Kazakhstan Chamber of Commerce in the USA

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Tengizchevroil to increase production sharply following planned expansion

Posted on June 02, 2010 by KazCham

(SRI) – Tengizchevroil, the joint venture developing the Tengiz oil field, expects production to increase by 12 million metric tons of crude a year by 2016, following the planned expansion of the production facilities, Chevron Corp. Vice President Ian MacDonald said last week.

According to MacDonald, the decision whether to expand the Tengiz field may be taken in 2011. In 2009, Tengizchevroil produced 22.5 million tons of crude.

Kazakhstan President Nursultan Nazarbayev has given a “very clear assurance” that deals in the former Soviet Union country will be honored, MacDonald said.

“We don’t expect any changes to the terms,” he said.

Nazarbayev warned ealier this year that foreign ventures enjoying special protective status may lose their immunity from changes in tax legislation. Some of the country’s largest projects, including Tengizchevroil, operate under production-sharing agreements (PSAs) negotiated in the 1990’s. The agreements, signed when Kazakhstan struggled to lure foreign investors into the country, have provided the companies with stable tax regimes for the duration of the contracts, running as long as 40 years.

Chevron has a 50 percent stake in Tengizchevroil. The Kazakh national oil company KazMunaiGas owns 20 percent, ExxonMobil 25 percent and LUKArco 5 percent.

SOURCE: http://silkroadintelligencer.com/2010/05/25/tengizchevroil-to-increase-production-sharply-following-planned-expansion/

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