The Kazakh sector of the Precaspian Basin covers an area of 500,000 square kilometres and is by far the most prolific basin in Kazakhstan. Over 200 fields have been discovered to date, including the super-giant oil and gas megaprojects: Kashagan (2000), Tengiz and Karachaganak (both in 1979). These account for most of the country's production. The offshore sector of the basin attracted strong interest from the industry following the Kashagan discovery, but failed to live-up to the hype. Recent exploration success has been limited, especially offshore. Nonetheless, this is where the largest prospects are thought to remain. The basin offers limited potential for value creation. This is a result of modest prospective resources and various challenges that increase costs - geography, logistics, very shallow water offshore (frozen in winter) and deep, high-pressure reservoirs for the largest prospects, typically with sour gas.