Shell secures major Kazakhstan oil deal as prices and profits surge
Shell has signed a new exploration deal in Kazakhstan, expanding its upstream operations in the region. The agreement covers the Zhanaturmys block, a large area believed to hold significant oil and gas reserves. Despite ongoing legal disputes, the company is pushing ahead with its plans.
Meanwhile, Shell's financial performance remains strong, with share prices near a 52-week high. Rising oil prices and a major share buyback programme have boosted investor confidence in recent months.
On March 5, 2026, Shell finalised an exploration agreement for the Zhanaturmys block in Kazakhstan. The site spans 1,377 square kilometres and is seen as a high-potential area for oil and gas. Under the deal, Shell will conduct seismic surveys, gather geological data, and may carry out deep drilling before 2032.
The move comes as Shell continues to grow its upstream business in Kazakhstan, even as legal challenges persist in the region. The company has not commented on the specifics of these disputes but remains focused on expanding its footprint.
Financially, Shell has been rewarding shareholders. In 2025, it returned 52% of its operating cash flow to investors and increased its dividend by 4%. A $3.5 billion share buyback programme, launched in February, has already seen millions of shares repurchased and retired. The company's stock is now trading well above its 200-day moving average, supported by oil prices climbing past $80 per barrel due to geopolitical tensions.
Shell's next quarterly results will be released on May 1, 2026, offering further insight into its performance and strategy.
The Zhanaturmys block deal extends Shell's exploration efforts in Kazakhstan until 2032. With oil prices rising and shareholder returns increasing, the company's upstream expansion aligns with its financial strength. The upcoming quarterly report will provide more details on how these moves affect its long-term growth.
