Production startup of the field is expected in 2008 with an initial output of 75,000 barrels of oil per day, ramping up to 450,000 barrels of oil per day. Further development phases will raise the full field production to its plateau level currently estimated at 1.2 million barrels of oil per day.

The capital investment for full field development is currently estimated at about $30 billion, with projected ultimate production of up to 13 billion barrels of oil.

"The approval of the Kashagan development plan by KMG and the consortium companies is a significant milestone that allows all parties to cooperatively move this project forward," said Rex Tillerson, senior vice president of Exxon Mobil Corporation.

Approval of the plan was critical, given the size of the partners' investment to develop the giant Kashagan oil field, one of the largest discoveries in the past 30 years. The plan addresses the field's relative remoteness, lack of established infrastructure and unique technical challenges.

This will prove to be a massive financial boon for Kazakhstan nationally and locally through tax and royalty revenues, both direct and indirect employment and contractor opportunities for Kazakh companies and individuals, local infrastructure development and community assistance programs.

Participants in the North Caspian Production Sharing Agreement include ExxonMobil Kazakhstan Inc.(16.67%), Agip Caspian Sea B.V (16.67%), British Gas (16.67%), Shell Kazakhstan Development BV (16.67%), Total (16.67%), ConocoPhillips (8.33%) and Inpex (8.33%).