Chevron‘s 50%-owned affiliate Tengizchevroil (TCO) is set to proceed with development of its $36.8bn Future Growth and Wellhead Pressure Management Project (FGP-WPMP) at the Tengiz oilfield in Kazakhstan.
The project is expected to increase crude oil production at the field by around 260,000bpd and will raise TCO’s total production to one million barrels of oil equivalent per day.
Chevron chairman and CEO John Watson said: "The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company.
"The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders."
The total cost of FGP-WPMP includes $27.1bn for facilities, $3.5bn for wells and $6.2bn for contingency and escalation.
Chevron upstream executive vice-president Jay Johnson said: "This project builds on the successes of prior expansions at Tengiz and is ready to move forward.
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"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."
WPMP will extend the production plateau and keep existing plants producing at full capacity. It is set to increase the value of existing TCO facilities.
The project will use sour gas injection technology, which has been developed during TCO’s previous expansion in 2008 in a bid to improve oil recovery.
First oil from the Tengiz oilfield is planned for 2022.
The partners in Tengizchevroil are Chevron (50%), Exxon Mobil (25%), the Kazakhstan government through Kazakhstan Petroleum (20%) and Lukoil (5%).