Chevron plans big upgrade for Caspian oil

SAN RAMON, Calif., Dec. 15 (UPI) -- A planned $5.4 billion expansion of an oil pipeline in the Caspian region will help expand deliveries of crude from Kazakhstan and Russia, Chevron announced.

Chevron said the governing board of the Caspian Pipeline Consortium approved expansions to the infrastructure associated with the 900-mile oil pipeline to the Black Sea.

"The expansion of the CPC pipeline is a critical step forward to enabling the Tengiz expansion, one of the world's largest oil fields with estimated recoverable reserves of 6 billion to 9 billion barrels," Chevron said in a statement.

The expansion would increase the amount of Tengiz crude oil and other reserves from Kazakhstan and Russia carried in the pipeline from 730,000 barrels per day to 1.4 million barrels per day.

Chevron said the project is in the final stages of contract negotiations. Awards for the expansion are expected next year and capacity in the pipeline will be carried out in a three-staged build through 2015.