Tengizchevroil Announces 2023 Business Performance Results

23 February 2024

Atyrau, Kazakhstan – February 23, 2024 – Tengizchevroil LLP (TCO) today, announced its business performance results for 2023, with crude oil production at 28.9 million metric tonnes (230.6 million barrels), while total air emissions intensity was reduced to the lowest rate since 2000. During last year, all of TCO’s dry gas sales were provided to the Kazakhstan domestic market and the company remained a consistent supplier of liquified petroleum gas to local residents and industry.

In 2023, TCO made direct financial payments to Kazakhstan of $13.9 billion and for the second consecutive year, the company was recognized by the Ministry of Finance of the Republic of Kazakhstan (RoK) as the leading taxpayer in the country. During the same period, TCO reached 70% of Kazakhstani Content (KC) spend performance and Kazakhstani citizens held close to 95% of positions in TCO’s base business compared to 50% in 1993.

In September 2023, TCO achieved a significant milestone for the Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP) with mechanical completion of the Third Generation Plant (3GP), concluding the construction phase. The project is currently executing testing and commissioning phase. Since the beginning of the FGP-WPMP implementation, TCO has spent over $18 billion to purchase Kazakhstani goods and services.

“In the last decade, TCO’s production activities annually stimulated approximately 11% of Kazakhstan’s gross domestic product (GDP), according to an independent study. TCO continues to play a leading role in supporting the country’s economic progress and energy security,” TCO General Director Kevin Lyon said.

Since 1993, TCO has made direct financial payments to Kazakhstan of more than $190 billion, including taxes and royalties paid to the government, tariffs and fees paid to state-owned companies, profit distributions to the Kazakhstani shareholder, purchases of Kazakhstani goods and services and local employees’ salaries.

TCO Deputy General Director, Konilkosh Suyessinov said: “Last year, we successfully completed one of the most complex turnarounds to date, ahead of schedule. For the first time in our company’s history, local Kazakhstani suppliers successfully fabricated and replaced an approximately 100-ton, 37-meter-tall vessel, as well as replaced three sweet gas mole sieve dryers. This is a great testament to the potential capabilities of our Kazakhstani companies.”

In 2023, as part of its voluntary social infrastructure program called EGILIK, TCO constructed and delivered two schools in Atyrau oblast, with a total seating capacity of over 600 seats, as well as a fully equipped 75-bed hospital. In addition, TCO has made a positive impact on over 11,000 direct beneficiaries in Atyrau oblast, through its voluntary Community Investments Program (CIP), focused on health, economic development, education, and support of Kazakh language and culture.