No Decision Yet On Financing Production Increase At Tengiz Oilfield

The Wellhead Pressure Management Project / Future Growth Project (WPMP / FGP), which will make it possible to significantly increase oil production at the Kazakh Tengiz field, are being considered, but a decision on their financing hasn't been made yet, Tengizchevroil (TCO) Consortium engaged in the development of the field, told Trend.

"Large capital projects of the TCO undergo thorough and rigorous consideration to be coordinated with the partners in order to ensure their further safe, profitable and timely implementation," said the consortium.

Earlier, Kazakh Energy Minister Kanat Bozumbayev said in an interview with the Wall Street Journal that the TCO Consortium plans to allocate up to $37 billion, starting from 2017 for production build-up at the Tengiz oil field.

Implementation of the WPMP / FGP will make it possible to increase Tengizchevroil LLP (TCO) oil production by 12 million tons - up to 38 million tons per year. Implementation of the WPMP envisages the construction of a new system for the collection of the well production, infrastructure and support facilities, construction of a new oil refinery.

Due to a sharp fall in oil prices on the world market in February 2015, TCO held optimization of costs for implementation of these projects and recommended the project partners to postpone a final decision on financing.

The shareholders of Tengizchevroil are KazMunaiGas national oil and gas company of Kazakhstan (20 percent), Chevron Overseas (50 percent), ExxonMobil (25 percent) and LukArco (five percent). (Cihan/Trend az)