View source for Tengiz Field

{{Update|date=February 2015}}

{{Infobox oil field
| name = Tengiz Field
| location_map       = Caspian Sea
| location_map_width = 
| location_map_text  = Location of the Tengiz Field on the coast of Caspian Sea
| coordinates = {{coord|46|9|10|N|53|23|0|E|type:landmark_source:ruwiki_region:KZ|display=inline,title}}
| coordinates_ref    = 
| country = [[Kazakhstan]]
| locblock = 
| offonshore = Onshore
| operator  = [[Tengizchevroil]] 
| partners = [[Chevron Corporation]] (50%), [[ExxonMobil]] (25%), [[KazMunayGas]] (20%)
| image = 
| caption = 
| discovery = 1979
| start_production = 1993
| peak_year   = 2010{{citation needed|date=June 2012}}{{dubious|date=June 2012}}
| expectedabandonment = 
| oil_production_bbl/d = 450000
| production_gas_mmcuft/d =
| production_gas_mmscm/d =
| production_gas_bcm/y =
| est_oil_bbl = 6000
| est_gas_bft =
| est_gas_bcm =
| formations  =
}}

'''Tengiz field''' (Tengiz is Turkic for "sea") is an [[oil field]] located in northwestern [[Kazakhstan]]'s low-lying wetlands along the northeast shores of the [[Caspian Sea]]. It covers a {{convert|2500|km2|mi2|abbr=on}} project license area which also includes a smaller [[Korolev field]] as well as several exploratory prospects.

Sizewise, Tengiz reservoir is {{convert|19|km|mi|abbr=on}} wide and {{convert|21|km|mi|abbr=on}} long<ref name=Tengiz1>{{cite web|url=http://www.tengizchevroil.com/en/about/the_tco_field.asp |title=About TCO |publisher=Tengizchevroil.com |date= |accessdate=2015-06-01}}</ref> Discovered in 1979, Tengiz [[oil field]] is one of the largest discoveries in recent history.<ref name="SP Times">
 {{cite news
 |url=http://www.sptimes.ru/index.php?action_id=2&story_id=5705 
 |title=Kazakhstan Field's Riches Come With a Price 
 |publisher=The St. Petersburg Times 
 |author=Christopher Pala 
 |date=2001-10-23 
 |volume=82 
 |issue=715 
 |accessdate=2009-10-12 
 |deadurl=yes 
 |archiveurl=https://web.archive.org/web/20131228125654/http://www.sptimes.ru/index.php?action_id=2&story_id=5705 
 |archivedate=2013-12-28 
 |df= 
}}</ref> The city of [[Atyrau]], {{convert|350|km|mi|-1}} north of Tengiz, is the main transport hub of Tengiz oil. Many nations are involved in a large [[geopolitics|geopolitical]] competition to secure access to this source of oil.

Tengiz is operated by [[Tengizchevroil]], a 40-year partnership planning to produce billions of barrels of oil from the field. The Tengizchevroil (TCO) consortium has developed the Tengiz field since its founding in April 1993. The partners in Tengizchevroil are [[Chevron Corporation|Chevron]]<ref>{{cite news| url=http://www.reuters.com/article/2012/02/15/chevron-tengiz-idUSL2E8DF2D020120215 | work=Reuters | title=Chevron to spend $6-$8 bln on new Tengiz project | date=2012-02-15|accessdate=2015-06-01}}</ref> (50%), [[Exxon Mobil]] (25%), the Kazakhstan government through [[KazMunayGas|Kazakhstan Petroleum]] (20%) and Lukoil (5%)<ref>{{cite web|url=http://www.hydrocarbons-technology.com/projects/tengiz/ |title=Tengiz Oilfield |publisher=Hydrocarbons-technology.com |date= |accessdate=2015-06-01}}</ref>

In 2001, the partners opened a US$2.7&nbsp;billion, {{convert|1505|km|adj=on}} [[Caspian Pipeline Consortium]] pipeline to export oil from Tengiz to the [[Black Sea]] port of [[Novorossiysk]] in [[Russia]]. The pipeline which was inaugurated in March 2001 (and loaded its first tanker in October 2001) carried {{convert|600000|oilbbl/d}} with planned output of {{convert|700000|oilbbl/d}} for 2010 and an eventual maximum output of {{convert|1.5|Moilbbl/d}}.

