The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Investors heed oil funding row

A dispute over the funding of oil pipeline development pinpoints increasing tension between foreign investors and the Kazakh authorities that may hamper the development of offshore Caspian oil resources.

Oil fields critical to Kazakhstan

IT WAS ONE of the worst rows in the seemingly never-ending series of spats between the government of Kazakhstan and the small band of foreign multinationals that invest in the country.

In November 2002 TengizChevroil (TCO) stopped production at the Tengiz oil field in north-western Kazakhstan, the republic's biggest, after a row broke out over how to fund the next stage of development. Until recently proceeds from exporting production through a ragtag collection of trains, tankers and swap deals has financed development.

TCO is an international consortium led by US oil major ChevronTexaco that has been working the 9-billion-barrel oil field since 1993. Tengiz is the republic's cash cow and one of the biggest investments in the former Soviet Union. ChevronTexaco owns half of TCO, ExxonMobil 25%, Kazakhstan state oil company Kazmunaigaz 20% and LUKArco 5%.

High-stakes game The advent of the Caspian Pipeline Consortium oil pipeline, which came into service last summer and is the first large-diameter pipeline carrying oil out of the area, has increased the stakes.

The lack of a pipeline previously limited exports, so there was no rush to ramp up production.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree