Kazakhstan Sells More Than 100 Exploration and Development Licenses for Gas and Oil Block

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Kazakhstan Sells More Than 100 Exploration and Development Licenses for Gas and Oil Block

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A Red Pin on Kazakhstan on the World Map (© Shutterstock/hyotographics)
A Red Pin on Kazakhstan on the World Map (© Shutterstock/hyotographics)

Kazakhstan's oil and gas exploration scene is gradually changing, with more than 100 tracks up for bids, with 23 exclusively reserved for two state-run companies.

According to information published on the Grosreerh governmental website, which offers a platform for lease auctions, the Energy Ministry issued a notice regarding its plan to reallocate or sell 107 of the country's gas and oil block licenses covering both exploration and development of those blocks. However, 23 blocs will be made available for two state-run entities.

Included in the 23 blocks are the Kalamkas-more and Khazar tracts, both of which take up to 1700 square kilometers in the Caspian Sea's water. However, some block will not be open to domestic and foreign investors.

Last year, a privately owned Russian oil-producing company, Lukiol, reportedly had talks with KazMunayGaz regarding the joint exploration of the Kalamkas-more and Khazar gas and oil tracts.

Additionally, government sources indicated a discovery well drilled in the Kalasmas-more in 2002 held over 2 billion barrels of oil reserves.  Originally, Kalasmas-more was identified as a preferred target area for development by international companies that operated near the Kashagan field. However, sources indicate that the idea never materialized, and it was given a different license to operate separately away from the Kashagan field.

The offer included two other large tracts in the Mangistau region, both on the East and West parts of Bolashak, in the Caspian Sea waters. Kazakhstan authorities also persuaded Qazaqgaz to take seven other blocks, the Turgay Paleozoy, contained in the Kyzylorda region. It was said that KazMunayGaz had interests in these seven blocks.

It is worth noting that all 107 blocks are located onshore in various parts of Kazakhstan, while others are near the shores of the Caspian Sea. Some of the blocks were operated by companies owned by KazMunayGaz, while privately-owned local oil-producing companies operated others.

Through the notice on the governmental website, the Energy Ministry called upon companies interested in the remaining 84 gas and oil blocks to participate in an online auction.

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