U.S. Chevron’s investment in Kazakhstan's Tengiz field totals $20 billion

Photo: U.S. Chevron’s investment in Kazakhstan's Tengiz field totals $20 billion

 / Oil&Gas

Kazakhstan, Astana, April 3 / Trend D. Mukhtarov /

The volume of investments of the U.S. Chevron company in the Tengiz field in Kazakhstan amounts to $20 billion over 20 years, the country's president Nursultan Nazarbayev said at a reception to mark the 20th anniversary of the joint venture Tengizchevroil.

"Within 20 years, Chevron has invested $20 billion in the project to develop the Tengiz deposit and Kazakhstan made a profit of $77 billion," Nursultan Nazarbayev said.

According to him, over the years thousands of Kazakh specialists were trained, Tengizchevroil's oil production increased by 26 times and the republic's economy has grown 16 times.

"$800 million was invested in the social development of the Atyrau region where the Tengiz field is located. Today, Atyrau's regional centre is one of the beautiful cities of our country and we call it the oil capital of Kazakhstan," the head of state said.

According to Nursultan Nazarbayev, over 8500 foreign companies are currently operating in the country with a total investment of more than $200 billion over 20 years.

"We have set a goal to enter the top 30 countries of the world by 2050 and are pleased that Chevron is involved in the development of our economy," the president said.

He recalled that Chevron is now involved not only in the development of the Tengiz field, but also in the major Karachaganak project and expansion of the CPC pipeline.

"It is very important to me that Chevron is being so successful in Kazakhstan, proving to the world that such work is possible in the country," he added.

Former chairman and CEO of Chevron Kenneth Derr, attending the reception named the project to develop the Tengiz project as being one of trust and partnership.

"I'm stunned by the success of construction of Astana and tremendous progress since my last visit to this city. Your capital underlines the success of your country. We believe Kazakhstan will not dwell on the results achieved and we are proud that Chevron is a part of your success," Derr said.

The present chairman of the board of directors and executive director of Chevron John Watson presented a bronze sculpture consisting of two oilmen and the globe to President Nursultan Nazarbayev.

"This sculpture symbolizes our partnership with you," Watson said.
Tengizchevroil is a Kazakh-American Joint Corporation involved in exploration, development, production and marketing of crude oil and related products. TCO is the largest oil producer in Kazakhstan.

The company was founded on April 6, 1993 by the President of Kazakhstan Nursultan Nazarbayev and Chevron. The term of the agreement is 40 years.

The Tengiz oil field was discovered in 1979 and is one of the deepest and largest oil fields in the world.

In 1993, TCO produced 940,000 tons of crude oil, in 1994-1.8 million tons of oil and in 1998 the volume of salable oil totalled 8.4 million tons. In 1999, annual oil production amounted to 9.5 million tons. In 2000, 10.5 million tons of oil was produced and sold. In 2001, oil production totalled 12.48 million tons with an average daily production of 271,000 barrels and in 2008 production amounted to 17.3 million tons.

In 2009, TCO has reached record levels when production totalled 22.5 million tons.
The company employs 3400 workers of which about 85 per cent are citizens of Kazakhstan.

Shareholders of Tengizchevroil JV are Chevron (50 per cent), KMG (20 per cent), ExxonMobil (25 per cent) and LukArco (five per cent).

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