Chevron Corporation’s 50% owned affiliate, TCO, approves a major expansion project at the Tengiz oil field.
Chevron Corporation announced Tuesday that its 50 percent owned affiliate, Tengizchevroil (TCO), has approved a major expansion project at the Tengiz oil field in Kazakhstan that will increase crude oil production at the site by about 260,000 barrels per day.
The Future Growth and Wellhead Pressure Management Project (FGP-WPMP), 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 Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” said Chevron Chairman and Chief Executive Officer John Watson in a company statement.
“The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders,” he added.
The project will raise TCO’s total production to approximately 1 million barrels of oil equivalent per day. WPMP maximizes the value of existing TCO facilities by extending the production plateau and keeping existing plants producing at full capacity. FGP will use sour gas injection technology, successfully developed and proven during TCO’s previous expansion in 2008, to enhance oil recovery. First oil is planned for 2022.
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