Tengiz Field
Encyclopedia
Tengiz field is an oil and gas field
Oil and gas field
An oil and gas field is a field, or vast reservoir, that contains both oil and natural gas.-See also:* Oil field* Natural gas field* Oil reservoir* List of oil fields* List of natural gas fields...

 located in northwestern Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

's low-lying wetlands along the northeast shores of the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...

. It covers a 2500 square kilometre project license area which also includes a smaller Korolev field as well as several exploratory prospects.

Sizewise, Tengiz reservoir is 19 km (11.8 mi) wide and 21 km (13 mi) long Discovered in 1979, Tengiz oil field
Oil field
An oil field is a region with an abundance of oil wells extracting petroleum from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area...

 is one of the largest discoveries in recent history. The city of Atyrau
Atyrau
Atyrau , known as Guryev until 1991, is a city in Kazakhstan, and the capital of Atyrau Province. It is located at the mouth of the Ural River, 2700 kilometers west of Almaty and 350 kilometers east of the Russian city of Astrakhan. Other transliterations include Aterau, Atirau, Atyraw, Atyraou,...

, 350 kilometres (217.5 mi) north of Tengiz, is the main transport hub of Tengiz oil. Many nations are involved in a large geopolitical
Geopolitics
Geopolitics, from Greek Γη and Πολιτική in broad terms, is a theory that describes the relation between politics and territory whether on local or international scale....

 competition to secure access to this source of oil.

Tengiz is operated by Tengizchevroil
TengizChevroil
Tengizchevroil is a joint venture between Chevron , ExxonMobil , KazMunayGas and LukArco...

, 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
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...

 (50%), ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...

 (25%), the Kazakhstan government through KazMunayGas
KazMunayGas
KazMunayGas is the state-owned oil and gas company of Kazakhstan. It was founded in 2002 by merging Kazakhoil and Oil and Gas Transportation.-Subsidiaries:Main subsidiaries of KazMunayGas are:...

 (20%) and Russian LukArco (5%)(LukArco was initially a joint venture between Lukoil and Arco, and subsequently BP upon its acquisition of Arco. BP sold its interest in LukArco to Lukoil in December 2009).

In 2001, the partners opened a US$2.7 billion, 1505 kilometres (935.2 mi) Caspian Pipeline Consortium
Caspian Pipeline Consortium
The Caspian Pipeline Consortium is a consortium and a pipeline to transport Caspian oil from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia's Black Sea coast. It is also a major export route for oil from the Kashagan and Karachaganak fields...

 pipeline to export oil from Tengiz to the Black Sea
Black Sea
The Black Sea is bounded by Europe, Anatolia and the Caucasus and is ultimately connected to the Atlantic Ocean via the Mediterranean and the Aegean seas and various straits. The Bosphorus strait connects it to the Sea of Marmara, and the strait of the Dardanelles connects that sea to the Aegean...

 port of Novorossiysk
Novorossiysk
Novorossiysk is a city in Krasnodar Krai, Russia. It is the country's main port on the Black Sea and the leading Russian port for importing grain. It is one of the few cities honored with the title of the Hero City. Population: -History:...

 in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

. The pipeline which was inaugurated in March 2001 (and loaded its first tanker in October 2001) carried 600000 oilbbl/d with planned output of 700000 oilbbl/d for 2010 and an eventual maximum output of 1.5 Moilbbl/d.

Kashagan
Kashagan Field
Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...

, which is located approximately 130 kilometres (80.8 mi) to southeast of Tengiz and is world's largest discovery in the last 30 years, and Tengiz combined, compete with the 22 Goilbbl of the US oil reserves.

Kazakhstan also considers building new export routes such as Trans-Caspian Oil Pipeline
Trans-Caspian Oil Pipeline
The Trans-Caspian Oil Transport System is a proposed project to transport oil through the Caspian Sea from Kazakhstani Caspian oilfields to Baku in Azerbaijan for the further transportation to the Mediterranean or Black Sea coast. The main options under consideration are an offshore oil pipeline...

 through Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...

, Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...

, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

 or through Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

 to reduce dependence on Russia.

Reserves and production

Estimated at up to 25 Goilbbl of oil originally in place, Tengiz is the sixth largest oil field in the world; recoverable crude oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...

 from Tengiz and Korolev fields combined have been estimated at 6 Goilbbl. Korolev field alone holds 1.5 Goilbbl of oil making it one-sixth the size of Tengiz. Like many other oil fields, the Tengiz also contains large reserves of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

. The field is one of the world's largest oil fields, rivaling the Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...

 in reserves of oil.

Since the oil from Tengiz contains a high amount of sulfur
Sulfur
Sulfur or sulphur is the chemical element with atomic number 16. In the periodic table it is represented by the symbol S. It is an abundant, multivalent non-metal. Under normal conditions, sulfur atoms form cyclic octatomic molecules with chemical formula S8. Elemental sulfur is a bright yellow...

 (up to 17%), an estimated 6 million tons of sulfur byproduct were stored in the form of large sulfur blocks as of December 2002. At the time, about 4,000 tonnes a day was being added. 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.

