The Ministry of Energy commented on the situation at Tengiz field

As of June 2019, 37,900 Kazakhstani and 1,900 foreign workers of various organizations work on the FGP-WPMP project in Tengiz, the press service of the Ministry of Energy reports.

“The Ministry of Energy is interested in the resumption of works at the construction site of the third-generation plant in the nearest future”, says the site of the agency.

As noted, the first ViceMinister of Energy, Makhambet Dosmukhambetov, together with the authorities of Atyrau region and Tengizchevroil (TCO) discussed working conditions, ensuring of employees’ safety on the project and minor changes to the schedule at the construction site of the third-generation plant.

“At the moment, the conflict between workers is settled. The works at the construction site of the TCO third-generation plant will soon be resumed in a normal mode. A legal assessment to actions of ССЕР employees will be given by appropriate government agencies and services”, the Agency noted.

Let us recall that on June 29, at the construction site of the third-generation plant of the Future Growth Project (FGP-WPMP) of Tengizchevroil LLP, there has been an interpersonal conflict between employees of the Contracting organization – Consolidated Contracting Engineering & Procurement S. A. L. Offshore (CСЕР). The Company carries out works on installation and construction of electromechanical equipment at the third-generation plant.

On July 1, during a press conference in TCO, General Manager for Government and Public Affairs atTengizchevroil LLP, Rzabek Artygaliyev said that now an investigation is being conducted in Tengiz and the reasons for the incident are being investigated. He noted that the works were suspended only on the construction of the third-generation plant, the works on all other facilities are still under way.

As a result of the conflict, more than 40 people have been injured, they have received medical care in the Company’s clinics.

TCO representative denied rumors that the Company terminated the contract with ССЕР because of the incident.

According the Ministry of Energy, as of June 2019, 37,900 Kazakhstani and 1,900 foreign workers of various organizations work on the FGP-WPMP project in Tengiz.

For reference

In 2016, Tengizchevroil LLP announced the launch of the Future Growth Project (FGP) at Tengiz field with a total cost of USD 37 billion.

The implementation of the FGP will allow to increase the volume of oil production at Tengiz field by 12 million tons, bringing the annual level to 39 million tons.

From 1993 to 2018, direct financial payments of TCO to the Republic of Kazakhstan, which include salaries of Kazakhstani employees, procurements of goods and services of local producers and suppliers, payments to state enterprises, payment of dividends to the Kazakhstani partner, as well as taxes and royalties transferred to the state budget, amounted to more than USD 135 billion.

Including taxes – USD 92.2 billion, dividend payments on the share of KMG – USD 10.3 billion.

In 2018, direct payments to the Republic of Kazakhstan exceeded 10.1 billion.