• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 13 hours Science: Only correct if it fits the popular narrative
  • 6 hours Crazy Stories From Round The World
  • 17 mins EU has already lost the Trump vs. EU Trade War
  • 16 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 5 hours Impeachment Nonsense
  • 1 day Do The World's Energy Policies Make Sense?
  • 7 hours Everything You Need To Know About Trump
  • 1 day What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days China's Renewables Boom Hits the Wall
  • 16 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 days Water, Trump, and Israel’s National Security
  • 1 day Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

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
Download on the App Store Get it on Google Play