16.8% interest in the offshore Kashagan field, where the North Caspian Operating Company is the operator on behalf of the shareholders. This shallow-water field covers an area of approximately 3,400 km2. Phase 1 development of the field is expected to lead to plateau production of some 300 thousand boe/d, increasing further with additional phases of development. NC Production Operations Company, a joint venture between Shell and KazMunaiGas, will manage production operations.
We are also a 55% partner in the Pearls production-sharing contract, which covers an area of some 900 km2 in the north Caspian Sea. The block contains two oil discoveries, which are currently under appraisal.
The Caspian Pipeline Consortium (Shell interest 5.4%) exports production from west Kazakhstan to the Black Sea. The pipeline is 1,510 km long and has been operational since October 2001. A pipeline expansion project is underway.