Chevron is fast-tracking the expansion of Kazakhstan’s Tengiz oilfield, two sources familiar with the plans told Reuters, boosting its output to approximately 1% of global crude supply.
In January, Chevron announced it had begun a $48 billion expansion of Tengiz, one of the world’s deepest and most technically challenging oilfields due to its high sulfur content and extreme weather conditions.
The Tengiz expansion, which began in 2012, has faced repeated delays and significant cost overruns. However, Clay Neff, Chevron’s head of international exploration and production, told Reuters last month that the project is expected to reach full capacity—an additional 260,000 barrels per day (bpd)—by June, raising total production to nearly 1 million barrels of oil equivalent per day.
A Chevron spokesperson confirmed on Friday that Tengizchevroil (TCO) has successfully commenced initial production from the Future Growth Project (FGP).
“Once all Tengiz facilities are operating at full capacity, TCO’s total annual crude oil production is expected to reach approximately 40 million tons per annum. Beyond this, TCO does not comment on specific details of current or future production levels,” the spokesperson stated.
A source familiar with the matter added that Chevron is now on track to complete the ramp-up by the end of February—four months ahead of schedule.
Kazakhstan has repeatedly exceeded its OPEC+ output quota of 1.468 million bpd, complicating efforts to align its production with the coalition’s supply-cutting agreements. The country aims to increase its oil and gas condensate production to 96.2 million metric tons (approximately 2 million bpd) this year, up from 87.56 million tons in 2024.
Kazakhstan’s energy ministry stated on Tuesday that it is committed to meeting its OPEC+ obligations and compensating for any overproduction from the previous year.
CPC Export Route
Crude from Tengiz is transported via the Caspian Pipeline Consortium (CPC) pipeline, which exports through a terminal near Russia’s Black Sea port of Novorossiisk.
Another source familiar with the production data said output at Tengiz has already surged to 900,000 bpd, up from an average of 606,000 bpd in 2024.
“It is ahead of schedule, it seems,” a trader commented.
Chevron holds a 50% stake in the Tengizchevroil joint venture, which operates the field. Other stakeholders include ExxonMobil (25%), Kazakhstan’s KazMunayGas (20%), and Russia’s Lukoil (5%).
