Exploration and Production
Through our subsidiaries, Chevron is involved in two of Kazakhstan's largest projects: Tengizchevroil LLP (TCO) and the Karachaganak Petroleum Operating B.V. Chevron has a 50 percent interest in TCO and an 18 percent nonoperated working interest in the Karachaganak Field. Net daily production in 2012 from TCO and Karachaganak was 273,000 barrels of liquids and 440 million cubic feet of natural gas.
Tengizchevroil Looks Ahead
TCO is developing the Tengiz and Korolev crude oil fields in western Kazakhstan. Net daily production in 2012 averaged 218,000 barrels of crude oil, 301 million cubic feet of natural gas and 18,000 barrels of natural gas liquids. The majority of TCO's crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline. The balance of production was exported via rail to Black Sea ports. In November 2012, TCO produced the 2 billionth barrel of crude oil from the Tengiz and Korolev fields since its formation in 1993.
In 2012, front-end engineering and design work began on three projects.
- The Wellhead Pressure Management Project is designed to maintain production capacity at existing facilities.
- The Capacity and Reliability Project is designed to reduce bottlenecks and increase plant efficiency and reliability at TCO facilities.
- The Future Growth Project is designed to increase total daily production by 250,000 to 300,000 barrels of oil-equivalent and to increase the ultimate recovery of the reservoir.
The final investment decisions for these projects are planned for late 2013.
The Sulfur Expansion Project is expected to increase TCO's sulfur-granulation capacity and eliminate routine additions to sulfur inventory. Operations began in December 2012.
Karachaganak, Among the World's Largest Fields
The Karachaganak Field in northwest Kazakhstan is one of the world's largest oil and gas condensate reserves. Chevron's nonoperated working interest in the Karachaganak Field was reduced in June 2012, from 20 percent to 18 percent, as a result of a 2011 agreement with Kazakhstan's government. The agreement has allowed Kazakhstan's national oil and gas company, KazMunaiGas, to become a new nonoperating partner in the Karachaganak project.
In 2012, net daily production at Karachaganak averaged 37,000 barrels of liquids and 139 million cubic feet of natural gas.
Approximately 35,000 net barrels per day of processed liquids were exported and sold at prices available in world markets. Most of the exported volumes were transported through the CPC pipeline. A portion was also exported via the Atyrau-Samara (Russia) pipeline. Liquids not exported by these pipelines were sold as condensate in local and Russian markets.
Moving Product to Market via the CPC Pipeline
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, Russia. The consortium transported an average of 657,000 barrels of crude oil per day in 2012, including 590,000 barrels per day from Kazakhstan and 67,000 barrels per day from Russia. In addition, approximately 94,000 barrels per day of Tengiz crude was discharged at Atyrau, Kazakhstan, for loading onto rail cars.
CPC partners are working to expand the pipeline capacity to 1.4 million barrels per day. The $5.4 billion project is planned to be implemented in three phases, with the first increase in capacity—400,000 barrels per day—expected in 2014. Project completion is planned for 2016. The expansion is expected to provide additional transportation capacity to accommodate some of TCO's increased production.
Building on Success and Diversifying the Economy
Chevron is helping Kazakhstan meet its goal to diversify its economy. Since 2003, the company has owned and operated a polyethylene pipe plant in Atyrau that is managed and operated entirely by national employees. The plant's five processing lines have a production capacity of 15,000 tons of polyethylene pipe per year. In 2011, the plant began producing metal-plastic bonded pipe that can be used for heating and hot water supply. This added 2,000 tons to the plant's total production capacity. Chevron is building another plant in Atyrau to produce up to 30,000 iron valves per year. Like the polyethylene pipe plant, the new plant will be managed and operated by Kazakhstani employees.
Both plants bring new technology to Kazakhstan and are expected to supply the country with products that are currently imported. In addition, there is potential for export.
Marketing and Retail
Chevron markets Texaco® and Chevron® lubricants through separate distributor networks.
Updated: April 2013
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