Kazakhstan calls to reassess cost of Tengiz’s growth project
BAKU, Azerbaijan, Nov.6
By Nargiz Sadikhova - Trend:
Kazakhstan is calling for Chevron and ExxonMobil companies to reassess the cost of Kazakhstan’s Tengiz’s growth project, Kazakh Minister of Energy Kanat Bozumbayev said, Trend reports with reference to Reuters.
According to Bozumbayev, new, increased by 25 percent cost of the project’s implementation, is ‘too big’.
Earlier this week, Jay Johnson, Executive Vice President of Chevron, which operates at Kazakhstan’s Tengiz oil field, has announced that the company has increased the cost estimate for the Future Growth (FGP) and Wellhead Pressure Management of the oil field projects (WPMP) to $45.2 billion.
The cost update was made as a result a detailed cost and schedule review of the project completed in 3Q2019.
Now the expected start-up of FGP has shifted to mid-2023 and will now follow WPMP, which remains on schedule for start-up in late 2022.
The updated estimate has been submitted by Tengizchevroil (TCO) for shareholder approval.
Kazakhstan’s Tengiz oil field ranks as the world’s deepest producing giant oil field and the largest single-trap producing reservoir in existence. Nearby is another world-class reservoir called the Korolev Field. Chevron company holds a 50-percent interest in Tengizchevroil (TCO), which operates the two fields.
According to the company, the integrated Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) is designed to further increase total daily production from the Tengiz reservoir and maximize the ultimate recovery of resources.
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