Chevron Commits to Reliable and Safe Operations at Tengiz, Says Kazakhstan

Kazakhstan has confirmed that Chevron, a leading U.S. oil company, is committed to ensuring the reliable and safe operations at the Tengiz oilfield. This assurance follows a series of electrical fires at Tengiz, which prompted production halts. The government anticipates a gradual return to full production capacity within a week.

Incident Overview at Tengiz Oilfield

Earlier this month, unexplained fires at the Tengiz facility resulted in a loss of approximately 7.2 million barrels of oil. The significant impact on production highlighted vulnerabilities within Kazakhstan’s oil sector.

Government Response and Chevron’s Commitment

• Kazakhstan’s First Deputy Prime Minister, Roman Sklyar, met with Derek Magness, Chevron’s Eurasia Business Unit managing director.
• During this meeting, Sklyar expressed his concerns about the incidents that halted production at Tengiz.
• Chevron’s management outlined specific actions being taken to resolve the issues and prevent their recurrence.

Chevron reassured the Kazakh government that measures would be enacted to maintain the reliability and safety of facilities at the oilfield. This promise is crucial, especially given the importance of Tengiz in Kazakhstan’s oil production strategy.

Context of Kazakhstan’s Oil Sector Challenges

Kazakhstan’s oil sector is a significant contributor to the global market, accounting for around 2% of daily oil supply. Recent setbacks, including the outage at Tengiz and disruptions from drone strikes affecting the Caspian Pipeline Consortium, have compounded the challenges facing the industry.

As Kazakhstan moves to stabilize its oil production, authorities are emphasizing the need for companies like Chevron and Exxon Mobil to work diligently towards restoring operations at Tengiz and safeguarding against future incidents.

Joint Venture at Tengiz

The Tengiz oilfield is operated by Tengizchevroil, a joint venture that includes:

• Chemical Chevron – 50%
• Exxon Mobil – 25%
• KazMunayGas – 20%
• Lukoil – 5%

As the situation unfolds, Kazakhstan’s Prime Minister, Olzhas Bektenov, is actively engaging with Exxon Mobil to expedite efforts in dealing with the latest outages and ensuring operational continuity at Tengiz.