Chevron to Raise Oil Production in Tengiz Field
Azerbaijan, Baku, 28 February / corr. Trend A. Badalova/ The American Chevron, the operator for the development of Kazakhstani Tengiz field, plans to increase its output sharply this year after its new production facilities start up, the American company and Energy Intelligence Group, reported.
Chevron has a 50% stake in the Tengizchevroil venture- which is developing the giant onshore Tengiz oilfield in the Caspian Sea. Other participants are Exxon Mobil, Lukoil and Kazakh energy firm Kazmunaigas.
"We will have the capacity to produce 540,000 b/d by mid 2008," Linsi Crain, a Tengizchevroil spokeswoman said. "We plan to produce 18 million tons of crude oil in 2008."
Tengizchevroil produced 13.9 million tons of crude oil (about 320,000 b/d) last year. This year's output boost will come from new oil processing plant and a gas injection facility.
The company exported most of its 2007 output -- 12.8 million tons -- through the Caspian Pipeline Consortium (CPC) and shipped another 1 million tons by rail.
The CPC, however, is running close to its full capacity and Russia has been blocking plans for its expansion, demanding a higher payout, Energy Intelligence Group reported.
CPC shareholders, also led by Chevron, made concessions to Russia last year, but its actual expansion is yet to begin.
Chevron also plans to transport the oil from Tengiz via Azerbaijan. The oil will be transported through Caspian to Baku by tankers of the Azerbaijani Caspian Shipping Company. The contract envisages the transport of 2mln tons of oil per annum.
The oil will be carried out by Cross Caspian, half of the shares of which belongs to SOCAR. The oil from Tengiz will be shipped through Baku-Tbilisi-Ceyhan and by Georgian railway to the Georgia ports of Kulevi and Batumi.
The oil will be transported by railway up to the Georgian ports. The Georgian Black Sea terminal Kulevi is owned by SOCAR and terminal Batumi - by Kazmunaigas.