Kazakh Prime Minister Karim Masimov met with Gazprom Neft chief Alexander Dyukov to form a bilateral agreement between the state-run KazMunaiGas and the Russian firm, the Russian news service Regnum reported.
Both sides discussed the possibility of exploring various oil fields in Kazakhstan and Russia as well as joint refinement and production.
The Kazakh move follows earlier negotiations between Gazprom Neft and Iran to develop the North Azagedan gas field.
The Russian conflict with Georgia over the republic of South Ossetia has reconfigured energy diplomacy as several key energy transportation routes run through the region.
The Kazakh deal is expected to be formalized in the coming days.