KMG, Sinopec discuss $1.5 bln projects in Beijing
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KazMunayGas (KMG) and China's Sinopec held talks in Beijing on July 17, discussing joint projects worth $1.5 billion. The meeting focused on expanding cooperation in oil and gas exploration and production in Kazakhstan.
The Meeting
KMG Chairman Askhat Khassenov and Sinopec President Zhao Dong met in Beijing on July 17. The talks covered the implementation of existing projects and potential new ventures. Among the key topics were the development of the Zhenis field and the modernization of the Pavlodar Petrochemical Plant.
Project Details
The joint projects under discussion are valued at approximately $1.5 billion. These include upstream oil and gas exploration as well as downstream refining and petrochemicals. The Zhenis field alone is expected to produce 2 million tons of oil per year at peak.
Strategic Context
Kazakhstan is seeking to deepen energy ties with China, its largest trading partner. China accounted for 18% of Kazakhstan's foreign trade in 2025. The meeting follows a series of high-level visits between Astana and Beijing this year.
What's Next
The companies are expected to sign a memorandum of understanding within three months. It remains unclear whether the projects will proceed under the existing production-sharing agreement or require new terms.
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KMG, Sinopec discuss $1.5 bln projects in Beijing
