LUKFY - Chevron-led Kazakhstan oil expansion delayed by COVID-19

The Chevron-led (CVX +0.7%) consortium in Kazakhstan will delay part of its $45B expansion project by several months due to COVID-19 restrictions and infections among workers, according to the country's energy ministry. The project at Tengiz, which is planned to raise annual oil production by 12M metric tons, now would be completed by November 2023 instead of April 2023. The ministry says earlier cost savings are expected to keep the total project within the approved figure despite the delay. Chevron-led Tengizchevroil, in which Exxon Mobil (NYSE:XOM), Russia's Lukoil and Kazakh state firm KazMunayGaz own minority stakes, accounts for nearly a third of Kazakhstan's total oil production. Citing valuation and the company's guidance for higher energy transition spending, J.P. Morgan recently downgraded Chevron shares.

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Chevron-led Kazakhstan oil expansion delayed by COVID-19