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Chevron Bets $37 Billion on Expansion as Oil Rises, Costs Fall

  • Output will rise to 1 million barrels of oil equivalent
  • Production from expanded Tengiz project will start in 2022
Oil pipes at the Enbridge Inc. Cushing storage terminal in Oklahoma.
Photographer: Daniel Acker/Bloomberg
Updated on

Chevron Corp. will go ahead with a $36.8 billion expansion of the Tengiz oil project in Kazakhstan as crude’s recovery to near $50 a barrel and a steep drop in costs allows explorers to ramp up.

The company and its partners including Exxon Mobil Corp. will spend $27.1 billion on facilities, $3.5 billion on wells and $6.2 billion for contingency and escalation, Chevron said it a statement on Tuesday. First oil from the expanded project is planned for 2022.