• 3 hours LNG Glut To Continue Into 2020s, IEA Says
  • 5 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 8 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 10 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 11 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls

Breaking News:

LNG Glut To Continue Into 2020s, IEA Says

OPEC Looks To Permanently Expand The Cartel

OPEC Looks To Permanently Expand The Cartel

OPEC Secretary General Mohamed Barkindo…

OPEC Seeks Help From U.S. Shale

OPEC Seeks Help From U.S. Shale

OPEC’s secretary general has asked…

Chevron-Led Consortium To Splash $37 Billion On Tengiz Field Expansion

Tengiz Field

A consortium of international oil majors led by Chevron has approved a $36.8-billion output expansion plan for the giant Tengiz oilfield in Kazakhstan, the country’s Energy Ministry announced on Tuesday. The consortium also includes Exxon Mobil and Russia’s Lukoil.

Plans are to bolster production to 39 million tons of crude per year, or 850,000 barrels per day, by 2022. At present, the field yields 27 million tons per year, which represents over a third of Kazakhstan’s overall crude oil output. At peak capacity, Tengiz – one of the biggest oil fields in the world – is expected to have an output close to what Great Britain produces at present.

Kazakh Energy Minister Kanat Bozumbayev stated: “Today we are witnessing a historic event not just for the oil and gas sector but for the whole country." According to the minister, the expansion will generate some $120 billion in extra taxes by the year 2033 when the oilfield development contract ends, as well as a cumulative 250 million tons of crude.

Kazakhstan has a 20 percent stake in the project through state oil company KazMunayGaz. Chevron, the operator of the project, has 50 percent, Exxon Mobil has 25 percent, and Lukoil has 5 percent. Chevron, Exxon Mobil and Lukoil will spend $27.1 billion on facilities and $3.5 billion on wells. The group has marked $6.2 billion for contingency and escalation.

Related: Big Oil Could Spark A Renaissance In U.S. Shale

Tengizchevroil, the joint venture that operates the field, will invest its own and borrowed funds in the expansion, said General Director Ted Etchison. The project was put on hold last year as estimates for the costs increased while the price of oil continued to drop. While Chevron tightened its belt elsewhere, the Tengiz project did not see any cuts.

The Tengiz was discovered in 1979, but at the time Soviet engineers could not find a way to develop it. Chevron won the development rights in 1993.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News