[Haichuan Overseas Engineering] Chinese company signs deal with Kazakhstan to develop $7.8 billion gas field project

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According to the Kazakh International News Agency, Kazakhstan has for the first time announced plans to develop the Sozak unconventional gas field, the largest in the Kyzylorda region. Reports indicate that Kazakh Invest has signed a memorandum of cooperation with China Intercontinental Oil & Gas Co., Ltd. to work together on the Sozak gas field project, whose exploration and development is expected to require an investment of $7.8 billion. Kazakhstan has proven reserves of unconventional natural gas amounting to about 100 billion cubic meters, while preliminary estimates suggest that the total output from the Sozak gas field could reach up to 1 trillion cubic meters. Sultangali Kinzhakulov, member of the **board of directors** of Kazakh Invest, said that the project will be implemented by an international consortium involving investors from Qatar and China. The project is currently in the exploration phase, and investors have planned to invest $250 million in 2026 to determine the reserves of tight gas, coalbed methane, and shale gas, with the aim of transitioning to commercial extraction in the future. Kinzakulov noted that developing hard-to-extract reserves and unconventional natural gas represents an emerging field for Kazakhstan, which currently lacks the relevant technologies, while the United States and China remain in a leading position in this area. Kazakh Investment **Company states that the project will create around 2,000 jobs in its initial phase, and once it is fully operational, it will offer 7,000 employment opportunities, with no less than 90% of those positions going to local Kazakhstani workers. The investors also pledge to provide technical training for local employees and to give priority to purchasing goods and services produced in Kazakhstan. Kinzakulov emphasized that the technology used in this project has been successfully applied in China and the United States for many years, and it will not cause any damage to the environment. Chen Huanlong, chairman of Intercontinental Oil & Gas Co., Ltd., said the company is fully prepared to invest more funds and resources in developing the Sozak gas field, and hopes to receive support from the relevant authorities in Kazakhstan. Over the past decade or so, the company has invested approximately $3 billion in major energy projects in Kazakhstan.