TO ALL: Just went and browsed through the Chevron home page at read Its President/CEO's speech given at the annual shareholder meeting held in April and found and interesting exerpt from his speech concerning the Tengiz field in Western Kazakhstan where CHV has a 45% stake ownership the JV. Here is the interesting part:
<<One dramatic area of growth is our
supergiant Tengiz oil field -- a joint
venture we formed with the
Republic of Kazakstan in 1993.
The numbers -- even in this
capital-intensive, big-project
industry -- are truely remarkable:
a 40-year project carrying a
potential $20 billion price tag.
estimated recoverable reserves of
more than 6 billion barrels of oil,
making it one of the world's largest
fields.
estimated production that could be
in excess of 700,000 barrels a day
within 10 to 15 years.
The obstacles -- or should I say
challenges -- have also been
formidable, but 1996 marked
tremendous progress in this
critically important project for
Chevron:
Tengiz
production
averaged
112,000
barrels
a
day
--double
the
1995
level.
Production at year-end was about
160,000 barrels a day.
The increased production gave us
earnings for Tengiz of more than
$100 million.
Ownership of the project has
shifted from the original 50-50 joint
venture. Last May, Mobil bought
half of the Kazak government's 50
percent share for a price of about
$1.1 billion. Then last week, we
completed the sale of 5 percent of
the project to LUKARCO, a joint
venture of LUKoil, the giant
Russian oil company, and Arco.
This sale of a small part of the field
has, we feel, greatly helped our
relations with the Russian
government.
But the key to unlocking the full
potential of Tengiz is a pipeline to
carry the oil to a Black Sea port
from which it can be shipped to
world markets.
In December -- after years of
intensive negotiations -- we finally
signed an agreement to build the
long-desired 900-mile pipeline.
First oil is scheduled to flow
through the pipeline in late 1999,
and eventually the line should carry
as much as 1.5 million barrels a
day.
All of these successful results came
from some tremendous efforts by a
Chevron team of employees. They
did a truly outstanding job, and I
think we'll look back on 1996 as
the major turning point for this
project. >>>>
Production of shipment through its pipeline of 160,000BPD gave Chevron $100M/ in earnings in 1996......and thats their portion of the JV. They owned 50% in 1996...now down to 45%.
WOW!!!! Faris, how much was the capacity of the existing pipeline near the Begesh field? Was it 200,000BPD and running at 30,000BPD?
T |
