ASTANA — KazMunayGas (KMG) Chairman Askhat Khassenov reinforced Kazakhstan’s commitment to the full-scale development of the Kashagan oilfield and broader energy initiatives during key meetings with industry leaders in the United States. Discussions focused on increasing local content in major oil and gas projects, advancing renewable energy cooperation, and enhancing operational efficiency, according to KMG press service.
Photo credit: KMG
Strengthening the North Caspian Project with TotalEnergies
During a March 11 meeting with TotalEnergies Chairman and CEO Patrick Pouyanné, Khassenov emphasized the economic significance of the North Caspian project. He reiterated KMG’s commitment to increasing local participation in major oil and gas projects, a priority for Kazakhstan’s energy sector.
A major topic of discussion was renewable energy collaboration, leveraging TotalEnergies’ expertise. The companies explored initiatives to reduce greenhouse gas emissions, including the one-gigawatt Mirny wind power plant project in the Zhambyl Region, supporting Kazakhstan’s decarbonization goals under the Paris Agreement. Additionally, KMG expressed interest in TotalEnergies’ carbon capture, utilization, and storage (CCUS) projects, particularly Norway’s Northern Lights initiative.
Talks with Eni on Kashagan, gas processing, and hybrid power plant
During the working visit to the United States, Khassenov also focused on the Kashagan oilfield with Eni’s Chief Operating Officer Guido Brusco. By the end of 2024, local content in goods, works, and services reached 62.1% or $656.4 million in the North Caspian Operating Company (NCOC) and 65% or $679.6 million in the Karachaganak Petroleum Operating consortium (KPO).
The parties discussed a gas processing plant at Karachaganak that can process 4.5 billion cubic meters of raw gas annually. KMG has also invited Eni to co-invest in new geological exploration projects.
Under a joint project to construct a 247-megawatt (MW) hybrid power plant in the Mangystau Region, the solar power plant is planned to be completed in the third quarter of 2025, and the hydroelectric and wind plants in 2026.
Operational efficiency and refinery modernization
Khassenov also met with Charles Reith, the president and CEO at Solomon Associates, a global leader in consulting for the oil and gas industry, to discuss operational efficiency improvements.
Since 2020, Solomon’s 109 recommendations for KMG’s refineries in Atyrau, Pavlodar, and Shymkent have yielded economic benefits. Investment returns exceeded initial costs by 2-5 times at the Atyrau and Pavlodar plants and reached $306 million over seven years at Rompetrol Petromidia.
KMG is now considering turnaround benchmarking at its refineries to transition to a three-year turnaround cycle. The company expressed interest in new research projects at the Atyrau oil refinery, Rompetrol Petromidia, and CaspiBitum.
During the largest annual energy conference, CERAWeek, held by the information and analytical company S&P Global, Khassenov met with S&P Global Vice Chairman Daniel Yergin to discuss the development prospects of Kazakhstan’s oil and gas sector amid global changes.
