04 February 2022, 13:21
Prime Minister of Kazakhstan Alikhan Smailov held talks with Chevron's Upstream Executive Vice President James Johnson.
They discussed the implementation of the Tengizchevroil (TCO) Future Growth Project and Wellhead Pressure Management Project, the prospects for the development of the Karachaganak project and the increase in the capacity of the Caspian Pipeline Consortium.
“It is necessary to ensure the timely launch of all ongoing projects. It is important to conduct high-quality monitoring of the planned release and employment of workers,” Smailov said.
The Prime Minister emphasized that the Government of the Republic of Kazakhstan pays special attention to the development of the Tengiz field and is committed to the further development of long-term cooperation with Chevron.
Johnson thanked the Government of the Republic of Kazakhstan for providing a favorable investment climate and resolving emerging issues during the implementation of projects in the oil and gas industry.
Chevron is the largest foreign investor in Kazakhstan with assets in three major projects — Tengiz (50%), Karachaganak (18%) and the Caspian Pipeline Consortium (15%).
In 2021, TCO produced 26.55 million tons of crude oil.
This year it is planned to produce oil in the amount of 28.73 million tons. Completion of the Future Growth Project at the end of 2023 will increase production by 12 million tons per year.
The issue of providing TCO with raw materials for two large gas chemical projects for the production of polypropylene (with a capacity of 500 thousand tons per year) and polyethylene (1.25 million tons per year) in the Atyrau region is being considered.
In October 2021, a Memorandum of Understanding was signed between the Ministry of Energy of the Republic of Kazakhstan and Chevron to establish a $248.5 million Direct Investment Fund in Kazakhstan. The Fund's capitalization will be part of Chevron's profits received in Kazakhstan. The Fund will finance the development of the economy and local content by investing in enterprises of Kazakhstan for the production of goods, work and the provision of services in the oil and gas industry, environmental protection, as well as in the field of information and digital technologies.