Tengizchevroil starts first oil production at Tengiz under Future Growth Project
ASTANA. Jan 24 (Interfax-Kazakhstan) - Tengizchevroil LLP (TCO), the operator of Kazakhstan's massive Tengiz oil field, has announced the start of oil production as part of its Future Growth Project (FGP).
The company "has reached a significant milestone in the FGP by safely commencing crude oil production at its new Third-Generation Plant (3GP) at the Tengiz oil field," TCO said in a press release on Friday.
"This milestone marks the beginning of a gradual ramp-up in 3GP production over the coming months, which is expected to expand Tengiz's crude oil output by an additional 12 million tonnes per annum," the company said.
Once all Tengiz facilities are operating at full capacity, TCO's annual crude oil production is expected to reach about 40 million tonnes, which will generate additional value for Kazakhstan through taxes, royalties, and other direct financial contributions, the company said.
The "FGP will also help maintain reliable base business performance and strengthen Kazakhstan's position as a major supplier to global energy markets," TCO said.
As previously reported, the FGP and Wellhead Pressure Management Project (WPMP) at Tengiz were initially scheduled for completion by the end of 2022, but the dates were pushed back multiple times. In late April 2024, TCO launched the facilities of the WPMP.
The completion date for the FGP was last set for the second quarter of 2025. The overall cost of the FGP and WPMP was estimated at $46.7 billion.
Delays in the launch of the FGP at Tengiz, along with scheduled and emergency shutdowns of production, have affected the overall pace of the country's economic development.
Tengiz, one of Kazakhstan's largest oil and gas fields, has oil reserves of 3.1 billion tonnes and is located in the Atyrau region. In the first half of 2024, the field produced 14.4 million tonnes of oil (114.6 million barrels), 3.4% less than in the same period in 2023.
TCO's shareholders are Chevron Corp with 50%, ExxonMobil Kazakhstan Ventures Inc. with 25%, Kazakhstan, through KazMunayGas, with 20% and Russia's Lukoil with 5%.
