Kazakhstan - Country Commercial Guide
Oil & Gas Equipment and Services

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2022-01-19


According to the Oil & Gas Journal, Kazakhstan had proven crude oil reserves of 30 billion barrels as of January 2018–the 2nd largest endowment in Eurasia after Russia, and the 12th–largest in the world, just behind the United States. Kazakhstan has the largest proven oil reserves in the Caspian Sea region. Kazakhstan’s crude and condensate output in 2020 was 1.842 million barrels per day (bpd) and in 2019 was 1.965 million bpd. 

Tengizchevroil (TCO) develops the Tengiz and Korolyov oil and gas fields in the Atyrau Region (west Kazakhstan). Tengizchevroil is a joint venture between Chevron (50% share in the consortium), ExxonMobil (25% share), KazMunayGas (20% share) and Lukoil’s LukArco (5% share).  The joint venture was formed in April 1993, when the Kazakhstan government granted an exclusive 40-year right to Tengizchevroil LLP (TCO) to develop the Tengiz and Korolevskoye oil fields located in the north-eastern reaches of the Caspian Sea in Kazakhstan.

The national oil and gas company, KazMunaiGas (KMG), is largely responsible for arranging the licensing tenders for oil and gas blocks.  KMG also plays a role in almost all contracts with foreign oil and gas companies.  KMG holds stakes in 47 enterprises conducting petroleum operations in Kazakhstan, including Tengizchevroil, North Caspian Operating Company (NCOC), Karachaganak Petroleum Operating (KPO), and the Caspian Pipeline Consortium (CPC).  

Current Market Trends

The COVID-19 pandemic resulted in a massive drop in global demand for downstream oil & gas products, precipitating the collapse of global crude prices.  The crisis has had a significant impact on government revenue streams in Kazakhstan derived from crude production.  The industry is critical to Kazakhstan’s economic and national security, as nearly 44 percent of the state budget’s revenues come from this sector. According to a report by the Asian Development Bank, the value of nearly 80 percent of Kazakhstan’s exports was halved due to the pandemic.  Under an agreement between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, Kazakhstan reduced its oil production by 390,000 barrels per day.   Crude production from Kazakhstan’s highest-producing oil field, Tengiz, dropped 12% on the year in the second quarter of 2020 to 570,000 barrels per day, reflecting the country’s adherence to the OPEC+ production cuts.

Leading Sub-Sectors

Despite the challenges posed by the global slowdown in demand for oil & gas, opportunities continue to exist for U.S. companies across nearly every sub-sector associated with oil extraction, processing, and transportation in Kazakhstan.  Best prospects include drilling, research and data management, laboratory studies, oil spill cleanup technologies, and pipeline equipment and services.  About 80% of the equipment used in the oil and gas sector is imported, with a majority produced in Russia and China.


To date, Kazakhstan has limited technical expertise in offshore production and operations. This experience gap offers many opportunities for U.S. service companies in rig work, support infrastructure, and environmentally sensitive technologies. The Caspian Basin’s oil-bearing formations are generally quite deep (15,000 feet), under considerable pressure and often contain a high degree of sulfur and other contaminants, making U.S. technologically advanced drilling and processing equipment necessary.

The most promising sub-sectors include: offshore/onshore oil and gas drilling and production equipment; turbines, compressors and pumps for pipeline applications; valves; measurement and process control equipment for pipeline applications; industrial automation, control and monitoring systems for refineries, gas processing and petrochemical plants; seismic processing and interpretation; petroleum software development; sulfur removal and disposal technologies; well stimulation and field abandonment services; underwater repair equipment and oil spill containment equipment.  There are also significant opportunities in the provision of related services. 


  • Trade Show: Global Oil & Gas Atyrau 
  • Ministry of Energy of the Republic of Kazakhstan
  • Kazakh Institute of Oil and Gas (KING)
  • KazEnergy Association
  • U.S. Energy Information Administration

For more information contact Commercial Specialist Azhar.Kadrzhanova@trade.gov