Chevron Says Kazak Oil Production To Increase
Chevron Corp. said on October 23rd that it will boost output from the giant Tengiz field in Kazakstan to 700,000 b/d by 2010. Current production from the field, the country’s largest onshore field, is around 290,000 b/d, up from 260,000 b/d in June.
Tengiz accounts for roughly one-third of Kazakstan’s crude oil production and has estimated reserves of between 6-9 billion barrels.
The field is operated by the Tengizchevroil joint venture, in which Chevron has a 50 percent stake, Kazak state oil firm Kazakoil has 20 percent, Exxon Mobil Corp. has 25 percent and LUKArco, a joint venture between Russia’s LUKoil and Arco, now owned by BP Amoco, has 5 percent. Chevron is to pay $700 million in taxes and royalties this year, up from $330 million in 1999.
Chevron is also involved in the Caspian Pipeline Consortium (CPC), which is behind the construction of a $2.3 billion, 900-mile export pipeline linking the Tengiz field to the Russian Black Sea port of Novorossisk. The CPC project is due for completion in 2001, with a first-phase capacity of 564,000 b/d and a peak capacity of 1.34 million b/d by 2015.