ExxonMobil Holdings Corp. has warned Kazakhstan’s largest oil field, Tengiz, will reach peak output next year before declining to around 500,000 barrels per day by 2035, a roughly 40% drop from its peak absent major new investment.
The U.S. energy giant is now pushing for a joint venture to develop the western section of the Kashagan field, proposing an $80 billion investment split equally with state-owned KazMunayGas National Co. The project could yield up to 600,000 barrels daily, according to Exxon’s presentation to Kazakh authorities in Astana.
The proposed deal remains contingent on resolving two outstanding disputes. Kazakhstan’s government is locked in a $150 billion legal dispute with international oil companies over past contract terms, while a separate $5 billion environmental fine against the consortium also requires settlement before any new investment can proceed.
Exxon, based in Spring, Texas, has not disclosed a timeline for finalizing the Kashagan agreement, but the urgency reflects the rapid decline expected at Tengiz—a field that has long been a cornerstone of Kazakhstan’s oil output.
