Tengizchevroil: Looking For $37bn of Finance for Planed Tengiz Extension

Tengizchevroil, a Chevron-led joint venture and Kazakhstan’s No.1 oil producer, may take out loans and issue bonds to finance its $37 billion plan to expand production, an official at state oil firm KazMunayGaz said on Thursday.

KazMunayGaz also holds a stake in Tengizchevroil.

“There are different scenarios, but we think the full (cost of the project will be financed by borrowing),” KazMunayGaz’s deputy chief executive Daniyar Berlibayev told reporters.

“There may be issuance of paper and syndicated loans.”

Tengizchevroil, in which ExxonMobil and Lukoil also have stakes, aims to increase output to 36 million tonnes a year by 2021 from 27 million tonnes currently.

Kazakh Energy Minister Kanat Bozumbayev said this week the government and Tengizchevroil partners expected to finalise the plan and its budget in June.

(Reporting by Mariya Gordeyeva; Writing by Olzhas Auyezov; Editing by Alexander Winning and Susan Fenton)