Tengiz expansion project pushed back by six months - Kazakhstan Energy Minister

ASTANA. Oct 4 (Interfax) - The launch of the Future Growth Project - Wellhead Pressure Management Project (FGP - WPMP) at the Tengiz oil field in Kazakhstan has been postponed by six months, Kazakh Energy Minister Almasadam Satkaliyev told reporters on Wednesday.

"It is a postponement of six months," Satkaliyev told reporters regarding the anticipated launch date for the Tengiz growth project.

The minister noted that the delay is necessary "to ensure the safety and environmental friendliness of the project," and that the decision was made "in coordination with the Ministry of Energy."

He also said that the department will adjust the oil production forecast for 2024, based on the timing of Tengiz expansion.

"It's clear that we also have contingent obligations related to limiting production volumes within the framework of the OPEC+ agreement. Based on these scenarios, we will have an updated forecast for 2024 in the near future," Satkaliyev said.

Previously, Kazakhstan had reduced its planned oil production volumes in 2023 from 90.5 to 89 million tons.

In September, Tengizchevroil (engaged in the development of the Tengiz field) told Interfax they did not rule out a three-to-six month delay in commissioning work, since recently they had "progressed more slowly than expected."

At the end of August 2021, Kazakh President Kassym-Jomart Tokayev said that construction work on the Tengiz field's future expansion project was approximately 20% behind schedule. He instructed the government, together with the project operator, to "take appropriate measures to prevent delays in its completion."

In February 2022, first oil was obtained from the third of four metering units that are part of the oil collection system for the expansion project. In July 2022, expansion was reported to be 90% complete.

The Tengiz oil and gas field, located in the Atyrau region in western Kazakhstan, is one of the largest in the country, with oil reserves of 3.2 billion tonnes.

Tengizchevroil is developing the field. The FGP-WPMP projects in Tengiz have a total cost of $45.2 billion. The project was planned for completion by the end of 2022.

The participants in Tengizchevroil LLP are Chevron (50%), ExxonMobil Kazakhstan Ventures Inc. (25%), the Republic of Kazakhstan via state-owned KazMunayGas (20%), and Lukoil (5%).