President of Kazakhstan Kassym-Jomart Tokayev has instructed the cabinet to accelerate negotiations with foreign investors on the extension of production sharing agreements (PSAs) under new, preferential terms for Kazakhstan.
«With the help of production sharing agreements, Kazakhstan has become a reliable supplier of energy carriers on the global market… Meanwhile, large investments require a long-term planning timeframe. This is why the cabinet should advance negotiations about extending PSAs under renewed, more beneficial conditions for the country,» he said during a cabinet meeting.
He also highlighted that these projects play a crucial role in the socio-economic development of the country. The PSA on the Tengiz field, the largest oil deposit in Kazakhstan, is expected to be the first revised under this new approach. The current agreement on Tengiz expires in 2033, on Karachaganak in 2038 and on Kashagan in 2041.
Recently, Tengizchevroil, a joint venture where major stakeholders are two foreign companies — Chevron (50%) and Exxon (25%) — reported its first oil within the Future Growth Project. The company projects that, as a result of this project, oil output will increase by 12 million tons per year, reaching 40 million tons annually.
