The full launch of Chevron's Tengiz expansion project will be delayed until the end of 2024 due to delays in the final stages of the $45 billion development, Bloomberg reports, citing the oil company.
Thus, the full launch of the project, which should lead to an increase in production by 260 thousand barrels or about 40% daily, has been postponed for six months for the third time. The delay comes at a time when crude oil exports from Kazakhstan are becoming increasingly important to Europe, which has banned most Russian oil imports in response to Russia's invasion of Ukraine.
The Tengiz expansion project has exceeded its original budget of $37 billion and its completion date has already been pushed back twice from its original target of mid-2022. The latest planning scenarios call for a further six-month delay from the previous June 2024 target, a Chevron spokesman said in a statement.
The company noted that work on the launch was slower than expected.
“Tengizchevroil remains focused on a safe and reliable launch,” the spokesman said.