PM: Kazakhstan Eyes New Production Sharing Agreements to Safeguard Energy Sovereignty

Kazakh Prime Minister Olzhas Bektenov has announced plans to negotiate new Production Sharing Agreements (PSAs) for its major oil and gas fields-Kashagan, Tengiz, and Karachaganak-once the current contracts expire, with a clear focus on protecting the country’s national interests.

Bektenov made the remarks during a press conference in Astana, The Caspian Post reports, citing local media.

Addressing concerns that existing contracts restrict Kazakhstan’s benefits from these vital energy projects, Bektenov said, “We are currently working and initiating talks with our partners to conclude new PSAs, which will be aligned with the national interests of Kazakhstan.”

Highlighting the importance of investor relations, Bektenov stressed that the process requires sensitivity due to its significant impact on the nation’s investment climate. “We will approach this work carefully, without abrupt moves. This is a normal negotiation process, and we will always prioritize our country’s national interests,” he added.

The current PSAs for these projects have fixed terms: the Tengiz agreement, signed in 1993, is valid until 2033; the Karachaganak PSA lasts 40 years, expiring around 2037 or 2038; and the Kashagan PSA also spans 40 years, concluding in 2037.