Kazakhstan is pushing back against oil-field contracts signed with Western multinational corporations in the 1990s. This follows the embarrassing reveal that 98% of revenues from Kashagan—an enormous and lucrative Caspian Sea offshore oilfield—goes to foreign companies.
Under president Nursultan Nazarbayev, Western energy giants entered partnerships to develop the ‘three whales’—the Kashagan, Tengiz, and Karachaganak oil fields. The three now supply 13% of the oil used by the European Union, but to Nazarbayev’s successor, such terms look increasingly unfavourable.
In January, President Kassym Zhomart Tokayev announced that he would push for the renegotiation of oil agreements
under renewed, more beneficial conditions for the country
before the contracts officially expire in 2037.
Legal action was ongoing prior to the European Union/Central Asia summit last month, at which the EU attempted to increase its influence over crucial supply chains. The actions taken by Astana highlight, once again, some of the pressing issues of European energy independence.
