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Kazakhstan’s Tengizchevroil has announced plans to invest $20 billion to expand oil production at its Tengiz (Kazakh for ‘sea”) oil field.
The Tengiz “super” oil field is one of the largest hydrocarbon discoveries in recent history. Atyrau, 220 miles north of Tengiz, is the main transport hub for Tengiz oil, which is shipped via the Caspian Pipeline Consortium pipeline to Russia’s Novorossiisk oil terminus on the Sea of Azov for tanker transshipment.
Estimated to contain up to 25 billion barrels of oil, Tengiz is the sixth largest oil field in the world.
Interfax news agency reported that Tengizchevroil Deputy General Director Anuarbek Dzhakiyev told journalists in the capital Astana, "This is investment in the project for the future expansion. It will be implemented over five years. We still haven't submitted the project to the government. That is, we are looking at its indicators as partners, but they are all preliminary. Tengizchevroil is developing the Tengiz and Korolevskoe oil and gas fields in the Atyrau region. It produced 25.9 million tons of oil in 2010, up from 22.5 million tons in 2009."
According to Dzhakiyev, various financing options are being considered, including borrowing. Should the funding be found and the project move forward, Tengizchevroil expects to raise production at Tengiz to 36 million tons a year.
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com