Additional Coverage:
- Chevron sees 1 million barrels per day from one of the world’s biggest oil fields in this OPEC+ state (newsbreak.com)
Local Energy Giant Chevron Sees Big Production from Kazakh Oil Field
Chevron expects its Tengiz oil field in Kazakhstan to produce one million barrels of oil equivalent per day. Tengiz is considered one of the world’s largest oil fields.
This production increase follows the completion of an expansion project at Tengiz, operated by Tengizchevroil, a company in which Chevron holds a 50% stake. The expansion is projected to add 260,000 barrels per day at full capacity, with the million-barrel mark anticipated later this year.
Chevron describes the Tengiz field, which has been producing oil for decades, as the “world’s deepest producing supergiant oil field.” It also calls it the largest single-trap producing reservoir.
Kazakhstan, a member of the OPEC+ alliance, produced approximately 1.8 million barrels per day late last year.
Despite political pressure to increase oil supply, Chevron anticipates significant profits from Tengiz, even if oil prices decline. Chevron executive Clay Neff projected the field will generate $4 billion in free cash flow this year and $5 billion by 2026, based on an oil price of $60 per barrel.
Chevron’s partners in the Tengizchevroil venture include KazMunayGas, Exxon Mobil, and Russia’s Lukoil.
Exxon Downplays Expectations for Rapid LNG Export Growth
Meanwhile, an Exxon Mobil executive has tempered expectations of a rapid increase in liquid natural gas exports. Despite recent efforts to boost the energy sector, including LNG shipments, Exxon’s European president, Philippe Ducom, cited limited current supplies.
He also noted European nations’ reluctance to enter long-term deals. Ducom indicated significant new LNG capacity won’t be available until 2026-2027.