Tengizchevroil reveals volume of direct payments to Kazakhstan

Business Materials 16 November 2018 15:26 (UTC +04:00)

Baku, Azerbaijan, Nov.16

By Leman Zeynalova – Trend:

Kazakhstan’s Tengizchevroil (TCO) oil company made a total of more than $7.2 billion worth direct payments to Kazakhstan in the first three quarters of 2018, TCO said in its report.

“From 1993 through 3Q 2018, TCO made direct financial payments of over $132 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,” said the company.

The report shows that in January-September 2018, TCO spent over $2.5 billion on Kazakhstani goods and services, including over $1.6 billion for Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP).

TCO said it has invested more than $27.2 billion on Kazakhstani goods and services since 1993.

Moreover, since 1993, TCO has invested over $1.6 billion to fund social projects and programs in the Atyrau Oblast for the community and employees.

“In 2018, TCO has budgeted $25 million for Egilik social infrastructure program, the majority of which is spent for construction of kindergartens, schools and other social facilities in Atyrau Oblast. In 2018, TCO’s Community Investment Program has over $1 million in projects planned to help improve the quality of health, education and develop social entrepreneurship in Atyrau Oblast,” said the company.

Tengizchevroil is situated in a license area of 2,500 square kilometers or 1,600 square miles, which includes the super-giant Tengiz field and the smaller but large in reserves Korolevskoye field, as well as several areas promising for exploration.

The recoverable oil reserves of Tengiz and Korolevskoye range between 890 million and 1.37 billion tons.

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; KazMunayGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; LukArco B.V., 5 percent.


Follow the author on Twitter: @Lyaman_Zeyn