February 23, 2022, ALMATY – Tengizchevroil LLP (TCO) today announced a strong set of business performance results for 2021. The company produced 26.6 million tonnes of crude oil for the year and surpassed a major production milestone, since its formation in 1993, of 500 million tonnes of crude oil.
Of note, TCO advanced the Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) to 89% total completion by the end of 2021, and achieved early oil from the third of four metering stations, which are part of the oil gathering system being built for FGP-WPMP. TCO also delivered its annual turnaround four days ahead of schedule.
Alongside these key milestones, TCO reduced air emissions intensity and achieved its lowest flaring volume performance since 2017.
Throughout 2021, TCO continued to maintain a high focus on the health and safety of its entire workforce during the global pandemic. The company achieved on a voluntary basis, a full vaccination rate of 99% to date for its total workforce.
In 2021, TCO remained the largest contributor to the national economy, with over $9 billion in direct payments to the Republic of Kazakhstan (RoK). Since 1993, TCO delivered more than $162 billion in direct financial payments to the country, including more than $40 billion spent on local goods and services. The company also continued to be the leading purchaser of domestic goods and services in the country, with $3.6 billion spent in 2021 alone on local suppliers, including $2.4 billion for FGP-WPMP. By the end of 2021, Kazakhstani citizens held 94% of TCO positions in its base business compared to 50% in 1993.
TCO, General Director, Kevin Lyon said: “Behind all of these tremendous achievements is support from our partners and the Government of Kazakhstan and the talent and resilience of our workforce. I am pleased that we delivered such a strong set of results which are aligned with our TCO Way Values.”
In 2021, alongside the entire country, TCO celebrated the 30th anniversary of Kazakhstan’s Independence. TCO, Deputy General Director, Aibek Krambayev said. “During this momentous year, we are proud to continue playing an integral role in the economic progress of the country, whilst also driving the development of local content and supporting the communities where we operate.”
Since 1993, TCO has invested over $2.3 billion in social projects and programs in Atyrau Oblast. TCO will continue to support the community with its annual $25 million voluntary EGILIK social infrastructure program as well as its annual $2 million Community Investments Program.
About Tengizchevroil LLP
Tengizchevroil LLP (TCO) is a Kazakhstani partnership that develops, produces, and markets crude oil, LPG, dry gas, and sulfur. TCO implements new technologies and conducts its operations in accordance with world-class safety and environmental standards. In April 1993, TCO was formed between the Republic of Kazakhstan and Chevron Corporation. Partners are Chevron, 50 percent; KazMunaiGas NC JSC, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent and LukArco, 5 percent.
The Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) are two integrated projects implemented by TCO simultaneously. FGP-WPMP, upon completion, will allow an increase in Tengiz crude oil production capacity by 12 million tonnes per year to a total of 39 million tonnes per year. While FGP implementation will expand production, WPMP will keep the existing Tengiz plants at full capacity by lowering wellhead pressure and boosting the pressure of the six existing processing trains.