Tengiz set for urban makeover

tengizWorkers at the super-giant Tengiz oilfield in Kazakhstan are set for a five-star upgrade with the award of a contract by the Chevron-led operating consortium to develop a new mini-town at a cost of $500 million.

A joint venture of Italian contractor Bonatti and local construction group Isker, which has won the turnkey deal, aims to build the 150,000 square-metre complex including accommodation facilities for 5000 personnel, offices, restaurants and sports amenities in the space of three years near the field on the Caspian Sea coast.

The new camp, which will be run by 2000 local people and is being designed for a 30-year lifespan, is being developed by the Tengizchevroil consortium as part of its efforts to boost output from the field while also promoting the local economy.

The group, run  by Chevron with 50% alongside partners ExxonMobil (25%), KazMunaiGas (20%) and Lukoil (5%), last year signed a memorandum of understanding with the government to lift current production to more than 820,000 barrels per day from the present level of 560,000 bpd under plans to expand annual output capacity by about 1.7 million barrels.

The consortium intends to invest about $28 billion over the next few years in output expansion, exploration and development of new transport infrastructure and other facilities at the field, which holds reserves estimated at between 6 billion and 9 billion barrels of oil.

The Isker-Bonatti partnership won the award in competition with international rivals including Bechtel and Kentz.