Chevron has announced that it is going ahead with the expansion of the Tengiz oilfield in Kazakhstan that will lead to an increase in oil production.
Chevron's 50 per cent owned affiliate, Tengizchevroil (TCO), will proceed with the development of its Future Growth and Wellhead Pressure Management Project (FGP-WPMP).
The project will raise TCO's total production to approximately 1 million barrels of oil equivalent per day. WPMP maximises 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.
"This project builds on the successes of prior expansions at Tengiz and is ready to move forward. 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," said Chevron chairman and chief executive Officer John Watson.
FGP-WPMP is currently estimated to cost US$36.8 billion, which includes $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingency and escalation.