Tengizchevroil To Up Oil Output To 36M-42M Tons By ’16

Oct 07. Dow Jones

By Kadyr Toktogulov

Tengizchevroil To Up Oil Output To 36M-42M Tons By '16Chevron Corp.-led (CVX) Tengizchevroil, or TCO, aims to increase its annual oil production to 36 million-42 million metric tons by 2016 from 22.5 million tons planned for this year, TCO General Director Todd Levy said Wednesday.

The planned increased oil output would equal the range of 787,000-918,000 barrels per day.

“We are now developing plans to apply leading technologies to continue to add further value to the republic [Kazakhstan] by maximizing reserve recovery and increasing production through advanced 3-D seismic and enhanced oil recovery,” Levy told an oil and gas conference in Kazakhstan’s commercial capital Almaty.

He called the next expansion phase the Future Growth Project.

“We’re looking at 2016 timeframe,” Levy told reporters when asked about the next expansion at the giant Tengiz oil field in western Kazakhstan. “We’re targeting between 36-42 million tons a year.”

“The foundation of our plan to increase reserves through enhanced oil recovery is sour gas injection,” Levy told the conference. “Injecting more gas into the reservoir will help to both partially offset the pressure drop and sweep the oil through the reservoir, both of which increase recoverable reserves.”

Tuesday, Levy said TCO, Kazakhstan’s largest oil producer, expected to produce more than 23 million tons of oil, or more than 503,000 barrels per day, in 2010.

TCO’s current production capacity is 75,000 tons per day, or 600,000 barrels per day. Oil production at Tengiz stood at 17.3 million tons, or 378,000 barrels a day.

TCO’s latest expansion, Sour Gas Injection/Second Generation Project, was completed last year. It doubled the production capacity from about 300,000 barrels a day. TCO is owned by Chevron, ExxonMobil Corp. (XOM), KazMunaiGas and LukArco BV.

Kazakhstan plans to produce 75 million tons of oil this year, up from 70.6 million tons in 2008. It aims to boost its annual oil production to 100 million tons by 2015.