Region: CIS. Country: Kazakhstan. Business: O&G. Field: Tengiz. Operator: TCO.

Field: Tengiz. Operator: TangizChevrOil (TCO). Shareholders: Chevron (50%) ; Exxon (25%) ; KMG (20%) ; LukArco (5%). Production: 450 000 bpd

Packages:

1.  Improvement packages for the existing facilities.

Design: Fluor and WorleyParsons.

The Camp Works. EPC. 60MUS$. Closed.

The Road. Atyrau – Tengiz. 200km. 4 packages. EPC. Closed.

The port. New port or using Isker Port. EPC. Under Development.

The site preparation, including Earth Works. EPC. Under Development.

            

2.  Future Growth Projects.

FEED: Fluor, WorleyParsons, KING and KGNT.

The FEED for the early Works is delivered and submitted to the shareholders for funding. 

The project scope includes mainly crude stabilization, power, utilities, gathering system and 2 Sour Gas Injection Compressors. As all recovered gas is to be reinjected, oil is the only FGP product. The Onsite Construction / Hook-ups will involve several packages:

·       Gas Gathering

·       Injection

·       Multi Well Pads

·       Roads & Airport

·       Civil / Concrete - Process Area

·       Civil / Concrete Injection – Islands

·       Mechanical Packages – Hook-ups

·       E&I Package – Hook Ups

Early Works: TCO is asking 4.5bUS$. Roads, Civil, Concrete Injection, Hookups (Mechanical, E&I), Gas Gathering, etc.    

The bidding process for the early works: 3^rd Quarter of 2013.

The EPCM consortium: Fluor, WorleyParsons, KING and KGNT.

3.  Supply Chain Management.

Design: Internal team. Mainly Chevron.

The Supply Chain Management (SCM) group is in charge mainly of ongoing project related to the existing facilities. The SCM group has no connection with the FGP one. They have two different prequalification processes.

The local content rules are a key element to be considered. KMG and the TCO management are following closely this aspect.

Currently, there are few projects at the design phase. The procurement process should start 3rd Qtr. of 2013.

Challenges and Strategy

Logistics and transportation. The transportation and the storage of materials and equipment are a key logistical issues of the project and will have an impact on cost and schedule of each construction packages. 

The platform jackets (the steel substructures) and the various modules comprising the topsides facilities (drilling, production, process, utilities and accommodation units) will be split into separate packages for fabrication purposes, then transported along Ural River and assembled in situ to create a complete production platform. 

The Kazakhstan construction market for the upcoming 5 years. The market is clearly very competitive. Many new comers are around and the established players are preparing themselves. TCO FGP’ team fears that they can't or their services providers will not be able to meet the local content rules. The manpower will be huge and, at the same time, many other mega projects would be around: Abu Dhabi Plaza, the KPO early works, KPO gas plant station, N Bloc field, Bulshak power plant.