Kazakhstan
highlights of operations
Through our subsidiaries, Chevron is involved in two of Kazakhstan’s largest joint ventures: Tengizchevroil (TCO) and Karachaganak Petroleum Operating B.V. (KPO).
Chevron is Kazakhstan’s largest private oil producer, holding important stakes in two of the nation’s biggest oil-producing fields – Tengiz and Karachaganak.
Chevron holds a 50% interest in Tengizchevroil which develops Tengiz and Korolev fields. The joint venture is also developing the nearby Korolev Field.
In addition, Chevron holds an 18% interest in the Karachaganak Field.
Chevron is the largest private shareholder in the Caspian Pipeline Consortium (CPC). The Caspian Pipeline provides an important export route for crude oil from Tengiz and Karachaganak. A major expansion of the pipeline was recently completed.
Chevron also operates a polyethylene pipe plant in Atyrau. The plant is run entirely by Kazakhstanis.
In Kazakhstan, as in any country where Chevron does business, we are a strong supporter of programs that help the community.
chevron and Kazakhstan: the power of partnership
At Chevron, we believe energy enables human progress. We see this power at work globally by delivering the affordable, reliable, ever-cleaner energy that billions of people worldwide rely on every day. We also see it locally, where successful energy partnerships become a catalyst for boosting economies, creating jobs, supporting businesses, building communities, empowering people and advancing critical sustainable development goals.
chevron in Kazakhstan comprises four main segments
TCO: A joint venture to develop the Tengiz oil field. Tengiz ranks as the world’s deepest producing supergiant oil field and the largest single‑trap producing reservoir in existence.
50% equity interest
Karachaganak: A stake in the development of a gas condensate field in West Kazakhstan.
18% equity interest
CPC: The Caspian Pipeline Consortium operates a
15% equity interest
APPP: The Atyrau Polyethylene Pipe Plant produces pipes for consumer and industrial use.
100% equity interest
business portfolio
exploration and production
The Tengiz Field, discovered in 1979, is one of the world’s deepest operating supergiant oil fields, with the top of the reservoir at approximately
Through our subsidiaries, Chevron is involved in two of Kazakhstan’s largest joint ventures: Tengizchevroil (TCO) and Karachaganak Petroleum Operating B.V. (KPO). Combined net daily production in 2020 from TCO and KPO averaged 337,000 barrels of liquids and 541 million cubic feet of natural gas.
In 2018, Chevron and TCO celebrated 25 years of successful partnership with the Republic of Kazakhstan.
tengizchevroil
25
year anniversary in 2018
tengiz oil production
3
billionth barrel in 2017
FGP – WPMP workforce
30,000+
Kazakhstanis
tengizchevroil looks ahead
Find more about the impressive development of the Tengiz Field.
TCO continues its development of the Tengiz and Korolev crude oil fields in the West Kazakhstan Region:
- Crude production in 2020 was 26.4 million tonnes (211.1 million barrels) from the Tengiz and Korolev oil fields combined. All of TCO’s oil production was exported through the Caspian Pipeline.
- The Pressure Boost Facility, which is part of the Future Growth Project – Wellhead Pressure Management Project (FGP – WPMP), is expected to start up in late 2022, with remaining FGP – WPMP facilities expected to come on line in mid-2023. Managed as a single integrated project, the FGP – WPMP is designed to increase the Tengiz Field’s production capacity and apply proven sour gas injection technology in order to increase reservoir recovery.
karachaganak, one of the world’s largest fields
Chevron holds an 18% interest in the Karachaganak Field, one of the country’s largest petroleum-producing reserves and one of the world’s largest oil and gas reserves. The field is being developed in phases.
In 2020, the CPC pipeline transported 10.8 million tonnes (85.8 million barrels) of oil from Karachaganak to the port of Novorossiysk on the Black Sea. Product was further transported via the Atyrau-Samara pipeline to the Transneft system for shipment to the port of Ust-Luga on the Baltic Sea.
