Chevron Expands Tengiz Oilfield to Boost Output
Chevron has launched production at its $48 billion Tengiz oilfield expansion in Kazakhstan, aiming to increase output to nearly 1 million barrels per day—about 1% of global crude supply, Reuters reported on Jan. 24.
Despite delays and cost overruns since its 2012 inception, the expansion is set to reach full capacity of 260,000 barrels per day by June, according to Chevron’s head of international exploration and production, Clay Neff.
Chevron holds a 50% stake in the Tengizchevroil joint venture, with ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%) as partners. The project is expected to generate $4 billion in free cash flow in 2025, rising to $5 billion in 2026 at a Brent crude price of $60 per barrel.
This expansion aligns with Chevron’s strategy to increase production by 3% annually over the next five years, alongside growth in the U.S. Permian Basin.
Photo credit: Chevron
