Rising costs test Chevron's patience levels at Tengiz
Chevron is facing a significant uptick in spending at Kazakhstan’s Tengiz oilfield, challenging its renewed commitment to capital discipline
Chevron—leader of the consortium developing the future growth project and wellhead pressure management project (FGP/WPMP) at the Tengiz field—warned in November that cost overruns would increase capex costs by 25pc to an eye-watering $45.2bn. The firm cites as costs drivers a one-year delay and higher construction and equipment costs. Higher material requirements than originally envisaged is blamed for more than half of the increase in construction costs. Having shed a number of high-profile assets in recent months—including selling its minority stake in neighbouring Azerbaijan’s Azeri-Chirag-Gunashli (ACG) oilfield to Hungary’s Mol—the prospect of fresh spending commitments at Tengiz is t
Also in this section
22 November 2024
The Energy Transition Advancement Index highlights how the Kingdom can ease its oil dependency and catch up with peers Norway and UAE
21 November 2024
E&P company is charting its own course through the transition, with a highly focused natural gas portfolio, early action on its own emissions and the development of a major carbon storage project
21 November 2024
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
20 November 2024
The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks
