KazMunayGas Plans First-Ever Yuan Bond Amid OPEC+ Tensions

Kazakhstan’s state oil company KazMunayGas is exploring the possibility of issuing yuan-denominated bonds to access cheaper financing from international markets.

The firm may tap both dim sum bonds (offshore) and panda bonds (onshore in China), CEO Askhat Khassenov told Bloomberg. He also confirmed interest in Arab debt markets, where borrowing conditions appear favourable.

Khassenov said the company had reviewed several options and found yuan bonds to offer rather good conditions. If approved, this would mark KazMunayGas’s first debt issue in Chinese currency.

At the same time, Kazakhstan has refused to cut oil output despite being a member of OPEC+. Energy Minister Yerlan Akkenzhenov explained that the country cannot force production cuts on international firms, which control more than 70% of its oilfields.

Deputy Energy Minister Alibek Zhamauov confirmed to Interfax that Kazakhstan had already informed OPEC it would maintain output based on current capacity, regardless of production quotas.