BAKU, Azerbaijan, August 7. Kazakhstan has approved a list of underexplored subsoil areas available for hydrocarbon exploration and production, opening new opportunities for investors to participate in the development of prospective oil and gas regions.
This was announced by the Ministry of Energy of the Republic of Kazakhstan.
The list was approved by the Ministry of Energy jointly with the Ministry of Industry and Construction as part of reforms in the subsoil use sector aimed at attracting investment into geological exploration.
For the first time, the concept of "underexplored territories" was introduced into Kazakhstan’s Code on Subsoil and Subsoil Use, along with a mechanism for granting subsoil use rights in such areas. The reform is designed to involve promising territories with limited geological study and potential for discovering new hydrocarbon fields.
Under the new mechanism, investors will be able to independently initiate the granting of subsoil use rights for areas included in the approved list. Interested companies can apply to the Ministry of Energy to hold an auction for a selected subsoil area. Applications will be reviewed by the ministry within 10 working days. If there are no grounds for refusal, a notice of the auction will be published within the following five working days.
Subsoil use rights will be granted exclusively through an open auction. The winner will be the participant offering the highest signing bonus, after which a standard contract for hydrocarbon exploration and production will be concluded. "The contract will require investors to carry out a minimum geological exploration program. During the first three years, subsoil users must conduct 2D seismic surveys covering at least 30% of the licensed area, followed by drilling at least one exploration well during the next three years," the statement of the ministry says.
According to the Ministry of Energy, the approach is intended to ensure a transparent mechanism for granting subsoil use rights while encouraging actual exploration activities in prospective areas. The new framework takes into account the higher geological risks associated with underexplored regions and creates additional incentives for investors willing to finance the search for new hydrocarbon reserves. The ministry noted that implementation of the mechanism will help intensify geological exploration, expand Kazakhstan’s resource base and support the further development of the country’s oil and gas sector.
