ChevronTexaco Suspends Operations at Tengiz Field

The ChevronTexaco-led joint venture, TengizChevroil, has suspended its expansion plans at Kazakhstan's Tengiz oilfield due to a conflict with the government of Kazakhstan over how the projects would be financed, according to Energy and Mineral Resources Minister Vladimir Shkolnik.

Shkolnik said the government did not agree with the means of financing the projects by reinvesting profits, which would result in a loss to the government of income over the next few years. The budget could lose around $200 million a year from 2002 until 2006 as a result.

TengizChevroil has suspended expansion plans because "the partners did not approve budgets to proceed with the execution" of the expansion projects.

TengizChevroil is a joint venture partnership involving ChevronTexaco with a 50% stake, ExxonMobil with 25%, Kazakhstan's KazMunaiGas with 20%, and LukArco of Russia with 5%.