ALMATY, March 5, 2026, 13:56 UTC+06
- Shell has inked a deal with Kazakhstan that gives it exploration rights for the Zhanaturmys oil and gas block in the Aktobe region, a contract stretching through 2032.
- The ministry kept mum on planned spending. Shell, for its part, is still tangled in arbitration over separate Kazakh projects.
- Shell bought back 1,949,746 shares for cancellation on March 4, pressing ahead with its share repurchases.
Shell Plc’s Kazakhstan arm has inked a deal with the energy ministry for geological exploration at the Zhanaturmys oil and gas block in the Aktobe region, according to the ministry on Thursday. The contract covers 1,377 square kilometres and will remain in effect through 2032. (Source: https://www.reuters.com/business/energy/sh…)
Shell stays in the game in a country that’s been a magnet for big global producers, despite ongoing state disputes over existing projects. For the company, it’s a fresh shot in a basin where opportunities can vanish quickly.
Kazakhstan is sending investors yet another sign: exploration acreage keeps getting allocated, even as the government faces mounting pressure to maintain both output and exports.
The ministry disclosed that the contract covers seismic surveys, along with data collection and technical assessments—all pending permits and regulatory approvals. No investment amount was specified.
Shell, along with its partners in Kazakhstan’s two key projects, is tangled in international arbitration—bypassing local courts to resolve disputes. Back in January, the Karachaganak group, Shell among them, came up short in a case that had up to $4 billion at stake. As for Kashagan, that dispute is still playing out, with claims pegged at roughly $160 billion.
The exploration pact comes as Shell keeps its buyback engine humming. On Wednesday, Shell confirmed it repurchased 1,949,746 shares for cancellation in London and Amsterdam, sticking to its current repurchase plan. Morgan Stanley has been handling trading independently and will do so through May 1. (Source: https://www.globenewswire.com/news-release…)
Shell execs have been highlighting growth prospects beyond Central Asia. In Brazil, the company’s local chief described the Middle East conflict involving the United States, Israel, and Iran as an “enormous opportunity” for Brazilian oil. “We went from having 10 to 15 blocks in 2021 to having 50 exploratory blocks in our portfolio today,” he said. Last year, Shell invested 12.5 billion reais in Brazil and hit a record 496,000 barrels of oil equivalent per day—gas converted to oil-equivalent—on Feb. 24. (Source: https://www.reuters.com/business/energy/sh…)
Shell plans to pump 3.5 billion reais into Raizen, its sugar and ethanol joint venture with Cosan, sticking by the company after Raizen raised doubts about its ability to stay afloat. Shell’s Brazil CEO said splitting up Raizen isn’t on the table—they’d rather see it hold together—and expects another shareholder to step up with new capital. (Source: https://www.reuters.com/sustainability/cli…)
Kazakhstan isn’t a blank slate. The massive Tengiz field is run by Chevron-led Tengizchevroil, with Exxon Mobil, KazMunayGas, and Lukoil also in the mix. Following earlier disruptions, the government has been pressing the partners to step up reliability. (Source: https://www.reuters.com/business/energy/ka…)
Still, plenty of pitfalls linger. It’s not uncommon for exploration blocks to chew through years and capital without yielding results, and regulatory permits mean the state holds the reins throughout. Shell hasn’t said how much cash it’s actually putting behind Zhanaturmys, so gauging the company’s real commitment isn’t straightforward.
