Zinger Key Points
- Chevron's Tengizchevroil LLP begins production at the Future Growth Project, boosting Tengiz oil field output.
- FGP to add 260,000 barrels/day post-WPMP completion, enhancing long-term production and shareholder value.
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Chevron Corporation CVX disclosed that its 50% owned affiliate, Tengizchevroil LLP (TCO), has begun oil production at the Future Growth Project (FGP) in Kazakhstan’s Tengiz oil field.
Tengizchevroil LLP is owned by Chevron (50%), ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%).
FGP is the third processing plant at the Tengiz oil field, enhancing sour gas injection and expected to boost output to one million barrels of oil equivalent per day.
Following the 2024 completion of the Wellhead Pressure Management Project, which optimizes field and plant operations, FGP aims to increase crude production by 260,000 barrels per day at full capacity.
The FGP and WPMP projects at Tengiz enhanced power systems, expanded compression capacity, upgraded controls, and improved sour gas reinjection for long-term pressure maintenance.
Mark Nelson, Chevron vice chairman said, “First oil at the Future Growth Project is the latest in a series of development milestones, including in the Gulf of Mexico and the Permian, that are expected to significantly increase free cash flow to the company and deliver value for Chevron shareholders.”
Clay Neff, President, Chevron International Exploration & Production said, “This milestone concludes a multiyear project that completely revamped the gathering and processing capacity of one of the world’s largest oil fields that will provide significant economic benefit for the Republic of Kazakhstan.”
Chevron expects to release fourth-quarter results on January 31, 2025.
Last week, the International Energy Agency revised its global oil demand outlook slightly for 2025, projecting growth of 1.05 million barrels per day, down from the previously estimated 1.1 million barrels daily.
The new forecast anticipates global demand will average 104 million barrels daily, reflecting a combination of improving economic conditions and lower fuel prices.
Investors can gain exposure to the stock via EA Series Trust Strive U.S. Energy ETF DRLL and SPDR Select Sector Fund – Energy Select Sector XLE.
Price Action: CVX shares are up 0.13% at $156.21 premarket at the last check Friday.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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