In 1979, geologists discovered a 1-mile-thick (1.6-km) oil field near the windswept Caspian Sea. They named it "Tengiz," Kazakh for "sea," a fitting description considering its location and potential.
Today, Chevron is Kazakhstan's largest private oil producer, holding stakes in the nation's two biggest oil-producing projects—the Tengiz and Karachaganak fields. We hold a 50 percent interest in Tengizchevroil (TCO), which operates the supergiant Tengiz Field.
Our commitment to the region began in 1993 with the formation of TCO and the five-year, $50 million Atyrau Bonus Fund that developed infrastructure projects. Since then, we have continued to cultivate opportunities that result in economic and social change for many Kazakhstanis. Our business is enhanced by strong local suppliers and a skilled workforce.
"If you want to do business here, or anywhere else, you have two responsibilities—business and community," said Jay Johnson, president of Chevron Europe, Eurasia and Middle East Exploration and Production Ltd. "We satisfy both by encouraging our Kazakhstani employees to continue to develop their skills. That is why we work closely with local schools and universities. As the community benefits, so does our business."
At year-end 2010, 85 percent of TCO's workforce was Kazakhstani. TCO spent nearly $1.35 billion on Kazakhstani services and materials. Ongoing training and education programs contribute to the high number of Kazakhstan citizens among TCO's workforce and in leadership positions.
A Commitment to Human Potential
Longtime Kazakhstani employees still talk about adapting to Chevron's business and engineering standards. Berik Dyussenov, TCO's Health, Environment and Safety coordinator said standards today are more stringent than what he saw during Tengiz's infancy. Chevron's decision "to partner with Kazakhstan on the Tengiz project was made shortly after Kazakhstan's independence," he said. "The partnership brought new opportunities to us working in Tengiz and contributed greatly to our country's economy."
During his career, Dyussenov visited Chevron facilities across the United States and Canada and credits Chevron programs for offering Kazakhstani specialists an opportunity to receive state-of-the-art training and learn best practices in environmental safety.
Our program at the Kazakh National Technical University (KazNTU) started in 2007 and has provided scholarships for 150 graduate and undergraduate students. Working with the university and international and local environmental nongovernmental organizations, we introduced a major addition to the country's curriculum: Energy Efficiency and Sustainable Development. This new course was introduced to all 23 technical universities in Kazakhstan.
In 2010, TCO began working with Kazakhstan's Bolashak ("future" in Kazakh) program, which allows talented students to study abroad with full government scholarships. Mike Sullivan, a reservoir surveillance coordinator, began an aggressive program to recruit Bolashak students for internships.
Students were paired with senior mentors at TCO and were given a problem that required original research to solve. For example, one intern explored ways to improve the injection performance for disposing of the field's wastewater.
"My internship helped me apply the theoretical knowledge I obtained in college and expand my understanding of petroleum engineering," said Texas A&M graduate Merey Shinikulova, now a TCO production engineer. "I worked on interesting and challenging projects, and I was impressed that my projects were actually used after I left the internship."
Of the 12 new reservoir management employees in 2010, 11 came from the program. Three of them completed master's degrees at the Colorado School of Mines with funding from Chevron's University Partnership Program.
Supporting Business Development
Fostering emerging small businesses and suppliers is an important goal that we and our government and nongovernment partners share. Since 1997, TCO has provided more than $7.8 million to small business development loan programs that have helped entrepreneurs in agriculture, catering, and medical and community services.
Jay Johnson cited Byelkamit, a local company that has been working with TCO since 1997. In addition to numerous other projects in 2009, Byelkamit was the prime contractor on a large fixed-roof crude-oil storage tank and employed 600 local workers at peak construction. Prior to this project, a Kazakhstani contractor had never built a tank this large, a new capability for the country's industry, developed with TCO's help.
"We prefer to buy locally whenever we can," said Johnson. "Byelkamit produces high-quality equipment to international standards, delivers its products reliably and sells them at competitive prices."
Fueling Social Programs
Since 1993, TCO has invested more than $645 million in social programs in the Atyrau Oblast. In 2010, TCO spent $20 million on its Egilik (Kazakh for "benefit") social infrastructure program, and Karachaganak Petroleum Operating, in which Chevron holds a 20 percent interest, also contributed $20 million to social programs in the Western Kazakhstan Oblast.
We and our affiliates have continually supported health programs, including current efforts to combat high rates of cardiovascular disease, a leading cause of death in Kazakhstan.
The Kazakhstan Association of Family Physicians and TCO are partnering to educate the local medical community and public about how to prevent cardiovascular disease. In one program, more than 100 doctors are being trained to diagnose and improve treatment. Another program, for doctors at the Atyrau Cardiovascular Hospital, provided mentoring by surgeons from the Astana Cardiovascular Center.
Updated: May 2011