Kazakhstan's Tengiz expansion project may reach full capacity by mid-2025 - Tengizchevroil head

ASTANA. Feb 13 (Interfax) - The expansion project at the Tengiz oil field may reach full capacity by mid-2025, the general director of Tengizchevroil LLP (the field's operator) Kevin Lyon told Interfax.

"We are currently in the testing phase. Everything depends on the performance of our equipment, and it will take several months to complete this process. We expect to reach full operational capacity by the middle of the year," Lyon said in response to a question about the timeline for completing test operations on the expansion project.

All processes at Tengiz are still in their early stages, he said.

"We announced the start of production at the Third Generation Plant in January, but testing and tuning the system will take several months. Therefore, we will not see the full production effect for several more months," he said.

The Kazakh Energy Ministry supports the plans for launching new Tengizchevroil facilities, recognizing the company's significant contribution to the state budget, he said.

"The Energy Ministry truly supports our plans to launch new facilities, understanding the importance of the contribution that will be made to support Kazakhstan's budget. The production we are currently engaged in is primarily aimed at supporting the country's budget, and that is where our focus lies," he said.

As previously reported, Tengizchevroil announced the first oil production as part of the Future Growth Project (FGP) at the end of January 2025.

Initially, it was planned that the Future Growth Project and the Wellhead Pressure Management Project (WPMP) would be completed by the end of 2022. However, the deadlines were repeatedly postponed. The most recent announced completion date for the FGP is Q2 2025.

Tengizchevroil launched WPMP facilities at the end of April 2024.

The delay in launching the FGP at Tengiz, as well as planned and emergency production shutdowns at the field, have affected the overall pace of economic development in the country.

The Tengiz oil and gas field is one of the largest in Kazakhstan, with oil reserves of 3.1 billion tonnes. It is located in the Atyrau region.

The shareholders of the field's operating company are Chevron (50%), ExxonMobil Kazakhstan Ventures Inc. (25%), Kazakhstan through KazMunayGas (20%) and Lukoil (5%).

The total cost of implementing the FGP-WPMP has been estimated at $46.7 billion.