Kazakhstan’s energy sector leaps forward as Tengizchevroil’s Future Growth Project begins production

Tengizchevroil LLP (TCO), a partnership led by Chevron Corporation, has achieved a landmark milestone in its Future Growth Project (FGP) by commencing crude oil production at the newly built Third-Generation Plant (3GP) in the Tengiz oil field in Kazakhstan. This strategic advancement, coupled with the completion of the Wellhead Pressure Management Project (WPMP) in 2024, positions TCO as a driving force in Kazakhstan’s energy sector.

The 3GP launch is more than just a technical accomplishment—it underscores Kazakhstan’s increasing prominence as a reliable crude oil supplier to global markets. With a targeted ramp-up of 12 million tons of additional crude oil annually, this project is expected to elevate TCO’s production to nearly 40 million tons per year, reinforcing its status as one of the world’s largest oil-producing ventures.

What Makes the Tengiz Oil Field a Global Energy Asset?

Located in western Kazakhstan, the Tengiz oil field is regarded as the world’s deepest supergiant oil field, holding one of the largest single-trap producing reservoirs globally. This vast resource is critical to meeting growing global energy demands. TCO’s latest developments enhance its ability to deliver, with the Future Growth Project/WPMP estimated to increase crude oil production by an additional 260,000 barrels per day at peak performance.

These projects integrate advanced sour gas reinjection technology to maintain reservoir pressure, a key innovation designed to extend the life and efficiency of the Tengiz oil field. By achieving this milestone, Kazakhstan not only strengthens its energy output but also contributes to long-term global energy security.

How Does the Future Growth Project Benefit Kazakhstan’s Economy?

The Future Growth Project is expected to bring transformative economic benefits to Kazakhstan, particularly through financial contributions such as taxes, royalties, and other direct payments. Beyond financial gains, the initiative supports local businesses and workforce development.

Tengizchevroil has invested over $19.5 billion in Kazakhstani goods and services, awarding contracts to more than 1,250 local companies. This investment fosters technology transfer, infrastructure upgrades, and skill development in the Atyrau region, creating sustainable economic opportunities for local communities.

Konilkosh Suyessinov, Deputy General Director at TCO, highlighted the role of local enterprises, stating, “Kazakhstani companies have proven their outstanding capabilities in executing large-scale projects.” This collaboration showcases the potential of Kazakhstan’s industrial sector in executing complex, high-value energy projects.

What Role Does Chevron Play in Tengizchevroil’s Expansion?

Chevron Corporation, which holds a 50% stake in TCO, has been instrumental in the success of the Future Growth Project. The company’s vice chairman, Mark Nelson, emphasized that the achievement at Tengiz is part of a broader strategy to enhance free cash flow and shareholder value.

“This accomplishment reflects Chevron’s ability to deliver complex projects on a global scale,” said Nelson. “First oil at the Future Growth Project builds on the momentum of other key developments in the Gulf of Mexico and the Permian Basin.”

Kevin Lyon, General Director of TCO, credited the milestone to a robust partnership with the Kazakh government, local businesses, and a skilled workforce. He remarked, “The successful delivery of the Future Growth Project unlocks additional value for Kazakhstan and our shareholders, further strengthening our shared commitment to sustainable energy development.”

What Innovations Define the Future Growth Project?

The FGP/WPMP integrates cutting-edge engineering to modernize the Tengiz oil field. Key features include:

• Five Frame 9 gas turbine generators to enhance power supply.
• Four compression trains for improved pumping capacity.
• Advanced sour gas reinjection systems for long-term reservoir pressure maintenance.
• A new centralized control center to streamline operations.

These innovations enable TCO to manage the field’s immense output efficiently while maintaining a focus on environmental stewardship and operational safety.

What’s Next for Kazakhstan’s Energy Market?

The gradual ramp-up of 3GP production over the coming months is set to bolster Kazakhstan’s reputation as a key player in the global energy landscape. By achieving a production capacity of one million barrels of oil equivalent per day, the Tengiz oil field reinforces its importance in meeting international energy demand.

The $46.7 billion FGP/WPMP project also aligns with Kazakhstan’s strategic goals of diversifying its economy and enhancing energy exports. With a strengthened partnership between international stakeholders like Chevron and local enterprises, the country is poised to play a vital role in ensuring global energy stability.

The Future Growth Project at Tengizchevroil exemplifies how collaboration, innovation, and strategic investment can reshape an entire industry. By significantly increasing crude oil output and fostering local economic development, TCO is not only advancing Kazakhstan’s energy market but also contributing to the global energy supply chain.

As Chevron and its partners celebrate this milestone, the focus remains on maintaining a sustainable and efficient operation that benefits stakeholders at every level—from shareholders and local businesses to the Kazakh government and the broader global market.