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Kazakhstan concerned with estimates on expansion of Tengiz field's dev't

19 December 2019 [17:50] - TODAY.AZ

By Trend


Increase of estimates for Future Expansion Project of Kazakhstan’s Tengiz oil field is a topic of concern for Kazakhstan’s Ministry of Energy, Kazakhstan’s Vice Minister of Energy Asset Magauov said, Trend reports with reference to Kazakh media.

He noted that currently Tengizchevroil (company concerned with field development) has already prepared all necessary documentation and submitted to their partners, including to KazMunayGas National Company. He also noted that the parties are yet to reach any certain decisions.

“We are awaiting for the decision. Overall during the meeting with Tengizchevroil and Chevron companies the ministry has expressed its concerns and wishes for expenditures optimization,” Magauov said.

As Jay Johnson, Executive Vice President of Chevron said earlier this year, Chevron Corporation has increased the cost estimate for the Future Growth (FGP) and Wellhead Pressure Management of Kazakhstan’s Tengiz oil field projects (WPMP) to $45.2 billion.

“Additional construction costs represent the largest category of the revised estimate. More than half of the increase in construction cost is due to higher quantities than originally estimated. The balance is primarily driven by higher unit construction rates, due to higher market rates and more complex work than originally anticipated,” Johnson said.

Kazakhstan’s Tengiz oil field ranks as the world’s deepest producing giant oil field and the largest single-trap producing reservoir in existence. Nearby is another world-class reservoir called the Korolev Field. Chevron company holds a 50 percent interest in Tengizchevroil (TCO), which operates the two fields.

According to the company, the integrated Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) is designed to further increase total daily production from the Tengiz reservoir and maximize the ultimate recovery of resources.

URL: http://www.today.az/news/regions/189365.html

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