Final investment decision for Tengiz Oil expansion project

Jul 11, 2016 12:00 AM

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.

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