Tengizchevroil LLP published its performance results for the first half of 2019. Direct payments for the specified period to the Republic of Kazakhstan exceeded USD 5.6 billion.
Oil production
In the first half of 2019, the company produced more than 14.9 million tons of crude oil, which is 200 thousand tons more than in the same period last year. At the same time, according to the plans of the Ministry of Energy of the Republic of Kazakhstan, the company should produce more than 29 million tons of oilthis year.
In addition, in the first half of the year, TCO sold about 672 thousand tons of liquefied gas, 4 billion cubic meters of dry gas and 1.3 million tons of sulfur.
Now the company is working to expand existing production facilities. According to TCO, as a result of the implementaton of the Future Growth Project and the Wellhead Pressure Management Project (FGP/WPMP), annual production in Tengiz should increase by 12 million tons and reach 39 million tons of oil or 850 thousand barrels per day. Let us recall, FGP/WPMP began to be implemented in 2016 and should be completed in 2022.
“WPMP will ensure full utilization of the processing capacities of the plants operating in Tengiz by reducing the wellhead flowing pressure and increasing the pressure at the entrance of the six existing complex technological lines,” the company representatives noted in the semi-annual report.
FGP – today
To date, the above-mentioned projects in the country employ more than 48 thousand Kazakhstan’s citizens, which is 91% of the total number of project personnel in Kazakhstan.
“More than 2,200 Kazakhstani companies took part in the preliminary selection, and more than 1,800 companies passed the preliminary qualification assessment,” TCO said in a statement.
With the beginning of the project, the expenses of FGP-WPMP on the Kazakhstani content amounted to USD 6.7 billion. The completion of design works performed exceeded 90%.
It is noted that the main equipment for the projects is produced in Kazakhstan, South Korea and Italy.
The installation of pre-assembled racks (PARs) is carried out at the Ersai industrial facility in Kazakhstan. To date, 51 PARs have been delivered to the Tengiz field.
All 5 gas turbine generators (GTG) have been safely shipped from the industrial facility in Avenza (Italy).
At the moment, 34 modules have been shipped from the industrial facility in South Korea.
How much has the country received
In the first half of 2019, the company’s direct payments to Kazakhstan amounted to more than USD 5.6 billion.
In the first half of 2019, TCO procured goods and services from Kazakhstani suppliers in the amount of more than USD 2.1 billion, including more than USD 1.6 billion under the FGP-WPMP.
In general, since 1993, TCO has procured goods and services of Kazakhstani suppliers in the amount of more than USD 30 billion.
From 1993 to the first half of 2019, direct financial payments of TCO to the Republic of Kazakhstan amounted to more than USD 141 billion.
Including salaries of Kazakhstani employees, procurement of goods and services of domestic producers and suppliers, payments to state enterprises, payment of dividends to the Kazakhstani partner, as well as in the form of taxes and royalties transferred to the state budget.
The share of full-time Kazakhstani TCO employees is 81.2% compared to 50% in 1993.
The share of Kazakhstani senior and middle managers is 62.6% of the total number of executives. As a result of ongoing training and HR development programs, more and more staff are being promoted to more responsible positions.
Recently, the company announced that Tengizchevroil LLP contributed to the launch of production of respiratory protective hoods under the license of the British AVON Protection in Kazakhstan. The licensor is QHSE-Akbarys LLP, Kazakhstani company whose main activity is to supply personal and collective protection equipment for oil and gas projects.
Assembly of Avon NH15K respirators is established in the industrial zone of “Astana – new city”SEZ (Nur-Sultan city). The total investment in the project amounted to about KZT 1 billion. 16 new workplaces have been created.
Respirators, as lifesaving equipment, can be applied in less than 30 seconds and provide air filtration up to 15 minutes – enough time to reach a safe shelter in an emergency. A transparent mask covering the whole face can protect from splashes of toxic liquids. In addition, it is protected from fogging.
“The model produced in Kazakhstan is specially adapted to our climatic conditions. This and other positive qualities explain the special interest in the products of QHSE-Akbarys LLP from the operators of the Tengiz and Karachaganak fields,” the company reported.
The presentation of the assembly shop of the Kazakhstani enterprise was held on this August 9.
Tengizchevroil LLP was created on April 6, 1993, under the agreement between the Republic of Kazakhstan and the Chevron company.
Currently, TCO partners are: Chevron – 50%, JSC NC KazMunayGas – 20%, ExxonMobil Kazakhstan Ventures Inc. – 25% and LukArco Joint Venture – 5%.
The total explored reserves of the Tengiz reservoir are 3.2 billion tons and 200 million tons in the Korolevskoyefield.
Recoverable oil reserves of the Tengiz and Korolevskoye fields are from 890 million to 1.37 billion tons.