Increased production with a giant oil field in Kazakhstan, Chevron

Chevron announced on Friday that the expansion of the Kazakhstan's Tengizu oil field has been completed, aiming to increase this year's production to about 1 million barrels per day, approaching 1 % of the world supply.

Sevron, who recently relocated to Houston from near San Francisco, has continued to pay for oil production, concerned that consumers will weaken their demand as they shift to electric vehicles and clean energy.

“We know that global oil demand will continue to expand,” said Chevron International Explation and Productions President Clay Neff.

Tengizu is one of the most produced oil fields in the world and has been producing oil for about 30 years. However, crew members who are active in the shrubs where wild horses walk around are trying to increase their production by about 40%. Chevron said in a news release that the first additional barrel was currently being shipped.

“This is a very noticeable oil field and will be produced for the next few decades,” Nefu said.

Additional production will add crude oil to the global market, but some analysts have a hard time responding to further production this year, and currently about $ 79 per barrel of Brent Crude Oil, an international benchmark. He pointed out that it could squeeze the price. Kazakhstan is a member of the Saudi -led oil cartel “OPEC Plus”, and Kazakhstan is pressure to suppress production.

At the same time, President Trump has encouraged US and OPEC operators to supply additional oil to reduce prices.

Teengiz is an extremely important person for Chevron's financial track record. Assuming that crude oil prices would be $ 60 per barrel, Chevron would produce a free cash flow of $ 4 billion in 2025 and $ 5 billion in 2026.

The oil field is operated by a joint venture that Chevron has invested in 50 %. The American energy giant Xon Mobil and Russian company Luku oil are also partners of this venture known as Tengyebroil.

This business is extremely important for Kazakhstan. According to an industry group Casenasy report, the project brought 58 % of government tax revenues paid by oil companies in 2023.

It is important to note that TENGIZ operation must be removed from oil from oil from oil. Nevertheless, the cost of production in this field is reduced in cost.

Chevron's estimation can be up to $ 49 billion for this expansion. Construction of a new port in the Caspi Sea has been around for about 10 years. Approximately 90,000 people participated during the peak.

During the expansion period, Chevron has overcome the danger of Russia's Warrina War, Coronavirus pandemic, and the 2022 Kazakhstan's turbulence, which led to a neighbor's troops in Russia.

Managing relationships with Russia is still essential for the project. Equipment for expansion is transported via Russia, and most of the petroleum is exported to the Russian Novolo Sea Suku Port facing the Black Sea with a pipeline, and Moscow may be strangled.