San Ramon, Calif., July 5, 2016 – Chevron Corporation (NYSE: CVX) today announced that its 50 percent owned affiliate, Tengizchevroil (TCO), will proceed with the development of its Future Growth and Wellhead Pressure Management Project (FGP-WPMP), which will increase crude oil production at the Tengiz oil field in Kazakhstan by about 260,000 barrels per day.

“The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” said Chevron Chairman and Chief Executive Officer John Watson. “The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders.” 

“This project builds on the successes of prior expansions at Tengiz and is ready to move forward,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation. “It has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services."

FGP-WPMP is currently estimated to cost $36.8 billion, which includes $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingency and escalation. 

The project will raise TCO’s total production to approximately 1 million barrels of oil equivalent per day. WPMP maximizes the value of existing TCO facilities by extending the production plateau and keeping existing plants producing at full capacity. FGP will use state-of-the-art sour gas injection technology, successfully developed and proven during TCO’s previous expansion in 2008, to enhance oil recovery. First oil is planned for 2022.

Chevron is one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company's operations. Chevron is based in San Ramon, California. More information about Chevron is available at www.chevron.com.

Note to Editors TCO operates the Tengiz Field, the world’s deepest operating super-giant oil field, with the top of the reservoir at about 12,000 feet (3,657 m) below ground. The partnership also is developing the nearby Korolev Field. Net Chevron share daily production from these fields in 2015 averaged 257,000 barrels of crude oil, 348 million cubic feet of natural gas and 21,000 barrels of natural gas liquids. TCO joint venture participants, in addition to Chevron, are ExxonMobil (25 percent), KazMunayGas (20 percent) and LukArco (5 percent).

Chevron is Kazakhstan’s largest private oil producer, holding important stakes in the nation’s two biggest oil-producing projects—the Tengiz and Karachaganak fields.  Chevron is also the largest private shareholder in the Caspian Pipeline Consortium, which operates a 935-mile (1,505-km) crude oil export pipeline from the Tengiz Field in Kazakhstan to tanker-loading facilities at Novorossiysk on the Russian coast of the Black Sea. The pipeline provides the key export route for crude oil from TCO and Karachaganak.

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