US energy giant Chevron expects to produce 1 million barrels of oil equivalent per day from Kazakhstan’s Tengiz oil field, one of the world’s largest. Meanwhile, Exxon executives downplayed expectations for a surge in LNG exports.
US energy giant Chevron expects Kazakhstan’s Tengiz field, one of the largest of its kind in the world, to produce the equivalent of 1 million barrels of oil per day.
This comes after the Fortune 500 company announced on Thursday that its 50%-owned affiliate Tengiz Shefroil LLP has begun pumping oil from the Tengiz expansion project. The project is expected to ultimately increase oil production by 260,000 barrels per day at full capacity, with the 1 million barrel milestone expected to be reached later this year.
Chevron said the Tengiz field, which has been in operation for decades, is “the world’s deepest producing mega-field and the largest single-trap producing reservoir in existence.”
Kazakhstan is one of a group of OPEC allies that collaborated with oil cartels to form OPEC+. The Central Asian country pumped about 1.8 million barrels per day late last year.
President Donald Trump has called on the Organization of the Petroleum Exporting Countries (OPEC) to increase crude oil supplies and lower prices, but even if prices plummet from their current levels of around $78 a barrel, Chevron remains I see cash coming up. OPEC+ and OPEC have some influence over oil prices, but market forces, geopolitical conflicts, and demand are key factors in determining the price people pay at the pump.
Clay Neff, president of Chevron International Exploration and Production, told the New York Times that assuming an oil price of $60 a barrel, Tengiz could earn the company $4 billion this year and $5 billion in 2026. He said it will generate free cash flow of $1.
Chevron’s other partners in the Tengizchevroil venture include KazMunayGas (20% stake) and Fortune 500 rival Exxon Mobil (25%). and Russia’s Lukoil (5%).
Separately, Exxon executives downplayed expectations for a surge in liquid natural gas exports. This is despite President Trump’s rapid moves to strengthen the energy sector, including LNG shipments, since taking office.
Philippe Ducombe, president of Exxon Mobil Europe, told Bloomberg that supplies will be limited this year and European countries are reluctant to sign long-term contracts.
“The problem is that you can’t find gas from one day to the next,” he said on the sidelines of an energy conference in Berlin. “Significant new LNG production capacity is expected to come online for the first time in 2026-2027.”
This article originally appeared on Fortune.com
