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Kazakhstan's oilfields, disagreements and settlements with oil majors

Kazakhstan, one of the world's 10 biggest oil manufacturers, increased pressure on international companies operating in the country on Tuesday, calling for enhanced contract terms.

The move is the most recent in a string of claims, conflicts and settlements over the last few years which saw worldwide firms cede control of oilfields to the state or reach cash settlements.

Following are information on Kazakhstan's main oilfields and pipelines and the primary disputes and settlements considering that the late 2000s.

KASHAGAN

The giant offshore field in the North Caspian Sea was found in 2000 and stays among the most significant discoveries in current decades, along with among the costliest. Oil production started in 2013.

The field produced around 378,500 barrels each day (bpd) in 2024, lower than its at first anticipated capability of 400,000 bpd.

Its advancement prepares goal to increase output capability to 450,000 bpd.

Kashagan is operated by the North Caspian Operating Business ( NCOC) that consists of Eni (16.81% stake), Shell ( 16.81%), TotalEnergies (16.81%), ExxonMobil ( 16.81%), KazMunayGaz (16.88%), Inpex (7.56%). and China National Petroleum Corp (8.33%).

KARACHAGANAK

The Karachaganak gas-condensate field was discovered in 1979. in northwest Kazakhstan, covering a location of more than 280. square km (108 square miles). Production began in 1984.

The field is run by the Karachaganak Petroleum. Operating (KPO) consortium that includes Eni (29.25%), Shell. ( 29.25%), Chevron (18%), Lukoil (13.5%) and. KazMunayGaz (10%)

Oil production reached around 263,000 bpd in 2024.

TENGIZCHEVROIL

The Chevron-led Tengizchevroil (TCO) consortium operates the. Tengiz and Korolev fields. Tengiz, Kazakhstan's biggest oilfield. and one of the world's inmost, was discovered in 1979.

Chevron holds a 50% stake in TCO, while KazMunayGaz has 20%,. Exxon 25% and Lukoil 5%.

It produced around 606,000 bpd in 2024.

CPC

More than 80% of Kazakhstan's crude is exported by means of the. 935-mile (1,500-km) Caspian pipeline connecting TCO, Karachaganak. and other fields to the Russian port of Yuzhnaya Ozereyevka,. near to Novorossiisk, which provides around 1.2% of international oil. need.

The main shareholders in the Caspian Pipeline Consortium. ( CPC) are Russian pipeline operator Transneft with a. 24% stake, Kazakhstan's KazMunayGaz with 19%, and the Chevron. Caspian Pipeline Consortium Company with 15%.

DISPUTES AND SETTLEMENTS

In 2023, Kazakhstan launched claims versus business. establishing Kashagan and Karachaganak oilfields for $13 billion. and $3.5 billion, respectively, over challenged expenses. In 2020, Kazakhstan reached a $1.9 billion settlement with the. Karachaganak partners that gave an end a years-long. conflict over profit-sharing from the giant field.

In 2012, partners in the Kashagan consortium accepted cover. $ 1 billion of Kazakh state energy business KazMunayGaz's extra. expenses to settle a disagreement over the project.

A year previously, the Karachaganak field consortium led by Eni. accepted give the Kazakh federal government a 10% stake in the field,. valued at $1 billion, as part of a dispute resolution.

It is harder to put a value on other concessions won in. Kazakhstan's legal wranglings, such as the addition of some. long-lasting payments, obligations to offer gas to a state entity or. non-reimbursement of some historical expenses.

In 2008, Kazakhstan doubled its stake in Kashagan to 16.8%. as part of a settlement with international oil majors over. delays in development of the field.

(source: Reuters)