According Kazakhstan’s energy minister Kanat Bozumbayev, a consortium led by Chevron Corp. plans on investing up to $37bn in the country’s oil fields with Chevron’s CEO John Watson having previously discussed the project with the country’s political leaders.
Investment in the project is expected to commence during 2017 and the project would add up to 24,000 jobs in the country.
Chevron is the biggest partner in the field’s operator, Tengizchevroil, with a 50% stake. Other shareholders in the operator include Exxon Mobil Corp. with a 25% stake, Kazakhstan’s state-controlled oil company Kazmunaigas owns 20% and Lukarco, a company controlled by Russia’s Lukoil, owns the remaining 5% in the operating company.
Chevron would separately announce the consortium’s final investment decision on the project in consultation with its partners.
Output at the Tengiz oil field is currently about 500,000 barrels a day. Chevron plans to increase annual production to about 760,000 barrels a day by 2021, but the company had previously delayed investments amid the crude oil price slump.
Chevron has estimated that it would spend between $17 – 22bn annually over the next two years on capital projects; down from this year’s $25 – $28bn budget for such developments.