PetroKazakhstan
Corporate brand
UnclaimedA former Canadian oil company whose operations were concentrated in Kazakhstan and which was acquired by CNPC in 2005.
Last updated August 31, 2026
Overview
PetroKazakhstan was a Canadian oil company whose business became concentrated almost entirely in Kazakhstan. The company originated in 1981 as Hurricane Hydrocarbons Ltd., initially operating in Western Canada, but shifted its strategic focus toward Central Asia after participating in the development of several oil fields in southern Kazakhstan. In 1991, Hurricane became a partner in a joint venture involving the Kyzylkiya, Aryskum, Maibulak and South Kumkol fields. Its position expanded substantially in 1996 when it acquired Yuzhneftegaz from the Kazakh government. The company encountered serious financial and operating difficulties in the late 1990s. Its crude was dependent on refineries controlled by Central Asian Industrial Holdings N.V., an affiliate associated with Kazakhstan's Kazkommertsbank, and the refinery arrangement reportedly imposed high processing costs. The pressure was compounded by a collapse in oil prices. In 1999, Hurricane obtained creditor protection under Canada's Companies' Creditors Arrangement Act. A restructuring preserved the operating business, and Bernard Isautier, a director with experience in the Canadian petroleum industry and Central Asia, became chief executive and helped negotiate a combination with Central Asian Industrial Holdings. Between 1999 and 2000, Hurricane acquired an 88.4 percent interest in OJSC Shymkentnefteorgsintez, the company owning the Shymkent Oil Refinery. The refinery, commissioned in 1985 and designed for capacity of approximately 160,000 barrels per day, was described as the most modern of Kazakhstan's three principal refineries at the time. The acquisition gave Hurricane an integrated position spanning upstream production and downstream processing. In 2003, the company adopted the PetroKazakhstan name to reflect that its operations were by then focused on Kazakhstan. Before its sale, PetroKazakhstan held oil and natural-gas reserves in the Turgai Basin and produced crude from fields in southern Kazakhstan. A January 2005 estimate cited approximately 550 million barrels of oil reserves and 25 billion cubic feet of natural-gas reserves, with estimated production of about 165,000 barrels of oil per day. Its principal downstream asset was the Shymkent refinery, together with associated oil-product operations. The company was one of the most prominent foreign-controlled oil producers in Kazakhstan, although its relationship with the Kazakh authorities was marked by disputes involving competition, environmental performance, labor issues and control of strategic petroleum assets. In August 2005, China National Petroleum Corporation agreed to acquire PetroKazakhstan through an affiliated entity for US$4.18 billion. The transaction was one of the largest overseas acquisitions by a Chinese company at the time and attracted significant attention because PetroKazakhstan controlled substantial Kazakh oil production and refining capacity. As part of the arrangement, CNPC agreed to transfer 33 percent of PetroKazakhstan to KazMunayGas. That transfer was completed in July 2006. CNPC subsequently transferred its remaining 67 percent interest to China Petroleum Engineering & Construction Company, an entity associated with CNPC and PetroChina. KazMunayGas later obtained a 50 percent interest in PetroKazakhstan Oil Products, the subsidiary operating the Shymkent refinery, giving the Kazakh state an equal share in that refinery business. PetroKazakhstan was delisted from the Kazakhstan, Toronto, New York, London and Frankfurt stock exchanges after the acquisition. The PetroKazakhstan corporate identity therefore ceased to function as an independent publicly traded international oil company, while its former assets and operations continued under CNPC- and KazMunayGas-related structures in Kazakhstan.
