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.