Chevron’s Tengiz oil field project in Kazakhstan could face an additional cost increase of $1.5bn, pushing the total project cost to approximately $48.5bn, reported Bloomberg News, citing sources familiar with the matter.

The expansion project, named Future Growth Project – Wellhead Pressure Management Project (FGP – WPMP), aims to further increase total daily production from the Tengiz reservoir in Kazakhstan.

In October 2023, in a Q3 earnings report, Chevron indicated that the Tengiz project budget was increasing by around 4% due to slower than anticipated progress towards start-up.

The project’s budget was previously set at $45.2bn. The company had also accounted for a contingency of $1.9bn in July 2021, acknowledging potential schedule disruptions caused by the Covid-19 pandemic. The new figure suggests a further spending escalation of $1.5bn, the sources said.

Chevron, however, stated that its guidance for the total cost of the Tengiz expansion project "remains unchanged from the ranges we provided in our most recent earnings calls", which was a cost increase of 3–5%, the publication reported.

The expansion project was originally budgeted at $37bn. The completion date has been postponed twice from the initial mid-2022 target.

Chevron owns a 50% stake in the Tengizchevroil joint venture, which operates the Tengiz Field. Exxon Mobil and state-owned KazMunayGas hold 25% and 20% stakes in the venture, respectively.

Last year, Chevron announced a capital expenditure (capex) budget of between $18.5bn and $19.5bn for 2024.

The spending includes between $15.5bn and $16.5bn for consolidated subsidiaries and approximately $3bn for affiliates. An estimated $14bn is due to be spent on upstream operations in 2024.