Tengizchevroil Announces Final Investment Decision for Tengiz Oil Expansion Project in Kazakhstan
July 11 2016 - 4:30PM
Business Wire
Fluor Corporation (NYSE: FLR) announced today that
Tengizchevroil LLP (TCO) has sanctioned KPJV, a joint venture
between Fluor, Kazakh Institute of Oil and Gas JSC, Engineering
Company KAZGIPRONEFTETRANS LLP, and WorleyParsons, to provide
detailed engineering, procurement and construction management
support services for the Future Growth Project—Wellhead Pressure
Management Project. The joint venture is working as part of an
integrated team with Tengizchevroil on the project that is the next
expansion of the Tengiz oil field in western Kazakhstan. Fluor
plans to book its share of the contract value in the third quarter
of 2016.
The front-end engineering design (FEED) and engineering,
procurement and construction management activities phase of this
expansion project was awarded by Tengizchevroil to KPJV in 2011.
The FEED is complete and detailed engineering is well underway. The
project team is also engaged in long-lead procurement and early
construction works for key project infrastructure at the Tengiz
site.
“We are grateful to be able to continue our long-standing
relationship with TCO and our joint venture partners for this
prestigious and strategically important project to Kazakhstan,”
said David Seaton, chairman and chief executive officer of Fluor.
“The integrated team will work to increase the capital efficiency
of the project and enhance execution plans for successful
commissioning and safe and efficient startup of the facilities.
With the full participation of our Kazakhstan partners, we will
create an engineering legacy in Kazakhstan, as well as wide-ranging
opportunities for the local workforce and local supply chain,
thereby developing sustainable benefits for the region.”
The project engineering is being executed by Fluor and its joint
venture partners in Farnborough, UK, with support from its
engineering centers in Atyrau and Almaty, Kazakhstan; New Delhi,
India; and Houston, as well as its integrated construction site in
Tengiz.
The Future Growth Project will use sour gas injection
technology, successfully proven during TCO’s expansion project in
2008, to maximize Tengiz production capacity to approximately 39
million tons-of-oil-per-year. While the Future Growth Project will
increase production, the Wellhead Pressure Management Project will
keep the existing Tengiz plants full by lowering the flowing
wellhead pressure and boosting the pressure to Tengiz’s six
processing trains.
During peak construction, the project is expected to employ
approximately 20,000 construction workers. First oil is planned for
2022.
Fluor began working in Kazakhstan in 1982 and at Tengiz in 1997
on a condensate stabilization project. Since then, Fluor has
performed ongoing work in Kazakhstan on numerous additional
projects prior to the current expansion project.
About Fluor in the UK
Fluor’s UK operations are headquartered in Farnborough,
Hampshire from where the company serves a wide range of industries
including energy, chemicals, government, life sciences, advanced
manufacturing, infrastructure, mining and power market sectors.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is a global engineering,
procurement, fabrication, construction and maintenance company that
designs, builds and maintains capital-efficient facilities for its
clients on six continents. For more than a century, Fluor has
served our clients by delivering innovative and integrated
solutions across the globe. With headquarters in Irving, Texas,
Fluor ranks 155 on the FORTUNE 500 list with revenue of $18.1
billion in 2015 and has more than 60,000 employees worldwide. For
more information, please visit www.fluor.com or follow us on
Twitter @FluorCorp.
About Tengizchevroil
(TCO)
Tengizchevroil LLP is a Kazakhstani partnership that explores,
develops, produces and markets crude oil, LPG, dry gas and sulfur.
TCO conducts its operations in accordance with world-class safety
and environmental standards. In April 1993, Tengizchevroil was
formed between the Republic of Kazakhstan and Chevron Corporation.
Current partners are: Chevron Overseas Company, 50 percent;
KazMunayGas NC JSC, 20 percent; ExxonMobil Kazakhstan Ventures
Inc., 25 percent and LUKARCO B.V., 5 percent.
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