Nine Underexplored Basins Made Available for Oil Exploration

Kazakhstan has approved a list of underexplored areas for hydrocarbon exploration and production. It covers nine sedimentary basins spanning much of the country, Orda.kz reports.

Oil and gas expert Nurlan Zhumagulov explained that little geological work has been conducted in these areas or that the available data is insufficient to assess their oil and gas potential. The state will be able to offer unlicensed blocks within the designated areas at separate auctions.

The underexplored areas cover almost the entire country — nine sedimentary basins. This is a useful provision for companies interested in searching for oil in northern Kazakhstan. One investor previously acquired geological data in Russia for the Priirtysh block in the Pavlodar region. Some Soviet-era data, including core samples from certain fields, remain in Russia. Considerable effort was required to include the block in the state subsoil fund management program so it could be auctioned, Zhumagulov wrote.

The Energy Ministry will conduct the auctions under an accelerated procedure. It will have 10 working days to consider a request and another five to publish an auction notice.

Potential bidders will then have 10 working days to submit applications, followed by another 10-day review period. The auction must be held within the next 10 working days.

The winning bidder will be required to conduct 2D seismic surveys covering at least 30% of the block during the first three years and then drill at least one exploration well.

Orda.kz previously reported that 26 oil and gas blocks would be auctioned on November 18. They include areas within the North Turgai, Aral and Irtysh basins.

Original author: Alexander Zhdanov

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