Tengiz

Tengiz is the most deep-lying and biggest field. Its depth is 3810 m, width – 19 km, length -21 km, oil mass thickness -1,6 km.

In 1993, the Government of RK established Joint-Venture «TengizChevrOil» Ltd (TCO) with «Chevron» company. Nowadays, it has four partners: NC «KazMunaiGas» JSC (20%), «Chevron Overseas» (50%), «Exxon Mobil» (25%) and «LokArko» (5%).

TCO is mainly engaged in geologic exploration, production and selling of hydrocarbon. The licensed site of the project includes huge Tengiz field and smaller Korolevsk field known for considerable reserves.

TCO’s raw materials are processed into a number of finished products with stabilized crude oil being the main product. Associated gas is processed into marketable gases: dry gas, propane, butane. Besides, sulphur is produced from hydrogen sulphide which is known for high concentration in Tengiz oil.

The last few years saw the start-up of facilities, which TCO started constructing in the first years of its existence. It was these facilities that made it possible not only to set up a production process conforming to all international standards, but also to reduce the adverse effect on the environment and considerably increase production capacity.

TCO Products

Stabilized oil

Tengiz oil is in high demand in the world market due to its high quality. Marketable oil of TCO is very «light», that is oil consists of light hydrocarbon molecules, thus facilitating the process of producing petrol, diesel fuel and other products from crude oil for refineries.

Marketable gases

Before 2000 (before start-up of new facilities) it was not easy to find consumers for marketable gases produced by TCO. TCO had to flare part of marketable gases after they were cleared of contaminants. It caused air pollution.

Since 2000, all the dry gas produced by TCO is marketed to consumers thanks to its high quality

In 2001, new facilities have been put into operation. They enable to process both the total volume of raw gas and marketable gases –propane and butane. The quality of these gases was upgraded to conform to international standards which made it possible to sell it not only in the domestic market, but also export gas to European countries.

Sulfur

In the process of removal hydrogen sulfide from raw oil, TCO produces a by-product from it – elementary sulfur- a valuable merchantable raw product.

For the period of the field development, TCO has produced a considerable amount of marketable sulfur which is stored in the form of solid blocks. In spite of the existing demand for sulfur, sales volumes of sulfur didn’t keep up with the pace of production. In order to resolve the sulfur distribution problem, TCO invested more than 60 million dollars in construction of flake sulfur and sulfur granules production unit in order to expand the sales markets.

New projects and technologies of TCO

TCO is working hard to address technology improvement issues, continuously increase the capacity and at the same time reduce the adverse effects on the atmosphere.

For example, in 2000 TCO competed Line 5 project, and in 2001 –Program 12 Project. These constructions enabled to increase oil output on average by 30% , that is to 13 million tons per year.

The second generation project (SGP)

At present TCO is implementing a major project SGP on construction a new state-of-the-industry plant. The plant start-up is supposed to increase oil yield and sales by 7 million tons per year. Updated technologies will make it possible to improve the product quality and simultaneously reduce specific discharge. The construction is expected to be completed in 2007.

Raw gas injection project (RGI)

TCO is working in primary production mode, which means that oil and gas flow is caused by natural pressure in the subsurface reservoir, no additional pumping required. It makes it possible to achieve high production rate, however natural pressure in reservoir tends to decrease. That is oil production increase can be achieved through secondary production methods such as injection of raw gas to restore pressure partially in reservoir.

Raw gas injection back to the oil collector will both increase oil production and spare the necessity to handle the associated gas (processing, storing and selling of by-products, sulfur production from hydrogen sulfide). Moreover, it considerably reduces the adverse effect of production on environment, and preserves oil reserves for future utilization.

Raw gas injection is expected to commence in 2007

SGP/RGI will increase the aggregate production of marketable oil by 11 million tons per year. These new projects will become the greatest in the whole history of TCO. They will yield profit both for the Partners, TCO employees and for the Republic of Kazakhstan.