Exploration and Production
Chevron is involved in two of Kazakhstan's largest projects: Tengizchevroil and the Karachaganak Field. Total average daily production in 2010 was 831,000 barrels of crude oil and natural gas liquids (291,000 net) and 1.7 billion cubic feet of natural gas (487 million net). Chevron has a 50 percent interest in TCO.
Tengizchevroil Looks Ahead
Tengizchevroil's total daily production in 2010 averaged 567,000 barrels of crude oil (234,000 net), 822 million cubic feet of natural gas (338 million net) and 44,000 barrels of natural gas liquids (18,000 net).
In 2010, TCO continued to ramp up the Sour Gas Injection (SGI) and Second Generation Plant (SGP) facilities.
About one-third of the sour gas is separated from the crude oil production at the SGP processing unit, or train, and is reinjected at very high pressure into the Tengiz reservoir. Sour gas is natural gas that contains significant amounts of hydrogen sulfide. 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.
TCO continues to evaluate options for another significant expansion project based on the SGI/SGP project. The Future Growth Project will utilize sour gas injection technology and is expected to increase total daily crude oil production between 250,000 and 300,000 barrels.
During 2010, the majority of TCO's crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline. The balance was moved by rail to Black Sea ports or to Aktau, Kazakhstan, then by tanker to Baku, Azerbaijan, for shipment by rail to Black Sea ports.
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 has a 20 percent nonoperated working interest in the field. In 2010, total daily production from the Karachaganak Field averaged 220,000 barrels of liquids (39,000 net) and 840 million cubic feet of natural gas (149 million net).
During 2010, Chevron and our Karachaganak partners continued work on a fourth oil-stabilization unit. The project is designed to process 56,000 barrels per day of sour condensate production into stabilized and sweetened oil. The fourth train is expected to start up in the second quarter of 2011.
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 in Russia. The consortium has 11 transportation agreements in place and transported an average of 743,000 barrels of crude oil per day in 2010, including 607,000 barrels per day from Kazakhstan and 136,000 barrels per day from Russia. In addition, approximately 39,000 barrels per day of Tengiz crude was discharged at Atyrau, Kazakhstan, for loading onto rail cars.
In December 2010, CPC partners made a final investment decision 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 capacity increasing progressively until reaching full capacity in 2016. The expansion is expected to provide additional transportation capacity to accommodate TCO and increased production.
Building on Success and Diversifying the Economy
Chevron is helping Kazakhstan meet one of its goals: 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 pipes per year. In 2011, the plant began producing metal-plastic bonded pipe that can be used for heating and hot water supply. Chevron is planning to build and operate another plant in Atyrau to produce iron valves.
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 both Texaco® and Chevron® lubricants through two separate distributor networks.
Updated: March 2011
Cautionary Statement