Kazakhstan settles dispute with ChevronTexaco over Caspian oil

ChevronTexaco leading investor in consortium for development of Caspian oil, and Kazakhstan's government have settled a funding dispute, which suspended expansion of the huge Tengiz oil field, the main source of crude for the Caspian Pipeline Consortium.

TengizChevrOil (TCO), which was formed in 1993, is 50 % owned by San Ramon-based ChevronTexaco. Other investors in the consortium operating Kazakhstan's biggest oil field include ExxonMobil, 25 %; KazMunaiGaz, the Kazakhstan national petroleum company, 20 %, and LUKArco, a partnership between a Russian company and BP, 5 %.
TCO suspended a $ 3 bn expansion plan in November after the Kazakhstan government said it wanted the program funded through new foreign investment rather than investing profits from exports, which would have reduced tax revenue to the government. TCO currently produces 250,000 bpd. The expansion would increase production to 400,000 bpd.

The Tengiz field is estimated to hold 6 bn to 9 bn recoverable barrels of oil.