KazMunayGas Poised to Expand Chinese Partnerships for Oil and Gas Exploration

Kazakhstan’s national oil company, KazMunayGas (KMG), is bringing in Chinese energy giants CNOOC International and Sinopec for exploration at two promising fields, and is also negotiating with CNPC to boost its participation in resource extraction, Orda.kz reports.

According to industry outlet Upstream Online, KMG is actively executing a strategy to increase the presence of Chinese companies in Kazakhstan’s oil and gas sector. Last week, the company confirmed new Chinese investments in exploration and production at two prospective sites.

Authorities in Astana have instructed KMG to intensify efforts to discover new oil reserves, and Upstream Online links this push for Chinese partnerships to that mandate. The “big three” fields — Tengiz, Kashagan, and Karachaganak — are expected to account for 71% of total oil production this year.

However, maintaining production levels will require discovering and developing new deposits.

KMG Chair Askhat Khasenov, during a recent visit to Beijing, agreed on next steps with CNOOC International for the development of the Jylyoi block, which spans about 960 square kilometers. The field is located partly on newly exposed land following the retreat of the Caspian Sea and partly offshore.

In October 2024, a joint venture with CNOOC was established, with the Chinese side covering exploration costs.

KMG is also exploring a potential partnership with Sinopec as an equal partner for exploring and developing the Berezovskoye field in western Kazakhstan. Both sites are considered strategically important: Berezovskoye is located near Karachaganak, while Jylyoi lies near Tengiz.

Meanwhile, a third Chinese firm, CNPC, is assessing the hydrocarbon potential of sub-salt formations along the Caspian coast. The block in question is still pending an exploration license.

Original Author: Nikita Drobny