The kazakhstan oil and gas upstream market size was valued at USD 6.46 billion in 2025 and estimated to grow from USD 6.69 billion in 2026 to reach USD 7.96 billion by 2031, at a CAGR of 3.55% during the forecast period (2026-2031). This report is Segmented by Location of Deployment (Onshore and Offshore), Resource Type (Crude Oil and Natural Gas), Well Type (Conventional and Unconventional), and Service (Exploration, Development and Production, and Decommissioning). The Market Sizes and Forecasts are Provided in Terms of Value (USD).
Onshore operations remain vital, but they contribute only USD 1.09 billion, or 16.82%, of the Kazakhstan oil and gas upstream market in 2025. Aging Soviet-era gathering lines and rising water stress curb onshore growth to a 2.65% CAGR. Nonetheless, smart-workover programs at Uzen and Zhetybai, coupled with CO₂-EOR tax relief, extend field life and prevent abrupt decline.
Crude oil supplied 69.58% of 2025 revenue, translating to USD 4.49 billion within the Kazakhstan oil and gas upstream market size, and is set for a 3.65% CAGR through 2031. Tengiz’s expansion is already delivering 260,000 bpd by mid-2025, while Kashagan Phase 2 targets 450,000 bpd. Premium Mangistau and Buzachi grades enjoy widening Asian refinery demand.
Natural gas, worth USD 1.97 billion in 2025, climbs 4.85% annually as four processing plants add 8.4 bcm capacity. Karachaganak’s 4 bcm increment and new fiscal incentives for associated-gas utilization reduce flaring and propel export potential to China.
Kazakhstan Oil And Gas Upstream Market Trends and Insights
Oil-price recovery boosting E&P budgets
Exploration and production budgets increased by 18% in 2024, as Brent remained above USD 75 per barrel. Capital inflows accelerated drilling at Uzen, resulting in 5,900 tonnes of extra output in Q1 2024. Chevron fast-tracked Tengiz completion on similar price support. Yet compliance with OPEC+ quotas capped national production at 1.7 million bpd, exposing the Kazakhstan oil and gas upstream market to price volatility.Kashagan Phase-2 ramp-up
Phase 2 lifts Kashagan capacity from 370,000 bpd to 450,000 bpd by 2027 through the installation of new wellhead platforms and the addition of 3.5 bcm of gas processing. Sour-gas-resistant steel and real-time corrosion monitoring reduce downtime by 60% compared to 2022-2023. Break-even costs decreased from USD 45 to USD 32 per barrel following efficiency gains.High sulfur-content processing costs
Hydrogen sulfide levels of 15-19% inflate development costs 25-35% above global averages. Operators spend USD 400 million each year replacing corroded pipe at Kashagan, while Tengiz stores 600,000 t of elemental sulfur annually.Other drivers and restraints analyzed in the detailed report include:
- Enhanced oil-recovery tax incentives
- China-bound trunk pipeline expansions
- Aging onshore infrastructure
Segment Analysis
Offshore assets generated USD 5.37 billion, or 83.18% of the Kazakhstan oil and gas upstream market size in 2025, and are forecasted to grow at a 5.25% CAGR through 2031. Kashagan, Tengiz’s carbonate shelf, and the Kalamkas-Sea cluster headline this push toward deeper, higher-pressure reservoirs. Continuous technology transfer from global majors brings sour-gas-resistant alloys and real-time corrosion surveillance to the Caspian Sea projects. Investments of USD 6 billion are earmarked for Kalamkas-Sea and Khazar, underscoring enduring confidence despite caustic gas and ice-prone waters.Onshore operations remain vital, but they contribute only USD 1.09 billion, or 16.82%, of the Kazakhstan oil and gas upstream market in 2025. Aging Soviet-era gathering lines and rising water stress curb onshore growth to a 2.65% CAGR. Nonetheless, smart-workover programs at Uzen and Zhetybai, coupled with CO₂-EOR tax relief, extend field life and prevent abrupt decline.
Crude oil supplied 69.58% of 2025 revenue, translating to USD 4.49 billion within the Kazakhstan oil and gas upstream market size, and is set for a 3.65% CAGR through 2031. Tengiz’s expansion is already delivering 260,000 bpd by mid-2025, while Kashagan Phase 2 targets 450,000 bpd. Premium Mangistau and Buzachi grades enjoy widening Asian refinery demand.
Natural gas, worth USD 1.97 billion in 2025, climbs 4.85% annually as four processing plants add 8.4 bcm capacity. Karachaganak’s 4 bcm increment and new fiscal incentives for associated-gas utilization reduce flaring and propel export potential to China.
Complete Report Scope:
- By Location of Deployment
- Onshore
- Offshore
- By Resource Type
- Crude Oil
- Natural Gas
- By Well Type
- Conventional
- Unconventional
- By Service
- Exploration
- Development and Production
- Decommissioning
List of Companies Covered in this Report:
- National Company JSC (KazMunayGas)
- Chevron Corporation
- Karachaganak Petroleum Operating B.V.
- PJSC Gazprom
- Eni S.p.A.
- CNPC
- TotalEnergies SE
- Royal Dutch Shell plc
- Lukoil PJSC
- ExxonMobil Corporation
- ConocoPhillips
- Inpex Corporation
- Petronas
- MOL Group
- Repsol S.A.
- Sinopec
- Rosneft PJSC
- OMV AG
- Inpex Corporation
- Qatar Energy
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 Introduction
4 Market Landscape
5 Market Size & Growth Forecasts
6 Competitive Landscape
7 Market Opportunities & Future Outlook
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- National Company JSC (KazMunayGas)
- Chevron Corporation
- Karachaganak Petroleum Operating B.V.
- PJSC Gazprom
- Eni S.p.A.
- CNPC
- TotalEnergies SE
- Royal Dutch Shell plc
- Lukoil PJSC
- ExxonMobil Corporation
- ConocoPhillips
- Inpex Corporation
- Petronas
- MOL Group
- Repsol S.A.
- Sinopec
- Rosneft PJSC
- OMV AG
- Inpex Corporation
- Qatar Energy
