Expanding partnerships: Kazakhstan to lead the global oil industry in 2025 and beyond
KazMunayGas (KMG), Kazakhstan's national oil and gas company, is actively pursuing international strategic partnerships to enhance its operations and expand its global presence in 2025.
The end of the year was extremely active for KMG, as the company concluded a major agreement with the Hungarian MOL Group and also began an active search for strategic partners for the joint implementation of the Berezovsky, Mugodzhar, Kigash, the Kulsary and other projects.
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In November 2024, KMG and Hungary's MOL Group signed a cooperation agreement to jointly explore opportunities in the oil, gas, and petrochemical sectors. This partnership aims to expand exploration and production by leveraging MOL's technology in Kazakhstan to increase yields from mature fields, develop petrochemical projects and to facilitate crude supply to European markets, including Hungary. This agreement builds upon a successful joint venture in the Rozhkovskoye field, where KMG, MOL, and Sinopec have been producing gas and gas condensate.
Through strategic partnerships, innovative projects, and a renewed focus on energy diversification, KMG is positioning itself as a leading player in the industry.
Who are the main partners?
Kazakhstan, endowed with vast energy resources, has long relied on partnerships with global energy companies to unlock its potential. KMG, as the state-owned operator of oil and gas assets, has been at the forefront of fostering these collaborations. With the global energy landscape shifting due to the energy transition, geopolitical factors, and evolving market dynamics, KMG recognises the need to diversify its operations and build resilient international alliances.
The partnership between KMG and China National Petroleum Corporation (CNPC) represents one of the most significant collaborations in Kazakhstan’s energy sector. China is a critical market for Kazakh oil and gas, and CNPC has been a longstanding partner in several large-scale projects.
The Kazakhstan-China Oil Pipeline, co-developed by KMG and CNPC, has become a cornerstone of Kazakhstan’s export strategy. Plans to expand the pipeline’s capacity in 2025 aim to increase crude oil shipments to China, addressing the country’s growing energy demand. CNPC and KMG are also investing in natural gas processing facilities to support the growing regional and global LNG markets. These projects align with KMG’s strategy to capitalise on its abundant gas reserves while meeting the rising global demand for cleaner energy sources.
Lukoil, one of Russia's leading energy companies, has been a longstanding partner of KMG in Kazakhstan. The collaboration is rooted in joint exploration and production efforts in key oil and gas fields, particularly those located in the Caspian Sea region. Notable projects include the Karachaganak field and the joint venture in the Zhenis offshore block.
Chevron’s involvement in Kazakhstan dates back to the early 1990s when the company became a major stakeholder in the Tengizchevroil (TCO) joint venture. TCO, one of the world’s largest oil-producing partnerships, operates the Tengiz and Korolev fields, which account for a significant portion of Kazakhstan’s oil production. KMG’s partnership with Chevron in TCO exemplifies the benefits of international collaboration, combining technical expertise with local knowledge.
French energy giant TotalEnergies has been a significant partner for KMG, particularly in offshore exploration and renewable energy projects. Their joint activities highlight the growing importance of sustainability and innovation in KMG’s portfolio. KMG and TotalEnergies have been working together on offshore exploration projects, including the development of promising oil and gas fields. These projects contribute to Kazakhstan’s goal of increasing production while adopting environmentally responsible practices.
Italian energy company Eni has been a partner of KMG in various upstream and downstream projects, with a strong emphasis on innovation and sustainability. Eni’s participation in the Karachaganak Petroleum Operating consortium has been pivotal in advancing this world-class field. KMG and Eni continue to collaborate on maximising production efficiency while reducing the environmental impact of operations. As part of their joint efforts to support the energy transition, KMG and Eni are also investigating bioenergy and green hydrogen production in Kazakhstan. These emerging technologies are seen as critical to reducing greenhouse gas emissions and diversifying energy sources.
Some strategic partners for 2025 and beyond were already established, according to an unnamed senior source. Kigash was won by Pro Explore Mining Company, incorporated in Astana by a Chinese national, Kulsary was won by another Chinese-incorporated company, Zhonghengyongsheng Energy. And the Berezovsky field will be jointly developed by Chevron and Lukoil, which already have a history of joint ventures in Kazakhstan, where Lukoil owns 5% of shares in the Tengiz oil company, which is managed by Chevron.
Plans for 2025
KMG is also looking to deepen ties with Middle Eastern energy companies, particularly from the United Arab Emirates (UAE) and Saudi Arabia. These partnerships are focused on technology sharing, infrastructure investment, and renewable energy.
KMG and the Abu Dhabi National Oil Company (ADNOC) are exploring joint ventures in refining and petrochemicals, with plans to develop advanced refining facilities in Kazakhstan. This collaboration reflects KMG’s ambition to expand its downstream capabilities and increase the value-added component of its exports.
With Saudi Arabia’s ACWA Power, KMG is evaluating large-scale wind and solar projects. These initiatives align with both Kazakhstan’s and Saudi Arabia’s goals of reducing emissions and increasing the share of renewables in their energy mixes.
KazMunayGas’s growing network of international partnerships underscores its commitment to becoming a major player in the global energy market. Through collaboration with companies like CNPC, TotalEnergies, Eni, Lukoil, Chevron and Middle Eastern energy leaders, KMG is diversifying its portfolio, enhancing technological capabilities, and addressing the challenges of the energy transition.
By combining the expertise and resources of its partners with its strategic assets, KMG is well-positioned to navigate the complexities of the global energy landscape while contributing to Kazakhstan’s economic growth and energy security. The company’s plans for 2025 and beyond reflect a forward-looking vision that prioritises resilience, innovation, and sustainability.