Press releases » Tengizchevroil LLP
Tengizchevroil Fact Sheet. 1Q 2020
History and Ownership
- Tengiz, the world’s deepest producing super giant oil field, was discovered in 1979.
- The Tengizchevroil (TCO) partnership was formed on April 6, 1993, between the Republic of Kazakhstan and Chevron.
- Current partners are Chevron, 50 percent; KazMunayGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; LukArco B.V., 5 percent.
Production and Reserves
- Estimated oil in place in the Tengiz field is 3.2 billion metric tonnes (25.5 billion barrels) with 200 million metric tonnes (1.6 billion barrels) in the Korolev field.
- Total recoverable crude oil in the Tengiz and Korolev fields is estimated to be 890 million to 1.37 billion metric tonnes (7.1 to 10.9 billion barrels).
- The areal extent of the Tengiz reservoir is large, measuring 20 kilometers (12 miles) by 21 kilometers (13 miles).
- TCO completed its Sour Gas Injection and Second-Generation Plant (SGI/SGP) expansion project in 2008, which brought daily production capacity to approximately 75,000 metric tonnes per day (600,000 barrels) of crude oil and 22 million cubic meters per day (750 mmscf) of natural gas.
- Crude production in 1Q 2020 was 7.68 million metric tonnes (60.67 million barrels).
Health, Safety and the Environment
- TCO has invested over $3.1 billion since 2000 in environmental protection activities.
- Since 2000 total air emissions generated per ton of oil produced have decreased by 73 percent.
- TCO’s gas utilization rate in 1Q 2020 was 99.2 percent.
- Total TCO water reuse rate in 1Q 2020 was 40 percent. TCO continues its water conservation efforts by recycling domestic wastewater effluent, as well as treating and reusing it for industrial purposes.
- TCO sends more than 35 types of waste for recycling. In 1Q 2020, total TCO waste reuse/recycling rate was 61 percent.
Product Sales
- In 1Q 2020, TCO sold over 358 thousand metric tonnes of LPG, 2.1 billion cubic meters of sales gas and over 692 thousand tonnes of sulfur.
Benefits to Kazakhstan
- From 1993 through 1Q 2020, TCO made direct financial payments of over $148 billion to Kazakhstani entities, including Kazakhstani employees’ salaries, purchases of Kazakhstani goods and services, tariffs and fees paid to state-owned companies, profit distributions to Kazakhstani shareholder and taxes and royalties paid to the government.
- In 1Q 2020, direct payments to the Republic of Kazakhstan totaled $2.0 billion.
- In 1Q 2020, TCO spent $1,0 billion on Kazakhstani goods and services, including $697 million for FGP-WPMP.
- TCO has invested more than $33.9 billion on Kazakhstani goods and services since 1993.
Workforce Development
- Kazakhstani citizens hold 80 percent of positions in TCO’s Base Business and FGP-WPMP. Excluding the FGP-WPMP workforce, Kazakhstani citizens hold 89 percent of TCO positions compared to 50 percent in 1993.
- Kazakhstani managers and supervisors represent 72 percent of the TCO managerial workforce in Base Business and FGP-WPMP. Excluding the FGP-WPMP, Kazakhstani managers and supervisors hold 82 percent. Ongoing training and development programs exist to support the advancement of employees to positions of increasing responsibility.
Community Outreach
- Since 1993, TCO has invested over $2 billion to fund social projects and programs in Atyrau Oblast for the community and employees.
- In 2020, TCO has budgeted $25 million for Egilik social infrastructure program, the majority of which will be spent for construction of kindergartens, schools and other social facilities in Atyrau Oblast.
- In 2020, TCO has allocated $2.2 million as part of its Community Investment Program on projects to help improve the quality of health, education and develop social entrepreneurship both in Atyrau and Mangistau Oblasts.
Future Growth Project - Wellhead Pressure Management Project
General Information
- In 2016, TCO Partners announced approval for the final investment decision of the Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP), the next major expansion of the Tengiz oil field.
- Based on TCO’s highly successful SGI/SGP expansion project, FGP will expand production by approximately 12 million tonnes per year/260,000 barrels per day to about 39 million tonnes per year/850,000 barrels per day.
- WPMP will keep the existing Tengiz plants full by lowering the flowing pressure at the wellhead and then boosting the pressure to the inlet requirements of the six existing processing trains.
Kazakhstani Content
- More than 43,000 Kazakhstanis working on FGP-WPMP in country, which is 91 percent of the total project workforce in Kazakhstan.
- TCO has engaged Kazakhstani entities to participate in FGP-WPMP in engineering, procurement and fabrication services and has pre-screened over 2,300 Kazakhstani companies and pre-qualified more than 1,250 companies. FGP-WPMP KC Spend since project start reached almost $9.1 billion.
Project Progress
- Like many other companies in Kazakhstan and around the world, Tengizchevroil (TCO) continues to work through challenging circumstances and take prudent measures to protect the health and safety of the workforce and to minimize the impact of COVID-19 on our business.
- The FGP-WPMP project is 77 percent complete and TCO is taking actions to safely execute key activities to continue advancing the project.
- As of 1Q 2020, 66 modules sailed away from South Korea.
- At Third Generation Plant (3GP) mechanical, electrical and instrumentation works progressing, 4 modules were set on foundation.
- At 3GI construction works continue on Maintenance and Operations Area building.
- While critical path construction activities proceed, we are temporarily demobilizing non-critical-path personnel to reduce the exposure of the workforce to COVID-19.