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Ministry of Energy to set for auction over 60 subsoil plots in 2017

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by November 1, 2016 Legal

The Government of the Republic of Kazakhstan has held a selector meeting chaired by Prime Minister Bakytzhan Sagintayev, where Minister of Energy Kanat Bozumbayev reported on geological exploration in the country.

According to the Minister, there are over 270 hydrocarbon deposits in Kazakhstan. The oil recoverable reserves amount to 4.847 billion tons as of January 1, 2016. The largest are Kashagan, Karachaganak and Tengiz, which account for the bulk of the countrys reserves (about 75%). At present, the number of existing contracts for subsoil use on the hydrocarbon feed has reached 210.

The Ministry conducts a comprehensive practical and normative work to create favorable conditions for attracting investments in geological exploration, K.Bozumbayev informed.

The Ministry has initiated Eurasia project, which is aimed at conducting geological exploration followed by drilling the ultra-deep wells for the study of pre-Caspian depressions deep horizons, where according to some scientists 40 billion tons of hydrocarbons are concentrated. The negotiations are currently held with potential investors.

The geological and geophysical data is being analyzed jointly with KazMunaiGaz with the aim of assessing the hydrocarbon potential of pre-Caspian depression, including the territory of Kazakh sector of Caspian Sea. The analysis will result in allocating the promising areas and creating a portfolio of exploration blocks.

Offshore projects have been activated. The Ministry is working out the issue of joint development of licensed fields of the Middle Caspian Basin Kalamkas sea and Khazar, and negotiates with Russian side on joint development of Central, Khvalyn and Kurmangazy deposits, head of Energy Ministry continued.

In 2015-2016, two contests on the subsoil use right for hydrocarbons exploration were conducted. There are winners in 8 areas. The total amount of subscription bonus is 2.359 billion tenge. Also, as part of the Government measures, the Ministry plans to set for an auction over 60 subsoil plots in 2017.

Since the beginning of 2015, 13 contracts have been concluded, 8 of which are on exploration, 2 on combined exploration and production, and 3 on extraction.

It was proposed to conduct the state geological subsoil explorations exclusively in the poorly studied areas of sedimentary basins and to surrender the largest part of promising areas for hydrocarbons, K. Bozumbayev added.

According to the Minister, the set of activities will bring Kazakhstans legislation to compliance with international standards and create the favorable administrative and fiscal preconditions for geological industry development. However, it is worth considering the need to support Ministrys proposal on intensifying the full-scale exploration activities in promising areas through the private investment for greater effect in restocking.

Source: Government of the Republic of Kazakhstan

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