Chevron in Kazakhstan 

Chevron Corporation, based in San Ramon, California is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry including exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing transportation fuels and lubricants; manufacturing and selling petrochemical products; generating power and producing geothermal energy; providing energy efficiency solutions; and developing the energy resources of the future, including biofuels.

With the formation of the Tengizchevroil (TCO) Joint Venture partnership in 1993, Chevron became the first major Western oil company to enter the newly independent Kazakhstan. Over the past 27 years, Chevron and the Republic of Kazakhstan have worked in partnership to develop the country’s long-term energy potential. 

Chevron has a 50% interest in TCO. Estimated oil in place in the Tengiz field is 3.2 billion metric tons (25.5 billion barrels) with 200 million metric tons (1.6 billion barrels) in the Korolev field. Total recoverable crude oil in the Tengiz and Korolev fields is estimated to be 890 million to 1.37 billion metric tons (7.1 to 10.9 billion barrels).  TCO completed its Sour Gas Injection and Second-Generation Plant (SGI/SGP) expansion project in 2008, which brought daily production capacity to approximately 75 000 metric tons per day (600 000 barrels) of crude oil and 22 million cubic meters per day (750 mmscf) of natural gas. 

In 2016, TCO Partners announced approval for the final investment decision of the Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP), the next major expansion of the Tengiz oil field. Based on TCO’s highly successful SGI/SGP expansion project, FGP will expand production by approximately 12 million tons per year/260 000 barrels per day to about 39 million tons per year/850 000 barrels per day. 

From 1993 through 1H 2020, TCO made direct financial payments of over $150 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.

Chevron also holds an 18% equity stake in the Karachaganak field, one of the world's largest oil and gas condensate reserves.  Karachaganak Petroleum Operating B.V. (KPO) is managing the development and development of the field, which has an estimated hydrocarbon reserves of 13.6 billion barrels of condensate and 59.4 trillion cubic feet of gas.

Since 1997, KPO partners have invested more than US $26,6 billion in the development of the Karachaganak field, using the most advanced industrial technologies in order to maximize sustainable economic benefits.  From 1998 till end of June 2020 KPO direct payments to RoK budget were more than $19 billion.

Chevron is the largest private shareholder (15%) in the Caspian Pipeline Consortium (CPC) which operates a 1 505 km crude oil export pipeline extending from the Tengiz Field to the Black Sea port of Novorossiysk, Russia.  The CPC pipeline, with its completion of the Expansion Project in December 2017, has a nominal capacity of around 1.4 million barrels per day. Over 90% of the oil transported comes from Tengiz, Karachaganak and Kashagan fields located in Kazakhstan. 

Chevron is supporting Kazakhstan’s goal to diversify the country’s economy. Since 2003, the company has owned and operated a polyethylene pipe plant in Atyrau. In addition to the polyethylene pipe, the plant also produces metal-plastic and thermoplastic pipes used in heating and hot water supply systems. 

Chevron develops energy with a commitment to protecting the safety and health of people and safeguarding the environment. Since 2000, TCO has invested over $3.2 billion in environmental protection activities, with total air emissions generated per ton of oil produced, decreasing by 76%.  Since assuming the operatorship of Karachaganak in 1998, KPO has invested $417 million in specific environmental protection measures to improve the environmental performance of the field.

Chevron is committed to Kazakhstan’s efforts to increase the use of Kazakhstani goods and services and is supporting local content development through its affiliates at TCO and KPO. 

KPO continues to focus on its efforts to recruit from West Kazakhstan and other regions of Kazakhstan. According to local Content in personnel data for Q2 2020, local employees filled 96% of the venture’s skilled, clerical and professional positions. At the managerial level 81% of positions are filled by local employees. There are around 4 000 employees working for KPO. More than 5 100 Kazakh vendors are currently registered on KPO’s supplier database. Since beginning of the FPSA in 1997, the local content level in all contracts assigned exceeded $8,03 billion.

Tengizchevroil focuses on building the capabilities of its employees and contractors. More than 45 000 Kazakhstanis worked on FGP-WPMP, which is 91% of the total project workforce in Kazakhstan. TCO has engaged Kazakhstani entities to participate in FGP-WPMP in engineering, procurement and fabrication services and has pre-screened over 2 330 Kazakhstani companies and pre-qualified more than 1 260 companies. FGP-WPMP KC Spend since project start reached almost $9.8 billion.

TCO has invested more than $34.9 billion on Kazakhstani goods and services since 1993.

Chevron’s community engagement programs are strategic investments in building strong communities. For example, since 1993, TCO has invested over $2 billion to fund social projects and programs in Atyrau Oblast for the community and employees.

Chevron is proud of its successes based on its strong partnerships with government and the people of Kazakhstan.

Link to the company’s website: https://www.chevron.com/