Tengizchevroil announces 2020 year-end results

23 February 2021

Tengizchevroil LLP (TCO) announced today its business performance results for 2020. Throughout 2020, TCO maintained a high focus on health and safety to protect its people and the business. Despite the COVID-19 pandemic and challenging oil market conditions, production remained uninterrupted and strong safety and environmental performance was observed across the business.

In 2020, TCO produced 26.5 million tonnes of crude oil, accounting for approximately 35% of total crude oil production in Kazakhstan. The company also progressed key deliverables for the Future Growth Project – Wellhead Pressure Management Project (FGP-WPMP), achieving 80% completion. This includes the successful completion of a three-year Sealift campaign involving the marine transportation of 408 large modular cargo items from various locations to Tengiz. With the remaining work scopes being done within Kazakhstan, all modules are now on site to enable the FGP-WPMP project team to continue with stacking and construction activities.

TCO reduced its overall air emissions per metric ton of oil produced by 71% since 2000 and continues to focus on reducing flaring and maintaining high gas utilization rates, which were at 99.3% in 2020. In addition, the company improved its water reuse rate to 49.2% in 2020. Since 2000, TCO has invested over $3.1 billion on projects to minimize potential environmental impacts related to operations at the Tengiz field.

In 2020, TCO remained the largest contributor and taxpayer to the national economy, with over $6.6 billion in direct payments to the Republic of Kazakhstan (RoK). The company also continued to be the leading purchaser of domestic goods and services with $3.5 billion spent on local suppliers, including $2.4 billion for the FGP-WPMP.

Meanwhile, TCO focused on continually investing in the technical and leadership capabilities of its people.

“The Tengiz field is an incredible asset for the Republic of Kazakhstan,” said, Kevin Lyon, the recently appointed TCO General Director. “I have seen first-hand the skills and talent of our people working at the field. We will remain focused on protecting the health and safety of our people through the pandemic, safe and reliable production operations, and safely delivering FGP-WPMP, for the benefit of all stakeholders.”,

TCO is committed to investing in the communities where it operates and in the well-being of its employees. The company budgeted $25 million for its voluntary Egilik social infrastructure program and completed the construction of a 280-seat kindergarten in Dossor village, a 100-bed student dormitory for students of the Atyrau College of Energy and Construction, a national flagpole monument in Atyrau city and an enhancement of the Kursai river embankment in Kulsary. As a result, over 1,000 new jobs have been created for teaching, medical and technical staff. In addition, over $2.2 million was spent by TCO as part of its Community Investment Program, on 18 projects to help improve the quality of health, education and develop social entrepreneurship both in Atyrau and Mangistau Oblasts. 

During the COVID-19 pandemic, TCO provided $10.7 million (4.5 billion tenge) to fund the purchase of medical equipment, supplies and the construction of medical facilities, while expanding local PCR testing capabilities. The company played a leading role in funding, with support from its contractor companies, the construction of a 200 bed multi-disciplinary medical complex to be added to the ongoing construction at Kulsary Hospital.