US sanctions halt KazMunayGas-Lukoil development of Khazar field

KazMunayGas has suspended its joint development with Lukoil of the Kalamkas-Sea and Khazar fields at Kashagan following sanctions imposed by the US Department of the Treasury.

The announcement was made by the company’s chairman Askat Khassenov, during a video conference, according to reports cited by Caliber.Az from Kazakh media.

The Kalamkas-Sea and Khazar fields, discovered in 2002, are estimated to hold combined recoverable resources of approximately 81 million tons of oil and 22 billion tons of gas. Initial plans had envisaged the start of oil production in 2028.

Following the introduction of US sanctions against Lukoil and its subsidiaries on October 22, 2025, KazMunayGas had been evaluating how the restrictions could affect its joint ventures. The suspension of work indicates that those sanctions have now directly impacted the progress of the project.

By Tamilla Hasanova