"Tengizchevroil is pleased to announce that its partners have approved funding for detailed engineering and construction of the Second Generation Project and Sour Gas Injection projects," TCO said in a statement to the media.

Last November, operations at the Tengiz field were suspended after the consortium failed to reach a compromise with the government on how to fund the $US3 billion expansion project.

In wake of the agreement, Parker Drilling Company has received notification from TCO to resume drilling operations in the field, which were suspended in mid-November due to the dispute.

Parker Drilling said it anticipates the suspension would have minimal financial impact as rig crews were instructed to suspend operations only upon completion of the wells in progress at that time.