Honeywell Begins Contract to Expand Oilfield in Kazakhstan

Honeywell has begun working on a multimillion dollar automation project with engineering services contractor Parsons FluorDaniel (PFD) - part of a $3 billion asset development program that will expand operations at Tengizchevroil's (TCO) oilfield in Tengiz, Kazakhstan. The expansion project will increase TCO's oil production capacity from the current rate of 13 million tons per year to between 20 and 25 million tons per year. New plant facilities at the oilfield will be operational in mid-2006.

"We rely on Honeywell to provide comprehensive automation control solutions that address our specific safety and operational needs," said Jay Burrows, project procurement advisor of TCO. "With Honeywell technology and services, TCO can expand production capacity while reducing our overall risks, increasing our efficiency and speeding up our time to market."

TCO is a joint venture partnership among ChevronTexaco, ExxonMobil, KazMunaiGas and LukArco. TCO exports oil from the Tengiz field via the Caspian Pipeline. To increase production capacity, TCO will install Second Generation Processing (SGP) and Sour Gas Injection (SGI) facilities located on the edge of the Caspian Sea in western Kazakhstan. A new 72-mile pipeline will transport additional gas into the existing pipeline system.

Using a Honeywell process automation solution, operators will monitor and control processes across the entire plant using a single unified system. TCO has already been successful with similar implementations at existing production facilities.

"Honeywell is thrilled to continue its relationship with TCO by implementing a process control solution," said Jack Bolick, president, Honeywell Process Solutions EMEA. "We're dedicated to delivering the resources and results that TCO expects to lay the foundation for a successful oil and gas market in the region."

The Honeywell process automation solution has secure distributed control capabilities, as well as advanced applications such as multivariable and batch control, optimization, plant-wide history, and information management capabilities in one system. This combination of capabilities enables plant operators to respond to changes in the marketplace without compromising the safety and the integrity of plant processes.

The Tengiz oilfield was discovered in 1979, representing one of the largest finds in the past 20 years. The expansion project will not only increase TCO's crude oil production, but the expansion of the SGP facility will yield more dry gas, propane, butane and saleable sulfur products. The SGI project will increase oil production and will develop gas injection technology for enhancing oil recovery and maintaining reservoir pressure.