In 2002, TCO produced 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 billion expansion project designed to boost production to approximately 450000 oilbbl/d by 2006. In September 2008, Chevron Corporation
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...

 announced that the major expansion of Tengiz field was completed and it would boost the production capacity to 540000 oilbbl/d.

An area of major geopolitical competition involves the routing
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....

 of oil out of this oil field. Oil from the Tengiz field is primarily routed to the Russian Black Sea port of Novorossiysk
Novorossiysk
Novorossiysk is a city in Krasnodar Krai, Russia. It is the country's main port on the Black Sea and the leading Russian port for importing grain. It is one of the few cities honored with the title of the Hero City. Population: -History:...

 through the Caspian Pipeline Consortium
Caspian Pipeline Consortium
The Caspian Pipeline Consortium is a consortium and a pipeline to transport Caspian oil from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia's Black Sea coast. It is also a major export route for oil from the Kashagan and Karachaganak fields...

 (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.
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...

 is interested in developing a pipeline south through Iran, which is theoretically the cheapest route 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 200 metres (656.2 ft)-high column of fire visible from 140 kilometres (87 mi). 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

The government of the Kazakhstan imposed stricter guidelines for handling the sulfur. In 2006, Kazakh government threatened TengizChevroil with imposing fines. In 2007, the government imposed a $609 million (74.4 billion 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 million in 2003 for open air sulfur storage as well, which was then reduced to $7 million on an appeal. According to the Environmental Protection Ministry, over 10 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 million.

In his book Poor People, published in 2007, William T. Vollmann
William T. Vollmann
William Tanner Vollmann is an American novelist, journalist, short story writer, essayist and winner of the National Book Award...

 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.

Geology

The oil reservoir at Tengiz occupies an immense build-up of limestone
Limestone
Limestone is a sedimentary rock composed largely of the minerals calcite and aragonite, which are different crystal forms of calcium carbonate . Many limestones are composed from skeletal fragments of marine organisms such as coral or foraminifera....

, essentially a large atoll
Atoll
An atoll is a coral island that encircles a lagoon partially or completely.- Usage :The word atoll comes from the Dhivehi word atholhu OED...

 or reef
Reef
In nautical terminology, a reef is a rock, sandbar, or other feature lying beneath the surface of the water ....

 built on the margin of the deep North Caspian Basin. The atoll was built by marine organisms such as coral
Coral
Corals are marine animals in class Anthozoa of phylum Cnidaria typically living in compact colonies of many identical individual "polyps". The group includes the important reef builders that inhabit tropical oceans and secrete calcium carbonate to form a hard skeleton.A coral "head" is a colony of...

s and stromatoporoids, mostly during Carboniferous
Carboniferous
The Carboniferous is a geologic period and system that extends from the end of the Devonian Period, about 359.2 ± 2.5 Mya , to the beginning of the Permian Period, about 299.0 ± 0.8 Mya . The name is derived from the Latin word for coal, carbo. Carboniferous means "coal-bearing"...

 time, but some reef-building probably occurred earlier during the Devonian
Devonian
The Devonian is a geologic period and system of the Paleozoic Era spanning from the end of the Silurian Period, about 416.0 ± 2.8 Mya , to the beginning of the Carboniferous Period, about 359.2 ± 2.5 Mya...

 Period as well as later during the Permian
Permian
The PermianThe term "Permian" was introduced into geology in 1841 by Sir Sir R. I. Murchison, president of the Geological Society of London, who identified typical strata in extensive Russian explorations undertaken with Edouard de Verneuil; Murchison asserted in 1841 that he named his "Permian...

. The reservoir is sealed by thick, impermeable Kungurian salt of Permian age.

In pop culture

The Tengiz oil field was mentioned in the film Syriana
Syriana
Syriana is a 2005 geopolitical thriller film written and directed by Stephen Gaghan, and executive produced by George Clooney, who also stars in the film with an ensemble cast. Gaghan's screenplay is loosely adapted from Robert Baer's memoir See No Evil...

(2005) starring George Clooney
George Clooney
George Timothy Clooney is an American actor, film director, producer, and screenwriter. For his work as an actor, he has received two Golden Globe Awards and an Academy Award...

.

See also

  • Kashagan Field
    Kashagan Field
    Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...

  • Kazakhstan-China oil pipeline
    Kazakhstan-China oil pipeline
    The Kazakhstan–China oil pipeline is China's first direct oil import pipeline allowing oil import from Central Asia. It runs from Kazakhstan's Caspian shore to Xinjiang in China. The pipeline is owned by the China National Petroleum Corporation and the Kazakh oil company KazMunayGas.-History:The...

  • KAZENERGY Eurasian Forum
  • Oil and gas basins of Kazakhstan
  • Trans-Caspian Oil Pipeline
    Trans-Caspian Oil Pipeline
    The Trans-Caspian Oil Transport System is a proposed project to transport oil through the Caspian Sea from Kazakhstani Caspian oilfields to Baku in Azerbaijan for the further transportation to the Mediterranean or Black Sea coast. The main options under consideration are an offshore oil pipeline...


External links

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