Chevron launched its first production at its Tengiz oilfield expansion project in Kazakhstan on Thursday, with completion of the final phase of the expansion set for the first half of next year, enabling an additional 260,000 barrels per day of crude oil output, or an additional 12 million tons per year.
"This is a significant step towards completion of the Future Growth Project (FGP). It is also important progress for the modernization of the existing base business at Tengiz and demonstrates TCO's commitment to safely and reliably manage operations, while maximizing the ultimate recovery of resources critical to global energy security," Clay Neff, President of Chevron International Exploration and Production, said in a press release on Wednesday. Exxon Mobil and Kazakh state-owned KazMunayGas hold 25% and 20% stakes in the Tengiz joint venture, respectively. Chevron's expansion progress announcement comes as Kazakhstan is under pressure to compensate for overproduction in the first quarter of this year in terms of its quota responsibilities for OPEC+.
Kazakhstan has reportedly prepared a "detailed plan for the gradual compensation of overproduction", the Kazakh Astana Times reported, citing the country's Energy Ministry.
"We understand the importance of each country's conformity to the obligations and maintaining cooperation to stabilize the oil market," the Energy Ministry was quoted as saying in a statement.
In early March, the Kazakh Energy Ministry said the country would extend voluntary production cuts of 82,000 bpd into Q2 2024, and that by the end of June this year, production would be at around 1.468 million bpd. The 82,000-bpd commitment is on top of the country's earlier voluntary commitment to cuts of 78,000 bpd.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More