The production in 2020 totaled 143.9 million barrels of oil-equivalent in the form of stable and unstable liquids, sour gas for export and sweet gas for use as fuel. In addition, 10,361.740 Mscm of gas were reinjected into the reservoir, a volume equivalent to approximately 51.3% of the total gas produced.
More than 5,000 Kazakhstani vendors are registered to supply the project, and since 1997 the local content level in all contracts assigned has exceeded $8.58 billion.
Approximately 4,000 people work in Karachaganak Petroleum Operating, with local employees occupying 97% of the venture’s skilled, clerical and professional roles.
Between 1998 and 2021, KPO spent $439 million on social infrastructure projects in West Kazakhstan.
moving product to market via the CPC pipeline
Chevron is the largest private shareholder in the Caspian Pipeline Consortium (CPC). The pipeline runs for 935 miles (1,505 km), exporting crude oil from the Tengiz Field to the Black Sea port of Novorossiysk. More than 87% of the oil transported comes from fields in Kazakhstan.
The Caspian Pipeline provides a key export route for crude oil produced from the Tengiz and Karachaganak fields. In 2020, an average of 1.3 million barrels of crude oil per day passed through the pipeline, which included 1.1 million barrels per day from Kazakhstan and .2 million barrels per day from Russia. More than 6,500 tankers have been loaded since 2001, when the pipeline began transporting oil.
The Caspian Pipeline capacity expansion project, completed in 2017, accommodated a portion of the expected growth in TCO production. In May 2019, CPC shareholders approved debottlenecking projects to further increase capacity.
Chevron operates the Atyrau Polyethylene Pipe Plant (APPP), which produces pipes for water, gas, heating and industrial use. The APPP is run entirely by Kazakhstanis.
building on success and diversifying the economy
Chevron is helping Kazakhstan meet its goal to diversify the economy. Since 2003, the company has commissioned and operated a polyethylene pipe plant in Atyrau. Its six extrusion lines have a production capacity of
marketing and retail
Through our authorized distributor, Chevron markets lubricants, coolants and fuel treatments under the Texaco® brand for consumer, commercial and industrial use in Kazakhstan.
in the community
In Kazakhstan, Chevron works in partnership with local and national governments, communities, nongovernmental organizations (NGOs) and other institutions on projects focused on health, education and economic development.
Minimizing the impact of a global health crisis demands partnership with the people and communities where we operate. Here are some of the ways Chevron has mobilized to help Kazakhstan recover from the COVID-19 pandemic.
Chevron is committed to promoting healthy lifestyles, with a special focus on young people and women.
Chevron was one of the first international companies in Kazakhstan who offered support to the local and national governments to help control the spread of COVID-19 by donating medicines and personal protective equipment, valued at $20 million.
Chevron, together with ICAP of Columbia University, donated 70,000 respirators to medical institutions in Almaty. For 71.8 million tenge, the company purchased and installed several ventilators.
By partnering with Ayala Fund, Chevron donated two Humming Vue mechanical ventilators (made in Japan) to the Almaty Children Infectious Diseases Hospital. This state-of-the-art technology increases the efficiency of respiratory therapy, is easy to sterilize and does not require subsequent calibration. Along with the equipment, Chevron ensured training for doctors and guaranteed technical maintenance of the equipment.
Chevron supports educational development programs in Kazakhstan that reach thousands of youths, teachers and trainers from urban and rural schools.
The company partners with OYLA, a popular science magazine for children that focuses on STEM education. The magazine, published in 10 countries, shares important scientific discoveries and attracts its international readers with its easy presentation and striking design.
Chevron also partners with the U.S. Mission to Kazakhstan to develop the MakerSpace initiative in Almaty and Nur-Sultan. Equipped with 3D printers, software, robotics, electronics, science kits and other tools, makerspaces are where students and young professionals create, invent and learn together.
