Tengizchevroil buys Kazakh goods worth $24 mln in 2012
By Aynur Jafarova
Tengizchevroil LLP purchased Kazakh goods worth $24 million in 2012, Azerbaijan's Trend news agency quoted the company's official Nurlan Serik as saying.
"The volume of Kazakh products purchased by our company
increased five-hold over three years -- from $5 million in 2010 to
$24 million in 2012," Serik said.
He said that the share of Kazakh products in the total volume of
purchased products is 10-20 percent.
"Overall, Tengizchevroil spent $1.8 billion on the purchase of
goods, service and work in Kazakhstan in 2012. Over 20 years of
operating in the country, this amount reached $13 billion," Serik
added.
According to him, in 2012, 60 percent of the total expenditure of
the Chevron company, which is one of the main shareholders in
Tengizshevroil, accounts for Kazakhstan.
"In the first quarter of the current year, the volume of purchased Kazakh products amounted to $500 million," Serik said.
"We have developed an agreement strategy in order to support
Kazakh producers. So, if an agreement is concluded with a foreign
company, an obligatory term to develop Kazakhstan's content is
assigned there. This is the establishment of a joint venture, as
well as which contractors will implement the work," Serik said.
According to him, the implementation of a project on further
enlargement which envisages increasing the volume of oil output
creates new opportunities for Kazakh producers.
The project on further enlargement will allow increasing the production of hydrocarbons by more than 46 percent. Starting with 800,000 tons per year in the early 90s, oil output of Tengizchevroil amounted to 25.9 million tons in 2010, which is 13.1 percent more than 2009. Last year Tengizchevroil's share in the total volume of oil and gas condensate production was 32.5 percent or 79.7 million tons.
Earlier Kazakh President Nursultan Nazarbayev said that the volume of investments of the U.S. Chevron company in the Tengiz field in Kazakhstan has amounted to $20 billion over 20 years.
According to him, over these years Tengizchevroil's oil production increased 26-fold and the Central Asian state's economy has grown 16 times.
He recalled that Chevron is now involved not only in the development of the Tengiz field, but also in the major Kashagan project.
The Tengiz oil field was discovered in 1979 and is one of the deepest and largest oil fields in the world. The reserves of the Tengiz field are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.
The Kashagan field is the largest oil field in the world after Prudo Bay in Alaska. Recoverable oil reserves of Kashagan are estimated at 11 billion barrels, whereas total geological raw material reserves stand at 35 billion barrels.
"It is very important to me that Chevron is successful in Kazakhstan and has proved to the world that it is possible to work successfully in the country," Nazarbayev added.
Tengizchevroil is a Kazakh-American joint corporation involved in exploration, development, production and marketing of crude oil and related products. Tengizchevroil is the largest oil producer in Kazakhstan.
The company was founded on April 6, 1993 by the Kazakh president and the Chevron company. The term of the agreement is 40 years.
The company employs 3,400 workers of whom 85 percent are citizens of Kazakhstan.
Shareholders of Tengizchevroil are Chevron (50 percent), KazMunaiGas (20 percent), ExxonMobil (25 percent) and LukArco (5 percent).