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Chevron completes $48 billion Tengiz oil field expansion as Trump pushes OPEC

https://worldoil.com/news/2025/1/24/chevron-completes-48-billion-tengiz-oil-field-expansion-as-trump-pushes-opec/?oly_enc_id=1027J2600390B9V

(Bloomberg) – Chevron Corp. said Friday it completed an expansion at Kazakhstan’s huge Tengiz oil field, which is expected to pump 1 million barrels a day (bpd) by the middle of this year.

The expansion, costing $48 to $49 billion, comes as U.S. President Donald Trump this week said he’ll push the Organization of Petroleum Exporting Countries and its allies, which include Kazakhstan, to bring down oil prices.

“For OPEC, we’re going to follow whatever guidance the Republic of Kazakhstan provides us,” Chevron’s President of International Exploration and Production Clay Neff said in an interview.

Kazakhstan’s oil production plans have put pressure on OPEC+ partners, who have agreed to curtail output for much longer than expected. Central Asia’s largest producer has instead announced plans to raise oil output in 2025.

The work on expanding Tengiz, among the world’s biggest oil fields that represents about 1% of global production, has seen delays and cost overruns. Now, the field will generate $4 billion of free cash flow in 2025 for Chevron and $5 billion in 2026 at oil prices of $60, Neff said.

Most of the lighter-grade oil will go to Europe and Asia, he added. Tengiz currently produces about 700,000 barrels of crude per day.

Chevron “achieving this in January likely bodes well for the company, given the prior delays with the projects” in Kazakhstan, RBC Europe Ltd. analyst Biraj Borkhataria said in a note on Friday.

Tengiz is central to Chevron’s pledge to grow its global production, and the delays have weighed on the company’s stock.

Neff stressed the importance of the Kazakhstan asset in the upstream portfolio. With 1 million boed in 2025, it’s about the same as Chevron’s U.S. Permian Basin output, which is also expected to reach 1 million barrels a day this year

Chevron plans, however, to reduce its capital expenditures by about 10% in the Permian, which covers the region of West Texas and New Mexico.

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Dozens of oil tankers drop anchor after latest US sanctions bite

https://www.reuters.com/world/dozens-oil-tankers-drop-anchor-after-latest-us-sanctions-bite-2025-01-13/

• Summary

• Around 10% of the global tanker fleet hit by US sanctions
• Tanker rates rising as non-sanctioned ships in demand
• China's Shadong port bans tankers hit by US sanctions - traders

LONDON, Jan 13 (Reuters) - At least 65 oil tankers have dropped anchor at multiple locations, including off the coasts of China and Russia, since the United States announced a new sanctions package on Jan. 10, ship tracking data showed on Monday.

Five of those tankers were stationary off Chinese ports and a further seven dropped anchor off Singapore, with others halting near Russia in the Baltic Sea and the Far East, according to Reuters' analysis based on MarineTraffic and LSEG ship tracking data.

The U.S. Treasury on Friday imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegaz, as well as on 183 vessels that have shipped Russian oil, as it targets the revenues Moscow has used to fund its war with Ukraine.

The halt in trading for these tankers adds to further pressure on vessels already hit by previous U.S. sanctions.

These include another 25 oil tankers that were stationary around various locations, including off Iranian ports and also near to the Suez Canal, ship tracking analysis showed on Monday.

Some ports have already acted before the latest measures, adding further strains. Shandong Port Group banned tankers under U.S. sanctions from calling at its ports, traders said last week.

Analysts estimated that around 10% of the global oil tanker fleet was subject to US sanctions.

"The effect of these sanctions should be supportive to the tanker market as vessel supply in the broader fleet shrinks, but the real potential strength would come once other exporters make up for the lost volumes," Jefferies analyst Omar Nokta said in a note on Monday.

Average daily earnings for supertankers jumped over 10% on Monday versus the previous day to around $26,000, according to market estimates.

Some charterers already tried to secure ships on Friday after the sanctions were announced, pointing to the tightening supply of ships.

"Increased demand for exports to India and China from outside Russia will increase non-sanctioned tanker demand," trade analytics platform Kpler said on Monday.

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