Chevron's Wellhead Pressure Management Project Achieves Milestone in Kazakhstan

Chevron Corporation’s affiliate Tengizchevroil LLP (TCO) has successfully launched its Wellhead Pressure Management Project (WPMP) at the Tengiz oil field in Kazakhstan. This achievement is a significant step towards completing the Future Growth Project (FGP) and modernizing the existing base business at Tengiz.

The WPMP aims to maintain the capacity of the processing plants at approximately 28 million tonnes per annum. It does this by lowering the flowing pressure at the wellheads and then boosting the pressure to the existing plants. The first metering station at Tengiz has successfully been converted to low pressure, and the associated Pressure Boost Facility (PBF) has been activated.

By safely and effectively managing operations, TCO demonstrates its commitment to maximizing the recovery of critical resources for global energy security. Clay Neff, President of Chevron International Exploration and Production, stated, “This is a significant step towards completion of the Future Growth Project (FGP). It is also important progress for the modernization of the existing base business at Tengiz and demonstrates TCO’s commitment to safely and reliably manage operations, while maximizing the ultimate recovery of resources critical to global energy security.”

The next phases of the expansion project include the start-up of additional PBF compressors and the conversion of the remaining metering stations in the oil gathering system at Tengiz from high pressure to low pressure. These phases are scheduled for completion throughout the remainder of the year.

The final phase of TCO’s expansion project, FGP, is on track to conclude in the first half of 2025. This will result in an incremental increase of 12 million tons per annum (260,000 barrels a day) in Tengiz crude oil production.

Derek Magness, Managing Director of Chevron’s Eurasia Business Unit, highlighted the importance of partnership in this achievement, stating, “This accomplishment highlights the vital role of partnership. Together with the Republic of Kazakhstan and our other partners, we have safely started operations at the WPMP, which is a positive development as we continue our focus on the FGP-WPMP expansion project.”

Chevron is committed to delivering affordable, reliable, and cleaner energy. As one of the world’s leading integrated energy companies, Chevron aims to grow its oil and gas business while also developing lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen, and other emerging technologies.

Chevron’s Wellhead Pressure Management Project (WPMP) in Kazakhstan is a significant milestone in the company’s efforts to modernize its existing base business and complete the Future Growth Project (FGP). The WPMP aims to maintain processing plants’ capacity at approximately 28 million tonnes per annum by lowering wellhead pressure and boosting it to the existing plants.

By successfully implementing the WPMP, Chevron’s affiliate Tengizchevroil LLP (TCO) ensures the continued maximization of critical resources for global energy security. The project demonstrates TCO’s commitment to safely and reliably managing operations while optimizing resource recovery. This achievement is in line with Chevron’s broader goal of delivering affordable, reliable, and cleaner energy.

The next phases of the expansion project involve the start-up of additional Pressure Boost Facility (PBF) compressors and the conversion of the remaining metering stations in the oil gathering system at Tengiz from high pressure to low pressure. These phases are expected to be completed throughout the remainder of the year.

Once the final phase of the expansion project, the FGP, concludes in the first half of 2025, it will result in an incremental increase of 12 million tons per annum (260,000 barrels a day) in Tengiz crude oil production. This expansion will contribute to meeting global energy demands and further strengthen Chevron’s position in the oil and gas industry.

While the WPMP and FGP bring advantages to Chevron and the energy sector as a whole, there are also key challenges and controversies associated with the project. Some concerns include potential environmental impacts, such as increased greenhouse gas emissions and the overall sustainability of fossil fuel-based projects in the context of climate change mitigation efforts. Balancing the need for energy production with environmental stewardship remains a challenge for the industry.

In terms of market trends, the demand for oil and gas continues to be influenced by various factors such as economic growth, geopolitical tensions, and the global transition towards cleaner energy sources. Forecasts suggest that while renewable energy is gaining momentum, oil and gas will remain major components of the energy mix in the coming years. However, the long-term outlook for fossil fuels faces uncertainties due to increasing concerns about climate change and the policies implemented to address it.

As for the specific market trends and forecasts in Kazakhstan, the country is a significant player in the global oil and gas industry. It is among the top oil producers in the region, and its production levels have been steadily increasing in recent years. Kazakhstan has ambitious plans to further develop its energy sector, attract foreign investments, and diversify its energy mix, including increasing the adoption of renewable energy sources.

In terms of challenges, the energy sector in Kazakhstan faces issues such as aging infrastructure, regulatory uncertainties, geopolitical risks, and the need for foreign investments to support large-scale projects. However, the government has been implementing reforms and offering various incentives to attract investment and increase efficiency in the industry.