TENGIZCHEVROIL
FUTURE GROWTH PROJECT
AND WELLHEAD PRESSURE
MANAGEMENT PROJECT
EXPANDING THE POTENTIAL OF TENGIZ
Dear readers,
The Tengizchevroil (TCO) joint venture was founded in 1993 to deliver stable, reliable production from the
Tengiz oil field while steadily increasing our Kazakhstani workforce and our use of local goods and services.
This brochure provides an overview of the next expansion of Tengiz - the two major projects being designed
and built together that we call the Future Growth Project and Wellhead Pressure Management Project
(FGP-WPMP). In this brochure, you’ll learn key facts about TCO and the FGP-WPMP. You’ll see how the
FGP-WPMP will generate jobs and significantly increase TCO’s use of local goods and services. And you’ll be
informed on how TCO is developing these projects to world-class standards of safety, environmental and
social performance.
From the beginning, TCO’s success has been based on meaningful relationships with our stakeholders,
including our joint-venture partners, our workforce, Kazakhstani businesses and government at all levels, local
communities, NGOs and many others. We continually strive to deepen engagement with our stakeholders
through transparent two-way communication. As you learn more about the FGP-WPMP, we want your
feedback and input on these projects. Page 11 of this brochure lists the many ways you can contact TCO
about the FGP-WPMP or any aspect of TCO.
We hope you find this brochure informative. We’re confident that FGP-WPMP will help TCO continue to deliver
new benefits to Kazakhstan as we always have: safely, in an environmentally sound manner and by working in
partnership with you, our stakeholders.
Best regards,
Ted Etchison, General Director
Anuarbek Jakiyev, Deputy General Director
Kazakhstani citizens hold 86 percent of TCO positions, compared to 50 percent in 1993. Kazakhstani managers and supervisors represent
73 percent of the TCO managerial workforce
CONTENTS
Setting the Scene
4
TCO’s Future Growth Project and Wellhead Pressure
Management Project
5
A Modular Approach to Construction and Transportation
6
TCO’s Commitment to People and the Environment
8
Kazakhstani Content
9
Corporate Responsibility
10
Stakeholder Engagement
Getting in Touch
11
SETTING THE SCENE
Discovered in 1979, Tengiz is one of the world’s deepest
developed super giant oilfields and the largest producing oilfield
in Kazakhstan. Located in a remote area of Western Kazakhstan,
the underground Tengiz reservoir measures 20 kilometres by
21 kilometres. The entire Tengiz oilfield area, including the
smaller Korolev field, is estimated to contain 750 million to
1.1 billion tonnes (six to nine billion barrels) of recoverable oil.
Tengizchevroil (TCO) started production of crude oil and
associated gas (natural gas produced with crude oil from the
same reservoir) in 1993, and has subsequently executed a
number of expansion and upgrade developments.
The Future Growth Project-Wellhead Pressure Management
Project (FGP-WPMP) is based on the highly successful Sour
Gas Injection-Second Generation (SGI-SGP) Expansion Project,
which has proven the benefits of gas injection to the Tengiz
reservoir.
WHAT IS TCO?
TCO is a Kazakhstani partnership which explores, develops, produces and markets crude oil, gas and other petroleum products.
Formed in 1993 between the Republic of Kazakhstan and Chevron to develop and operate the Tengiz oilfield, current partners are:
25%
LukArco B.V.
JSC NC “KazMunaiGas”
4
5
%
ExxonMobil Kazakhstan Ventures Inc.
50%
Chevron
20%
TENGIZCHEVROIL
TCO’s Future Growth Project and Wellhead
Pressure Management Project (FGP-WPMP)
FGP-WPMP are two integrated projects that are being
executed simultaneously to expand Tengiz production and to
maintain full production rates at the existing Tengiz facilities.
One of the global energy industry’s largest major capital
projects, the FGP-WPMP is anticipated to increase Tengiz
crude oil production capacity by approximately 12 million
tonnes per year, raising TCO’s total production to around
39 million tonnes of oil per year.
The FGP plants will not produce sulfur; the natural gas containing hydrogen sulphide will be re-injected into the
reservoir to maintain reservoir pressure. The expansion is
also being designed and constructed to operate with the
latest technology to reduce air emissions.
