Chevron Corporation (NYSE:CVX) today announced that its 50 percent owned
affiliate, Tengizchevroil (TCO), will proceed with the development of
its Future Growth and Wellhead Pressure Management Project (FGP-WPMP),
which will increase crude oil production at the Tengiz oil field in
Kazakhstan by about 260,000 barrels per day.
"The Future Growth and Wellhead Pressure Management Project represents
an excellent opportunity for the company," said Chevron Chairman and
Chief Executive Officer John Watson. "The project builds on a record of
strong performance at Tengiz and will add value for Chevron and its
stockholders."
"This project builds on the successes of prior expansions at Tengiz and
is ready to move forward," said Jay Johnson, executive vice president,
Upstream, Chevron Corporation. "It has undergone extensive engineering
and construction planning reviews and is well-timed to take advantage of
lower costs of oil industry goods and services."
FGP-WPMP is currently estimated to cost $36.8 billion, which includes
$27.1 billion for facilities, $3.5 billion for wells and $6.2 billion
for contingency and escalation.
The project will raise TCO’s total production to approximately 1 million
barrels of oil equivalent per day. WPMP maximizes the value of existing
TCO facilities by extending the production plateau and keeping existing
plants producing at full capacity. FGP will use state-of-the-art sour
gas injection technology, successfully developed and proven during TCO’s
previous expansion in 2008, to enhance oil recovery. First oil is
planned for 2022.
Chevron is one of the world's leading integrated energy companies.
Through its subsidiaries that conduct business worldwide, the company is
involved in virtually every facet of the energy industry. Chevron
explores for, produces and transports crude oil and natural gas;
refines, markets and distributes transportation fuels and lubricants;
manufactures and sells petrochemicals and additives; generates power and
produces geothermal energy; and develops and deploys technologies that
enhance business value in every aspect of the company's operations.
Chevron is based in San Ramon, California. More information about
Chevron is available at www.chevron.com.
Note to Editors
TCO operates the Tengiz Field, the world’s deepest operating super-giant
oil field, with the top of the reservoir at about 12,000 feet (3,657 m)
below ground. The partnership also is developing the nearby Korolev
Field. Net Chevron share daily production from these fields in 2015
averaged 257,000 barrels of crude oil, 348 million cubic feet of natural
gas and 21,000 barrels of natural gas liquids. TCO joint venture
participants, in addition to Chevron, are ExxonMobil (25 percent),
KazMunayGas (20 percent) and LukArco (5 percent).
Chevron is Kazakhstan’s largest private oil producer, holding important
stakes in the nation’s two biggest oil-producing projects—the Tengiz and
Karachaganak fields. Chevron is also the largest private shareholder in
the Caspian Pipeline Consortium, which operates a 935-mile (1,505-km)
crude oil export pipeline from the Tengiz Field in Kazakhstan to
tanker-loading facilities at Novorossiysk on the Russian coast of the
Black Sea. The pipeline provides the key export route for crude oil from
TCO and Karachaganak.
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This press release contains forward-looking statements relating to
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Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
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savings and expenditure reductions; actions of competitors or
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activities; the potential failure to achieve expected net production
from existing and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of planned
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weather, cyber threats and terrorist acts, crude oil production quotas
or other actions that might be imposed by the Organization of Petroleum
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international economic and political conditions; the potential liability
for remedial actions or assessments under existing or future
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environmental statutes and regulations, including international
agreements and national or regional legislation and regulatory measures
to limit or reduce greenhouse gas emissions; the potential liability
resulting from other pending or future litigation; the company’s future
acquisition or disposition of assets and gains and losses from asset
dispositions or impairments; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes, changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; material reductions in corporate
liquidity and access to debt markets; the effects of changed accounting
rules under generally accepted accounting principles promulgated by
rule-setting bodies; the company's ability to identify and mitigate the
risks and hazards inherent in operating in the global energy industry;
and the factors set forth under the heading “Risk Factors” on pages 21
through 23 of the company’s 2015 Annual Report on Form 10-K. Other
unpredictable or unknown factors not discussed in this report could also
have material adverse effects on forward-looking statements
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