Oil giant ChevronTexaco said Monday it will invest $3 billion in the Kazakh oil industry. The Kazakh Khabar news agency said the money will mainly go to the Tengiz field in western Kazakhstan.
Analysts say the investment will mostly likely go towards a new petroleum refinery in particular.
Earlier, in July, Khabar reported that a petroleum refinery of the second generation may be built at the Tengiz field. The refinery, which construction will be cost $3 billion, will increase the amount refined products by almost 165,000 barrels per day.
The construction of the refinery was discussed during a meeting between the Kazakh Premier Imangali Tasmagambetov and ChevronTexaco Vice-President George Kirkland earlier this year.
The Russian Itar-Tass news agency said that the money would be invested in 2003-2005.
David J. O'Reilly, the chairman of the corporation's directors board and chief executor officer said in Kazakhstan on Monday, "Kazakhstan has achieved wonderful results in the last ten years."
He also said that the Kazakh economy develops well and the government controls projects well.
Sam Nunn, a member of ChevronTexaco's directors board and a former U.S. Senator from the State of Georgia, on Monday presented Kazakh President Nursultan Nazarbayev with a symbolic medal produced from dismantled Soviet and U.S. missiles.
Currently in Kazakhstan, ChevronTexaco extracts about 100 million barrels of oil annually, Itar-Tass reported.
Tengiz, one of the world's largest oil fields, contains 6 to 9 billion barrels of recoverable oil.
The Tengizchevroil joint venture, the company which operates the Tengiz field, was formed in 1993 and now ChevronTexaco's equity interest in it is 50 percent. Other stakeholders in the joint venture are some foreign companies and the Kazakh side.
ChevronTexaco extracts 12.5 million tones of oil annually in Kazakhstan, Itar-Tass said.
Up to now ChevronTexaco has invested about $4 billion in the development of some Kazakh oil fields - Tengiz, Karachaganak and North Buzachi.
The new 900-mile Caspian pipeline connects western Kazakhstan to Novorossiysk on the Russian Black Sea coast and allows for maximum development of the Tengiz field. ChevronTexaco is the largest oil company member of the Caspian pipeline consortium.