KazMunayGaz, Kazakhstan's state oil and gas company, has outlined exploration plans for two onshore blocks in response to government directives to increase hydrocarbon production and secure the country's long-term energy supply. The company is preparing to drill a second deep exploration well on the Turgay Paleozoy block in the Kyzylorda region, following the completion of the PZ-1 well in April last year, which reached a depth of about 5,600 meters. Although PZ-1 did not result in a discovery, it penetrated predominantly carbonate fractured reservoirs with a vertical thickness of about 2,500 meters, which the company considers an important scientific discovery, as such reservoirs host major oil and gas fields elsewhere.

In February, President Kassym-Jomart Tokayev tasked KazMunayGaz with discovering and confirming new oil and gas reserves to underpin the country's long-term energy supply, issuing instructions to accelerate geological exploration works. The company will now re-interpret previously collected 2D and 3D seismic data at Turgay Paleozoy to determine a location for the second deep well. Additionally, KazMunayGaz will drill an exploration well at the Beles block, also in the Kyzylorda region, to a depth of 3,500 meters to assess the potential of expected shale oil reservoirs. Beles is located next to the Kumkol oilfield, operated by a joint venture of KazMunayGaz and China National Petroleum Corporation.

Last year, KazMunayGaz estimated recoverable oil reserves in its directly operated assets in Kazakhstan at about 3.3 billion barrels, though half were categorized as difficult to recover. For comparison, recoverable reserves at the Tengiz and Kashagan fields are estimated at 11.5 billion and between 9 billion and 13 billion barrels, respectively. While KazMunayGaz will proceed with the Turgay Paleozoy and Beles projects independently, it seeks joint exploration deals with foreign and domestic partners for other prospective acreages to secure outside financing.

In March, executive chairman Askhat Khasenov reported that the company completed basin modeling of five major oil and gas plays, identifying 22 large exploration blocks to offer to international partners. As talks progress, the company plans to collect 2D and 3D seismic data and drill up to 24 exploration wells, with estimated exploration spending of $900 million between 2026 and 2029.