Caspian Oil (A) Tengis
Case number:
A09-12-0011
Abstract
The Tengiz Field in Kazakhstan was discovered by Soviet geologists in 1979 but largely ignored for years as the Soviets focused their oil development efforts elsewhere. When Chevron formed a joint venture with the Kazakh government in 1992, development of Tengiz started. By the spring of 2011, although producing 700,000 barrels of oil per day (bbls/d), Tengiz was yielding only half the oil expected. Chevron was under increasing pressure from its partners, including the Kazakh government, to bring the joint venture to its productive promise.
Teaching
This case discusses the history of the Tengiz Field and the various challenges that must be overcome to bring a new oil field into production. The primary teaching objectives are (1) to introduce the challenges facing oil and gas firms in new field development; (2) to discuss the complex mix of political, financial, and technological issues surrounding Tengiz; and (3) to consider what Chevron could have done differently in managing its role in Tengiz.
Case number:
A09-12-0011
Subject:
Industry and Competitive Strategy
Year:
Setting:
Kazahstan
Length:
10 pages
Source:
Library