Kazakhstan readies massive oil and gas offering

Kazakhstan has unveiled a plan to reallocate or promote 107 exploration and growth licences for oil and fuel blocks, together with 23 to be made out there solely to a pair of state-run firms.

In response to a Kazakhstan Power Ministry discover positioned earlier this week on the Gosreestr governmental web site, which supplies a platform for lease auctions, new homeowners are being looked for potential tracts and already found oil and fuel fields positioned each onshore and within the shallow waters of the Caspian Sea.

Some blocks won’t be open to privately held home and international buyers, nonetheless.

Authorities have known as on state-controlled KazMunayGaz, the nation’s fourth largest oil producer, and fuel pipeline operator Qazaqgaz to overview out there geological data on 23 of the blocks after which enter into direct talks with the ministry to barter licence phrases and exploration commitments.

Highly effective newcomer

Qazaqgaz was fashioned final yr to switch fuel pipeline operator Kaztransgaz, which was cut up off from KazMunayGaz into an independently run entity earlier in 2021, and authorities authorities have urged the brand new firm to increase its presence within the upstream sector.

In response to Qazaqgaz, it already operates three fuel deposits in Kazakhstan with whole recoverable fuel reserves of over 17 billion cubic metres.

The 23 blocks to be put aside embody the Kalamkas-more and Khazar tracts, which cowl greater than 1700 sq. kilometres in Kazakhstan’s Caspian Sea waters.

Simply final yr, privately held Russian oil producer Lukoil was reported to be in talks with KazMunayGaz over joint exploration and growth of the 2 blocks.

A discovery effectively was drilled in 2002 on the Kalamkas-more block, which holds estimated in-place reserves of greater than 2 billion barrels of oil.

Kalamkas-more was initially recognized as a next-development goal for the worldwide consortium that operates the close by Kashagan discipline, the nation’s largest offshore asset, however was later cut up off from the Kashagan licence space to be developed individually.

The providing additionally consists of two giant potential tracts within the Mangistau area, Bolashak East and Bolashak West, elements of which prolong into the coastal waters of the Caspian Sea.

Authorities will even invite Qazaqgaz to contemplate taking over seven Turgay Paleozoy blocks within the Kyzylorda area that have been reported to have as soon as been of curiosity to KazMunayGaz.

Suggestions requested

Firms within the remaining 84 exploration blocks are anticipated to speak their readiness to bid to allow the ministry to drop undesirable belongings from the checklist.

Blocks deemed of curiosity shall be supplied in an internet public sale.

The belongings are positioned in numerous areas of Kazakhstan, with some positioned adjoining to fields already operated by regional subsidiaries of KazMunayGaz or privately held native producers.