Kazakhstan Oil Sector

Oil & Gas is the largest sector and driver of growth for almost all Central Asian economies. Kazakhstan has the Caspian region's largest recoverable crude oil reserves and in Kazakhstan, production is expected to double over the next decade to over 3 million barrels per day.

Kazakhstan has 3 oil refineries located in Pavlodar (northern region), Atyrau (western region) and Shymkent (the South) with an estimated total refining capacity currently standing at ~430,000 barrels of oil per day.

Output primarily comes from the country's three largest fields, Tengiz, Kashagan and Karachaganak. Many of the worlds majors are involved in the development of these fields. Chevron holds important stakes in Tengiz and Karachaganak and a number of National Oil Companies (primarily Chinese) also have significant stakes in all the large Kazakh onshore fields. The state owned KazMunaiGas is also an important stakeholder in most of the largest fields in the country. Other companies invested in the area include ENI, BG, Total, LUKoil, Shell, ExxonMobil, ConocoPhilips and Inpex.

There are three significant hydrocarbon basins: the pre Caspian, the Mangyshlak and the South Turgai basins. The potential of the region became obvious (particularly to the West) with the discovery of Tengiz in the 1970's but the lack of foreign investment and access to technology meant that the development of the sector really only began in earnest in the 1990's.

Whilst the highly technical nature of many of the fields in the pre Caspian has restricted development to the global oil majors, other oil producing areas represent significant opportunities for smaller E&P companies, such as Jupiter Energy Limited.

The Geology of the area where Jupiter is focussed is detailed more under Geology of the Mangistau.