Chevron boosts Kazakhstan’s oil output with new expansion project

Proceeding from a recent article, OilPrice.com unveils that Chevron has successfully launched oil production at an expansion project in Kazakhstan’s largest oilfield, which is expected to significantly increase the country’s crude output. 

Kazakhstan's daily oil production soared to a new record of approximately 2 million barrels on January 26, following the commencement of an expansion project at the country's largest oilfield, managed by a Chevron-led consortium.

Official data cited by Reuters reveals that Kazakhstan's production reached a high of 278,499 metric tons on January 26, equivalent to around 2 million barrels per day (bpd).

This marked a 10.5 per cent increase in the country's oil output compared to the same day in 2024, according to data from Kazakhstan's Situational and Analytical Center for the Fuel and Energy Complex.

On January 24, Chevron announced the start of oil production at an expansion project in Kazakhstan's largest oilfield, which is expected to increase crude oil output by 260,000 barrels per day (bpd).

Chevron, which holds a 50 per cent stake in Tengizchevroil LLP (TCO), the company overseeing the massive Tengiz development, achieved first oil from the Future Growth Project (FGP) at the field. The FGP, the third processing plant at the Tengiz oilfield, enhances sour gas injection capabilities and is projected to increase production to 1 million barrels of oil equivalent per day (boepd), according to the US supermajor.

The Tengiz oilfield, located in western Kazakhstan, is the largest in the country and is recognized as the deepest producing supergiant oil field in the world and the largest single-trap producing reservoir globally. The estimated oil in place at Tengiz is 3.2 billion tons (25.5 billion barrels). Tengiz and the nearby Korolev field, both operated by Tengizchevroil, are situated about 6 miles (10 km) east of the Caspian Sea.

While this development is set to enhance Chevron's crude oil production and cash flow, it could add complexity to Kazakhstan's efforts to meet its OPEC+ commitments, particularly regarding overproduction.

Kazakhstan, a non-OPEC member, is part of the OPEC+ group and, along with Russia and Iraq, has faced challenges in aligning with its production quota as stipulated in OPEC+ agreements.

By Naila Huseynova