UPDATE 1-Kazakhstan expects decision on Tuesday on Tengiz oil field expansion
(Adds context, background)ASTANA, July 4 Kazakhstan and a consortium of
oil companies led by Chevron will announce on Tuesday
their decision regarding a proposed plan to boost production at
the Tengiz oil field, Kazakhstan's Energy Ministry said on
Monday.The ministry's brief statement gave no details, but the
market has been expecting the two sides to approve the expansion
plan - one of the biggest oil projects in the world with costs
estimated at $37 billion.
Tengiz, in which Exxon Mobil and Lukoil
also have stakes, will increase output to 36 million tonnes
(720,000 barrels per day) a year by 2021 from 27 million tonnes
currently, if the plan is approved.
Daniyar Berlibayev, deputy chief executive of national oil
company KazMunayGaz said in May that the expansion could be
financed by borrowing.
Tengizchevroil, the joint venture running Tengiz, sent final
documents to banks for a $3 billion five- to seven-year loan
agreement last week.Tengiz accounts for more than a third of total crude output
in the Central Asian nation which is the biggest ex-Soviet oil
producer after Russia.
(Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov;
editing by Vladimir Soldatkin, Greg Mahlich)