Kazakhstan's Energy Vulnerability

Kazakhstan is struggling with stagnant oil and natural gas production and flagging energy revenues, and in response it plans to turn to outside patrons to help exploit its energy reserves. As part of this strategy, the Kazakh government on July 2 exercised its right to purchase ConocoPhillips' stake in the Kashagan oil project — a project that has struggled for years with delays and cost overruns — and intends to sell this stake immediately to China's state-run China National Petroleum Corp. China's inclusion in Kashagan will give the project some much-needed financial support and could indirectly reduce pressure on the energy revenue-dependent Kazakh government.