Interview with Jay Johnson, Managing Director, Chevron Eurasia

What should Kazakhstan do to increase the attractiveness of its non-extractive sectors of economy for investments?

Regardless of the sector, for any investor who is considering making a long-term investment in any country, they look at a variety of things.  Specific criteria such as: 

Open markets: a level and transparent "playing field" to maximize the free flow of  trade and investment – which would significantly attract international investment;

Sound policies: in particular, stability and investment security are essential to ensuring that investment commitments continue into the medium and long term;

Rule of law: uniform, consistent and enforceable laws will help create a stable commercial environment;

An effective development strategy: applied technology and increased human capacity – education and training, job creation and health care – go hand-in-hand with increased investments.

These are just a few of the key elements that can help to attract long term partnerships and create sustainable economic development opportunities for any country.

Chevron prides itself on being a technology leader, and we continue to support Kazakhstan’s efforts to further develop and diversify its economy.

Bringing Chevron’s operational excellence in technology to the Tengizchevroil (TCO) Joint Venture, has paved the way for TCO to significantly increase production.  The recent expansion at Tengiz was one of the industry’s largest and most technologically complex engineering projects. The Sour Gas Injection facilities boast the world’s highest-pressure and highest-percentage hydrogen sulfide injection compressor, and the Second Generation Plant is the world’s largest single train sour gas and crude processing plant.

Chevron’s business activities in Kazakhstan go beyond upstream.  In 2003, Chevron invested $25 million in the construction of its Polyethylene Pipe Plant in Atyrau, the first of its kind in Kazakhstan.  Our pipe plant is staffed and managed entirely by citizens of Kazakhstan and utilizes state-of-the-art equipment and innovative technologies.  It can produce 15,000 tons per year of high-density polyethylene pipe with diameters from 25 to 1200 millimeters for use in building Kazakhstan’s infrastructure as well as for export.

Chevron is currently implementing two projects in Atyrau that will introduce new technologies and will offer products that are not currently produced in Kazakhstan or CIS countries.  The first is the expansion of the polyethylene pipe plant which would allow production of the metal-plastic pipe to be used in heating and hot water supply.

Another project that Chevron is pursuing is the construction of a new plant in Atyrau that would produce modern, long-life valves with diameters from 100 to 400 millimeters for use in municipal infrastructure.  Once fully operational, the plant is expected to produce up to 30,000 high-quality valves per year. Projects like these contribute to the country’s aspirations of continued economic development and diversification, and Chevron is proud to be part of this important process.  Both projects will bring new technology to Kazakhstan and replace products currently imported from far abroad.