Press releases » Tengizchevroil LLP
TENGIZCHEVROIL sets a record high in purchases of Kazakhstani goods and services
Company announced its’ 2019 year-end results
February 17th, 2020, ATYRAU – TENGIZCHEVROIL (TCO) spent $4.6 billion on the purchase of Kazakhstani goods and services in 2019, which represents 31% increase compared to 2018. This figure set a record high in Kazakhstani content (KC), spent since 1993.
The Future Growth Project – Wellhead Pressure Management Project (FGP-WPMP) accounted for most of the KC spend. FGP-WPMP sourced $3.25 billion worth of goods and services from Kazakhstani manufacturers making it a total of $8.4 billion since the start of the project.
TCO’s crude oil production reached a new annual record of 29.79 million tons, demonstrating a 4% increase compared to 2018. TCO also sold over 1.3 million metric tons of LPG, and 7.9 billion cubic meters of sales gas.
Kazakhstani citizens occupy 89% of all jobs and 80% of managerial and supervisory positions in the company’s base business (excluding FGP-WPMP staff).
Direct payments to Republic of Kazakhstan exceeded $10.6 billion last year. Those payments include Kazakhstani employees’ salaries, purchases of Kazakhstani goods and services, tariffs and fees paid to state-owned companies, profit distributions to the Kazakhstani shareholder and taxes and royalties paid to the government. From 1993 through 2019, TCO made direct financial payments of over $146 billion.
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Tengizchevroil LLP is a Kazakhstani partnership that explores, develops, produces and markets crude oil, LPG, dry gas and sulfur. TCO conducts its operations in accordance with world-class safety and environmental standards. In April 1993, Tengizchevroil was formed between the Republic of Kazakhstan and Chevron Corporation. Current partners are: Chevron, 50 percent; KazMunayGas NC JSC, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent and LukArco, 5 percent.
The Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) are two integrated projects implemented by TCO simultaneously. FGP-WPMP implementation will allow an increase in Tengiz crude oil production capacity by approximately 12 million tonnes per year or 260,000 barrels per day and the overall Tengiz crude oil production capacity will be approximately 39 million tonnes per year or 850,000 barrels per day. While FGP implementation will expand production, WPMP will keep the existing Tengiz plants at full capacity by lowering wellhead pressure and boosting the pressure of the six existing processing trains.