Chevron’s Tengiz Oil Field Targets Major Production Milestone
U.S. energy giant Chevron expects Kazakhstan’s Tengiz oil field, one of the world’s largest, to produce 1 million barrels of oil equivalent per day in 2025. This milestone follows the launch of an expansion project at Tengiz, led by Chevron’s 50%-owned affiliate, Tengizchevroil LLP.
The expansion project is expected to increase crude output by 260,000 barrels per day once it reaches full capacity. The Tengiz field, described by Chevron as “the world’s deepest producing supergiant oil field,” has been a key contributor to Kazakhstan’s oil production for decades.
Kazakhstan’s Role in Global Oil Markets
Kazakhstan, a member of the OPEC+ alliance, produced approximately 1.8 million barrels of oil per day in late 2024. As a significant player in global energy markets, the country collaborates with OPEC to influence oil prices.
Despite global calls from figures like President Donald Trump for OPEC to boost oil supplies, Chevron remains optimistic about Tengiz’s profitability. Even if oil prices fall from current levels of $78 per barrel, Tengiz is projected to generate $4 billion in free cash flow in 2025, increasing to $5 billion by 2026 at a baseline price of $60 per barrel.
Chevron’s Partners in Tengiz Operations
Chevron leads the Tengizchevroil venture with a 50% stake, alongside other key partners:
- Exxon Mobil: 25%
- KazMunayGas: 20%
- Lukoil: 5%
This collaborative effort underscores the importance of multinational partnerships in driving significant oil production from one of the world’s most productive reservoirs.
Limited LNG Export Growth Predicted
While Chevron celebrates its oil field success, Exxon Mobil has downplayed the prospect of a sudden surge in liquefied natural gas (LNG) exports.
Philippe Ducom, Exxon Mobil’s Europe president, stated that limited LNG supplies this year and European hesitance toward long-term contracts are key barriers. Speaking at an energy conference in Berlin, Ducom emphasized, “You don’t find gas from one day to the next. Significant new LNG capacity is only coming on stream in 2026-2027.”
Balancing Market Forces and Geopolitics
Oil and LNG prices remain heavily influenced by a mix of market forces, geopolitical events, and global demand. While OPEC+ and OPEC hold some sway over pricing, factors such as conflicts and production levels in major fields like Tengiz also play a critical role in determining global energy costs.