Factbox: Kazakhstan's oilfields, disputes and settlements with oil majors

APS Innovation Co

28/01/2025 14:26

MOSCOW, Jan 28 (Reuters) - Kazakhstan, one of the
world's 10 biggest oil producers, increased pressure on
international companies operating in the country on Tuesday,
calling for improved contract terms.
    The move is the latest in a string of claims, disputes and
settlements in recent years which saw international firms cede
control of oilfields to the state or reach cash settlements.
    Following are details on Kazakhstan's main oilfields and
pipelines and the main disputes and settlements since the late
2000s.  
    KASHAGAN
    The giant offshore field in the North Caspian Sea was
discovered in 2000 and remains one of the biggest discoveries in
recent decades, as well as one of the costliest. Oil production
started in 2013.
    The field produced around 378,500 barrels per day (bpd) in
2024, lower than its initially forecast capacity of 400,000 bpd.
    Its development plans aim to increase output capacity to
450,000 bpd.
     Kashagan is operated by the North Caspian Operating Company
(NCOC) that includes Eni  ENI.MI  (16.81% stake), Shell  SHEL.L 
(16.81%), TotalEnergies  TTEF.PA  (16.81%), ExxonMobil  XOM.N 
(16.81%), KazMunayGaz  KMGZ.KZ  (16.88%), Inpex  1605.T  (7.56%)
and China National Petroleum Corp  CNPC.UL  (8.33%).  
    KARACHAGANAK
    The Karachaganak gas-condensate field was discovered in 1979
in northwest Kazakhstan, covering an area of more than 280
square km (108 square miles). Production started in 1984.
    The field is operated by the Karachaganak Petroleum
Operating (KPO) consortium which includes Eni (29.25%), Shell
(29.25%), Chevron  CVX.N  (18%), Lukoil  LKOH.MM  (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 largest oilfield
and one of the world's deepest, 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 via the
935-mile (1,500-km) Caspian pipeline linking TCO, Karachaganak
and other fields to the Russian port of Yuzhnaya Ozereyevka,
close to Novorossiisk, which supplies around 1.2% of global oil
demand.
    The main shareholders in the Caspian Pipeline Consortium
(CPC) are Russian pipeline operator Transneft  TRNF_p.MM  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 against companies
developing Kashagan and Karachaganak oilfields for $13 billion
and $3.5 billion, respectively, over disputed costs.
In 2020, Kazakhstan reached a $1.9 billion settlement with the
Karachaganak partners that brought to an end a years-long
dispute over profit-sharing from the giant field. 
    In 2012, partners in the Kashagan consortium agreed to cover
$1 billion of Kazakh state energy company KazMunayGaz's extra
costs to settle a dispute over the project.
    A year earlier, the Karachaganak field consortium led by Eni
agreed to give the Kazakh 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-term payments, obligations to sell gas to a state entity or
non-reimbursement of some historic costs.
    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.

(Reporting by Ron Bousso and Vladimir Soldatkin; Editing by
Emelia Sithole-Matarise)
((mailto:vladimir.soldatkin@thomsonreuters.com; twitter:
@vsoldatkin;))