Tengizchevroil (TCO), a joint venture between Chevron, ExxonMobil, KazMunayGas and LukArco, has made final investment decision to move ahead with the development of the proposed $36.8bn Tengiz oil field expansion project in western Kazakhstan.
The expansion project is expected to increase crude oil production at the Tengiz oil field in Kazakhstan by about 260,000 barrels per day to approximately 1 million barrels of oil equivalent per day.
TCO general director Ted Etchison said: "TCO is confident that these world-class projects will build on our long partnership with Kazakhstan to deliver stable, reliable Tengiz production to benefit the future generations of Kazakhstan."
The project is expected to create approximately 20,000 jobs during the construction phase while production is scheduled to commence in 2022.
Chevron chairman and CEO John Watson said: "The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company."
As part of the expansion project, the TOC will invest $27.1bn to develop facilities, $3.5bn for wells and $6.2bn for contingency and escalation.
Chevron upstream executive vice-president Jay Johnson said: "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."
TCO, which operates the Tengiz field, is 50% owned by to Chevron. Other partners include ExxonMobil 25%, state-owned energy firm KazMunayGas 20% and LukArco 5%.
The Tengiz field is claimed to be the world’s deepest operating super-giant oil field project.
Image: Tengizchevroil intends to increase oil production in Kazakhstan. Photo: courtesy of Rosemary Ratcliff/ FreeDigitalPhotos.net.