• 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 5 hours European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 3 days Demonising fossil fuels has caused major grid problem in Australia
  • 7 days "And this is perhaps the most dangerous kind of government there can be."
  • 2 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 329 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 7 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Despite Oil Slump, Chevron to Invest $37B in Giant Kazakh Oilfield

The giant Kazakh Tengiz oilfield—home to an estimated 9 billion barrels of recoverable oil—is set to get a major boost with plans by Chevron Corp. and partners to invest another US$37 billion in the field’s expansion.

On Wednesday, the Kazakh oil minister lauded the investment agreement on behalf of Chevron and its partners, which comes at a time when the oil price crunch has most unwilling to put out this much cash.

According to the Wall Street Journal, Chevron and partners would begin the investment already next year.

The new investment doubles what they’ve already spent on this giant field. Related: Wells Fargo Reduces 66% of Credit Lines to Oil and Gas Players

Tengiz was discovered in 1979 and is said to have recoverable estimated reserves of 6-9 billion barrels. The fields development began in 1993 under a 40-year joint venture between Chevron, with a 50-percent interest, ExxonMobil, with a 25-percent interest, and KazMunaiGaz, with a 20-percent interest. Chevron is the operator of the field through a 50-percent interest in Tengizchevroil (TCO).

This is the deepest operating oilfield, with a 12,000-foot deep reservoir.

Chevron is a shareholder in another large Kazakh oilfield, Karachaganak. It also has a share in the Caspian Pipeline Consortium.

Chevron is the largest private oil producer in Kazakhstan, and Tengiz will be one of its key crude output growth facilitators in the coming years. Related: Why Did Saudi Arabia Kill OPEC?

This investment is one of the first major investments in new production since oil prices started to slump in mid-2014.

At the same time, all is not well in Kazakhstan, as Reuters reports an ongoing dispute between the government and major producers over the development of the Karachaganak gas condensate field.

The Kazakh Energy Ministry is now signaling that it may resort to arbitration to resolve the US$1.6-billion dispute over various parties’ shares in the field’s output, which is supposed to be in the neighborhood of 1 million tons of oil this year, with commercial output set to begin in the third quarter. The project is led by BG Group (now acquired by Shell) and Italian Eni. Kazakhstan in April filed a US$1.60-billion claim against the consortium. Chevron owns an 18-percent share.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News