KAZAKHSTAN ENERGY WEEK – 2023
Its Undeniable… The Future for Tengiz Looks Promising
This year, as Tengizchevroil (TCO) marks its 30th anniversary since formation in 1993, the Tengiz field still ranks as the world’s deepest producing supergiant oil field and the largest single-trap producing reservoir in existence. The Tengiz and nearby Korolev field are prolific assets that have enabled Kazakhstan to become a major oil producer in the international markets and a key country on the global stage.
For more than 30 years, TCO has been creating value for Kazakhstan through responsible operations, focusing on safety and reliability. During this time, TCO has made substantial investments in its workforce, applied the latest technologies, and expanded its production capacity from just 1 million tonnes per year in 1993 to over 29 million tonnes in 2022. This accounts for approximately 30 percent of the total crude oil production in the country. Such an achievement is truly impressive and would not have been possible without the unwavering support of the Government of Kazakhstan, TCO's shareholders, the dedicated workforce, and the communities where the company operates.
The Tengiz and Korolev fields have consistently delivered value to Kazakhstan. From 1993 through the second quarter of 2023, TCO has made direct financial payments to Kazakhstani entities totaling over $184 billion. The scale, complexity, and challenges, as well as the exciting opportunities and future prospects for this supergiant oilfield, are remarkable. There are decades of resources yet to be recovered.
Since 1993, TCO has transformed the Tengiz field into the crude and natural gas behemoth it is today. In its early years, the field was expanded to incorporate five Complex Technology Lines to enhance crude oil and natural gas production. In 2008, TCO successfully completed the second-generation expansion project, significantly increasing production capacity to approximately 25 million tonnes annually, equivalent to 600,000 barrels of crude oil per day. TCO is currently finalizing the next major expansion of the Tengiz oil field, known as the Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP). These two integrated projects are being implemented by TCO simultaneously. Upon completion, FGP-WPMP will increase Tengiz crude oil production capacity by 12 million tonnes per year, bringing it to a total of 39 million tonnes per year. While the FGP will expand production, the WPMP will ensure that the existing Tengiz plants operate at full capacity by lowering wellhead pressure and boosting the pressure of the six existing processing trains.
The FGP-WPMP consists of the following main components:
Tengiz Infrastructure: This includes the modernization of the Tengiz infrastructure to support the Base Business and the expansion related to FGP/WPMP.
Control & Power: This includes the modernization of the Tengiz electrical power and grid equipment. This included the installation of overhead power lines and fiber optic cables connecting the entire Tengiz field into the Core Substation and Integrated Operating Center (IOCC). The IOCC modernizes the production management into one centralized, state-of-the-art facility, enabling optimized production control with the goal of delivering incremental value.
Field Facilities: This includes the installation of new wells and metering stations for both production and gas injection, field pipeline upgrades to support WPMP’s lower pressure, and infrastructure connecting the new and existing processing areas.
Third-Generation Plant: This plant expansion will significantly increase the Tengiz oil production capacity by more than 12 million tonnes per year (equivalent to 260,000 barrels per day).
Third-Generation Gas Injection Facility: During oil processing, this facility will reinject hydrogen sulfide gas back into the reservoir.
Today, the WPMP project is nearly complete. The construction phase of WPMP was completed earlier in the year with the project focus now on commissioning and start-up and beginning the transition of the field from high to low pressure.
All Field Facilities, Pipelines and infrastructure is in place and complete. A dedicated team is currently performing significant work related to the start-up of utility systems, boilers, steam systems, and other utilities required for the pressure boost facility. This facility is a key component of WPMP and facilitates the conversion from high-pressure to low-pressure across the field.
TCO is completing two of the four large pressure boost compressors, which will enable the conversion of metering stations from high-pressure to low-pressure to commence. The entire conversion process is expected to occur throughout the next year.
Mechanical completion of the FGP First Oil facilities is targeted by end of the third quarter. Following this milestone, a dedicated team will embark on significant work related to the commissioning and start-up of processing equipment to enable the increase in TCO production with the startup of the Future Growth Project.
All further activities are part of a highly coordinated sequencing of turnarounds and start-up activity that will bring the Tengiz field to full production upon completion of FGP-WPMP.
FGP-WPMP is a state-of-the-art project that will create a legacy of a trained and skilled workforce, new facilities, technology transfer through partnerships between Kazakhstani and international companies, and upgraded infrastructure in the region. This landmark project for the nation will help deliver the promise of a world-class petroleum resource to future generations of Kazakhstanis.