Kazakhstan Announces Auction of 30 Onshore Exploration Blocks

Kazakhstan's Ministry of Energy has announced an auction for 28 exploration blocks and two known small oilfields, scheduled for 29 July, with applications due by 30 June. This marks the first of two planned auctions for the year, conducted online, as the ministry seeks to attract greater interest than in previous rounds.

Background and Renewed International Interest

Of the 28 blocks offered, 24 were previously available in online auctions between 2021 and 2025, but received no bids. Despite this, the latest round coincides with renewed exploration efforts by international oil companies in Kazakhstan. In April, UK supermajor BP agreed to jointly assess exploration opportunities for the Ustyurt block in the Mangistau region with KazMunayGaz. In March, Shell signed a contract to explore the Zhanaturmys block in the Aktyubinsk region, with an initial program focused on seismic data collection.

Four Newly Delineated Blocks

The auction introduces four newly delineated blocks, though their acreage includes areas from previously unsuccessful offerings:

• Tyubedzhik Block: Located in the Mangistau region, this is the smallest block at 59 square kilometers, with the highest initial price of 77.7 million tenge ($169,000). It contains two shallow reservoirs with heavy oil at depths of 300-400 meters.
• Shyrak Block: Also in the Mangistau region, spanning 137 square kilometers. No wildcats have been drilled, but several oil and gas fields were previously discovered in the surrounding area.
• Bestau-Sorkol Block: Located in the Aktyubinsk region, covering over 1,500 square kilometers. Previous exploration wells, following seismic data collection, discovered traces of oil in limestone formations above the hard salt area at about 5,000 meters depth. The block lies at the edge of the Caspian onshore and offshore hydrocarbon zone, home to Kazakhstan's two largest oilfields, Tengiz and Kashagan.
• Zhaskayrat Block: Spanning over 1,900 square kilometers in western Kazakhstan, on the opposite side of the Caspian zone, where the country's third largest oilfield, Karachaganak, is located. Traces of oil were previously discovered during exploration drilling, identifying four prospective structures within the block.