Tengizchevroil announces access to BTC
Tengizchevroil (TCO), led by ChevronTexaco, awarded commercial contracts which will enable it to export expanded crude oil production via a вЂњSouthern RouteвЂќ, the company announced on Tuesday.
The Southern Route contracts are part of the TCOвЂ™s Crude Export Project, which also includes an expansion of crude oil rail facilities at Tengiz. The overall project is targeted with providing export capacity for additional crude production that will be realized upon completion of the SGI/SGP project, also currently underway.
In 2007 TCO is going to increase annual production from 26.5 million tons to 14 million tons after the construction of a natural gas treatment plant in the area of the field with the budget of $2.5bn and gas injection infrastructure ($0.8bn).
Although TCO presently exports all of its production via the CPC pipeline, SGI/SGP production will exceed the existing capacity of this line until the pipeline is expanded, thus necessitating the need for alternate export routes.
The Southern Route will enable Tengiz crude oil to be exported from Kazakhstan through Aktau across the Caspian to Baku, Azerbaijan and onwards to Batumi, Georgia on the Black Sea for further shipment to international markets. The Southern Route will also enable TCO to access the Baku-Tbilisi-Ceyhan pipeline.
As a result of the Crude Export Project, the Republic of Kazakhstan will see a substantial increase in its ability to export crude oil to international markets. Additional benefits realized include the expansion and upgrading of the national rail system, the development of a national crude oil shipping fleet, implementation of higher safety and environmental standards for cross Caspian shipping and associated revenues from the transport of crude via these newly developed export routes.