Tengizchevroil (TCO), 50 percent-owned by Chevron Corporation, is proceeding with its Future Growth and Wellhead Pressure Management Project (FGP-WPMP), in which Kazakhstan’s Tengiz oil field will increase crude oil production by approximately 260,000 barrels a day.
“The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” Chevron Chairman and CEO John Watson said. “The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders.”
The WPMP portion of the project will allow TCO to get the most out of its existing facilities, while the FGP portion will use sour-gas injection technology to enhance oil recovery. The company estimates total costs for the project to hit $36.8 billion, the bulk of which, $27.1 billion, will go toward facilities. The remaining funding will be split between wells, at $3.5 billion, and contingency and escalation, at $6.2 billion.
“This project builds on the successes of prior expansions at Tengiz and is ready to move forward,” Chevron Upstream Executive Vice President Jay Johnson said. “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."