Kazakhstan is in talks with ExxonMobil Corp. to develop an untapped portion of the Kashagan oil field, Bloomberg reported, citing sources familiar with the matter. Currently, production is underway only in the eastern part of Kashagan, while the western sections and nearby fields remain undeveloped.
According to Bloomberg’s sources, who requested anonymity, the discussions also cover other issues, including renewal of the license to develop the Tengiz field — which expires in 2033 — where ExxonMobil is also a partner. Kazakhstan is reportedly seeking to increase its stake in the project in exchange for a contract extension.
Output projections
Discovered in 2000, the Kashagan field was the largest oil find in decades. The project’s original operator, Eni SpA, projected that production would eventually reach 1.5 million barrels per day. However, repeated delays and cost overruns have kept current output at around 450,000 barrels per day.
KazMunayGas (KMG), Kazakhstan’s state-owned oil and gas company, reported that the Kashagan operator plans to raise production to 500,000 barrels per day by 2026 and to 700,000 barrels per day by 2031, following the launch of additional gas processing plants.
Consortium and arbitration
ExxonMobil is a key member of the consortium developing the field, along with Eni SpA, Shell Plc, TotalEnergies SE and KMG.
The Kashagan partners are also involved in arbitration proceedings in Sweden and Switzerland, where the Kazakh government is seeking up to $160 billion in compensation, mainly for lost revenue tied to production delays.
Notably, KMG CEO Askhat Khassenov said in June that if existing international partners are unwilling to invest in further field development, the company plans to pursue the project with other investors.
