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News 2026

Kalamkas-Khazar Operating

Kazakhstan’s national energy company, KazMunayGas, has suspended a $6.4 billion offshore oil and gas project with Russian energy giant Lukoil, citing the impact of Western sanctions. The decision puts the strategic Kalamkas-Khazar development in the Caspian Sea on indefinite hold.

Askhat Khassenov, chairman of KazMunayGas (KMG), confirmed the suspension during an analyst conference call. "Considering the sanctions imposed, the further implementation of the project is suspended for now," Khassenov stated.
 

The joint project was established to develop three offshore fields: Kalamkas-More, Khazar, and Auezov. It was projected to reach a peak annual production of 4 million tons of oil (approximately 80,000 barrels per day), with first oil targeted for 2029-2030. The development was considered crucial for the economic growth of Kazakhstan's Mangistau region.
 

Under the terms of the partnership formed in 2023, Lukoil acquired a 50% stake in the project operator, Kalamkas-Khazar Operating LLC, from KMG for $200 million. Lukoil also committed to financing the development costs, estimated at over $6 billion.
 

The suspension underscores the widening collateral impact of international sanctions against Russia on major energy investments and partnerships in Central Asia. The move poses a significant challenge to Kazakhstan's plans to boost its future oil and gas output.