KMG Denies Report of $80 Billion ExxonMobil Kashagan Project

KazMunayGas has denied a report that it was discussing an $80 billion expansion of the Kashagan oil field with ExxonMobil, Orda.kz reports, citing Kazinform.

This information is inaccurate. I read the report, and KazMunayGas does not confirm what Bloomberg published,KMG Management Board Chair Askhat Khasenov said.

Khasenov added that ExxonMobil remains one of the national company’s key partners. The two companies have several agreements covering cooperation on technological development.

Bloomberg previously reported, citing unnamed sources, that ExxonMobil had proposed creating a joint venture with KazMunayGas to develop the western section of Kashagan. Investment in the project could have reached approximately $80 billion.

According to the report, one condition for the project was the settlement of long-running disputes between Kazakhstan and the foreign members of the North Caspian consortium.

The disputes include Kazakhstan’s claim for approximately $150 billion in estimated lost revenue caused by years of delays in developing Kashagan. A separate dispute continues over an environmental fine of around $5 billion.

Original author: Raushan Korzhumbekova

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