Kazakhstan Resolves Long-Running Dunga Oil Field Cost Dispute

Kazakhstan Resolves Long-Running Dunga Oil Field Cost Dispute
Photo: Astana Times

Kazakhstan has reached an agreement to resolve a yearslong dispute over costs at the Dunga oil field in the Mangystau Region, the Energy Ministry said in a written response to The Astana Times. The settlement clears the way for a development plan targeting 67.4 million barrels of oil production through 2039.

The agreement was signed on Oct. 5 by Energy Minister Yerlan Akkenzhenov and KazMunayGas Deputy Chairman Ruslan Balykbayev, in the presence of representatives of PSA LLP and Dunga Operating GmbH, the field's operator. The document is expected to be submitted for signing to the consortium's foreign partners, Oman Oil Company Limited and Thailand's PTTEP Corporation.

The dispute centered on whether certain historical expenses incurred by contractors were eligible for reimbursement under the production-sharing agreement. The Energy Ministry did not specify the amount of financial compensation to Kazakhstan. Dunga produced 677,300 tons of oil in 2025, up from 630,000 tons in 2024 and 546,900 tons in 2023. Akkenzhenov said the settlement allows the state to protect its economic interests without lengthy legal proceedings.

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This story was automatically summarised and translated from Astana Times. All rights to the story belong to its source.

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