Chevron Approves Next Major Tengiz Expansion Project in Kazakhstan
05 July 2016 - 7:00PM
Business Wire
Chevron Corporation (NYSE:CVX) today announced that its 50
percent owned affiliate, Tengizchevroil (TCO), will proceed with
the development of its Future Growth and Wellhead Pressure
Management Project (FGP-WPMP), which will increase crude oil
production at the Tengiz oil field in Kazakhstan by about 260,000
barrels per day.
"The Future Growth and Wellhead Pressure Management Project
represents an excellent opportunity for the company," said Chevron
Chairman and Chief Executive Officer John Watson. "The project
builds on a record of strong performance at Tengiz and will add
value for Chevron and its stockholders."
"This project builds on the successes of prior expansions at
Tengiz and is ready to move forward," said Jay Johnson, executive
vice president, Upstream, Chevron Corporation. "It has undergone
extensive engineering and construction planning reviews and is
well-timed to take advantage of lower costs of oil industry goods
and services."
FGP-WPMP is currently estimated to cost $36.8 billion, which
includes $27.1 billion for facilities, $3.5 billion for wells and
$6.2 billion for contingency and escalation.
The project will raise TCO’s total production to approximately 1
million barrels of oil equivalent per day. WPMP maximizes the value
of existing TCO facilities by extending the production plateau and
keeping existing plants producing at full capacity. FGP will use
state-of-the-art sour gas injection technology, successfully
developed and proven during TCO’s previous expansion in 2008, to
enhance oil recovery. First oil is planned for 2022.
Chevron is one of the world's leading integrated energy
companies. Through its subsidiaries that conduct business
worldwide, the company is involved in virtually every facet of the
energy industry. Chevron explores for, produces and transports
crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells
petrochemicals and additives; generates power and produces
geothermal energy; and develops and deploys technologies that
enhance business value in every aspect of the company's operations.
Chevron is based in San Ramon, California. More information about
Chevron is available at www.chevron.com.
Note to Editors
TCO operates the Tengiz Field, the world’s deepest operating
super-giant oil field, with the top of the reservoir at about
12,000 feet (3,657 m) below ground. The partnership also is
developing the nearby Korolev Field. Net Chevron share daily
production from these fields in 2015 averaged 257,000 barrels of
crude oil, 348 million cubic feet of natural gas and 21,000 barrels
of natural gas liquids. TCO joint venture participants, in addition
to Chevron, are ExxonMobil (25 percent), KazMunayGas (20 percent)
and LukArco (5 percent).
Chevron is Kazakhstan’s largest private oil producer, holding
important stakes in the nation’s two biggest oil-producing
projects—the Tengiz and Karachaganak fields. Chevron is also the
largest private shareholder in the Caspian Pipeline Consortium,
which operates a 935-mile (1,505-km) crude oil export pipeline from
the Tengiz Field in Kazakhstan to tanker-loading facilities at
Novorossiysk on the Russian coast of the Black Sea. The pipeline
provides the key export route for crude oil from TCO and
Karachaganak.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This press release contains forward-looking statements relating
to Chevron’s operations that are based on management’s current
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company’s control and are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. The reader should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this report. Unless legally required,
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forward-looking statements, whether as a result of new information,
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Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
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including international agreements and national or regional
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ability to identify and mitigate the risks and hazards inherent in
operating in the global energy industry; and the factors set forth
under the heading “Risk Factors” on pages 21 through 23 of the
company’s 2015 Annual Report on Form 10-K. Other unpredictable or
unknown factors not discussed in this report could also have
material adverse effects on forward-looking statements
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Chevron CorporationSally Jones, +44 5601091435
(London)JonesS@Chevron.com
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