[[Kashagan Field|Kashagan]], which is located approximately {{convert|130|km}} west of Tengiz and is world's largest discovery in the last 30&nbsp;years, and Tengiz combined, compete with the {{convert|22|Goilbbl}} of the US oil reserves.<ref name="autogenerated1">
{{cite book
|last1= Johnston|first1=Daniel
|last2= |first2=
|title= International Exploration. Economics, Risk, and Contract Analysis
|volume= 1st ed.
|ISBN=0-87814-887-6
|year= 2003
|publisher= PennWell Corporation
|page=199}}
</ref> Kazakhstan also considers building new export routes such as [[Trans-Caspian Oil Pipeline]] through [[Azerbaijan]], [[Georgia (country)|Georgia]], [[Turkey]] or through [[Iran]] to reduce dependence on Russia.<ref>
{{cite news|url=https://www.nytimes.com/2001/03/27/business/oil-begins-flowing-through-kazakh-pipeline.html|title=Oil Begins Flowing Through Kazakh Pipeline|newspaper=[[The New York Times]]|author=Lucky Lopez|date=2001-03-27|accessdate=2009-12-10}}</ref>

==History==
Kazakhstan finalized the consortium agreement with Chevron in 1993.<ref>{{cite web|url=http://www.petroleumjournal.kz/index.php?p=press-more&owner_id=39&id=169&outlang=3|title=Tengizchevroil Fact Sheet 1H 2015|work=Petroleum Kazakhstan Analytical Journal|accessdate=14 November 2015}}</ref> In 1997, Lukoil purchased 5% in the Tengiz project from Chevron,<ref>{{cite web|url=http://articles.latimes.com/1997-01-17/business/fi-19405_1_chevron-shares|title=Russia's Lukoil Buys 5% of Chevron Project|work=Los Angeles Times|accessdate=14 November 2015}}</ref> and in 2000, Chevron built up its interest in the project to 50% by acquiring additional shares<ref name=Tengiz9>{{cite web|url=http://abarrelfull.wikidot.com/tengiz-oil-field|title=Tengiz Oil Field|work=A Barrel Full|accessdate=14 November 2015}}</ref> from Kazakhstan.<ref>{{cite web|url=http://caspianenergy.co.uk/en/2013-06-06-19-42-06/73/1641-horizons-of-kazakhstan-s-oil-production |title=Horizons of Kazakhstan's Oil Production |work=Caspian Energy |accessdate=14 November 2015 |deadurl=yes |archiveurl=https://web.archive.org/web/20151117032918/http://caspianenergy.co.uk/en/2013-06-06-19-42-06/73/1641-horizons-of-kazakhstan-s-oil-production |archivedate=17 November 2015 |df= }}</ref> In 2003, Fluor was awarded the rights<ref name=Tengiz9/> to develop the Second Generation Plant (SGP) and Sour Gas Injection (SGI) project, which were expected to double production.<ref name=Tengiz11>{{cite web|url=http://www.fluor.com/projects/onshore-oil-gas-epcm-project-management|title=TengizChevroil SGI/SGP Onshore Oil and Gas Projects - Project Management & Engineering|work=Fluor|accessdate=14 November 2015}}</ref> In 2004, the Tengiz Consortium raised $1.1 billion in senior secured bonds to finance these two projects. These two projects were expected to finish in 2006. <ref>{{cite web|url=http://cbonds.com/news/item/303193|title=Fitch Assigns Tengizchevroil Expected ‘BBB-’ Rating|work=Financial CBonds Information|accessdate=14 November 2015}}</ref> The SGP and SGI expansion projects (worth over $6.9 billion) were completed in the second part of 2008.<ref name=Tengiz11/> In 2012, TengizChevroil began a new project, called the Future Growth Project (FGP), whose aim is to continue to increase the field's production.<ref>{{cite web|url=http://www.petroleumjournal.kz/index.php?p=article&aid1=23&aid2=100&id=226&outlang=3|title=Tengizchevroil at the Start of the Future Growth Project|work=Petroleum Kazakhstan Analytical Journal|accessdate=14 November 2015}}</ref>
In 2014, Chevron and its partners, KazMunaiGas, ExxonMobil and Lukoil began the process of selecting engineering companies to work on the engineering, procurement and construction (EPC) contract for the Future Growth Project, which will further expand the TCO oil field.<ref>{{cite web|url=http://www.2b1stconsulting.com/chevron-and-kmg-align-offers-on-kazakhstan-future-growth-project/|title=Chevron and KMG align offers on Kazakhstan Future Growth Project|work=2B1st Consulting|accessdate=14 November 2015}}</ref> 

