Tengizchevroil Is Going to Increase Oil Output

Kazakhstan’s prime minister has met Chevron’s top manager

The head of the government of the Republic of Kazakhstan Askar Mamin, Energy Minister Nurlan Nogaev, and CEO of KazMunayGaz Alik Aydarbayev have met with Nigel Hearne, president of Eurasia Pacific Exploration and Production in Chevron to discuss the perspectives of oil production, according to the government’s press service. 

American Chevron Corporation is one of the biggest foreign investors in Kazakhstan. The company has shares in three oil projects: Tengiz (50%), Karachaganak (18%) and Caspian Pipeline Consortium (15%).

In 2020 the joint U.S.-Kazakhstani company Tengizchevroil produced 26.5 million tons of crude oil and transferred $6.6 billion to the state budget of Kazakhstan; the company spent about $3.5 billion for purchasing products and services from local Kazakhstani suppliers. 

Also, the natural gas from Tengiz is the main source of raw products for two big gas chemical projects in the Atyrau region. They both produce 500,000 tons of polypropylene and 1.25 million tons of polyethylene per year.

During the negotiations, the two sides discussed the Future Growth Project at Tengiz. Once the project is completed by 2023, the company’s output will increase to 12 million tons. 

Given the scale of oil production at the Tengiz oil field, local authorities pay close attention to the company’s work. For instance, after field monitoring, the pollution control agency accused the company of excessive emissions, in part because of gas flaring. As a result, Tengizchevroil was forced to pay about $1.7 billion in fines.

Read also