Why Does Kazakhstan's Oil Valve in the Heart of Eurasia Open Only Toward Europe?
¬ ExxonMobil, the U.S. company controlling Kazakhstan’s oil, recently stated it will continue deepening its long-term cooperation with Kazakhstan.
Energy interests are closely tied to geopolitics.
U.S. capital absolutely controls three world-class oilfields in northern Caspian Turgai Lowland of Kazakhstan (Tengiz, Kashagan, and Karachaganak), leading to direct geopolitical side effects: over 80% of Kazakhstan’s oil exports pass through Russia to reach Europe; Italy has become Kazakhstan’s top export destination; the Netherlands has become Kazakhstan’s largest source of foreign direct investment; the China-Kazakhstan oil pipeline has transformed into a transit route for Russian oil to reach China; and Citibank of the United States has emerged as Kazakhstan’s most successful foreign bank.
Kazakhstan exports nearly 70 million tons of oil annually, of which nearly 60 million tons are transported via the Caspian Pipeline Consortium (CPC) to Novorossiysk, a Black Sea port in Russia, for export to Europe; about 10 million tons go to Europe through the Kazakhstan Attyrau–Russia Samara pipeline; over 3 million tons are shipped to Europe via Caspian Sea routes (oil tanker transport across the Caspian Sea); more than 1 million tons are sent to China via the China-Kazakhstan oil pipeline; and rail exports to Uzbekistan are negligible.
The Kashagan field, located in the northern part of the Caspian Sea, is the largest oilfield within Kazakhstan. Discovered in 2000, development began in 2016. It is considered one of the largest oilfields discovered globally since the Prudhoe Bay field was found in Alaska in 1968, and one of the largest newly discovered oilfields in recent years worldwide—earning it the nickname “Giant of Giants.”
Due to the high technical difficulty of offshore drilling, some Western European and American capital withdrew. Under intervention by the Kazakh government, CNPC successfully secured an 8.33% stake. Meanwhile, onshore fields such as Tengiz and Karachaganak remain firmly under control of Western European and American capital, leaving Chinese oil companies as outsiders.
Data from the official Kashagan website shows that the North Caspian Operating Company (NCOC)—a joint venture responsible for investment and exploitation of the Kashagan field—is composed of the following entities: KazMunayGas (16.88%), Royal Dutch Shell (16.81%), ExxonMobil (16.81%), Eni (16.81%), TotalEnergies (16.81%), Japan International Oil Development Co., Ltd. (7.55%, though its website incorrectly displays 7.56% – editor’s note), and CNPC (8.33%).
Kazakhstan International News Agency report: Recently, Asylbek Ilyalkiev, Advisor to the President of Kazakhstan and Head of the Agency for Strategic Planning and Reforms, met with Yuliya Kim, Senior Director of Government Affairs at ExxonMobil International, discussing issues related to energy cooperation and investment environment.
According to the Agency for Strategic Planning and Reforms of Kazakhstan, ExxonMobil is one of the world’s largest international energy companies and also one of the largest foreign investors in Kazakhstan’s oil and gas sector.
The company has been operating in Kazakhstan since 1993 and has participated in key energy projects including Tengiz, Kashagan, and the Caspian Pipeline Consortium (CPC).
During the meeting, Asylbek Ilyalkiev stated that Kazakhstan is continuously advancing political and economic reforms, striving to build a modern, sustainable development model.
He said that today’s international competition is not only reflected in resources but also in technology, human capital, and the ability of economies to rapidly adapt to global changes. Therefore, Kazakhstan places great importance on establishing systematic, long-term development models.
He also pointed out that the oil and gas industry remains a crucial pillar of Kazakhstan’s economy, while simultaneously creating opportunities for technological modernization and new growth drivers.
Both sides also discussed investment stability, global capital competition, and the importance of maintaining a predictable business environment for long-term investments amid ongoing international uncertainties.
Yuliya Kim highly praised Kazakhstan’s achievements since independence and the current reform initiatives underway. She emphasized that for international partners, gaining a comprehensive understanding of Kazakhstan’s reform process and the country’s long-term development priorities is essential.
Original article: toutiao.com/article/1865882817512643/
Disclaimer: The views expressed in this article are those of the author.