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Image courtesy of Chevron.

Chevron said Tuesday that it will move forward with the $36.8 billion Tengiz oil field expansion project.

The company said that its 50 percent owned affiliate, Tengizchevroil (TCO), will move ahead with the development of its Future Growth and Wellhead Pressure Management Project (FGP-WPMP) at the Kazakhstan field.

The expansion is expected to boost crude oil production at the Tengiz oil field by about 260,000 barrels per day.

FGP-WPMP is currently estimated to cost $36.8 billion, including $27.1 billion for facilities, $3.5 billion for wells and $6.2 billion for contingency and escalation.

The project will raise TCO’s total production to about 1 million barrels of oil equivalent per day.

“This project builds on the successes of prior expansions at Tengiz and is ready to move forward. It has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services,” Chevron’s executive vice president of Upstream Jay Johnson said.

WPMP is expected to maximize the value of existing TCO facilities by extending the field’s production plateau and keeping existing plants producing at full capacity.

Chevron said the FGP will “use state-of-the-art sour gas injection technology, successfully developed and proven during TCO’s previous expansion in 2008, to enhance oil recovery.”

The company expects first oil in 2022.

“The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company,” Chevron CEO and chairman John Watson said.

TCO joint venture participants are Chevron with a 50 percent stake, ExxonMobil with a 25 percent stake, KazMunayGas with a 20 percent stake and LukArco with a 5 percent stake.

The Tengiz Field is the world’s deepest operating super-giant oil field, with the top of the reservoir at about 12,000 fee below ground.

The partnership is also developing the nearby Korolev Field.

Tengiz is located on a 1,600 square mile project license area that includes the super giant Tengiz field and the Korolev field as well as several exploratory prospects.

Chevron’s share of net daily production from the fields averaged 257,000 barrels of crude oil, 348 million cubic feet of natural gas and 21,000 barrels of natural gas liquids in 2015.