JOINT VENTURES IN KAZAKHSTAN’S OIL AND GAS SECTOR: ECONOMIC BENEFITS, TECHNOLOGY TRANSFER, AND NATIONAL SECURITY RISKS

Abstract

 This article explores the dual impact of joint ventures in Kazakhstan’s oil and gas sector, focusing on both economic efficiency and strategic risks. While such partnerships— particularly those involving Chinese companies—have contributed over US$42 billion in investment over the past 25 years, leading to growth in GDP, exports, job creation, and modernization through technology transfer, they also present national security concerns. These include foreign dependency, regulatory uncertainty, and the potential loss of control over strategic natural resources. The article reviews ten academic studies using structured criteria, synthesizing findings across investment performance, partnership models, and risk categories. The analysis reveals that flexible investment mechanisms, such as production sharing agreements, are seen as effective in balancing investor interests with national priorities. Technology transfer emerges as a key benefit, supporting energy efficiency and innovation. However, risks linked to foreign control, sanctions, and geopolitical shifts remain high-impact challenges. The paper highlights the need for diversified international cooperation, robust regulatory frameworks, and long-term sustainability strategies. Findings suggest that Kazakhstan can benefit most from partnerships that prioritize knowledge sharing, transparency, and alignment with national development goals.