Kazakhstan's Exploration Initiative and Resource Potential

State-owned KazMunayGaz is offering 22 large onshore and offshore blocks for exploration, which are estimated to hold in-place resources exceeding 34 million barrels of oil equivalent. This initiative aims to attract renewed interest from international oil and gas majors to help Kazakhstan identify new large fields and reduce its reliance on three major Western-led developments—Tengiz, Kashagan, and Karachaganak—which currently account for about 70% of the country's total oil production.

Geological Foundation and Block Identification

The offering follows the completion of extensive basin modelling, a geological simulation technique used to reconstruct the evolution of sedimentary basins and the generation, migration, and accumulation of hydrocarbons over millions of years. This modelling effort covered nearly all of western Kazakhstan, including the Caspian Sea's shallow waters where the major fields are located, as well as provinces in central and southern Kazakhstan. The analysis enabled KazMunayGaz to delineate the 22 prospective blocks.

Current Partnerships and Exploration Plans

KazMunayGaz has already secured foreign investment for three of the blocks and is finalizing deals for several others. Recent partners include Chinese state companies Sinopec and CNOOC for the Berezovsky and Zhylyoy blocks, and Russian producer Tatneft for the Karaton block. The company plans to announce new partnerships and provide detailed block information at an upcoming industry event in Astana.

Proposed Exploration Work Programme

The draft exploration programmes for the 22 blocks involve substantial data acquisition, including the collection of 5600 kilometres of 2D seismic and 2590 square kilometres of 3D seismic data to pinpoint drilling locations. KazMunayGaz also aims to secure commitments to drill at least 25 exploration wells. Given the high expected investment during the exploration phase, the company believes these offerings are suitable only for large international oil and gas players.