History
PetroKazakhstan began in 1981 as Hurricane Hydrocarbons Ltd., a Canadian company initially active in Western Canada. Its strategic direction changed after it entered Kazakhstan's petroleum sector. In 1991, Hurricane became a partner in a joint venture developing the Kyzylkiya, Aryskum, Maibulak and South Kumkol fields in southern Kazakhstan. The company strengthened its local position in 1996 by acquiring Yuzhneftegaz from the Kazakh government. The expansion created a substantial Kazakhstan-focused upstream business, but Hurricane later encountered financial and structural problems. Its oil was processed through refineries owned by Central Asian Industrial Holdings N.V., a Dutch-registered affiliate associated with Kazkommertsbank. The arrangement reportedly gave the refinery owner considerable pricing leverage, while falling oil prices placed additional pressure on Hurricane's finances. In 1999, the company sought creditor protection under Canada's Companies' Creditors Arrangement Act. Its operations survived through restructuring. Bernard Isautier, a board member with experience in the Canadian oil industry and Central Asia, became chief executive during the restructuring period. He negotiated a merger with Central Asian Industrial Holdings. From October 1999 through 2000, Hurricane acquired an 88.4 percent stake in OJSC Shymkentnefteorgsintez, which owned the Shymkent Oil Refinery. The refinery had been commissioned in 1985 and had capacity of approximately 160,000 barrels per day. This transaction gave Hurricane an integrated production, refining and marketing platform in Kazakhstan. In 2003, Hurricane Hydrocarbons was renamed PetroKazakhstan. The new name reflected the fact that its business had become concentrated in Kazakhstan rather than Canada. The company subsequently ranked among the country's largest oil producers, with reserves and production centered in the Turgai Basin. A January 2005 estimate reported roughly 550 million barrels of oil reserves, 25 billion cubic feet of natural-gas reserves and estimated oil production of approximately 165,000 barrels per day. PetroKazakhstan's growth was accompanied by tensions with the Kazakh government. Reported issues included an anticompetitive-behavior fine and allegations or protests concerning environmental and labor performance. In 2005, the company announced that it had received approaches relating to a possible takeover or merger. ONGC of India was frequently mentioned as a possible buyer, but Kazakhstan stated that it would seek to exercise a right to acquire the company before another transaction. The issue also reflected broader concerns about national control of strategic oil resources and export routes. On 21 August 2005, CNPC agreed to buy PetroKazakhstan for US$4.18 billion through CNPC International. The deal transferred control of the Canadian-listed company and was notable as one of the largest overseas acquisitions by a Chinese company at the time. The acquisition arrangements required CNPC to sell 33 percent of PetroKazakhstan to KazMunayGas; that transaction closed on 5 July 2006. CNPC later transferred its remaining 67 percent interest to China Petroleum Engineering & Construction Company, an entity associated with CNPC and PetroChina. On 6 July 2007, KazMunayGas acquired half of PetroKazakhstan Oil Products, restoring equal ownership of the Shymkent refinery between the Kazakh state-related company and the Chinese-controlled group. Following the acquisition, PetroKazakhstan was delisted from the Kazakhstan, Toronto, New York, London and Frankfurt exchanges. The company no longer operated as an independent public corporation, although its former operating assets continued within successor and affiliated structures in Kazakhstan.
- 2007
Shared ownership of the Shymkent refinery
[1]KazMunayGas acquires 50 percent of PetroKazakhstan Oil Products.
- 2006
KazMunayGas takes a minority stake
[1]KazMunayGas completes the purchase of 33 percent of PetroKazakhstan under the acquisition arrangements.
- 2005
CNPC acquisition agreement
[1]CNPC agrees to acquire PetroKazakhstan for US$4.18 billion.
- 2003
Renamed PetroKazakhstan
[1]Hurricane adopts the PetroKazakhstan name to reflect its Kazakhstan-centered operations.
- 2000
Control of the Shymkent refinery
[1]Hurricane completes the acquisition of an 88.4 percent interest in the company owning the Shymkent Oil Refinery.
- 1999
Creditor protection and restructuring
[1]The company receives protection under Canada's Companies' Creditors Arrangement Act after financial pressure from low oil prices and costly refinery arrangements.
- 1996
Acquisition of Yuzhneftegaz
[1]Hurricane purchases Yuzhneftegaz from the Kazakh government, substantially expanding its position in the country's oil industry.
- 1991
Entry into southern Kazakhstan development projects
[1]Hurricane becomes a joint-venture partner in development of the Kyzylkiya, Aryskum, Maibulak and South Kumkol fields.
- 1981
Hurricane Hydrocarbons is founded
[1]The predecessor company is established in Canada and initially operates in Western Canada.
Products and positioning
A Kazakhstan-focused integrated oil producer and refiner with upstream assets in the Turgai Basin and a major downstream position through the Shymkent refinery.
