Oil Chronicles
Oil Chronicles. March 2025
March
March 1, KazMunayGas CEO Askhat Khassenov held a meeting in Budapest with MOL Group Chairman Zsolt Hernádi. The meeting covered prospects for bilateral cooperation and plans for joint project implementation. In particular, the parties reviewed progress on the development of the Rozhkovskoye field in West Kazakhstan region, where KMG and MOL Group are partners.
The Ministry of Energy has submitted for discussion a draft order to extend the ban on exports of petroleum products, including to member states of the Eurasian Economic Union, for another six months starting March 29. The justification is enhanced control over exports of petroleum products under the guise of “cover goods,” including outside the EAEU.
According to the Ministry, monthly volumes of “gray” exports and fuel flows under the guise of “cover goods” reach 10–45 thou. tons, due to price differences — in Kazakhstan, fuel prices are 17–166% lower than in neighbouring countries.
Karachaganak consortium co-operators Eni and Shell confirmed their commitment to approve the final investment decision on constructing a GPP at Karachaganak by the end of 2025 at a meeting with Kazakhstan's Minister of Energy.
Hyundai Engineering was awarded the EPC contract. The plant, which will produce 4 billion cu. m of associated gas per year, is scheduled for commissioning by 2029.
Currently, part of the gas produced at Karachaganak is processed at the Orenburg GPP in Russia. However, more than half is reinjected into the reservoir due to the Orenburg plant's limited capacity. In 2024, out of the total production of 24.5 bln cu. m, the reinjection volume reached approximately 14.8 bln cu. m.
March 3, during the general meeting of members of the KAZENERGY Association, its Chairman Bolat Akchulakov proposed the creation of a new body to enhance cooperation between business and the state.
Participants emphasized that the largest sectors—oil and gas, mining, finance, construction, and electric power—each have their own associations that successfully defend their industries’ interests.
“A new structure is needed—one capable of consolidating the efforts of the country’s leading economic sectors and operating in a new format. In this regard, Bolat Akchulakov proposed the creation of the Association of National Investors of the Republic of Kazakhstan,” the press release stated.
The proposal was supported by KAZENERGY member companies, who believe the new organization will become a key platform for effective business–government interaction, coordination of major projects, and investment attraction.
According to insider information, Bolat Akchulakov is expected to head the new entity.
Kazakhstan increased oil and gas condensate production by 13% in February compared to January, from 1.87 mln bpd to a record 2.12 mln bpd.
The growth was driven by increased output at the Tengiz field following the launch of the third-generation plant. In February, Tengizchevroil boosted its production by 41.5% compared to the previous month.
March 4, during a meeting with the management of ESTA Construction, Prime Minister of Kazakhstan Olzhas Bektenov instructed the ministries to prepare an investment agreement within two weeks for the construction of an ammonia and urea plant.
The project will be implemented by a joint venture between QazaqGaz and ESTA – Qazesta Fertilizers Ltd. The plant will be located in the Mangystau region, providing optimal conditions for product export via the Caspian Sea. “ESTA Construction is among the world’s top 100 construction companies,” stated the government’s press service.
The project is valued at $1.35 bln, with construction scheduled for completion in three and a half years. The plant’s production capacity will be up to 700 thou. tons of urea and 42 thou. t of ammonia per year.
Currently, Kazakhstan produces three types of fertilizers: ammonium nitrate, ammonium sulphate, and ammophos. With a demand of 3.2 mln t, domestic production capacity meets only half of consumption.
A subsidiary of KazMunayGas, sold in 2018 to the Nursultan Nazarbayev Education Foundation, has returned to state ownership.
The Prosecutor’s Office filed a court claim seeking to nullify the 2018 sale and purchase agreement of JSC “Kazakh-British Technical University” (KBTU) between KazMunayGas and the Nursultan Nazarbayev Education Foundation, arguing that the asset had been undervalued.
According to published financial statements, as of February 27, 2025, KBTU became the property of the State Company for the Management of Returned Assets. Whether this occurred through a court ruling or a settlement between the parties was not disclosed.
KBTU was founded in 2000 by the Government of Kazakhstan, the British Embassy in Kazakhstan, and the British Council. In 2003, KazMunayGas became the university's sole shareholder. Since 2018, KBTU has been owned by the Nursultan Nazarbayev Education Foundation, chaired by Dinara Kulibayeva, daughter of Kazakhstan’s first president.
The university owns a historic building in central Almaty that formerly housed the Council of Ministers of the Kazakh SSR and later the Parliament of Kazakhstan. In October 1991, the Declaration on State Sovereignty of the Republic of Kazakhstan was adopted in this building.
March 6, the Ministry of Energy announced an electronic auction for hydrocarbon subsoil use rights.
The most expensive lot offered is the right to exploration and production of HC at the Daryinskoye field in West Kazakhstan region, with a starting signature bonus of $270.5 thousand.
The least expensive lots are the Zhamansu Severny block in Kyzylorda region and Karatussay block in Aktobe region, each with a starting price of $23.8 thousand.
The auction will take place on May 28, 2025, on the website of the electronic auction operator: www.e-qazyna.kz.
March 6, in Astana, the delegation of Petrovietnam Exploration Production, headed by its President, Nguyen Tien Bao, was presented with investment opportunities.
“KMG continues its active search for strategic partners to conduct advanced seismic surveys in 2025–2027 on new high-potential projects,” stated KMG CEO Askhat Khassenov during the meeting.
In January 2023, the national company announced the launch of a large-scale geological exploration program, as most producing fields have passed their peak output.
Medeo Drilling Group LLP disclosed its plans to begin pilot development of the Karagan field in the Zhylyoi district of the Atyrau region, near the giant Tengiz field.
During the pilot phase, the plan includes: reactivating 5 previously suspended wells, drilling 3 production wells, delineating identified oil accumulations, reclassifying reserves from category C2 to category C1, and evaluating oil and gas potential through the drilling of 1 appraisal well. By the end of the pilot period—April 30, 2028—the total well stock is expected to reach 9 units. The company is currently securing the required environmental approvals.
Medeo Drilling Group acquired the subsoil use right to the Karagan block at a Ministry of Energy auction in May 2024, paying a record signature bonus of KZT 2.2 bln against a starting price of KZT 55 mln. According to the contract terms, the exploration period must not exceed 6 years.