Kazakhstan Begins Talks to Revise Oil Field Agreements with Foreign Investors

Kazakhstan has officially initiated negotiations with foreign energy companies to revise the Production Sharing Agreements (PSAs) governing its largest oil fields - Tengiz, Karachaganak, and Kashagan as part of a broader effort to better align these strategic projects with national interests.

The move was announced by Prime Minister Olzhas Bektenov during a recent press conference, where he stressed the government’s intent to protect Kazakhstan’s economic sovereignty while ensuring a stable and predictable investment climate, The Caspian Post reports via Kazakh media.

“The development of large oil projects in Kazakhstan operates under production sharing agreements. There is growing concern that the terms of these deals may not sufficiently serve the national interest. We are now beginning talks with our consortium partners to renew and revise the PSAs for the next phase,” Bektenov said.

He clarified that while Kazakhstan is seeking better terms, the government does not intend to overhaul existing agreements completely, recognizing the sensitivity and complexity of the talks, especially given their potential impact on investor confidence and energy sector stability.

The announcement comes amid operational disruptions - notably the halted construction of a gas processing plant at the Karachaganak field. The Energy Ministry has warned that ongoing delays could pose risks to the country’s domestic gas supply, highlighting the importance of timely project completion.

In a related development, Bektenov met in May with Peter Larden, Senior Vice President at ExxonMobil, to assess progress on joint ventures including Tengiz, Kashagan, and the Caspian Pipeline Consortium. Their talks also covered the highly anticipated Tengiz Future Growth Project, aimed at increasing output and reinforcing Kazakhstan’s role in the global energy market.

The renegotiation push follows a directive from President Kassym-Jomart Tokayev, who in January called for a strategic review of Kazakhstan’s long-term oil and gas agreements during an expanded session of the government.