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Tengizchevroil announces final investment decision for Tengiz Oil Expansion Project in Kazakhstan

| By Gerald Ondrey

Fluor Corp. (Irving, Tex.; www.fluor.com) announced today that Tengizchevroil LLP (TCO) has sanctioned KPJV, a joint venture (JV) between Fluor, Kazakh Institute of Oil and Gas JSC, Engineering Co. Kazgiproneftetrans LLP, and WorleyParsons, to provide detailed engineering, procurement and construction management support services for the Future Growth Project — Wellhead Pressure Management Project. The JV is working as part of an integrated team with Tengizchevroil on the project that is the next expansion of the Tengiz oil field in western Kazakhstan. Fluor plans to book its share of the contract value in the third quarter of 2016.

The front-end engineering design (FEED) and engineering, procurement and construction management activities phase of this expansion project was awarded by Tengizchevroil to KPJV in 2011. The FEED is complete and detailed engineering is well underway. The project team is also engaged in long-lead procurement and early construction works for key project infrastructure at the Tengiz site.

The project engineering is being executed by Fluor and its JV partners in Farnborough, U.K., with support from its engineering centers in Atyrau and Almaty, Kazakhstan; New Delhi, India; and Houston, as well as its integrated construction site in Tengiz.

The Future Growth Project will use sour-gas injection technology, successfully proven during TCO’s expansion project in 2008, to maximize Tengiz production capacity to approximately 39 million ton/yr of oil. While the Future Growth Project will increase production, the Wellhead Pressure Management Project will keep the existing Tengiz plants full by lowering the flowing wellhead pressure and boosting the pressure to Tengiz’s six processing trains.

During peak construction, the project is expected to employ approximately 20,000 construction workers. First oil is planned for 2022.