Kazakhstan's state-run gas pipeline operator and producer Qazaqgaz has been contracted by the Energy Ministry to assess the oil and gas potential of the large, previously unexplored Saralzhyn block.

Project Scope and Location

The contract entails Qazaqgaz financing and managing a multi-year exploration program, including seismic data collection and the drilling of several wildcat wells. The Saralzhyn block covers approximately 4,900 square kilometers in the central part of the Precaspian sedimentary basin. This basin hosts Kazakhstan's largest fields, Tengiz and Kashagan, in its southern area.

Exploration History and Plan

While some Soviet-era seismic surveys exist, there has been no exploration since Kazakhstan's independence in 1991, making this a pure exploration play. The company's technical and regulatory planning phase is scheduled for 2026, after which it will select seismic contractors to proceed.

Strategic Objectives

Despite scarce geological data, Qazaqgaz hopes the block holds primarily natural gas reserves. This aligns with a government mandate for the company to invest in new developments to boost domestic gas production. This increase is needed to meet rising demand as the country transitions from coal power and its population grows. Company projections indicate a required production increase to 74 billion cubic meters per annum by 2029, up from 59 Bcm in 2014.