==Reserves and production==
Estimated at up to {{convert|25|Goilbbl}} of oil originally in place, Tengiz is the sixth largest oil field in the world; recoverable crude [[oil reserves]] from Tengiz and [[Korolev fields]] combined have been estimated at {{convert|6|to|9|Goilbbl}}. Korolev field alone holds {{convert|1.5|Goilbbl}} of oil making it one-sixth the size of Tengiz.<ref name=Tengiz1/>  Like many other oil fields, the Tengiz also contains large reserves of [[natural gas]].  The field is one of the world's largest oil fields, rivaling the [[Gulf of Mexico]] in reserves of oil.<ref>[https://web.archive.org/web/20150610110252/http://www.nytimes.com/2010/07/23/business/global/23chevron.html?_r=1&scp=1&sq=Tengiz%20field&st=cse] </ref>

Since the oil from Tengiz contains a high amount of [[sulfur]] (up to 17%), an estimated 6&nbsp;million tons of sulfur byproduct were stored in the form of large sulfur blocks as of December 2002. At the time, about 4,000&nbsp;tonnes a day was being added.<ref>{{cite news| url=http://business.guardian.co.uk/story/0,3604,853310,00.html | work=The Guardian | location=London | title=Byproduct that blights Caspian life | first=Paul | last=Brown | date=2002-12-04 | accessdate=2010-05-25}}</ref>  On 3 October 2007, the Kazakh environment ministry was reported to be considering imposing fines against TCO for alleged breaches in the way the sulfur is stored.<ref>[http://www.forbes.com/feeds/ap/2007/10/03/ap4183238.html] {{Dead link|date=April 2011|bot=RjwilmsiBot}}</ref>

In 2002, TCO produced {{convert|285000|oilbbl/d}}, or one third of Kazakhstan's daily production. In January 2003, after contentious negotiations with the government of Kazakhstan, the TCO consortium members initiated a $3&nbsp;billion expansion project designed to boost production to approximately {{convert|450000|oilbbl/d}} by 2006.  In September 2008, [[Chevron Corporation]] announced that the major expansion of Tengiz field was completed and it would boost the production capacity to {{convert|540000|oilbbl/d}}.<ref>
{{cite news
 | url= http://www.oilvoice.com/n/Chevron_Achieves_Full_Production_from_Tengiz_Expansion_Projects/3a2b54ca.aspx
 | title= Chevron Achieves Full Production from Tengiz Expansion Projects
 | publisher= OilVoice
 | date=2008-09-25
 | accessdate=2010-10-24
}}</ref> In 2012 Chevron announced the field will see its total daily production increase by 250,000-300,000 barrels,<ref>{{cite news
 |url=http://www.tengizchevroil.com/en/news/2012/2011_review.asp 
 |title=2011 Year in Review 
 |publisher=Tengizchevroil 
 |date=2012-02-13 
 |accessdate=2012-10-02 
 |deadurl=yes 
 |archiveurl=https://web.archive.org/web/20120707161449/http://www.tengizchevroil.com/en/news/2012/2011_review.asp 
 |archivedate=2012-07-07 
 |df= 
}}</ref> bringing production above 500,000 barrels per day.

