• 21.03.2026

ON THE DEVELOPMENT OF GAS PROCESSING CAPACITIES AT THE KARACHAGANAK FIELD

In addition to the message of June 7, 2023, we inform that the Karachaganak project Contractor, represented by Shell and ENI, was unable to make a Final Investment Decision (FID) on the Gas Processing Plant (GPP).

In this regard, the Authorised Body has officially required the Contractor to complete all work on the GPP in May 2025.

It should be emphasized that the Republic of Kazakhstan no longer considers the construction of the GPP within the framework of the existing Final Production Sharing Agreement (FPSA), for the following reasons:

·        the Contractor’s significant overruns of the GPP construction estimate compared to the original plan;

·        the low economic attractiveness of the GPP project and significant cash outflows from the Republic’s Share;

·        the Contractor’s persistent linkage of the project approval matters to other issues unrelated to GPP.

Thus, the option of GPP construction by the Contractor of the Karachaganak Project is not feasible from technical, commercial and legal points of view.

At present, the Republic has commenced work on the design of a GPP for the processing of Karachaganak gas, with the aim of ensuring national energy security.