In April 2013 Chevron celebrated the 20th anniversary of our successful partnership with the Republic of Kazakhstan. That partnership started with the formation of Tengizchevroil (TCO) in 1993, when Chevron became the first major Western oil company to work in Kazakhstan.
In 2008, TCO completed the Sour Gas Injection and Second Generation Plant (SGI/SGP) expansion, nearly doubling daily production of oil and natural gas.
Chevron launched production of metal-plastic bonded pipes in 2011 and started construction of a new plant designed to produce valves for utility infrastructure.
Health, Environment and Safety
Protecting people and the environment is one of Chevron's core values.
In 2012, TCO completed its first SGI/SGP maintenance turnaround. Despite the complexity of the massive project, 6,500 workers logged more than 1 million hours without a day away from work due to injury. In 2012, more than 18,000 individuals worked a combined 49 million hours for TCO and recorded just seven injuries that required a day away from work. Although this was a remarkable achievement, TCO continues to strive for zero workplace injuries and is continuously working to improve in this area.
Employees at the Atyrau Polyethylene Pipe Plant have worked without a day-away-from-work injury since its earliest days of operation. Plant employees continue to achieve excellent results, thanks to continuous safety training. The plant has surpassed 1 million work-hours—more than nine years—of incident-free operation.
Chevron has invested heavily in protecting the environment. Since 2000, Tengizchevroil has spent more than $2.5 billion on measures that have reduced natural gas flaring from our operations by 92 percent. In 2012, the World Bank's Global Gas Flaring Reduction Partnership recognized TCO as a global leader in flaring reduction. This is due, in part, to the success of TCO's Gas Utilization Project, which helped TCO deliver on its commitment to end routine gas flaring. TCO applied innovative technologies to allow gas that would previously have been flared to be redirected for use by TCO, export to consumers or reinjection into the reservoir.
Economy
Chevron contributes to Kazakhstan's economy through employee wages, purchases of goods and services from local suppliers, tariffs and fees paid to state-owned companies, and taxes and royalties paid to the government. From 1993 to 2012, Tengizchevroil spent $13.1 billion on Kazakhstani goods and services—$1.8 billion in 2012 alone.
In 2012, Chevron and our Karachaganak partners have awarded contracts worth more than $336 million to Kazakhstani companies for goods and services. Since 1997, the local content in all partner contracts has exceeded $4 billion.
Since 1993, the proportion of employees at Tengizchevroil who are Kazakhstani citizens has grown from 50 percent to 87 percent. A steadily growing number of nationals are assuming management positions. Kazakhstanis now make up 76 percent of managerial and supervisory positions.
In 2012, all of the skilled and clerical positions at the Karachaganak operations and 95 percent of professional and supervisory roles are filled by local employees. At the managerial level, 69 percent of positions are filled by local employees.
All managers and staff at Chevron's polyethylene pipe plant are Kazakhstani citizens. Our plant has created about 150 local jobs, including 78 employee positions.
We apply the most up-to-date equipment, technology, methods and expertise to our oil and gas business in Kazakhstan. The company deploys all of its technologies with the goal of increasing reserves and production, accelerating development and reducing costs. Our Kazakhstani workers are exposed to the latest developments in oil field operations.
In 2011, Kazakhstan President Nursultan Nazarbayev presented Tengizchevroil with the Grand Prize Paryz Award for outstanding results in the area of corporate responsibility.
At the seventh annual Kazenergy Eurasian Forum in 2012, TCO was recognized as the best company in Kazakhstan's oil and gas sector for sustainable corporate social responsibility.
Updated: April 2013
Cautionary Statement