BAKU, Azerbaijan, July 2. KazMunayGas and China's CNPC have reviewed progress on joint upstream and refining projects.
This was reported by Kazakhstan's national oil and gas company, KazMunayGas, following a meeting between Chairman Askhat Khassenov and CNPC Vice President Song Dayun in Astana.
"The expansion of the Shymkent refinery requires accelerated preparation of the feasibility study and strict adherence to the project's implementation schedule," KazMunayGas said, citing Khassenov.
According to the company, the parties reviewed work on the Urikhtau project, where equipment procurement and construction are underway ahead of the planned commissioning of the Central Urikhtau gas condensate section by the end of 2026.
KazMunayGas said the field holds 29.4 billion cubic meters of natural gas reserves.
Initial production is expected to reach around 400 million cubic meters in 2027 before increasing to up to 1 billion cubic meters annually at full capacity, the company noted.
According to KazMunayGas, the meeting also covered operations at Mangistaumunaigas, which produced 6.1 million tons of oil in 2025. As of June 1, 2026, production totaled 2.504 million tons, while the company plans to drill 140 new wells this year to improve operational efficiency.
The sides also discussed cooperation in geological exploration, including the jointly selected Dostyk block in the eastern flank of the Caspian Basin, as well as other prospective exploration projects under consideration by CNPC, the report says.
To note, KazMunayGas and CNPC have been strategic partners in Kazakhstan's oil and gas sector for more than two decades. Their cooperation extends beyond upstream production to refining, pipeline infrastructure, and geological exploration. The companies jointly own the Shymkent refinery, while CNPC also holds stakes in Mangistaumunaigas and several major oil transportation assets linking Kazakhstan with the Chinese market.
In recent years, the partnership has expanded from operating existing assets to new investment areas. In 2024, the companies signed a framework agreement to deepen strategic cooperation in oil and gas, with priorities including geological exploration, petrochemicals, transportation infrastructure, and technology exchange, reinforcing CNPC's role as one of Kazakhstan's largest long-term energy investors.
