ASTANA – Kazakhstan has initiated talks with foreign investors to renegotiate production sharing agreements (PSAs) for its key oil fields – Tengiz, Karachaganak, and Kashagan. Prime Minister Olzhas Bektenov announced the development during a July 15 press conference, emphasizing the country’s commitment to protecting national interests while maintaining a stable investment climate.
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“As for the conditions under which large oil projects are developed, these are governed by production sharing agreements. There is an opinion that the interests of the country have been significantly infringed. We are now starting negotiations with our consortium partners to conclude new PSA agreements for a new period,” Bektenov said.
He clarified that the government aims to defend Kazakhstan’s interests but does not intend a drastic overhaul of existing contracts, acknowledging the sensitivity of these negotiations and their impact on the investment environment, reported Kazinform.
The move comes amid challenges such as the recent halt in the construction of a gas processing plant at the Karachaganak field. The Energy Ministry warned of potential risks to domestic gas supply if the project’s delays continue, highlighting the importance of timely completion.
In May, Bektenov met with ExxonMobil Senior Vice President Peter Larden to review progress on major joint ventures including the Tengiz and Kashagan fields and the Caspian Pipeline Consortium’s operations. Discussions also focused on the upcoming Tengiz expansion project, expected to enhance Kazakhstan’s standing in the global energy market.
The revision of the PSA with major companies follows President Kassym-Jomart Tokayev’s directive given during an expanded government meeting in January.
