Chinese-Owned Company Exploited Kazakhstan’s Oil and Gas for Years

Buzachi Operating Ltd. has been flaring gas and losing large amounts of oil without authorization for six years. The company is now forced to pay significant compensation, Orda.kz reports.

The Mangystau Region Prosecutor’s Office successfully secured 8.4 billion tenge in damages from the oil and gas company after uncovering serious, long-term operation violations.

Following an investigation, the prosecutor’s office took the matter to court, which ruled that the company must fully compensate the state for the environmental and economic damage it caused.

The company attempted to appeal the decision, but the appellate court upheld the ruling. The verdict has now taken full legal effect.

In early March 2025, Buzachi Operating Ltd. transferred the entire amount — 8.4 billion tenge — to the state budget, the prosecutor’s office confirmed. 

Buzachi Operating Ltd., which has been developing the Northern Buzachi field near Aqtau since 2004, is controlled by Chinese corporations Sinopec and CNPC. CEO Zhu Aijun, a Chinese national, leads the Aqtau branch.

Previously, we reported that another company, Buzachi Neft, began paying a 2.2 billion tenge fine for causing the largest methane leak at the Karaturun Yuzhny field — an environmental disaster so massive its effects were visible from space.

Original Author: Ruslan Loginov