Oil and gas companies of Kazakhstan

Kazakhstan holds the ninth place in the world according to the proven oil reserves. It is established that there are 6.5 billion tons of oil reserves in the depths of Kazakhstan subsoil and these stocks are projected to reach a mark of 20-25 billion tons. Steady growth of the country and citizens’ welfare, great prospects, developing economy, international cooperation and, of course, the recognition of Kazakhstan by International community - all this is achieved owing to the possession of "black gold".

For over 10 years of independence, the total oil production reached 100 million tons out of which 25-30% were produced in the Tengiz oilfield. Experts predict that this figure will increase to 150 million tons of oil by 2015, which mainly will be produced in the Kashagan field (50%).

Kazakh Oil Companies

There are a great deal of oil companies engaged in oil mining and production in Kazakhstan. They are presented as both Kazakhstani and foreign enterprises.

The largest national Oil and Gas Company engaged in oil exploration, production, processing and transportation is KazMunaiGas. This is a Joint Stock Company with 100% government take. The assets of the company are: Kazakhoil-Aktobe (67%), Mangistaumunaigaz (50%), PetroKazakhstan (33%) and Tengizchevroil (20%), and so on.

Also, other smaller Kazakh oil companies carry out their activities, such as: Aday Petroleum, Tolkynneftegas, Aktau TRANSIT, ANAKO (the first private oil company – established in 1994), Ai-Dan Munai and others.

Foreign Oil Companies

Vast amounts of oil reserves attract foreign entrepreneurs, investors and businessmen. Many foreign companies have representative offices in various cities of Kazakhstan and cooperate with the local staff.

Russian oil companies

Lukoil and Rosneft carry out their operations in Kazakh oil fields. Lukoil produces oil in Tengiz (2.5%), Karashyganak (15%), Karakuduk (62.5%), Arman and other fields. Rosneft possesses 50% of the share in the Kurmangazy field.

American oil companies (joint with European) accounted for 42% of the total shares in the oil market in Kazakhstan in 2008.

The starting point of cooperation between Kazakhstan and American oil companies can be considered as April 6, 1993, when the "Contract of the Century" was signed. The Government of the Republic of Kazakhstan concluded an agreement with the Chevron Corporation for a term of 40 years.

Chevron produces oil in Tengiz, Kashagan, Karashyganak.

Other American companies such as ExxonMobil (Tengiz, Kashagan), ConocoPhillips (Kashagan) quite successfully work in Kazakhstan oil market.

European oil companies are also part of oil segment in Kazakhstan.

In 1992 the Republic of Kazakhstan and Agip (Italy) and British Gas (Britain) companies signed an agreement on development of the Karachaganak oil and gas field. This was the beginning of international cooperation between Kazakhstan and European countries in the oil sector.

Today the following European companies are engaged in oil production at various oil fields in the Kazakhstan territory:

• Italian Eni (Agip - a commercial brand of the company), (Karashyganak, Kashagan)

• French Total (Kashagan)

• German Royal Dutch Shell (Kashagan)

• British British Gas (Karashyganak)

• Spanish Repsol YPF (South Zhambai)

• Romanian Petrom (Tasbulat, Aktas, Turkmenistan)

• Danish Maersk Oil (Dunga).

Chinese oil companies have been operating in the Kazakhstani market for 15 years.

For the first time the Chinese government has received full access to the strategic area of the Kazakh economy, oil and gas industry, in September 1997. CNPC (China National Petroleum Corporation) acquired 60.33% of the shares of "Aktobemunaigas" JSC, one of the largest oil companies in Kazakhstan. In 2001, the company also acquired 50% of the shares of Buzachi Operating Ltd (North Buzachi), and in 2006 - PetroKazakhstan. As a whole, the share of these companies ("Kazakhoil-Aktobe" is also owned by Chinese investors) accounted for 97% of produced crude oil in Aktobe oblast.

Another Chinese company CITIC acquired 50% of shares of Karazhanbasmunai (Karazhanbas).

Asian Oil Companies.

Japan National Oil Corporation (JNOC) has been trying to establish relationships with the Kazakh oil sector since 2002. Japan is very interested in Kazakhstan's oil. Even then, the Japanese company Impex (International Oil Company with 50% owned Japan National Oil Corporation) owned 8.3% of "Agip KCO" and participated in the the North Caspian exploration project. Today the company is engaged in the Kashagan field..

 Contribution to the development of Kazakhstan’s oil industry has made other Asian oil companies:

• India's Mittal Investments (Karakuduk, North Buzachi, South Zhambay, Satpayev)

• India's ONGC Videsh Ltd (Satpayev)

• Turkmen Kazakhturkmunai (Saztyube, Yelemes).

Undiscovered oil reserves which have been predicted by experts to be in a large quantity attract the attention of the world's largest companies, therefore, it could be that the list of oil companies will expand soon with the new names.