Kazakhstan’s Tengiz growth tests OPEC+ limits

The oilfield expansion provides a fresh influx of revenue but will strain its cooperation with OPEC+ and fails to mask deeper issues with the economy and investors

Chevron and its partners completed a $48.5b expansion at Kazakhstan’s largest oilfield, Tengiz, in late January—three years later than planned and nearly a third over budget. With the project already driving national oil and gas condensate above 2m b/d in January, and crude itself set to test OPEC+ quota limits once again, Kazakhstan must decide whether it will return to flouting its agreement to an even greater degree or renegotiate its deal. The most likely course is for the Central Asian producer to remain part of the group to support diplomatic ties with its leading members and find a compromise. Meanwhile, the influx of revenue from the expansion offers relief for the government’s strai