The FGP-WPMP involves the construction and installation of
new facilities including:
•
•
New crude oil production wells and a gathering system
plant for oil and some gas processing
A 3GI plant for re-injection of natural gas that contains
hydrogen sulfide
•
•
Facilities to keep the existing Tengiz plants full by
lowering the flowing well head pressure and boosting
the pressure to the six existing processing trains
Facilities and services involved in the delivery of project
components.
In addition to these new facilities, the FGP-WPMP will share
with existing Tengiz operations infrastructure such as waste
management facilities and accommodation camps.
Existing oil export routes will be used, including the 1,500 km
Caspian Pipeline Consortium oil pipeline connecting Tengiz
with a marine terminal at Novorossiysk on Russia’s Black Sea
coast.
The FGP-WPMP will deliver benefits to Kazakhstan through
the use of local goods, services and jobs; worker training
programmes; introduction of new oilfield technology to the
country; building the capacity and capability of local
businesses; and TCO’s Social Investment Program.
POWER
GENERATION
SOUR WATER
STRIPPER
PRESSURE
BOOST FACILITY
UTILITIES
OIL AND GAS
PROCESSING
RECEPTION
FLARE
Approx.
1,2 km.
Approx.
1,3 km.
EXPORT
FACILITY
3GP (3 GENERATION PLANT)
RD
COMPRESSION
TRAIN 1
Approx.
1,8 km
3GI RECEPTION
3GI FLARE
COMPRESSION
TRAIN 2
3GI UTILITIES
3GI (3RD GENERATION INJECTION PLANT)
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5
A MODULAR APPROACH TO
CONSTRUCTION AND
TRANSPORTATION
The main FGP-WPMP equipment will be fabricated in Kazakhstan, South Korea
and Italy and pre-assembled into modules for transportation to Tengiz for final
assembly.
A new Cargo Transportation Route (CaTRo) is being constructed from the
Northeast Caspian to Tengiz as part of the FGP-WPMP, which includes the
dredging of a marine access channel to allow transport barges to reach Prorva.
Project components constructed at Kazakhstani fabrication yards will also be
transported to Tengiz via the CaTRo.
As such, the CaTRo includes:
•
•
•
•
Marine Access Channel
Cargo offloading facility (COF)
Cargo storage facility (CSF)
Haul Road
The CaTRo facilities are being built and operated by TenizService, an affiliate of
TCO partner KazMunaiGas.
6
TENGIZCHEVROIL
TCO has built a legacy of developing industry capability and capacity in the Republic of Kazakhstan, with the goal of achieving increased,
sustainable in-country fabrication capabilities
TENGIZ IN NUMBERS:
FGP-WPMP IN NUMBERS:
•
86% of TCO workforce is Kazakhstani citizens
•
•
Over $1.18 billion invested since 1993 to fund social projects and
programs in the Atyrau Oblast for the community and employees
100% amount of sour gas
reinjected into the Tengiz
reservoir
•
•
159% increase in annual crude oil production volume since 2000
Approximately 20,000 jobs
created during the peak of the
construction phase
•
85% reduction in total gas flaring volumes since 2000
•
73% reduction in total air emissions generated per tonne of oil produced
since 2000
•
$3 billion TCO’s investment to minimize the environmental impact
since 2000
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7
TCO’s COMMITMENT TO
PEOPLE AND
THE ENVIRONMENT
TCO is developing the FGP-WPMP with a strong focus on
safety, environmental and social performance. The company
follows Republic of Kazakhstan laws and regulations as well
as its own policies and Chevron’s corporate standards.
This includes Chevron’s Operational Excellence Management
System, which aims to deliver industry-leading performance
in environmental, health and safety, process safety, reliability
and efficiency.
TCO aligns with internationally recognized social and
environmental risk management standards for extractive
industry projects.
TCO specialists measure air quality daily
TCO has consistently improved its environmental performance, investing $3 billion
since 2000 on projects to minimize environmental impact
8
TENGIZCHEVROIL
KAZAKHSTANI
CONTENT
An essential component in TCO projects and operations is the
use of Kazakhstani goods, services and jobs referred to as
Kazakhstani Content (KC).
