Tengizchevroil reveals volume of payments to Kazakh state budget

Business Materials 28 September 2017 10:57 (UTC +04:00)

Baku, Azerbaijan, Sept.28

By Leman Zeynalova – Trend:

The volume of direct financial payments by Tengizchevroil LLP to Kazakhstan stood at $121 billion during the period from 1993 to the first half of 2017, a source in the company told Trend.

Tengizchevroil LLP was formed between Kazakhstan and US Chevron Corporation in 1993 to explore and develop super giant Tengiz oil field.

Currently, TCO operates on the license area in Kazakhstan which covers Tengiz field and a smaller Korolev field.

The company’s direct payments to the state budget exceeded $4.3 billion in the first half of 2017, noted the source.

“TCO purchased over $1 billion worth goods and services from Kazakh suppliers and $384 million of this amount accounts for those purchased as part of the integrated Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) in H12017. The company purchased more than $22.9 billion worth products and services from Kazakh suppliers since 1993,” added the source.

TCO allocated around $1 million for the Social Investment Program to support healthcare and education in Kazakhstan’s Atyrau in 2017, said the source.

Tengiz field, which was opened in 1979, is one of the largest and deepest oil fields in the world.

The total volume of explored reserves of the Tengiz collector is 3.2 billion tons (25.5 billion barrels) and 200 million tons (1.6 billion barrels) in the Korolev field. The recoverable oil reserves of the Tengiz and Korolev fields range from 890 million to 1.37 billion tons (7.1-10.9 billion barrels).

The oil production by Tengizchevroil reached the record level of 27.16 million tons in 2015, as compared to 26.7 million tons in 2014.

In July 2016 the shareholders of the company agreed on financing of Wellhead Pressure Management Project and Future Growth Project, which will make it possible to increase oil production at Tengiz field by 12 million tons per year.


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