Tengizchevroil expands production with first oil from Future Growth Project

Tengizchevroil (TCO), a joint venture controlled by U.S.-based Chevron (50%), ExxonMobil (25%), KazMunayGas (20%) and the Russian oil company Lukoil (5%), has produced its first oil from the Future Growth Project at Kazakhstan’s largest oil field Tengiz, according to a release from TCO.

«TCO has reached a significant milestone at its Future Growth Project (FGP), by safely initiating production of crude oil at its new Third-Generation Plant (3GP) at the Tengiz oilfield. This milestone marks the beginning of a gradual ramp-up of 3GP production over the coming months, which is expected to expand Tengiz’s crude oil output by an additional 12 million tons per annum,» the statement said.

Once all production facilities reach full capacity, crude oil production at Tengiz is expected to reach approximately 40 million tons annually. TCO stated that this increase will generate additional revenue for Kazakhstan through taxes, royalties and other direct financial payments. The FGP will also support the reliable operation of the main production facilities and strengthen Kazakhstan’s position as a key supplier to global energy markets.

«The successful delivery of the FGP is a major accomplishment in terms of scale and global complexity. FGP will unlock additional value for both Kazakhstan and TCO’s shareholders,» said Kevin Lyon, CEO of TCO. «We would like to express our sincere appreciation to the government of the Republic of Kazakhstan, our shareholders, contractor companies, our talented and skilled workforce, and other stakeholders for their collaboration and support in helping us reach this milestone,» Lyon added.

TCO Deputy CEO Konilkosh Suyessinov highlighted that Kazakhstani companies have demonstrated exceptional capabilities in implementing large-scale projects. Specifically, under the FGP, the company has invested nearly $19.5 billion in the procurement of local goods and services and awarded more than 1,250 contracts to local firms.

At its peak, the FGP created approximately 90,000 jobs. Throughout the project’s implementation, TCO has contributed to building a legacy of trained and skilled national personnel, with around 37,500 training courses completed. These individuals are now equipped to apply their experience to other industrial projects within Kazakhstan and internationally.

Between January and September 2024, TCO produced 21.4 million tons of oil (171.4 million barrels) and sold 951,000 tons of liquefied gas, along with over 2 million tons of sulfur. For comparison, during the same period in 2023, the company produced 21.7 million tons of oil and sold 932,000 tons of liquefied gas and more than 1.9 million tons of sulfur.

The total proven oil reserves at Tengiz amount to 3.1 billion tons (25 billion barrels), while reserves at the Korolev field, also operated by TCO, total 200 million tons (1.6 billion barrels). The combined recoverable reserves at both fields are 1.4 billion tons (11.5 billion barrels).

Chevron and its partners plan to increase output from the Tengiz field to 850,000 barrels per day in the first half of 2025. The cost of the project expansion is estimated at $49 billion.