Chevron Corporation (NYSE: CVX) has announced the commencement of oil production at its Future Growth Project (FGP) in the Tengiz oil field, Kazakhstan.
The FGP, which is the third processing plant at Tengiz, is operated by Tengizchevroil LLP (TCO), a joint venture in which Chevron holds a 50 per cent stake.
The FGP is expected to significantly boost production capacity, with aims to increase crude oil output by 260,000 barrels per day at full capacity.
This expansion is projected to ramp up total output to one million barrels of oil equivalent per day, further solidifying Tengiz’s position as the world’s deepest-producing supergiant oil field.
Mark Nelson, Chevron’s vice chairman, stated: “First oil at the Future Growth Project is the latest in a series of development milestones, including in the Gulf of Mexico and the Permian, that are expected to significantly increase free cash flow to the company and deliver value for Chevron shareholders.”
The FGP milestone follows the completion of the Wellhead Pressure Management Project (WPMP) in 2024, which was designed to optimise field and processing plant operations.
Together, the FGP and WPMP projects have implemented substantial infrastructure improvements, including:
- Installation of five Frame 9 gas turbine generators
- The addition of four large compression trains with increased pumping capacity
- Implementation of a new centralised control centre
- Enhancement of sour gas handling and reinjection capabilities for long-term pressure maintenance
Clay Neff, president of Chevron International Exploration & Production, emphasised the project’s significance: “This milestone concludes a multiyear project that completely revamped the gathering and processing capacity of one of the world’s largest oil fields that will provide significant economic benefit for the Republic of Kazakhstan.”
The Tengizchevroil LLP partnership comprises Chevron (50%), KazMunayGas (20%), ExxonMobil (25%), and Lukoil (5%).
This collaborative effort underscores the importance of international partnerships in developing major energy projects.
As one of the world’s leading integrated energy companies, Chevron continues to focus on providing affordable, reliable, and cleaner energy while aiming to grow its oil and gas business, reduce carbon intensity, and expand into lower carbon technologies.
