Tengiz, Kashagan and Export: What Kazakhstan and Oil Giants Agreed on in the United States

The Minister of Energy of Kazakhstan Yerlan Akkenzhenov held a series of negotiations with the leadership of the world's largest oil and gas corporations within the framework of the international forum CERAWeek in Houston, Orda.kz reports.

With the president of ExxonMobil Corporation Dan Ammann, the parties discussed the current state of strategic partnership and the contribution of American investments to the economy of Kazakhstan. According to the minister, the oil and gas sector forms up to 20% of the country's GDP, and the company remains one of the key investors. The share of Kazakhstani specialists at the Tengiz and Kashagan projects already exceeds 90%.

Special attention was paid to the completion of the Future Expansion Project at Tengiz and plans to increase production at Kashagan, including the development of gas processing to create high value‑added products. The issues of diversification of export routes were also discussed.

Long‑term partnership should be aimed at ensuring maximum economic benefits for Kazakhstan while unconditionally preserving the investment attractiveness of the industry for international partners. the minister outlined Kazakhstan's position. 

At a meeting with the head of Chevron Michael Wirth, the parties confirmed the strategic nature of cooperation, which spans more than 30 years. The company remains the largest foreign investor in Kazakhstan, introducing modern technologies at the largest fields.

Yerlan Akkenzhenov focused on the stable operation of key projects, highlighting the successful completion of the Future Expansion Project (FEP) at Tengiz. Joint steps to systematically increase production capacity at Karachaganak and maintain efficient production at the North Caspian project were also discussed.

The development of export logistics was discussed separately, including the potential of the Trans‑Caspian route. Kazakhstan emphasized its priorities – providing the domestic market with energy resources, technological transfer and growth of economic returns for the country.

During negotiations with the CEO of the Shell concern, Wael Sawan, the prospects for expanding production at Kashagan and Karachaganak were discussed, as well as the implementation of investment projects.

The parties confirmed the importance of stable operation of the Caspian Pipeline Consortium for oil export. Issues of oil refining development, modernization of domestic refineries and increasing the production of winter diesel fuel were also touched upon. Special attention was paid to geological exploration and the search for new deposits. Kazakhstan is also considering options for independent implementation of gas processing plant projects.

In terms of developing the resource base, it was noted that Kazakhstan and Shell continue to work together to find and evaluate new promising hydrocarbon blocks.

The meetings confirmed mutual interest in further development of cooperation. Kazakhstan insists on a balance between protecting national interests and preserving the investment attractiveness of the industry.

CERAWeek is one of the world's largest energy forums, where representatives of states, business and experts discuss global trends, investments and the future of energy.

Original author: Rustam Muratov

Read also: 

• The War in Iran Opens a Window of Opportunity for Kazakhstan’s Oil Sector, Analysts Say
• UK Allows Kazakh Oil Shipments Through Russian Territory
• Who Really Profits From Kazakhstan’s Oil?