Chevron Expands Kazakhstan Oil Field, Eyes 1 Million Bpd By 2025

Chevron has successfully commenced production at its $48 billion expansion of the Tengiz oil field in Kazakhstan, which aims to increase output by 260,000 barrels per day, contributing to a total production of approximately 1 million barrels daily by mid-2025. The expansion, which has faced significant delays and cost overruns since its inception in 2012, is crucial for Chevron's strategy to enhance its production and cash flow, despite broader concerns regarding global oil demand amid a shift towards cleaner energy. The Tengiz field is vital to Kazakhstan's economy, accounting for a substantial portion of its oil production, with the country being a member of the OPEC+ group, which has been managing production quotas. Chevron's stake in the Tengizchevroil joint venture is significant, with other partners including ExxonMobil and KazMunayGas. The expansion is expected to generate considerable free cash flow, estimated at $4 billion in 2025, even as it complicates Kazakhstan's adherence to OPEC+ agreements. Chevron's ongoing investments highlight its commitment to fossil fuel production despite the global transition to alternative energy sources.