Chevron has started up oil production at an expansion project at the largest oilfield in Kazakhstan that will boost crude oil output by 260,000 barrels per day (bpd).
Chevron, which owns 50% in affiliate Tengizchevroil LLP (TCO), the company operating the giant Tengiz development, has achieved first oil at the Future Growth Project (FGP) at the field, the U.S. supermajor said on Friday.
FGP is the third processing plant in operation at the Tengiz oilfield, which expands sour gas injection capability and is expected to ramp up output to 1 million barrels of oil equivalent per day (boepd).
The FGP expansion aims to increase crude oil production by 260,000 barrels per day at full capacity.
The Tengiz oil field, located in western Kazakhstan, is the country’s biggest field and ranks as the world’s deepest producing supergiant oil field and the largest single-trap producing reservoir in existence, Chevron says. Estimated oil in place in Tengiz is 3.2 billion tons, or 25.5 billion barrels. Tengiz and the nearby Korolev field, both operated by Tengizchevroil, are located about 6 miles (10 km) east of the Caspian Sea.
Chervon owns 50% of Tengizchevroil, with KazMunayGas (20%), ExxonMobil (25%), and Lukoil (5%) holding the remaining stake.
“First oil at the Future Growth Project is the latest in a series of development milestones, including in the Gulf of Mexico and the Permian, that are expected to significantly increase free cash flow to the company and deliver value for Chevron shareholders,” Mark Nelson, Chevron vice chairman, said in a statement.
While the Kazakhstan development is set to boost Chevron’s crude oil production and cash flow, it could further complicate Kazakhstan’s efforts to compensate for overproduction as part of its commitment to the OPEC+ alliance.
Kazakhstan, a non-OPEC producer, is part of the OPEC+ group and has been struggling, alongside Russia and Iraq, to fall in line with its assigned output quota as part of the OPEC+ agreements.
By Tsvetana Paraskova for Oilprice.com
