Chevron, Exxon and partners approve $37bn Kazakh field expansion
Tengiz oil field will see boosted production in the region according to nation's energy ministry
- It accounts for more than a third of the total crude oil output in Kazakhstan
A group of major oil companies led by Chevron and Exxon has approved a $36.8bn expansion of Tengiz oil field in Kazakhstan.
The central Asian country's Energy ministry announced the news on Tuesday along with the partners of the expansion.
The production of crude oil will increase to 39mn tonnes per year by 2022, with the current output standing at 27mn tonnes per year.
"Today we are witnessing a historic event not just for the oil and gas sector but for the whole country," Kazakh Energy Minister Kanat Bozumbayev told the media in the capital Astana, alongside the executives of Tengizchevroil, the venture which combines Tengiz, and Chevron, Exxon, as well as Lukarco, a branch of Russia's LUKOIL.
The $36.8 billion includes $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingencies. Tengiz is one of the most profitable oil fields in history, with some estimayes concluding that Chevron has chalked up $70bn in revenue since 1993 from the region.
