Chevron approves $36.8bn oil field expansion project

WCN Editorial Team 8 Jul 2016 ASIA ENERGY & UTILITIES

American oil giant Chevron has given the go-ahead to the $36.8bn Tengiz oil field expansion project in Kazakhstan.

The Future Growth and Wellhead Pressure Management Project ((FGP-WPMP) is expected to raise crude oil production at the Tengiz oil field — owned and operated by Tengizchevroil (TCO), which is an affiliate of Chevron — by about 260,000 barrels daily.

$27.1bn of the project’s cost will be used for facilities, while $3.5bn will be used for wells and $6.2bn for contingency and escalation.

The project will make use of advanced sour gas injection technology, which has been successfully developed and proven during TCO’s expansion in 2008.

Chevron’s chairman and CEO John Watson said: "The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company. The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders."

Chevron Upstream executive vice president Jay Johnson added: "This project builds on the successes of prior expansions at Tengiz and is ready to move forward. 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."

First oil is expected to be delivered in 2022.

With 11 websites and newsletters covering all the key areas within the construction industry, World Construction Industry Network is the leading global construction information resource. READ ABOUT US



World Construction Network | is a product of GlobalData. Copyright © 2020 GlobalData. All rights reserved.