Chevron, ExxonMobil and their partners developing Tengiz field will invest $36.8 billion into increase in the oil production, reads the web site of Chevron company.
The companies will invest $27.1 billion into equipment, $3.5 billion into the new wells and $6.2 billion into unexpected costs.
This is biggest amount of investments into the oil extraction after slump of oil prices two years ago, writes The Wall Street Journal (WSJ). “This is a good time for investments,” Todd Levi, chief of Chevron subdivisions in Eurasia and Near East, told WSJ. Jay Johnson, Chevron senior Vice President for Extraction and Exploration, said that the investment plan was based on the fact that the Tengiz field has been already successfully expanded (the shareholders have already invested about $37 billion into project).
Last week Chevron reported at the presentation that the decision to expand the project in Kazakhstan will be made in mid-2016.
Tengiz field was discovered in 1979 and is among the deepest oil fields in the world. In 2015 daily oil extraction on the field totaled 595,000 barrels. Expansion of the project will allow increasing the production by 250,000-300,000 barrels a day.
Tengizchevroil company has been extracting oil on the Tengiz field as well as Korolev field. Chevron owns a big share in the company (50%), ExxonMobil – 25%, Kazakh state company Kazmunaigas – 20% and LUKArco, LUKoil’s daughter company, has 5%.