Production Sharing Agreements: Kazakhstan

1    Introduction to production sharing agreements

One of the most common types of contractual arrangements for the exploration and production of natural resources, production sharing agreements (PSAs) are very complicated and often cause disputes between states and exploration companies. PSAs in Kazakhstan have their own history, characterised by both success and failure. This chapter reviews the evolution of the PSA in Kazakhstan, briefly describes the most ambitious projects and summarises the issues encountered along the way.

1.1    History of PSAs 

PSAs have been widely and successfully employed in more than 60 countries around the world for decades. They balance out the interests of the state in regulating access to its natural resources and those of extraction companies that possess various resources.