TCO seeks out and actively promotes the use of Kazakhstani
goods and services, including engineering contractors, design
institutes, vendors, and construction contractors. In 2013,
TCO and the Republic of Kazakhstan government signed a
Memorandum of Understanding (MoU) on KC levels for the
FGP-WPMP, with oversight provided by an “expert group” of
government and representatives of Kazakhstani businesses.
MoUs with the Atyrau and Mangistau Oblasts have also been
established.
A team of specialists is deployed throughout the FGP-WPMP
to identify and develop viable, sustainable opportunities for
Kazakhstani employment, goods and services that will benefit
both the project and the people of Kazakhstan.
FGP-WPMP will support the development of new capacity for
businesses and people in Kazakhstan, such as module fabrication, high tech equipment servicing and new training programs
WWW.TENGIZCHEVROIL.KZ
9
CORPORATE
RESPONSIBILITY
TCO’s definition of Corporate Responsibility is more than what company gives back to communities or how it treats its employees.
It is certainly that, but it also includes our ethics, our environmental performance and how we collaborate with our employees, the
government and our local communities. TCO has been recognized at the highest level of the Republic of Kazakhstan for its commitment to Corporate Responsibility (CR). Nursultan Nazarbayev, president of the Republic of Kazakhstan, awarded TCO the prestigious
Grand Prize Paryz (Commitment) Award for outstanding results in the area of corporate responsibility. As a major capital project of
TCO, FGP-WPMP is integrated into the company’s CR efforts.
THE TCO WAY
OUR STRATEGIC INTENTS DRIVE
OUR CHOICES
TCO’s actions and plans focus on:
•
•
•
•
10
Leading the industry in safety and environmental
performance
Investing in our workforce to achieve our mission and
vision
Earning the position of the most respected company
in Kazakhstan
Achieving superior operational performance
OUR PURPOSE PROMOTES
SHARED SUCCESS
Our mission is to create superior value for the Republic of
Kazakhstan, Atyrau Oblast and our employees and
shareholders. Our vision is to be the safest, most efficient
and profitable oil and gas enterprise in the world.
OUR VALUES SHAPE
OUR CONDUCT
We conduct our business in a socially responsible and ethical
manner. We respect the law, support universal human rights,
protect the environment and benefit the communities where
we work.
TENGIZCHEVROIL
STAKEHOLDER
ENGAGEMENT
TCO has developed a Stakeholder Engagement Plan (SEP)
to support the FGP-WPMP.
The SEP sets out TCO’s engagement principles and provides a
framework for meaningful engagement with external stakeholders at
local, regional and national level. TCO has also updated its Grievance
Mechanism to receive, screen, process and resolve project-related
grievances from external stakeholders.
All grievances made to TCO are strictly confidential. Personal details
of grievances are only made available to those involved in the
resolution of the grievance in question on a need-to-know basis and
only to the extent necessary to complete a step under the Grievance
Mechanism procedure.
TCO is committed to regular and open dialogue with its stakeholders
Get in touch
Feedback boxes are located at:
TCO works to build productive, collaborative and
beneficial relationships with local communities, government,
businesses, customers and employees.
•
•
•
•
•
•
•
To find out more about the project, to share your views, or
to ask questions, please contact TCO in any of the
following ways:
Email:
tcofp@tengizchevroil.com
•
•
•
Toll free contact number:
•
TCO Headquarters, Atyrau
FGP office at Worley Parsons, Atyrau
Production Services Network office, Atyrau
Aarhus Center, Atyrau
Shanyrak Village, Dome 1, Tengiz
Shanyrak Village crew change hall, Tengiz
Offices of the Zhylyoi Region Akimat Administration,
RV, Tengiz
TCOV Canteen, Tengiz
Offices of the Kulsary City Akimat, Kulsary
Offices of the Department of Employment and Social
Programs, Kulsary
FGP office, Aktau.
8 800 080 84 88
Post:
Tengizchevroil LLP
Republic of Kazakhstan, 060011,
Atyrau, Satpayev Str. 3
Policy, Government and Public Affairs Department
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11
TENGIZCHEVROIL LLP
Republic of Kazakhstan, 060011,
Atyrau, Satpayev Str. 3
Phone: +7 7122 27 12 12; +7 7123 02 60 00
Fax: +7 7123 02 67 52
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