Chevron: The budget of future growth protect on Tengiz may be increased to 45,2 billions of US dollars

In the course of a conference-call of Chevron management as per III quarter outcome the company management advised of the possibility of increasing budget of the future growth project – wellhead pressure management project (FGP-WPMP) on Tengiz field from 37 to 45,2 billions of US dollars.

The company finished detailed evaluation of expenses and deadlines of the future growth project. As a result the expenses estimate for the project was updated to 45,2 billions of US dollars with additional 1,3 billions of US dollars for a case of unforeseen costs.

The expected launch of FGP was postponed to the middle of 2023, which will take place after the WPMP scheduled for putting into operation at the end of 2022.

As a whole the increase of overall costs including unforeseen expenses is equal to approximately 25%.

The reasons for price rise of the estimate the company calls higher expenses on engineering and construction works – approximately two thirds of planned amount for unforeseen expenses.

In addition to that the volume of electrical and other equipment to be purchased significantly increased.

Future growth project (FGP) and wellhead pressure management project (WPMP) are two integrated projects to be Tengizchevroil LLP simultaneously. It is expected that FGP realization will allow to increase oil production rate on Tengiz field approximately by 12 millions of tons per year or 260 thousands of barrels per day and as a result it will be equal to 39 millions of tons per year or 850 thousands barrels per day. Realization of FGP is aimed at expansion of production capacities, whereas WPMP will ensure full loading of processing capacities of factories operating at Tengiz through reduction of wellhead pressure and increase of pressure on six operating complex process lines.

As they previously reported in TCO obtaining of oil through the project is scheduled for 2022.