ASTANA (TCA) — U.S. oil giant Chevron on July 5 announced a $36.8 billion expansion of the Tengiz oil project in Kazakhstan.
Chevron said in a press release that its 50 percent owned affiliate, Tengizchevroil (TCO), will proceed with the development of its Future Growth and Wellhead Pressure Management Project (FGP-WPMP), which will increase crude oil production at the Tengiz oil field in Kazakhstan by about 260,000 barrels per day.
“The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” said Chevron Chairman and Chief Executive Officer John Watson. “The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders.”
“This project builds on the successes of prior expansions at Tengiz and is ready to move forward,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation. “It has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services.”
The project is currently estimated to cost $36.8 billion, which includes $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingency and escalation.
The project will raise TCO’s total production to approximately 1 million barrels of oil equivalent per day. First oil is planned for 2022.
TCO operates the Tengiz Field, the world’s deepest operating super-giant oil field, with the top of the reservoir at about 12,000 feet (3,657 m) below ground. The partnership also is developing the nearby Korolev Field. Net Chevron share daily production from these fields in 2015 averaged 257,000 barrels of crude oil, 348 million cubic feet of natural gas and 21,000 barrels of natural gas liquids. TCO joint venture participants, in addition to Chevron, are ExxonMobil (25 percent), Kazakhstan’s KazMunayGas (20 percent), and Russia’s LukArco (5 percent).
