In April 2026, the roar of drilling rigs echoed across an oil-gas field in southeastern Türkiye, a milestone in the overseas strategy of Xinjiang Kunlun Petroleum Group Co., Ltd. (hereinafter referred to as Kunlun Group): the project worth USD 370 million. This moment came only three years after the company was founded. From the Gobi oil city in western China to the crossroads of Eurasia, Kunlun Group is rapidly bringing the Karamay oil-service brand onto the global stage.
Fracturing operation vehicles of Kunlun Group in Urho District.Photo by Lu Yize
Xinjiang Zhundong Oilfield Engineering Technology Co., Ltd., an invested enterprise of Kunlun Group, carry out station renovation work at Li Xiaohua Station, Huoshan Mountain Operation Area of Zhundong Oil Production Plant.Photo Providedby Kunlun Group
Established in 2023, Kunlun Group is a mixed-ownership enterprise jointly formed by local state-owned enterprise Karamay Fucheng Energy Group Co., Ltd. (as the leading shareholder) and several private enterprises—including Zhengtong Oil & Gas Co., Ltd. and Zhengcheng Company. The Group was founded under the strategic direction of the CPC Karamay Municipal Committee and Municipal Government to implement the Autonomous Region’s initiative to build a “National Energy and Resource Strategic Base.” As the largest mixed-ownership oilfield service enterprise registered in the Xinjiang, Kunlun Group integrates oil and gas exploration and development with comprehensive engineering and technical research. Its business spans the full chain, including geophysical exploration, drilling, well logging, mud logging, directional drilling, fracturing, well testing, workover, and oilfield construction. The Group’s markets cover major domestic markets such as CNPC Xinjiang Oilfield, Daqing Oilfield, and the Sichuan–Chongqing region, as well as international markets across West Asia, South America, and Africa.
Transport vehicles of Zhengcheng Company, a shareholder of Kunlun Group, transfer chemical products at the factory in Karamay High-Tech Industrial Development Zone.Photo by Min Yong, Karamay Media Center
Nitrogen-generation equipment owned by Youlong Company, an invested enterprise of Kunlun Group, undertakes device purging, production pipeline purging and pressure testing.Photo Provided by Kunlun Group
Kunlun Group’s Drilling and fracturing operations in Huainan, Anhui Province. Photo Provided by Kunlun Group
Kunlun Group’s strategy is anchored in its differentiated overseas expansion. Rather than following the industry trend of crowding into Central Asia—where market entry is difficult and competition is fierce—the Group targeted incremental markets in West Asia and North Africa, successfully securing major project deals..
Drilling crews of Kunlun Group perform drilling operations in the Wu’er Dong Block, Baijiantan District.Photo by Lu Yize
Special-purpose operation vehicles of Kunlun Group are ready at a base in Baijiantan District.Photo by Lu Yize
In China, the Group has stable cash flow in Sichuan-Chongqing and Northeast China, and is expanding its coalbed-methane business across Anhui and Shaanxi. In technical R&D, it has adopted an integrated drilling-weight control model. Its self-developed rotary steering system is scheduled for downhole field trials this year. An Engineering Technology Research Institute has been set up in Beijing to tackle technical challenges such as geology-engineering integration and deep-earth drilling through joint research with universities: an asset-heavy model toward a technology-driven player.
Drilling teams of Kunlun Group work at Jiqing Oilfield (Jimsar Shale Oil Project Dept.), Xinjiang Oilfield Company.Photo by Lu Yize
Drilling teams of Kunlun Group work at a productivity-construction Block of No. 1 Oil Production Plant.Photo by Min Yong, Karamay Media Center
Facing the 15th Five-Year Plan, Kunlun Group targets an average annual growth of 30 %, aiming to exceed RMB 2 billion by 2030. It plans to achieve 500 thousand tons of oil-gas equivalent output from international blocks, more than two thirds of total revenue. The Group aims to deepen its footprint in overseas markets with a focus on high-quality growth. By utilizing Product Sharing Contracts, it is steadily extending its reach into the upstream sector, with the strategic objective of achieving a public listing by 2030.
Drilling teams of Kunlun Group deploy equipment at an overseas project site.Photo Provided by Kunlun Group
Self-developed natural-gas compressors from Guanglu Company, a shareholder enterprise of Kunlun Group, are put into service in mud logging.Photo by Min Yong, Karamay Media Center
Company staff inspect valves and pipelines at the crudeoil processing station of OilSand Mine Company under shareholder Fucheng Energy Group Co., Ltd.Photo by Min Yong, Karamay Media Center
Karamay’s identity is rooted in oil, and Kunlun Group embodies the city’s industrial evolution. As a core platform enterprise, Kunlun drives local synergy by prioritizing procurement from shareholders and domestic partners. By leveraging overseas channels, it exports Karamay’s equipment, technologies, and expertise along the Belt and Road, establishing a premier “Karamay Oil Services” brand. This integrated model sets a benchmark for local refining and petrochemical industries, supporting the city’s ambition to build a national model for oilfield services. With the city enabling growth and enterprises pushing boundaries, Kunlun is strengthening Karamay’s modern, “oil-centric, diversified” industrial system and enhancing energy security. Together, they are marking Karamay’s new coordinates on the global energy landscape.
September 14, 2026 Reporter Liu Yujie, Karamay Media
