By Raushan Nurshayeva
ASTANA Jan 28 Output at Chevron-led
Tengizchevroil (TCO), Kazakhstan's largest oil producer, is set
to rise by 12 million tonnes per year in the 2018-19 timeframe
from last year's 24.2 million tonnes, TCO General Director Tim
Miller said on Monday.
Data released by TCO project partner Lukoil this
month said the venture's production stood at 25.1 million tonnes
(about 503,000 barrels per day) in 2012.
"Our 2012 production was 24.2 million tonnes. This was 3.7
pct lower than our business target of 25.1 million tonnes,"
Miller told an enlarged meeting of Kazakhstan's Oil & Gas
"The primary reasons for this were mechanical problems ...
severe weather conditions and transportation restrictions."
The huge Tengiz oilfield, located onshore in western
Kazakhstan, is one of three main drivers of Kazakhstan's plans
to raise its oil output by 60 percent by the end of the decade.
Kazakhstan is now the second-largest post-Soviet oil
producer after Russia.
The vast Central Asian nation of 17 million plans to raise
output to 130 million tonnes by 2020 through expansion at the
Kashagan offshore field in the Caspian, higher output at Tengiz
and the Karachaganak oil and gas field.
Kazakh Oil & Gas Minister Sauat Mynbayev said earlier on
Monday Kazakhstan's total oil output was set to rise to 82
million tonnes in 2013 from last year's 79.2 million tonnes.
TCO's output is set to remain at the current level for a few
years as the venture has first to implement the Wellhead
Pressure Management Project (WPMP) to install a pressure boost
facility and drill additional wells post-WPMP to lay the
groundwork for the crucial Future Growth Project (FGP).
"The Future Growth Project will expand production capacity
by 12 million per year," Miller said. "Start-up of the FGP
operation will be in the 2018 to 2019 timeframe."
"We are targeting the final investment decision for the
fourth quarter of 2013," he said without specifying the sum.
Chevron holds a 50-percent stake in the venture, while
ExxonMobil owns 25 percent, Kazakh state oil company
KazMunaiGas has 20 percent and Lukarco, controlled by
Lukoil, the remaining 5 percent.
Since TCO's creation in April 1993, the venture's cumulative
payments to Kazakhstan had totalled $74.2 billion, Miller said.
"In 2012, total payments exceeded $14 billion for the second
consecutive year," he said.