KazMunayGas Strengthens Kashagan Development and Energy Cooperation in U.S. Meeting
KazMunayGas (KMG) Chairman Askhat Khassenov reaffirmed Kazakhstan’s commitment to advancing the full-scale development of the Kashagan oilfield and expanding energy initiatives during high-level meetings with industry leaders in the United States. The discussions focused on increasing local content in major oil and gas projects, fostering renewable energy collaboration, and improving operational efficiency, according to KMG’s press service.
Strengthening the North Caspian Project with TotalEnergies
During a meeting on March 11 with TotalEnergies Chairman and CEO Patrick Pouyanné, Khassenov underscored the economic significance of the North Caspian project and KMG’s efforts to enhance local participation in oil and gas projects.
A key topic of discussion was cooperation in renewable energy. The two sides explored initiatives to cut greenhouse gas emissions, including the development of the one-gigawatt Mirny wind power plant in the Zhambyl Region. KMG also expressed interest in TotalEnergies’ expertise in carbon capture, utilization, and storage (CCUS) projects, particularly Norway’s Northern Lights initiative.
Talks with Eni on Kashagan, Gas Processing, and Hybrid Power Plants
Khassenov also held discussions with Eni’s Chief Operating Officer Guido Brusco on the Kashagan oilfield and other energy initiatives. By the end of 2024, local content in goods, works, and services reached 62.1% ($656.4 million) in the North Caspian Operating Company (NCOC) and 65% ($679.6 million) in the Karachaganak Petroleum Operating consortium (KPO).
The parties reviewed the gas processing plant at Karachaganak, which has a capacity of 4.5 billion cubic meters of raw gas annually. KMG invited Eni to co-invest in new geological exploration projects.
Additionally, under a joint project to build a 247-megawatt (MW) hybrid power plant in the Mangystau Region, the solar power facility is expected to be completed by the third quarter of 2025, with hydroelectric and wind power components scheduled for 2026.
Operational Efficiency and Refinery Modernization
Khassenov also met with Charles Reith, President and CEO of Solomon Associates, a global oil and gas consulting firm, to discuss strategies for enhancing operational efficiency.
Since 2020, Solomon’s 109 recommendations for KMG’s refineries in Atyrau, Pavlodar, and Shymkent have yielded significant economic benefits. Investment returns exceeded initial costs by 2-5 times at the Atyrau and Pavlodar plants, while Rompetrol Petromidia achieved $306 million in economic benefits over seven years.
KMG is now considering turnaround benchmarking at its refineries to transition to a three-year turnaround cycle. The company is also exploring new research projects at the Atyrau oil refinery, Rompetrol Petromidia, and CaspiBitum.
Discussions at CERAWeek on Kazakhstan’s Energy Future
At CERAWeek, the largest annual energy conference organized by S&P Global, Khassenov met with S&P Global Vice Chairman Daniel Yergin to discuss Kazakhstan’s oil and gas sector’s development prospects amid global industry changes. These discussions reinforced KMG’s strategic priorities in enhancing energy security, sustainability, and technological advancements.
Photo credit: KMG