An area of major geopolitical competition involves the [[Pipeline transport|routing]] of oil out of this oil field. Oil from the Tengiz field is primarily routed to the Russian Black Sea port of [[Novorossiysk]] through the [[Caspian Pipeline Consortium]] (CPC) project. The [[Baku–Tbilisi–Ceyhan pipeline]] is an alternative pipeline developed by U.S. and UK interests originating in the Southern Caspian which is the principal export route for crude from Azerbaijan and bypasses dependence on the Russian pipeline. In addition, [[Total S.A.]] is interested in developing a pipeline south through Iran, which is theoretically the cheapest route<ref name=Oxford>
{{cite journal
 | url = http://www.oxfordenergy.org/wpcms/wp-content/uploads/2010/11/NG25-KazakhstansgasExportMarketsandExportRoutes-ShamilYenikeyeff-2008.pdf
 | title = Kazakhstan's Gas: Export Markets and Export Routes
 |date=November 2008
 | page = 18
 | journal = [[Oxford Institute for Energy Studies]]
 | first = Shamil | last = Yenikeyeff
 | accessdate = 2011-11-17 }}
</ref> due to the geopolitical climate involving Iran, however, the United States does not favor this route.

==Environmental concerns==
The oil from Tengiz field comes out of the wells hot and at a very high pressure, believed to be the highest in the world. It also contains large proportion of gas which is rich in the compound hydrogen sulfide yielding poisonous sulfur. A 1985 explosion in which one man was killed caused a {{convert|200|m|ft|adj=on}}-high column of fire visible from {{convert|140|km}}. The deadly gas made it impossible for Soviet firefighters to quickly extinguish the fire.  The well burned for a period of one year and was finally capped<ref name="SP Times"/>

The government of the Kazakhstan imposed stricter guidelines for handling the sulfur.{{citation needed|date=June 2012}}{{specify|date=June 2012}} In 2006, Kazakh government threatened TengizChevroil with imposing fines. In 2007, the government imposed a $609&nbsp;million (74.4&nbsp;billion [[Kazakhstani tenge|tenge]]) fine on TengizChevroil. The violations included a slow progress in dealing with vast sulfur stocks at Tengiz. The company had reportedly been fined $71&nbsp;million in 2003 for open air sulfur storage as well, which was then reduced to $7&nbsp;million on an appeal.<ref>
{{cite news
 | url= http://www.upstreamonline.com/live/article141698.ece
 | title= Chevron hit with $609m Tengiz fine
 | newspaper = [[Upstream (newspaper)|Upstream Online]]
 | publisher = NHST Media Group
 | date=2007-10-03
 | accessdate=2009-12-10
}}</ref>  According to the Environmental Protection Ministry, over 10&nbsp;million tonnes of sulfur was accumulated near Tengiz oil field as a by-product of crude oil production.

Government had also set a requirement to relocate the village of [[Sarykamys]] which had 3,500 residents to new homes in the vicinity of Atyrau. The relocation program was funded by TengizChevroil and was done in 2004-2006. It cost the company $73&nbsp;million.<ref name="ENS">
{{cite news
 | url= http://www.ens-newswire.com/ens/aug2006/2006-08-23-02.html
 | title= Environmental Charges Unlikely to Derail Kazakstan's Chevron Contract
 | publisher= Environment News Service
 | author = 
 | date=2006-08-23
 | accessdate=2009-12-10
}}</ref>

In his book ''Poor People'', published in 2007, [[William T. Vollmann]] dedicates a significant amount of his attention to the native peoples living in Sarykamys and Atyrau and the effects of TengizChevroil's presence in these towns. Vollmann's account suggests that serious and widespread health risks were imposed upon the people of Sarykamys. Vollmann also suggests that in the corporation's efforts to displace the natives, many were not compensated fairly, so that upon being forced to move from their existing homes, they were unable to find or afford comparable housing in a new town.<ref>Vollmann, William T. ''Poor People''. Ecco, 2007. pp. 173-196.</ref>

