On February 27, 2024, KazMunayGas (“KMG”), Kazakhstan’s national oil and gas company, detailed its full-year operational results for 2023. Under the leadership of Magzum Mirzagaliyev, Chairman of the Management Board, KMG successfully pursued its strategic initiatives, benefiting a wide range of stakeholders from shareholders and investors to employees, regional operations, and the country at large.

In 2023, KMG’s notable endeavors included the initiation of three new fields to boost gas production. May saw the start of the Aksai Yuzhny field, followed by the Vostochny Urikhtau field in early December, and the year concluded with the Rozhkovskoye field’s commencement. Additionally, in November, KMG finalized the acquisition of a 60% interest from French TotalEnergies in the Dunga oil and gas field in Mangistau region, contributing 547 thousand tons of oil production for the year, with KMG’s share amounting to 40 thousand tons since joining the project.

KMG also made strides in diversifying transportation routes, including oil shipments towards Baku and further to the Baku-Tbilisi-Ceyhan oil pipeline, amounting to about 1 million tons in 2023, and transporting oil through the Atyrau-Samara oil pipeline towards Germany, totaling about 1 million tons for the year.

A partnership with the United Arab Emirates’ Abu Dhabi Ports company led to the acquisition of two tankers, Taraz and Liwa, each with a deadweight of 8 thousand tons, to facilitate Kazakh oil transport in the Caspian Sea. Furthermore, KMG has been actively pursuing sustainable development goals, including the Mirny wind farm project with Total Eren and a hybrid power plant with Eni.

2023 Highlights Compared to 2022:

• KMG’s proven and probable hydrocarbon reserves (2P) experienced a 3.7% increase, reaching 733 million tons of oil equivalent.
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• Oil and gas condensate production rose by 6.9% to 23,532 thousand tons.
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• Oil transportation volumes saw a 7.6% increase, totaling 80,359 thousand tons.
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• Hydrocarbon refining volumes at Kazakh and Romanian refineries reached 19,593 thousand tons, slightly down from 19,900 thousand tons.
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Hydrocarbon Reserves and Production Insights:

KMG’s 2P reserves grew due to enhanced geological and technical measures, drilling efforts, and the revision of development plans, especially at Kashagan and Karachaganak fields. Upstream production volumes for oil and gas condensate increased by 6.9%, with notable growth in associated and natural gas production by 14.8%. Tengiz oil production slightly decreased by 1.0% due to maintenance activities and shutdowns, while Kashagan and Karachaganak saw increases in production.

The year also saw KMG’s entry into new ventures and projects to bolster its gas production capabilities and enhance its strategic positioning within and beyond Kazakhstan’s borders. Through acquisitions, joint ventures, and the development of new fields, KMG is solidifying its role as a key player in the regional and global energy markets.