Energy giant Shell plc has entered into a new agreement with the government of Kazakhstan to explore potential oil and gas reserves in the Zhanaturmys block located in the western part of the country.
The deal was formalized by Kazakhstan’s Deputy Energy Minister Yerlan Akbarov and Shell Kazakhstan’s Senior Vice President and Country Chair Suzanne Coogan, according to the Kazakh Energy Ministry. Under the arrangement, Shell will carry out seismic surveys, gather geological data, and conduct technical evaluations to determine the presence and scale of hydrocarbon resources within the exploration area.
Officials said the exploration contract will remain in effect until 2032 due to the size and technical demands of the project. The Zhanaturmys block covers roughly 1,377 square kilometers and lies within a basin considered to be among the most promising regions in Kazakhstan for future oil and gas discoveries.
Kazakhstan’s energy authorities believe that successful exploration in the area could open the door to expanded hydrocarbon development in the country. Suzanne Coogan noted that the new agreement demonstrates Shell’s continued interest in maintaining a long-term partnership with Kazakhstan’s energy sector.
The development comes at a time when several international oil companies, including Shell, are involved in legal disputes with the Kazakh government concerning existing energy projects.
Companies participating in the development of the Kashagan oilfield recently initiated arbitration proceedings to contest a $5 billion environmental penalty imposed over alleged sulfur storage violations at a processing facility linked to the field.
The Kashagan project is managed by the North Caspian Project Consortium, a group of international oil companies that also includes Kazakhstan’s state energy firm KazMunayGas.
Kazakhstan has also launched multiple arbitration claims against major oil companies, with potential damages reportedly reaching as high as $166 billion. These claims are largely tied to delays and revenue losses associated with the Kashagan development.
Despite the legal challenges, Shell’s Chief Executive Officer Wael Sawan recently indicated that the company still sees investment potential in Kazakhstan. However, he noted that the company intends to proceed cautiously until there is greater clarity regarding the ongoing legal disputes.
