Project will raise Tengizchevroil’s production to 1 million barrels of oil equivalent per day
SAN RAMON, Calif. – Chevron Corporation announced that its 50 per cent owned affiliate, Tengizchevroil, will proceed with the development of its Future Growth and Wellhead Pressure Management Project, which will increase crude oil production at the Tengiz oil field in Kazakhstan by about 260,000 barrels per day.
“The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” said Chevron Chairman and CEO John Watson. “The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders.”
“This project builds on the successes of prior expansions at Tengiz and is ready to move forward,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation.
“It has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services.”
Future Growth and Wellhead Pressure Management Project is currently estimated to cost $36.8 billion, which includes $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingency and escalation.
The project will raise Tengizchevroil’s total production to approximately 1 million barrels of oil equivalent per day.
Wellhead Pressure Management Project maximizes the value of existing Tengizchevroil facilities by extending the production plateau and keeping existing plants producing at full capacity.
FGP will use state-of-the-art sour gas injection technology, successfully developed and proven during Tengizchevroil’s previous expansion in 2008, to enhance oil recovery. First oil is planned for 2022.