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Ministry of Energy to submit to the auction over 60 subsoil plots in 2017

by November 1, 2016 Fun

According to the minister, there are more than 270 oil and gas fields in the country. Balance recoverable oil reserves amount to 4.847 billion tons as of January 1, 2016. The largest of them are Kashagan, Karachaganak and Tengiz fields, the bulk of the country’s reserves (about 75%). At present, the number of existing contracts for subsoil use on the hydrocarbon feed has reached to 210.

“Ministry conducted a comprehensive practical and normative work to create favorable conditions for investment in exploration,” K. Bozumbayev has said.

According to him, the Ministry initiated Eurasia project; it is planned to conduct geological work followed by drilling ultra-deep wells for the study of deep horizons of the Caspian Basin. According to some scientists, 40 billion tons of hydrocarbons are concentrated there. At the moment, negotiations with potential investors are held.

Also, the analysis of geological and geophysical data in cooperation with JSC “NC” KazMunayGas” continues to assess the hydrocarbon potential of deep horizons of the Caspian Basin, including the territory of the Kazakh sector of the Caspian Sea; following the results it is planned to identify promising areas and to create a portfolio of exploration blocks.

“The implementation of offshore projects is activated. Thus, the Ministry addresses the issue of joint development of the licensed fields of the Middle Caspian – Kalamkas-sea and Khazar; negotiations with the Russian side on the joint development of deposits of the Central, Khvalynskoe and Kurmangazy are held,” the head of the Ministry of Energy has said.

In addition, the results of two competitions on the right to use subsoil for exploration of hydrocarbons are conducted and summarized in 2015-2016. As a result, there are winners in 8 areas. The total amount of subscription bonus totaled 2.359 billion tenge. Also as part of the Government of Kazakhstan, the ministry plans to submit for auction more than 60 subsoil plots in 2017.

“13 contracts were signed since the beginning of 2015, 8 – on exploration, 2 – on combined exploration and production, and 3 � on extraction. It is proposed to MID of Kazakhstan on the feasibility of the state geological study exclusively in poorly studied areas of sedimentary basins and the liberation of most of the promising areas for hydrocarbons to provide private investors with plans for further exploration of a full-scale,” K. Bozumbayev said.

According to the minister, the whole complex of the activities will bring Kazakhstan’s legislation to international standards and create favorable administrative and fiscal preconditions for the development of the geological industry. However, it is worth considering the need to maintain the Ministry proposals on the feasibility of full-scale intensification of exploration activities in prospective areas through private investment for greater effect in the replenishment of stocks.

Source: The Prime Minister of Kazakhstan