History of Kazakhstan Petroleum Industry

The history of KZ petroleum industry can be divided into four stages. The first stage is from 1899 to 1935. The second stage, the primary development period is from 1936 from 1991. The third stage is from 1992 to 1999. The fourth stage, the petroleum industry began to develop rapidly from 2000.

The first oil well was built in 1899. But during this period, the industry center of Russia was in Azerbaijan. There were no sufficient technologies, founds and talents supporting the KZ petroleum industry.

In the second stage, from 1936 to 1991, Soviet Union supported the development of KZ petroleum industry especially after the World War II. Atyrau Refinery was founded in 1945, and it has become one of the biggest refineries in KZ.

The third stage is from 1992 to 1999. At the end of 1991, KZ declared independence. But in the first ten years after the independence, the petroleum industry of KZ developed with great difficulties, because Soviet Union took the funds, equipment and professionals. In order to support the petroleum industry, KZ started a series of reforms. Especially from 1990s, some large international oil companies came to KZ, including Chevron, ENI. The international companies brought in technologies and investment.

From 2000, the supporting policies and high oil reserves attracted the cooperation from more international companies from over 45 countries. According to the latest outlook from U.S. EIA, the oil production in KZ will reach 3.7 million barrels each day in 2035.