In 2020, the U.S. Mission to Kazakhstan and Chevron committed to provide more Kazakhstanis with greater learning opportunities by expanding access to science, technology, engineering, arts and mathematics (STEAM) activities to American Spaces in 10 cities across Kazakhstan and through the Chevron-sponsored Jaspace at the Atyrau Youth Palace.
Chevron maintains strong ties with the Union of Artisans and has helped thousands of artisans across Kazakhstan with design and business skills training. Product quality has improved, access to new markets has expanded, and a professional network has been created.
learn about quraq korpe, traditional patchwork sewing
To help young people develop skills for employment and entrepreneurship, Chevron also partners with the British Council Kazakhstan. I-SEED, a project implemented in Atyrau as part of the Atyrau Youth Development Program, aims to support socially active youth in Kazakhstan and create conditions for sustainable solutions to social problems through the promotion of social entrepreneurship.
In addition, Chevron and Impact Hub Almaty established the Art2B Laboratory for creative entrepreneurs by developing a unique online course that helps to audit a business at any stage of its development.
Chevron contributes to the development of communities through business partnerships in the Tengiz and Karachaganak projects.
tengizchevroil
Since 1993, TCO has invested over $2.2 billion to fund social projects and programs in Atyrau Oblast for the community and TCO employees. TCO has provided resources for social infrastructure projects, schools, hospitals and clinics and for the construction of water and electric systems.
In education, TCO has programs that focus on STEM subjects, promote English language development and support computer literacy. For example:
- In 2020, TCO budgeted $25 million for the Egilik social infrastructure program, the majority of which was spent for construction of kindergartens, schools and other social facilities in Atyrau Oblast.
- In 2021, TCO allocated $1.6 million as part of its Community Investment Program on projects to help improve the quality of health and education and develop social entrepreneurship both in Atyrau Oblast and Borankul Village (Mangystau Oblast).
- Since the beginning of the pandemic, TCO has allocated approximately
$10.8 million (4.7 billion tenge) to fight COVID-19, support the population and purchase medical equipment and supplies in Atyrau Oblast.
karachaganak
We also work with our Karachaganak partners to support the community. Since 1998, KPO has contributed more than $439 million to social infrastructure projects in western Kazakhstan.
kazakhstan community videos
health, environment and safety
Protecting people and the environment is one of Chevron’s core values.
Chevron invests heavily in protecting the environment. Since 2000, TCO invested over $3.1 billion in environmental protection activities. The total air emissions generated per ton of oil produced have decreased by 71%. TCO has applied innovative technologies to redirect gas for its own use, for export to consumers and for reinjection into the reservoir.
economy
Chevron contributes to Kazakhstan’s economy through employee wages, purchases of goods and services from local suppliers, tariffs and fees paid to state-owned companies, and taxes and royalties paid to the government. Since TCO’s founding, the company has made direct payments of over
Since 1993, TCO has invested more than $37.3 billion in Kazakhstani goods and services. In 2020, Chevron and our Karachaganak partners awarded more than $586.7 million in contracts to Kazakhstani companies for goods and services. Since 1997, the local content in all partner contracts has exceeded $8.3 billion.
Kazakhstani managers and supervisors represent 79% of the TCO managerial workforce in Base Business and FGP – WPMP. Excluding the FGP – WPMP, Kazakhstani managers and supervisors make up 88% of the managerial workforce. Ongoing training and development programs support the advancement of employees to positions of increasing responsibility. We use the most up-to-date equipment, technology, methods and expertise in our oil and gas business in Kazakhstan. The company deploys all of its technologies with the goal of increasing reserves and production, accelerating development and reducing costs. TCO workers are trained in accordance with best world practices in oil field operations.
contact
CDC Center One, 7th floor
240G Nursultan Nazarbayev Avenue
Almaty, Kazakhstan, A26F8D4
Telephone: +7 727 298 0662
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For the latest figures, view the 2022 Supplement to the Annual Report.