 "Chevron Starts Production At Kazakh Oilfield Expansion, But Retail Spooked By Trump's Pledge To Lower Oil Prices")
synopsis
The U.S. oil major said that when fully ramped up, the expansion called the Future Growth Project, would raise crude oil production from Tengiz by 260,000 barrels per day.
Chevron said on Friday that it has started producing oil from an expansion at Kazakhstan’s Tengiz oilfield, which could help lift the project’s total output to 1 million barrels per day at full capacity.
The Tengiz oilfield in western Kazakhstan is the world’s deepest-producing supergiant oilfield.
The U.S. oil major said that when fully ramped up, the expansion, named Future Growth Project would raise crude oil production from Tengiz by 260,000 barrels per day.
Chevron has a 50% stake in Tengizchevroil LLP, the partnership that owns the project. The other project stakeholders are U.S. peer Exxon Mobil, Russia’s Lukoil, and Kazakh energy firm KazMunayGas.
“First oil at the Future Growth Project is the latest in a series of development milestones, including in the Gulf of Mexico and the Permian, that are expected to significantly increase free cash flow to the company,” Mark Nelson, Chevron’s vice chairman, said.
The announcement comes a day after U.S. President Donald Trump urged the oil-producing group Organization of the Petroleum Exporting Countries (OPEC) to bring down oil prices. Kazakhstan is part of a larger group, OPEC+, which also includes Russia.
Retail sentiment on Stocktwits remained at ‘bearish’ (43/100) territory, while chatter was ‘high.’
Skeptical users’ comments were primarily focused on President Trump’s promises to bring down oil prices.
Chevron is currently working towards closing its $53 billion deal to buy oil producer Hess. The deal is currently in jeopardy after Exxon filed an arbitration case regarding Hess’s assets in Guyana in 2024.
The hearing is scheduled to take place in May.
Over the past year, the stock has gained 7.5%.
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