Kazakhstan encourages investments in hydrocarbon geological exploration and extraction
The Kazakh Energy Ministry unveiled new subsoil user support measures at the Geoscience & Exploration Central Asia international forum, Qazinform News Agency reports.
Deputy Minister Yerlan Akbarov highlighted the country’s strong momentum in the sector, noting that since 2023, investments in geological exploration have reached 433 billion tenge, with the number of contracts for hydrocarbon exploration and production rising to 319.
He highlighted that Kazakhstan aims to increase geological exploration coverage from 1.5 million to 2.2 million sq. km by 2026.
To this end, Kazakhstan inserted conceptual amendments to the legislation, introduced the notion of unconventional hydrocarbons, simplified electronic auction procedures, and improved model contracts with fiscal incentives for complex projects.
He stressed investors may now correct auction application errors and return unpromising sites without penalties, saving up to 300,000 US dollars per stage.
As part of digitalization, 11 auctions were held, resulting in 121 sites awarded with commitments worth 55 billion tenge.
He emphasized that over the past two years, 35 oil fields moved to production, with gas extraction already underway at Rozhkovskoye, South Aksai, and Anabay.
The amendments to the Subsoil Code simplify work in underexplored areas and create favorable conditions for investors. New promising sites are expected to be auctioned soon to ensure Kazakhstan’s long-term energy stability.
Last December, the Kazakh President signed the law boosting investment in hydrocarbons and uranium.
