KMG Karachaganak, a 100% subsidiary of KazMunayGas, plans to reduce capital expenditures on the Karachaganak project in 2027 almost threefold – from 29.96 billion to 10.9 billion tenge. This was reported by Qazaqyia.kz citing Kursiv Media.

The costs are related to KazMunayGas's participation in the development of the field under the Final Production Sharing Agreement (FPSA). The national company owns a 10% stake in the field operator – Karachaganak Petroleum Operating (KPO), so it finances the corresponding part of capital expenditures.

In subsequent years, capital expenditures will continue to decline: in 2028 – 8.2 billion tenge, in 2029 – 5.6 billion tenge. In 2030-2037 (the FPSA was signed in 1997 and expires after 40 years, i.e., in 2037), capital expenditures will total 17.5 billion tenge.

In turn, KMG Engineering's operating expenses for the project will decrease in 2027 to 1.08 billion tenge from 4.7 billion tenge this year. In 2028 and 2029, operating expenses will also amount to 1.08 billion tenge per year, and in 2030-2037 they will total 7.6 billion tenge.

On October 8, 2025, the board of directors of KazMunayGas decided to reduce the authorized capital of KMG Karachaganak by 30 billion tenge. On November 27, 2025, KMG received the specified 30 billion tenge from its subsidiary in full. At the end of 2025, the authorized fund of KMG Karachaganak decreased to 135.3 billion tenge.

KMG Karachaganak held $36.5 million in deposits at Kazpost at the end of 2025 at 3.45% per annum. On April 23, 2025, KMG Karachaganak paid KazMunayGas $68.36 million (35.4 billion tenge) as dividends.

KMG Karachaganak's revenue in 2025 amounted to 184.2 billion tenge compared to 185.9 billion tenge in 2024. Most of the revenue came from the sale of crude oil – 179.5 billion tenge (in 2024 – 181.1 billion tenge) and the sale of gas and gas processing products – 4.7 billion tenge (4.8 billion tenge).

All oil was supplied to Switzerland (formally, the buyer company may simply be registered in Switzerland), and gas – to Kazakhstan. Buyers include BG Karachaganak Trading Limited, ENI Trading B.V., Litasco S.A., Chevron Products Company, KazMunayGas Trading AG.

Crude oil is exported through the Caspian Pipeline Consortium (CPC) and the Atyrau-Samara oil pipeline. Revenue from the sale of crude oil, gas, and condensate is recognized at the time of transfer to the buyer. Payment is usually made within 30 days of delivery.

KMG Karachaganak's profit for 2025 amounted to 15.3 billion tenge, in 2024 – 159.1 billion tenge. At the end of 2025, KMG Karachaganak's uncovered loss amounted to 28.1 billion tenge.

The Karachaganak field, discovered in 1979, is one of the largest gas condensate fields in the world. The Final Production Sharing Agreement implies its development by the KPO operator until the end of 2037. Since the signing of the agreement, more than $29.8 billion has been invested in the project. The following companies have stakes in KPO: Eni S.p.A. – 29.25%, Shell Plc – 29.25%, Chevron – 18%, LUKOIL – 13.5%, and KazMunayGas – 10%.