Cost and schedule of Tengiz project implementation not determined in Kazakhstan
Azerbaijan, Baku, June 19 / Trend, E. Kosolapova /
Tengizchevroil joint venture has not yet made a decision regarding the cost and schedule of its future expansion projects, deputy general manager for government affairs and public relations David McInnis told Trend via e-mail on Tuesday.
"The decisions on the schedule and cost of future expansion project have not yet been made," he said. "The construction period depends on approval of the project and the construction schedule by the partners."
The project will increase the capacity at the Tengiz field by approximately 12 million tons of oil a year.
He stressed that the third generation plant, to be built within the future expansion project, will include oil export facilities. The entire gas volume will be pumped back into the reservoir. This can help maintain pressure in the reservoir, an important element in increasing the oil production.
"The purpose of this project is to expand production capacity," he said. "The associated wellhead pressure management project is designed to increase the productivity of the deposit and the full loading of existing plants. The future expansion project-wellhead pressure management project will be implemented as an integrated project."
According to the approved modular design technology, the future plant will be constructed from modules that will be manufactured in Kazakhstan and all over the world, and then will be joined on the site.
Tengizchevroil is intended to promote and develop the production potential of local companies in manufacturing complex modules by providing local personnel with access to big international manufacturing experience, as well as by maximally increasing the potential tonnage for manufacturing at local production sites, " he stressed.
According to him, this approach will create a lasting legacy in the field of manufacturing modules in Kazakhstan for future projects.
As part of the future expansion project (FEP) and wellhead pressure management project (WPMP) it is also planned to launch education programmes for Kazakhstan workers in variety of disciplines, including project management, engineering, manufacturing and construction. In addition, the project is aimed at preparing personnel in accordance to the international standards in construction, and teaching it vocational skills.
'TCO' is working to find and develop reasonable, long-term opportunities for large-scale use of Kazakh personnel, goods and services, McInnis said.
"FEP/ WPMP is a major project that will have a positive impact on the economy of Kazakhstan," McInnis said.
"TCO" operates in a license zone in Kazakhstan, which includes the super field of 'Tengiz' and smaller, but sizable deposit named 'Royal', as well as several other promising areas.
Recoverable reserves at 'Tengiz' and 'Royal' are estimated at between 750 million and 1.1 billion tons of oil. General proven reserves in the drilled and undrilled areas of the reservoir at Tengiz are expected to total 3.1 billion tons, or 26 billion barrels. The volume of the reserves of 'Royal' belonging to the world class is estimated at 188 million tons, or 1.5 billion barrels, accounting for one-sixth of 'Tengiz' reserves.
Shareholders of 'TCO' are JSC NC 'KazMunaiGas' (20 percent), 'Chevron Overseas' (50 percent), 'ExxonMobil' (25 percent) and 'LukArko' (5 percent).