==Geology==
The sedimentary section of the pre-Caspian [[Sedimentary basin|basin]] varies between 5&nbsp;km to 24&nbsp;km and is dominated by the [[Permian]] Kungurian salt, which is overlain by the later (post-salt) deposits of [[Upper Permian]], [[Mesozoic]] and [[Cenozoic]] all deformed by [[salt tectonics]] and earlier (pre-salt) [[Paleozoic]] and upper [[Proterozoic]] [[carbonate minerals|carbonates]] and [[terrigenous sediment]]s.<ref name=Lisovsky>Lisovsky, N.N., Gogonenkov, G.N., and Petzoukha, Y.A., 1992, The Tengiz Oil Field in the Pre-Caspian Basin of Kazakhstan (Former USSR) - Supergiant of the 1980s, inGiant Oil and Gas Fields of the Decade, 1978-1988, AAPG Memoir 54, Halbouty, M.T., editor, Tulsa: American Association of Petroleum Geologists, ISBN 0891813330</ref>{{rp|102}}  [[Reflection seismology]] in 1975 revealed the Karaton [[tectonic uplift]], which was 400&nbsp;km<sup>2</sup> in area and 1&nbsp;km in relief, at a depth of 4&nbsp;km.<ref name=Lisovsky/>{{rp|104}}  An exploratory well was drilled in 1979, discovering "significant oil flow" from the middle [[Carboniferous]] carbonates overlain by Lower Permian clays and the massive Permian salt.<ref name=Lisovsky/>{{rp|106}}

[[Stratigraphy]] starts with the [[Upper Devonian]] Famennian [[Stage (stratigraphy)|Stage]] consisting of homogeneous biogenic [[limestone]] and some thin [[dolomite]] [[interbedding]], followed by Lower Carboniferous deposits consisting of Tournaisian, Visean and Namurian Stage limestones.<ref name=Lisovsky/>{{rp|108–109}}  Next comes the Middle Carboniferous Bashkirian Stage limestones, and then the Lower Permian Artinksian Stage [[argillaceous minerals|argillaceous]] sediments.<ref name=Lisovsky/>{{rp|108–109}}  The carbonate buildup is up to 4&nbsp;km thick and form an [[angular unconformity]] to the overlying Permian sediments.<ref name=Lisovsky/>{{rp|110}}

==In pop culture==
The Tengiz oil field was mentioned in the film ''[[Syriana]]'' (2005) starring [[George Clooney]].

==See also==
{{Portal|Kazakhstan|Energy}}
*[[Kashagan Field]]
*[[Kazakhstan-China oil pipeline]]
*[[Oil and gas basins of Kazakhstan]]
*[[Trans-Caspian Oil Pipeline]]

==References==
{{Reflist}}

==External links==
* [https://web.archive.org/web/20131228125654/http://www.sptimes.ru/index.php?action_id=2&story_id=5705   Kazakstan Field's Riches Come With a Price - The St. Petersburg Times October 23rd 2001]
* [http://www.searchanddiscovery.com/documents/2008/08044weber/index.htm Stratigraphy, facies, and reservoir distribution, Tengiz Field, Kazakhstan] - (2003) L. James Weber, Brent P. Francis, P.M. (Mitch) Harris, and Michael Clark. In: SEPM Special Publication 78: Permo-Carboniferous Carbonate Platforms and Reefs, Edited By: Wayne M. Ahr, Paul M. (Mitch) Harris, William A. Morgan, and Ian D. Somerville.
* [http://bbs.keyhole.com/ubb/download.php?Number=699927 Sulfur Pads in Google Earth]
{{Resources in Kazakhstan}}

[[Category:Oil fields of Kazakhstan]]
[[Category:Natural gas fields in Kazakhstan]]
[[Category:Chevron Corporation oil and gas fields]]
[[Category:ExxonMobil oil and gas fields]]
[[Category:Lukoil oil and gas fields]]