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. Last Updated: 07/27/2016

Pipeline Woes For Chevron

Tengizchevroil, a joint venture between the U.S. Chevron Corporation and Kazakhstan, has nearly doubled its crude oil exports but still is operating well below capacity, a Chevron official said Tuesday.

Under an agreement reached between Kazakhstan and Russia, Tengizchevroil has been able to ship 50,000 barrels a day of crude beginning Aug. 1, up from the 30,000 barrels a day in the first seven months of this year.

The venture, located on the eastern coast of the Caspian Sea, depends on Russia's pipeline network for its exports. Since it took over the Tengiz fields in April 1993, its exports have been kept to a trickle by the Russians.

The latest agreement "is a small breakthrough," said the official, who spoke on condition of anonymity. "But we would like to see more." He said the venture could quickly boost output to 130,000 to 140,000 barrels a day, given an export outlet.

Under the exchange agreement with Russia, export volumes are negotiated annually between the two governments. The agreement to boost shipments in August was unusual, taken at the request of the Kazakh government.