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.