BAKU, Azerbaijan, September 23. Kazakhstan will
have offered a total of 112 subsoil blocks for hydrocarbon use
through auctions by the end of 2026, including 56 blocks to be put
up at an electronic auction on December 25, the Ministry of Energy
said.
The upcoming auction will be held on the e-Qazyna electronic
platform, with applications accepted until November 18.
“A total of 56 out of the 112 subsoil blocks will be offered at
the upcoming December auction. They are located in various regions
of Kazakhstan, including the Mangystau, Aktobe, Atyrau, West
Kazakhstan, Ulytau, Kostanay and Kyzylorda regions,” the ministry
said.
The auctions are being held as part of efforts to implement the
president’s instructions to improve the efficiency of subsoil use
and create conditions for investment in geological exploration and
the further development of the oil and gas sector, the ministry
said.
Obtaining subsoil use rights will entail investment and
exploration commitments for successful bidders. Minimum volumes of
geological exploration, including seismic surveys and drilling,
have been established for each block.
Following the conclusion of a contract, auction winners will
have one year to prepare an exploration work program. They will
then be required to complete the specified 2D seismic survey
requirements within three years and, where stipulated by the terms
of a particular block, drill at least one well within four
years.
The contracts will also include requirements related to human
capital development, science and regional infrastructure. During
the production period, subsoil users will be required to allocate
1% of the previous year's production costs to training Kazakh
personnel and another 1% to research, scientific and technical, and
experimental design work in Kazakhstan. A further 1% of contract
investments will be allocated to the socio-economic development of
the region and its infrastructure.
Local content requirements will include at least 70% for works,
70% for services and 30% for goods. The share of Kazakh personnel
must be at least 80% among managers and their deputies, 90% among
heads of structural units, and 100% among specialists and skilled
workers.
Additional requirements will apply to large fields. If initial
geological reserves exceed 100 million tons of oil or 50 billion
cubic meters of natural gas, the contract must include an
obligation to establish or modernize processing facilities, supply
the produced hydrocarbons for processing in Kazakhstan, or
implement another investment or socio-economic project.
“With the 56 subsoil blocks to be offered at the December
auction, Kazakhstan will have offered a total of 112 blocks for
subsoil use rights by the end of 2026. The blocks come with
commitments covering geological exploration, drilling, investment,
training of Kazakh personnel, scientific development, local
infrastructure and increasing local content,” the ministry
said.
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