Harsh conditions, including sea ice during the winter, temperature variation from −35 to 40 °C (−31 to 104 °F), extremely shallow water and high levels of hydrogen sulfide, together with mismanagement and disputes, make it one of the most challenging oil megaprojects.

[5][6] A stake in the field was acquired by the Chinese government in September 2013 after Xi Jinping struck a deal with Kazakhstan for around $5 billion.

In 1993 the Kazakhstancaspiishelf was formed which consisted of Eni, BG Group, BP/Statoil, Mobil, Royal Dutch Shell and TotalEnergies, along with the Kazakh government.

In 2003, BG Group attempted to sell their stake in the project to two Chinese companies, CNOOC and Sinopec.

On 27 September 2007, the parliament of Kazakhstan approved a law enabling the government to alter or cancel contracts with foreign oil companies if their actions were threatening national interests.

[12] With the Republic of Kazakhstan appointing Maksat Idenov[13] to lead negotiations,[14] KazMunayGas further increased its stake[15] in January 2008,[16] after its six partners[17] and the Kazakh government[18] agreed on compensation[19] for the probable five-year delay that was taken in developing the field.

[26] In October 2008, Agip KCO handed a $31 million letter of intent for FEED work on phase two to a joint venture of Aker Solutions, WorleyParsons and CB&I.

WorleyParsons and Aker Solutions are also engaged in phase one, carrying out engineering services, fabrication and hook-up.

The Kazakh government, however, decided in July 2013 to use its pre-emptive right to buy ConocoPhillips's stake, which it sold to CNPC later that year.

[30][31] When the pipeline was shut down, Hydrogen Sulfide remaining in the pipe was burned off as an emergency measure, releasing sulfur dioxide into the atmosphere.

The recovery factor is relatively low (15-25%) due to reservoir complexity, with between 4 and 13 billion barrels (640 and 2,070 million cubic metres) being the estimated ultimate recoverable resource.

The Agreement is made up of 7 companies consisting of Eni (16.81%), Royal Dutch Shell (16.81%), TotalEnergies (16.81%), ExxonMobil (16.81%), KazMunayGas (16.81%), China National Petroleum Corporation (8.4%), Inpex (7.56%).

North Caspian Operating Co., which took over running of the field from Eni SpA in 2009, said it is working to gradually increase production capacity to a target level of 370,000 barrels a day by the end of 2017.

[43] The machinations of nations and oil companies competing for rights to exploit the Kashagan Field play a major role in Victor Robert Lee's[44] espionage novel Performance Anomalies.