Chevron to Spend $6-$8 bln on New Tengiz Project
Wednesday 15 February 2012
SAN RAMON (Press release)– Chevron Corp. (NYSE: CVX) today reports that its affiliate Tengizchevroil LLP (TCO) expects to enter front-end engineering and design (FEED) in 2012 for an expansion project to increase total daily production between 250,000 and 300,000 barrels.
- Tengiz, Kazakhstan’s biggest onshore oil field
The Future Growth Project (FGP) will utilize sour gas injection technology used in existing operations. An early estimate of the total project cost is in the US $6-$8 billion range. The upcoming FEED work will refine the estimate range.
TCO is also undertaking an ongoing drilling program and has entered FEED on a well head pressure management project to support current operations.
An early estimate of the total project cost for the trio of projects is in the $20-$25 billion range.
Chevron has a 50% interest in Tengizchevroil. Other partners are KazMunaiGas, 20%; ExxonMobil Kazakhstan Ventures Inc., 25%; and LUKArco, 5%.