Original news was published on 06 July, 2016

Development of the Tengiz oil field in Kazakhstan has been approved by energy firm Chevron and its partners, creating significant opportunities for project cargo transportation in the near term.

The consortium behind the project this month approved both the Future Growth Project, or FGP, and Wellhead Pressure Management Project, or WPMP.

The project will be of "strategic importance" to the region, according to consultancy Wood Mackenzie, and is one of the of the largest global investment decisions of the last 10 years, with anticipated capital costs of US$36.8 billion

“FGP-WPMP is critical for both the Tengizchevroil (TCO) consortium and Kazakhstan. Economics of Tengiz expansion are challenging, but the super-giant Kazakh field remains a key asset in Chevron's portfolio. This has never been done on such a scale and will require installation of high-cost compressors,” said Samuel Lussac, research manager at Wood Mackenzie.

Given the huge investment in infrastructure required for the project and long-term oil price assumptions however Wood Mackenzie predicts that FGP-WPMP economics are marginal at present.

*NEWS SOURCE