ExxonMobil in Kazakhstan: 25 Years of a Strong Partnership
ExxonMobil looks back on 2018 as a year of milestones in Kazakhstan. The company, with interests in the world-class Tengiz and Kashagan projects, and the Caspian Pipeline Consortium, has commemorated its 25 years of doing business in the country. ExxonMobil was one of the first major Western companies to establish a presence in the newly independent Republic in 1993 with investments now surpassing $20 billion. Over the 25 years, ExxonMobil has built a reputation as a strong investor and a credible partner among the government, industry and community.
In addition to its own anniversary, ExxonMobil marked similar milestones of its assets in Kazakhstan including a quarter century of the Tengizchevroil (TCO) joint venture and of the North Caspian Project, as well as the completion of the Caspian Pipeline Consortium (CPC) Expansion Project.
TCO, an operator of one of the world’s super-giant fields Tengiz, has grown into the country’s largest oil producer. At the TCO celebration, ExxonMobil Production Company Vice President Daniel Wieczynski met with Kazakhstan President Nursultan Nazarbayev to confirm ExxonMobil’s long-term commitment to the country. “Kazakhstan occupies an extremely important role in ExxonMobil’s global portfolio. The Tengiz Future Growth Project and Wellhead Pressure Management Project (FGP-WPMP) expansion projects are massive undertakings, which will greatly expand the value of the asset. We are proud for the opportunity to bring the capability of our people, technology and best practices for the benefit of this country,” Wieczynski said.The company holds a 25-percent interest in the joint venture.
A remarkable event was the 25th anniversary of North Caspian Project,which includes Kashagan – one of the largest oil fields discovered in the last four decades in the world. The North Caspian Project plays a significant role not only in delivering the energy needed for the world, but also has tremendous influence on the country’s economic growth.
“These milestones would not have been possible without countless hours of support provided by thousands of people working in this project. To overcome the technical, logistical, and environmental challenges, the partners pooled together their scientific and engineering expertise and resources. As we celebrate this success, we have more challenges and opportunities ahead of us but working together as partners we hope to unlock the full potential of this world-class asset,” said David Cochrane, ExxonMobil Development Company Vice President. ExxonMobil Kazakhstan Inc. has a 16.8-percent interest in the consortium.
A further notable milestone was the completion of the CPC Expansion Project, in which ExxonMobil
holds a 7.5 percent interest. Pipeline capacity increased from 28.2 to 67 million tonnes of oil per year. The CPC pipeline system exports ExxonMobil’s share of Tengiz and Kashagan crude to an international market, creating an integrated value chain. The continued support of the Republic coupled with the strength of CPC partners is key to maximizing the value of its assets for the benefit of all parties.
“25 years is, as Kazakhs say, one of the ages of mushel zhas(мүшелжас), the period of physical and spiritual powers. And so on its 25th anniversary, ExxonMobil is stepping into its next chapter, where we look forward to see our partnership with the Republic maturing and setting itself up for new opportunities. ExxonMobil is committed to remaining one of Kazakhstan’s largest foreign investors and supporting the Republic’s progress and prosperity,” said Cheryl Gomez-Smith, Managing Director of ExxonMobil Kazakhstan Inc.