KazMunayGas plans to boost output at Kashagan

The output at Kashagan, the largest oil field in Kazakhstan’s part of the Caspian Sea, is going to reach 17.8 million tons this year, as reported by KazMunayGas (KMG, a subsidiary of Samruk Kazyna). The company controls a 16.88% stake in the North Caspian Operating Company (NCOC), which is the sole operator of the offshore oil field until 2041. Last year, the consortium reported 17.4 million tons in oil output.

«Over the past four months, 6.12 million tons have been produced at Kashagan, KMG share included. The production plan for 2025 is 17.8 million tons,» the company said in a statement issued after KMG CEO Askhat Khassenov met with Peter Costello, president of Shell’s Exploration and Production Division.

The oilfield’s output has been fluctuating over recent years. For instance, it reported 10.8 million tons in 2023 and 12.7 million tons in 2022. In late 2024, NCOC presented a plan designed to boost oil production at Kashagan from 370,000 to 450,000 barrels (57.24 million tons) per day between 2025 and 2026.

At the meeting, the KMG CEO also stated that it is very important to increase Kazakhstan content during Kashagan’s full-fledged development.

Another large oil field, Karachaganak, has surpassed its production plan, reporting 3.8 million tons in output, including the KMG share, over the past four months. All in all, authorities expect Karachaganak to produce 11.14 million tons of oil this year and 25.57 billion cubic meters of gas. In 2024, the oil field produced about 11 million tons of oil.

«As a partner in the Karachaganak project, KMG is concerned about the absence of a positive trend in the construction of a gas processing plant at the field to process 4.5 billion cubic meters of crude gas per year,» the statement reads.

The parties also discussed issues related to training and upgrading qualifications, including potential on-the-job training of KMG workers in Karachaganak Petroleum Operating. According to KMG, Shell is interested in geological exploration on several promising fields in Kazakhstan.

The companies have also entered into an agreement allowing them to use seismic survey results when planning joint geological exploration work. In particular, Shell is participating in examining the potential of the Mugodzhar project in the Aktobe region.

In 2024, Shell Kazakhstan Development B.V., which controls a 16.807% stake in NCOC, «paid» Kazakhstan -8.05 billion tenge (approximately -$15.6 million) in taxes; -1.16 billion tenge (-$2.2 million) in 2023; -3.56 billion tenge (-$6.9 million) in 2022; and -12.37 billion tenge (-$24.1 million) in 2021. However, in the first quarter of 2025, the company paid 5.66 million tenge ($11 million) in taxes.