Tengizchevroil Fact Sheet 1H 2015
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; KazMunaiGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; LukArco B.V., 5 percent.
Production and Reserves
- Total recoverable crude oil in the Tengiz and Korolev fields is estimated to be 750 million to 1.1 billion metric tonnes (6 to 9 billion barrels). Estimated oil in place in the Tengiz field is 3 billion metric tonnes (25 billion barrels) with 190 million metric tonnes (1.5 billion barrels) in the Korolev field. 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 expansion project in 2008, which brought daily production capacity to approximately 75,000 metric tonnes (600,000 barrels) of crude oil and 22 million cubic meters (750 mscf) of natural gas.
- Crude production for 1H 201 5 was 14.07 million metric tonnes (112.3 million barrels).
- In 1H 2015 TCO sold over 677 thousand metric tons of LPG and 3.64 billion standard cubic meters of dry gas.
- TCO sold over 1.57 million tonnes of sulfur, which is 1 27 percent of the 1.24 million tonnes produced for the same period. In 1H 2015 TCO eliminated its inventory of sulfur stored on pad in Tengiz two years ahead of schedule.
- TCO’s premium sulfur is sold in three different forms to customers in many countries, including Kazakhstan, Russia, Ukraine, China and other countries primarily in the Mediterranean and Central Asia regions.
Health, Safety and the Environment
- TCO has invested $3 billion since the year 2000 on projects to minimize environmental impact.
- Such investments in environmental protection have enabled TCO to reduce total gas flaring volumes by 91 percent since the year 2000. TCO’s current gas utilization rate is over 99 percent.
- Total air emissions generated per tonne of oil produced have been reduced by 74 percent since 2000. For 1H 2015, TCO averaged 2.18 kilograms of emissions per tonne of oil produced. Since 2000, TCO has increased annual crude oil production volume by 154 percent.
- Investments in environmental protection and improvements in plant reliability have helped TCO to achieve reduction in the number of technical malfunctions at the KTL plant by 90 percent in the 1 H 2015, and the volume of sour and acid gas flaring during technical malfunctions by 95 percent from 2000 to 1 H 2015.
TCO’s Financial Impact
- From 1993 through 1H 2015, TCO made direct financial payments of $109 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.
- During 1H 201 5, direct payments to the Republic of Kazakhstan totaled $5.2 billion. In 201 4 direct payments to the Republic of Kazakhstan totaled $1 4.7 billion.
- TCO has spent over $1.3 billion on Kazakhstani goods and services in 1H 201 5. TCO has invested more than $1 9.1 billion on Kazakhstani goods and services since 1993.
- Kazakhstani citizens hold 86 percent of TCO positions, compared to 50 percent in 1993.
- Kazakhstani managers and supervisors represent 74 percent of the TCO managerial workforce. Ongoing training and development programs exist to support the advancement of employees to positions of increasing responsibility.
- Since 1993, TCO invested $995 million to fund social projects and programs in the Atyrau Oblast for the community and employees.
- In 201 5, TCO has $25 million budgeted 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 201 5, TCO’s Community Investment Program has more than $1 million in projects planned to help improve the quality of health, education and training in Atyrau Oblast.