Upstream production
Crude oil
Crude oil was PetroKazakhstan's core product. Production came from oil fields in southern Kazakhstan and the Turgai Basin, including assets connected with the South Kumkol and related field developments. Before the CNPC acquisition, the company was among Kazakhstan's significant oil producers.
Upstream production
Natural gas
Natural gas was produced as an associated or secondary hydrocarbon resource from PetroKazakhstan's Kazakhstan operations. A January 2005 estimate cited approximately 25 billion cubic feet of reserves, although crude oil remained the company's dominant business.
Refining
Refined petroleum products
Through PetroKazakhstan Oil Products and its interest in the Shymkent Oil Refinery, the company produced refined petroleum products for the Kazakhstan market. The refinery was commissioned in 1985 and had stated capacity of approximately 160,000 barrels per day.
Controversies
Regulatory and environmental disputes in Kazakhstan
Before its acquisition, PetroKazakhstan faced reported conflict with Kazakhstan authorities, including a fine related to anticompetitive behavior and criticism or protests concerning environmental and labor practices. The available reference does not provide enough detail to establish the specific proceedings, amounts or final outcomes.
Brand decisions
2007
Create equal ownership of the Shymkent refinery businessM&ABackground
The Shymkent refinery was a strategically important downstream asset in Kazakhstan.
Action taken
KazMunayGas purchased a 50 percent interest in PetroKazakhstan Oil Products on 6 July 2007.
Aftermath
KazMunayGas and the Chinese-controlled side each held half of the refinery subsidiary.
2006
Transfer of a PetroKazakhstan stake to KazMunayGasM&ABackground
The CNPC acquisition was structured to provide the Kazakh state-related energy company with a material interest in PetroKazakhstan.
Action taken
KazMunayGas completed the purchase of 33 percent of PetroKazakhstan on 5 July 2006.
Aftermath
Ownership of the Kazakhstan-focused business was divided between CNPC-related interests and KazMunayGas.
2005
Accept CNPC acquisitionM&ABackground
PetroKazakhstan controlled substantial Kazakh oil production and refining assets and had attracted takeover interest amid government concerns about strategic ownership.
Action taken
CNPC agreed to acquire the company through CNPC International for US$4.18 billion.
Aftermath
PetroKazakhstan was taken private and delisted from its Kazakhstan, Toronto, New York, London and Frankfurt listings. The transaction also included arrangements for KazMunayGas to receive a 33 percent interest.
Acquisition value. US$4.18 billion (Agreement announced 21 August 2005)
- ONGC — ONGC was frequently cited as a possible alternative suitor, but no completed transaction with it is identified in the reference.
2003
Adopt the PetroKazakhstan nameStrategyBackground
The predecessor company had shifted from Canadian operations toward a business focused on Kazakhstan.
Action taken
Hurricane Hydrocarbons changed its corporate name to PetroKazakhstan.
Aftermath
The new identity emphasized the company's geographic concentration in Kazakhstan until its subsequent acquisition.
Recent events
- 2007
KazMunayGas acquires half of PetroKazakhstan Oil Products[1]
M&A
KazMunayGas acquired a 50 percent interest in PetroKazakhstan Oil Products, the subsidiary associated with the Shymkent refinery, giving the Kazakh state an equal share in the refinery operation.
- 2006
KazMunayGas receives a 33 percent interest in PetroKazakhstan[1]
M&A
Under the CNPC acquisition arrangements, KazMunayGas completed the purchase of a 33 percent shareholding in PetroKazakhstan.
- 2005
PetroKazakhstan announces approach regarding a possible takeover or merger[1]
M&A
The company disclosed that it had been approached about a possible takeover or merger. Market speculation focused on potential interest from India's ONGC, although the situation was complicated by Kazakhstan's assertion of a right to acquire the company before another transaction.
- 2005
CNPC agrees to acquire PetroKazakhstan[1]
M&A
China National Petroleum Corporation agreed to acquire PetroKazakhstan through an affiliated company for US$4.18 billion, creating one of the largest overseas acquisitions by a Chinese company at that time.
Sources1 sources
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