Azernews.Az

By Kamila Aliyeva

Kazakh Prime Minister Bakytzhan Sagintayev held a meeting with President of Chevron Europe, Eurasia and Middle East Exploration and Production Company Jeffrey Todd Levy on March 13, the press service of the government reported.

During the meeting, the sides discussed the issues of further cooperation in the oil and gas sector. In particular, they considered issues related to the collaboration within Tengizchevroil LLP, the Karachaganak project, and the Caspian Pipeline Consortium.

Chevron Corporation was established as the Pacific Coast Oil Co in 1879. Headquartered in San Ramon, California, U.S., it carries out operations in over 180 countries. The company employs approximately 62,000 people.

In Kazakhstan, Chevron holds 50 percent in Tengizchevroil LLP, 18 percent in Karachaganak project, and 15 percent in the Caspian Pipeline Consortium.

The Tengizchevroil (TCO) partnership was formed on April 6, 1993, between Kazakhstan and Chevron. Chevron Corporation became the first foreign company which signed agreement with Kazakh President Nursultan Nazarbayev. For 25 years, production at Tengiz has grown from 4 up to 28 million tonnes per year.

The Karachaganak project is implemented within the framework of the Final Production Sharing Agreement (FISP) concluded between the government of Kazakhstan and the alliance of companies represented by British Gas (Shell) with 29.25 percent, ENI with 29.25 percent, Chevron with 18 percent, Lukoil with 13.5 percent and KazMunaiGas JSC with 10 percent of the equity participation. The agreement was signed on November 18, 1997 for a period of 40 years.

In 2017, the actual production totaled 11.2 million tons of liquid hydrocarbons (target production was 10.7 million tons) and 18.9 billion cubic meters of natural gas (target of 18.3 billion cubic meters). In 2018, it is planned to produce 10.887 million tons of liquid hydrocarbons and 18.37 billion cubic meters of natural gas.

The Caspian Pipeline Consortium (CPC) pipeline, with a total length of 1,510 km (452 km of which is a Kazakh section), connects the Tengiz oil field and the Yuzhnaya Ozereevka oil terminal on the Black Sea (near the port of Novorossiysk). It was put into operation in 2001. In 2017, CPC transported 55.1 million tons of oil via the pipeline, including 49.6 million tons of oil from Kazakhstan.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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