Chevron’s Tengizchevroil Starts Wellhead Pressure Management Project in Kazakhstan

Chevron Corp.’s 50% owned affiliate, Tengizchevroil (TCO), safely started operations at its WPMP in the Tengiz oil field in Kazakhstan. TCO started up operations by converting its first metering station to low pressure and activating the associated pressure boost facility (PBF). The WPMP will maintain the current processing plants’ full capacity at approximately 28 million tons per annum (mtpa). This is achieved through lowering the pressure at the wellheads and boosting the pressure to the existing plants.

“This accomplishment highlights the vital role of partnership. Together with the Republic of Kazakhstan and our other partners, we have safely started operations at the WPMP, which is a positive development as we continue our focus on the FGP-WPMP expansion project,” said Derek Magness, Managing Director of Chevron’s Eurasia Business Unit.

Throughout the rest of 2024, TCO will start-up additional PBF compressors and convert the remaining metering stations from high pressure to low pressure in the oil gathering system. The last phase of TCO’s Tengiz expansion project is pacing for completion in the first half of 2025, allowing the company to increase Tengiz crude oil production by 12 mtpa—equivalent to 260,000 barrels per day.

“This is a significant step towards completion of the Future Growth Project,” said Clay Neff, President of Chevron International Exploration and Production. “It is also important progress for the modernization of the existing base business at Tengiz and demonstrates TCO’s commitment to manage operations safely and reliably, while maximizing the ultimate recovery of resources critical to global energy security.”

Chevron also signed an agreement in October 2023 with Hess Corp. to acquire the entirety of Hess’ outstanding shares in an all-stock transaction valued at $53 billion. Chevron will absorb Hess’ Starbroek block in Guyana—an oil asset with positive cash margins and low carbon intensity that’s expected to deliver production growth past 2030. In addition, Hess’ Bakken assets will join Chevron’s DJ and Permian basin operations as a facet of the company’s U.S. shale portfolio.

“This strategic combination brings together two companies to create an integrated energy company,” said John Hess, CEO of Hess Corporation. “I believe our strategic combination creates a company that is stronger in every respect, with the leadership, asset portfolio and financial resources to lead us through the energy transition and deliver shareholder value for years to come.”

The acquisition of Hess provides Chevron with Guyana, Bakken, and Gulf of Mexico assets and associated cash flow. In Guyana, Chevron takes 30% ownership of more than 11 billion barrels of oil equivalent with an upside for potential exploration. The Bakken assets add 465,000 net acres of long-duration inventory supported by the Hess midstream infrastructure. Hess’ Southeast Asia natural gas business acquired cash flow, too.

The New Energies division at Chevron completed another acquisition in the hydrogen market in September of last year. The company closed a transaction with Haddington Ventures to completely acquire Magnum Development, absorbing the company’s majority interest in ACES Delta, LLC. ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development to build and operate the Advanced Clean Energy Storage (ACES) project in Delta, UT—a plan to use electrolysis to convert renewable energy into hydrogen and use solution-mined salt caverns to store the energy.