Exxon warns Tengiz output may fall 40% by 2035 without investment
This digest was compiled by AI from multiple sources — links to the originals are below.
Exxon has notified Kazakhstani authorities that production at the Tengiz oil field will peak next year and could decline by approximately 40% by 2035 without further investment, Bloomberg reported on August 20. The company has proposed offsetting the decline by expanding production at Kashagan in a joint venture with Kazmunaigas, though this would be linked to settling their outstanding $150 billion arbitration dispute and $5 billion environmental fine. The warning comes as an Almaty court sentenced former Orda.kz editor-in-chief Gulnar Bazhkenova to eight years in prison on August 18, drawing condemnation from international press freedom groups.
Key Facts
- Exxon has notified Kazakhstani authorities that production at the Tengiz oil field will peak next year and could decline by approximately 40% by 2035 without further investment, Bloomberg reported on August 20.
- Exxon has proposed offsetting the decline by expanding production at the Kashagan field in a joint venture with Kazmunaigas, though this would be linked to settling their outstanding $150 billion arbitration dispute and $5 billion environmental fine.
- On August 18, an Almaty court sentenced Gulnar Bazhkenova, the former editor-in-chief of Orda.kz, to eight years in prison, with the first two years suspended due to her having a child under 14.
- The International Partnership for Human Rights (IPHR) and the Committee to Protect Journalists (CPJ) condemned the verdict against Bazhkenova on August 19, calling it part of a wider crackdown on Kazakhstani media ahead of the August 24 parliamentary elections.
- On August 17, Deputy Prime Minister and Minister of Culture and Information Aida Balaeva said her ministry does not block social media accounts of media outlets, journalists, or bloggers, and called reports of mass account blocks an attempt to discredit the state.
Tengiz Production Warning
Exxon has notified Kazakhstani authorities that production at the Tengiz oil field will peak next year and could decline by approximately 40% by 2035 without further investment, Bloomberg reported on August 20. According to Bloomberg, Exxon has proposed offsetting the decline by expanding production at the Kashagan field in a joint venture with Kazmunaigas. This expansion would be linked to the settlement of the two parties' outstanding $150 billion arbitration dispute and $5 billion environmental fine. On August 14, the International Consortium of Investigative Journalists reported that the Kazakh government had accused the North Caspian Operating Consortium (NCOC), which includes Exxon, of corruptly issuing $10 billion in contracts.
Journalist Sentencing and Media Crackdown
On August 18, an Almaty court sentenced Gulnar Bazhkenova, the former editor-in-chief of Orda.kz, to eight years in prison, with the first two years suspended due to her having a child under 14. She was found guilty of criminally disseminating false information, embezzlement, and illegal entrepreneurship, and was barred from engaging in public life and journalism for five years. Bazhkenova denies all the charges against her. The following day, the International Partnership for Human Rights (IPHR) and the Committee to Protect Journalists (CPJ) issued a strong condemnation of the verdict, writing that they believe her sentencing was part of a wider crackdown on Kazakhstani media ahead of the August 24 parliamentary elections. On August 13, IPHR and CPJ were among nine human rights and press freedom organizations that published a joint letter to President Kassym-Jomart Tokayev urging him to halt the recent wave of journalist arrests and ensure free coverage of the Kurultai elections.
Government Response and Event Cancellations
On August 17, Deputy Prime Minister and Minister of Culture and Information Aida Balaeva said her ministry does not block the social media accounts of media outlets, journalists, or bloggers. She called reports of mass account blocks an attempt to discredit the state and pledged that freedom of speech would not be restricted in the fight against illegal content. Four days later, stand-up comedian Galym Kaliakbarov had a performance scheduled for August 21 cancelled by organizers Almaty's Central Stand Up Club, who cited reasons beyond their control and promised to refund ticket prices. On August 20, Kaliakbarov also had a show interrupted in Astana; authorities say the organizers failed to notify them of the event 10 days in advance, as required by law to ensure the safety of citizens.
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Exxon warns Tengiz output may fall 40% by 2035 without investment
