tengiz expansionsupersizing the output of a supergiant field
Deep beneath the western Kazakhstan steppe is a giant reservoir known as the Tengiz Field, where the oil column measures an incredible 1 mile (1.6 km) across. With a surface area more than four times that of Paris, France, Tengiz ranks as the world’s deepest producing supergiant oil field and the largest single-trap producing reservoir in existence. Nearby is another world-class reservoir called the Korolev Field. Chevron holds a 50 percent interest in Tengizchevroil (TCO), which operates the two fields.
Today, the fields' yearly output could satisfy the annual oil demand of entire nations. Net daily production in 2020 (Chevron share) averaged 281,000 barrels of crude oil, 405 million cubic feet of natural gas and 24,000 barrels of natural gas liquids.
The integrated Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) is designed to further increase total daily production from the Tengiz reservoir and maximize the ultimate recovery of resources.
The FGP will use state-of-the-art sour gas injection technology, successfully developed and proven during TCO’s previous expansion in 2008, to increase daily crude oil production from Tengiz by approximately 260,000 barrels per day.
In parallel, the WPMP maximizes the value of existing TCO facilities by extending the production plateau and keeping existing plants producing at full capacity. The WPMP portion is expected to start up in late 2022, with the remaining facilities expected to come online in mid-2023.
building capacitygrowing the use of kazakhstani goods and services
Since the start of the FGP-WPMP, we've worked to identify and develop viable, sustainable opportunities to maximize the use of Kazakhstani goods and services. One way we're doing this is through the TCO Small and Medium Business Loan Program. Since the start of this TCO program, we've provided $9 million in interest-free loans to entrepreneurs and small businesses, like MontazhSpetsStroy JSC (MSS), Kazakhstan.
TCO has worked extensively with MSS, a 100 percent Kazakhstani-owned and -operated engineering, procurement and construction company, to upgrade the firm’s health, environment and safety practices to meet TCO standards. As a result of that effort, MSS won a second contract with TCO and is on track to further build its safety capabilities and skills.
In 2015 overall, TCO spent $2.4 billion on Kazakhstani goods and services.
TCO’s major capital projects are big generators of Kazakhstani-supplied content. For example, the last expansion of Tengiz, the Sour Gas Injection-Second Generation Project (SGI-SGP), invested more than $2 billion in local jobs, goods and services. More than 200 Kazakhstani companies and their workers were engaged in the SGI-SGP expansion.
FGP-WPMP will continue to grow TCO’s investments in Kazakhstan through many new jobs and large-scale use of local goods and services that will contribute to the regional and national economy. TCO has engaged Kazakhstani entities to participate in FGP-WPMP engineering, procurement and fabrication services and, as of end of June 2016, has pre-screened more than 1,600 Kazakhstani companies.
“Energy development has been critical in generating Kazakhstan’s growth and prosperity. At Chevron, we are very proud to play a supporting role in generating Kazakhstan’s success and its goal to become a nation of global prominence.”
Managing Director, Chevron Eurasia Business Unit
our Tengizchevroil (TCO) joint venture’s direct payments to Kazakhstani entities1
goods and services
invested by TCO in Kazakhstani goods and services since 1993
of TCO jobs are held by Kazakhstani citizens
1From 1993 to March 2016. Includes Kazakhstani employees’ salaries, purchases of Kazakhstani goods and services, tariffs and fees paid to state-owned companies, profit distributions to Kazakhstani shareholders and taxes and royalties paid to the government.
workforce developmentbroadening the skills of the kazakhstani workforce
The name “Future Growth Project” can apply to skills local workers are gaining as well as to production. Over the life of the project, TCO anticipates creating approximately 20,000 jobs. TCO joint ventures with partners such as Chevron are facilitating the transfer of knowledge, technologies and skills. Through Chevron’s international development assignments, TCO employees have been able to build their knowledge overseas and share what they’ve learned with those back home. As part of the FGP-WPMP, professional training programs are being extended to train Kazakhstani workers across a range of disciplines.
helping our employees grow
technologiesadvancing tengiz to the next generation
FGP-WPMP can be described as the third generation in a two-decade-long process that has steadily increased production from Tengiz. FGP-WPMP will reinject all of the naturally occurring hydrogen sulfide, or “sour gas,” produced by oil processing, maintaining pressure in the reservoir. TCO is developing FGP-WPMP with a demonstrated commitment to local (Kazakhstani) content, worker safety, environmental and social performance.
The project’s approach to construction of the FGP-WPMP facilities is to use large, fabricated equipment blocks called modules. The main FGP-WPMP equipment will be fabricated in South Korea, Kazakhstan and Italy, and pre-assembled for transportation to Tengiz for final assembly and hook-up.
Did you know? TCO is the leading energy producer in Kazakhstan, contributing about 30 percent of Kazakhstan’s total oil and gas output.
“The Tengizchevroil joint venture was founded in 1993 with the objectives of delivering stable, reliable production from the Tengiz oil field while steadily increasing our national workforce and our use of Kazakhstani goods and services.”
General Director, Tengizchevroil LLP
environmentdriving environmental progress
When TCO was established as operator of the Tengiz Field in 1993, the field’s ongoing operations included the routine flaring of associated natural gas (naturally occurring gas, not produced for commercial sale). Since then, TCO has initiated a series of major capital projects that ultimately eliminated routine flaring. Such investments have enabled TCO to reduce total natural gas flaring volumes by 85 percent since 2000; increase the gas utilization rate to more than 98 percent; and reduce total air emissions generated per tonne of oil by 73 percent—all while increasing annual crude oil volume by 159 percent.
Since 2000, TCO has invested more than $3 billion on projects that have reduced its environmental impact.
Through significant investments in environmental standards and technology, TCO's workforce is continually improving environmental performance.