Chevron, Exxon approve $37b Tengiz oil project expansion

Chevron, Exxon approve $37b Tengiz oil project expansion

Chevron Corporation (NYSE:CVX) has approved a US$36.8 billion expansion of the Tengiz oil project in Kazakhstan which will increase crude production at the oil field by about 260,000 barrels per day.

The company and its partners will spend $27.1 billion on facilities, $3.5 billion on wells and $6.2 billion for contingency and escalation.

Jay Johnson, executive vice president for upstream at Chevron said: “Tengiz has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services.”

According to Chevron, the project’s total hydrocarbon output will increase to around 1 million barrels of oil equivalent per day. First oil from Tengiz is expected for 2022.

Exxon Mobil Corp. (NYSE:XOM) owns 25% of the project, KazmunaiGaz National Co. 20% and Russia’s Lukoil PJSC (LSE:LKOH) 5%.