CHEVRON SAYING YES TO $25 BILLION EXPANSION IN KAZAKHSTAN

In the third quarter of 2008, TCO completed its Sour Gas Injection and Second Generation Plant expansion, doubling the production capacity of TCO. The expansion boosted the capacity of the Tengiz and Korolev fields to 600,000 bo/d and 750 MMcf/d of natural gas.

To ramp up production, the consortium may move forward with the Future Growth Project. If they do, the expansion would increase oil production from the field to 290 million barrels (795,000 bo/d), versus 193 million barrels (530,000 bo/d) in 2012.

Through the Future Growth Project, Chevron plans to ultimately increase the expected recovery rate of the field. Based on how well TCO’s operations are going so far, it would be reasonable to assume that the recovery rate could end up landing on the high end of its guidance.

Implementing the Future Growth Project includes drilling 190 additional production and injection wells, building new sour gas injection plants, and implementing TCO’s wellhead pressure management program. This allows TCO to keep the reservoir’s pressure high, supporting additional production wells which allows the consortium to ramp up production. Current estimates put the cost of the three part plan between $20 billion USD – $25 billion USD.

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