Tengizchevroil “TCO” is an oil company which is leading in development, production and marketing of oil. It was established in April 1993 by the president of Kazakhstan Nursultan Nazarbayev and an American company “Chevron”. Nowadays TCO is a partnership between Chevron (50% share in the consortium), ExxonMobil (25% share), KazMunayGas (20% share) and LukArco (5% share). The term of the contract is 40 years. It is the largest oil company in Kazakhstan and one of the largest oil companies in the world.
TCO operates the Tengiz oil field located in the Caspian region of Kazakhstan. This field was discovered in 1979. It is one of the deepest and largest oil fields in the world. It is unique because of the amount of reserves, occurrence and characteristics of the development of horizons. Except Tengiz, TCO also exploits Korolev field. This field was opened in 1984 and is located in 10 km to the north-east from Tengiz’s field.
In 1993, TCO produced 940,000 tons of crude oil. 1998 – the amount of oil was 8.4 million tons. In 2001, crude oil production was 12.48 million tons. In 2009, TCO reached record levels, the volume of production was 22.5 million tons. In 2010, TCO exceeded its previous record, reaching production volumes to 25.9 million tons. According to estimates of recoverable oil reserves in the Tengiz field through April 2033 it may range from 750 million to 1.1 billion tons.
Tim Miller, CEO of TCO said: “We are proud of our company, the way in which TCO began today, and we are confident in its future. We are proud to work in this country and that we have a really strong partnership with the state authorities. We are proud that our company plays an important role in the development of Kazakhstan, and I am more than sure that Tengizchevroil will continue to support economic growth of Kazakhstan”.
In today’s world, oil for more than a decade remains the most important factor in the economy and politics and determines the development of many countries. Energy capacity and resources of any country play an important role not only in ensuring economic independence and security, but also in the extent of its influence on the development of political processes in the world.
In February 2014 devaluation of the tenge (Kazakh currency) (almost 20%) significantly worsened the situation for importers, including consideration of the procurement operations in United States dollars. In such circumstances, in June-August 2014 procurement operations for petroleum products with Russia for wholesale companies of Kazakhstan became unprofitable from a commercial point of view.
THE INFLUENCE OF FOREIGN INVESTORS IN THE COUNTRY’S ECONOMY
Thanks to foreign investment the volume of oil production significantly increased in Kazakhstan: from $ 20 million tons in 1992 to almost 80 million tons in 2010. As a result, the participation of foreign investors in the construction of export pipelines significantly strengthened the export potential of the country. Over the past five years (2006 to 2010) 5.59 billion dollars were invested into TCO.
CONTRIBUTION TO THE SOCIAL SPHERE.
In the period from 2006 to 2010, the contribution of TCO in the social sector was 113 million dollars. To combat the effects of the global financial crisis, the National Fund of Kazakhstan (which was formed by revenues from oil exports) played the main role. Since the bulk of exports has been made and is provided as a result of growth in production on projects with foreign investment, without their involvement it is difficult to imagine what the economic situation of the country would be today.
TCO costs for projects in order to minimize environmental impact in the amount of more than 2.7 billion dollars, since 2000 – is significant funds that were invested in the continual improvement of the Environmental Protection Agency in Tengiz. Invested funds allowed to reduce the total volume of gas flared by 93% since 2000. The coefficient of utilization of gas at the Tengiz grew and now is more than 99%.
Investments in environmental protection and improvement of plant equipment reliability have helped to reduce the number of technical failures in the factory CPL by 55%, and flaring crude and sour gas due to technical failures reduced by 93% over the period 2000-2013.
Despite this, Tengiz continues to pollute the environment.
Between 1993 and 2001 TCO mined 58,889.742 thousand tons of oil, thrown 416,485.6 tons of pollutants into the air. In this case, one ton of oil accounts for 7.07 kg of pollutants emitted into the atmosphere. There are 46 names of harmful emissions. The most dangerous are dioxides of sulphur and nitrogen, carbon monoxide, hydrogen sulphide and hydrocarbons.
Despite repeated assurances given by the “TCO” an insignificant impact on the Tengiz complex environment, with reference to the results of ongoing environmental studies, health status of Sarykamys village sharply deteriorated. According to the doctors today 90% of people who live there (3450 people) suffer. The average life expectancy there is 46 years old. These data can be regarded as the results of the local ecological disaster that occurred with people, mainly under the influence of the Tengiz complex.
Tengizchevroil develops and affects Kazakhstan’s economy in many different ways, both positively and negatively. And it will continue to be the best oil company in all of Kazakhstan. This company will contribute to the further development of the energy sector. TCO success is inseparable from the success of the Republic of Kazakhstan. Tengizchevroil is the future of Kazakhstan.