Chevron starts $48bn oilfield in OPEC+ state

Chevron has launched a $48 billion project to develop a major oilfield in Kazakhstan, one of the world’s largest oil reserves.

The oil giant’s announcement underscores its commitment to expanding its presence in the energy-rich OPEC+ nation, which continues to play a pivotal role in the global oil market.

Chevron expects Kazakhstan’s Tengiz oil field, one of the largest of its kind in the world, to produce 1 million barrels of oil equivalent per day.

That comes after the Fortune 500 company said that its 50 percent-owned affiliate Tengizchevroil LLP began pumping oil from an expansion project at Tengiz. That project is eventually expected to boost crude output by 260,000 barrels per day at full capacity, and the 1 million-barrel milestone is seen later this year.

Read also: Chevron targets $6-8 bln in free cash flow growth by 2026

Chevron said the Tengiz oil field, which has been in operation for decades, is “the world’s deepest producing supergiant oil field and the largest single-trap producing reservoir in existence.”

Kazakhstan is among the group of OPEC allies that have joined with the oil cartel to form OPEC+. The Central Asian country pumped about 1.8 million barrels per day late last year.

While President Donald Trump is demanding that OPEC boost oil supplies to lower prices, Chevron still sees a cash gusher, even if prices drop sharply from current levels of about $78 a barrel. OPEC+ and OPEC have some influence over oil prices but market forces, geopolitical conflicts, and demand are significant factors in determining the prices people pay at the pump.

Clay Neff, president of Chevron international exploration and production, told the New York Times that Tengiz will generate $4 billion in free cash flow for the company this year and $5 billion in 2026, assuming oil prices of $60 a barrel.

Chevron’s other partners in the Tengizchevroil venture include KazMunayGas (20% stake), Fortune 500 rival Exxon Mobil (25%); and Russia’s Lukoil (5%).

Read also: Chevron discovers new 17,000 bpd oil field

Separately, an Exxon executive downplayed hopes for a sudden surge of liquid natural gas exports. That’s despite Trump’s flurry of post-inauguration moves to boost the energy sector, including LNG shipments.

Philippe Ducom, Exxon Mobil Europe president, told Bloomberg there are limited supplies this year and that European countries are reluctant to commit to long-term deals.

“The problem is you don’t find gas from one day to the next,” he said on the sidelines of an energy conference in Berlin. “Significant new LNG capacity is only coming on stream in 2026-2027.”

Nigeria

In Nigeria, Chevron plan to ramp up oil exploration follows a recent oil discovery in the Niger Delta, which has the potential to produce up to 17,000 barrels per day.

The discovery, termed a “near-field find,” was made with the Meji NW-1 well within Petroleum Mining Lease 49, according to a statement from Chevron released on October 18. The block is located in the shallow offshore region of the Western Niger Delta.

In the statement, the company explained that the discovery supports Chevron’s broader global exploration strategy, which focuses on identifying new resources that can extend the life of existing assets and enable faster development and production.