TCO expansion project will open 20, 000 new jobs - Oil and Gas Ministry

The purpose of the document is promotion of investment, education, training, and employment in Kazakhstan through implementation of projects for the future expansion and control over wellhead pressure by "Tengizchevroil".

Commenting on signing of the memorandum Mr.Karabalin stressed that realization of the project for the future expansion of "Tengizchevroil " would open additional 20,000 new jobs.

"We expect that with the development of this project the production capacity will increase at Tengiz and oil production will increased from 26 million tons to 38 million tons a year. This is a significant growth in oil production, that is followed by the appropriate economic benefits to the Republic of Kazakhstan", said the Minister of Oil and Gas.

Also, according to him, this memorandum provides for the parties' agreement to significantly increase the local content: during the construction of a new facility additional 20,000 workers will be employed, and, in addition, a lot of attention is paid to rise in orders for domestic enterprises operating in the manufacturing of metal structures. As mentioned by Karabalin, the parties will strive to achieve manufacturing 90,000 tonnes of steel.

"It is also very important is that we have come to terms concerning provision of the chemical complex under construction in Atyrau with the necessary amount of raw materials at affordable prices. Each year, it will be about 550 thousand tons of propane, 380 tons of butane and ethane, almost all that is extracted while drying gas", said the Minister.

At the moment the expansion project is at the stage of conceptual design. This process will be through before the end of the year, and full approval is scheduled for early 2014.