Exploration and Production
Chevron is involved in two of Kazakhstan's largest projects: Tengizchevroil (TCO) and Karachaganak. Total average daily production in 2008 was 629,000 barrels of crude oil and natural gas liquids and 1.3 billion cubic feet of natural gas (267,000 barrels of net oil-equivalent).
Tengizchevroil
Tengizchevroil's total daily production in 2008 averaged 377,000 barrels of crude oil (156,000 net), 494 million cubic feet of natural gas (195 million net) and 28,000 barrels of natural gas liquids (12,000 net).
In 2008, TCO completed the Sour Gas Injection (SGI) and Second Generation Plant (SGP) projects. The projects increased total TCO daily production capacity to 540,000 barrels of oil and 760 million cubic feet of natural gas.
About one-third of the sour gas is separated from the crude-oil production at the SGP processing train and is reinjected at very high pressure into the Tengiz reservoir. SGI is designed to increase production efficiency and recoverable volumes, as the injected gas maintains higher reservoir pressure and displaces oil toward the producing wells. In 2008, the company recognized additional proved reserves associated with the SGI expansion.
In early 2009, TCO was evaluating options for another significant expansion project based on SGI/SGP technologies.
During 2008, the majority of TCO's production was exported through the Caspian Pipeline Consortium (CPC) pipeline. Incremental production not transported via the CPC pipeline was moved by rail to Black Sea ports or by rail to Aktau, Kazakhstan, then by tanker to Baku, Azerbaijan, for shipment through the Baku-Tbilisi-Ceyhan pipeline to Ceyhan or by rail to Black Sea ports.
Karachaganak
Karachaganak is a natural gas and condensate field located in northwest Kazakhstan. Operated by Karachaganak Petroleum Operating, it is one of the world's largest oil and gas condensate reserves. Chevron has a 20 percent share in the field. In 2008, total daily production from Karachaganak averaged 224,000 barrels of liquids (41,000 net) and 843 million cubic feet of natural gas (153 million net).
During 2008, Chevron and our Karachaganak partners continued work on a fourth oil stabilization train designed to process sour condensate production into 56,000 barrels per day (11,000 net barrels) of stabilized and sweetened oil. The higher-quality oil would then be exported to world markets. The fourth train is expected to start up in 2011.
Marketing and Retail
Chevron markets both Texaco- and Chevron-branded lubricants through two separate distributor networks.
Chevron has a 15 percent interest in the 935-mile (1,505-km) CPC crude oil export pipeline that runs from the Tengiz Field in Kazakhstan to the Black Sea port of Novorossiysk in Russia. The consortium has 11 transportation agreements in place and transported an average of 675,000 barrels of crude oil per day in 2008, including 557,000 barrels per day from Kazakhstan and 118,000 barrels per day from Russia. In addition, approximately 15,000 barrels per day of Tengiz crude was discharged at Atyrau for loading onto rail cars.
Improving production efficiency could provide additional transportation capacity to accommodate increased TCO volumes. In late 2008, consortium partners agreed on the principles to expand the pipeline design capacity to 1.4 million barrels per day by 2013. As of early 2009, the required governmental approvals for the expansion had not been received, and the timing of a final investment decision was uncertain.
Chevron also has a polyethylene pipe plant in Atyrau. Using state-of-the-art equipment and technology, the plant can produce 15,000 tons per year of high-density polyethylene pipe.
Updated: March 2009