It was formed by the decree of the President of Kazakhstan dated February 20, 2002 through the merger of Kazakhoil CJSC and Oil&Gas Transportation CJSC. The Kazakhoil company was founded in 1997, and Nurlan Balgimbayev became its first president. From May 1997 to March 1999, Timur Kulibayev held the position of Vice President for Economics and Finance at Kazakhoil. In the summer of 2000, Kairat Satybaldy, the nephew of Nursultan Nazarbayev, who in 2002 took the position of Managing Director for Social Affairs, Strategic Planning and Telecommunications at KazMunayGas, became the Vice President of Kazakhoil.
