Chinese Company Gains Rights to Develop Ustyurt-2 Oil Field

Kazakhstan Dinghua Energy, a Chinese private company, has obtained the rights to explore and develop the Ustyurt-2 oil field in the Mangystau region, Orda.kz reports.

According to Upstream Online, the company won the auction by offering 150 million tenge — roughly twice the starting price. The Ustyurt-2 site covers more than 5.4 thousand square kilometers. Four sites were awarded in the latest auction round.

Since 2022, the Ustyurt-2 field has repeatedly been put up for auction but failed to attract investors. Challenges have included difficulty in confirming recoverable reserves and the remote location of the site.

Under the terms of the contract, Kazakhstan Dinghua Energy is required to invest at least $15 million in the first phase. This includes $6 million for geological exploration and $9 million for drilling three exploratory wells.

The highest bid in the auction was for the Jarkent field, located in the Almaty and Jetisu regions. Kazakh company Almaty Oil Ventures secured development rights with a bid of 809 million tenge. Investment in this project is expected to total $12 million.

Two other sites, Kokoy and Sarysu, were awarded to Taraz Petroleum and Earth Oil & Gas.

Original Author: Nikita Drobny