KazMunayGas Started Geological Exploration of the Subsoil of Five Oil and Gas Blocks in the West of Kazakhstan
The project with the GIN mechanism was included in the list of investment projects of KMG with capital expenditures in the amount of 29.5 billion tenge (about 64 million US dollars).
The Kazakh national oil and gas company KazMunayGas (KMG) has started geological exploration (geological exploration) of the subsoil of 5 new promising regional areas within the main oil and gas basins of Kazakhstan under the GIN mechanism.
This was reported by the press service of the company.
- Subsoil plots identified for research purposes include:
- Mugodzhary (Aktobe region). Even in Soviet times, signs of oil were found in the Berchogur syncline (located between 2 anticlinoria of greenstone rocks of Gotland and the Lower Devonian of the Southern Mugodzhary) and in the Kokpekty anticline (destined to a number of Meso-Cenozoic structures located on the continuation of the axial line of the Ural-tau anticlinorium;
- Berezovsky (West Kazakhstan region),
- Zharkyn (Mangistau region),
- Bolashak (Mangistau region),
- Northern Ozen (Mangistau region).
Details from KMG:
- The project was included in the list of investment projects of KMG with capital expenditures in the amount of 29.5 billion tenge (about 64 million US dollars);
- operator – KMG Barlau;
- for all subsoil plots of the Project, licenses were obtained in accordance with the GIN (geological study of subsoil) mechanism and preparations for field seismic surveys began;
- terms of work:
- 2023-2025 – seismic exploration, post-processing, interpretation of seismic data and geological and technical assessment (taking into account new data),
- 2025 – making decisions on obtaining contracts for subsoil use;
- the project will be implemented using modern technologies during field work and data processing / interpretation in order to reduce geological risks;
- options for reimbursement of project costs are being worked out, incl. by attracting strategic partners and possibly selling research results.
GIN mechanism:
- the mechanism of the Geological study of subsoil (GIN) is provided for by the law of Kazakhstan “On subsoil and subsoil use”;
- for the first time, primary regional-scale exploration will be carried out on a licensed basis using the latest exploration technologies;
- this is the primary collection of geological information, which will help to obtain fundamental knowledge about the structure of the studied territories and determine the level of their prospects;
- studies within the framework of the GIN mechanism are of the nature of a scientific and technical plan, and are aimed at “white spots” of promising, but poorly explored subsoil areas;
- Based on the results of the work, it will be possible to make a decision on delineating the blocks for subsoil use, followed by additional exploration and production of oil and gas).
Project with GIN mechanism:
- fundamentally new for KMG,
- Previously, KMG conducted geological exploration on the basis of contracts with specific obligations for exploration or production based on existing baseline studies;
reflects KMG’s strategy:
- strengthening and expanding the geography of KMG exploration,
- search for new promising areas,
- increasing the investment attractiveness of the oil and gas industry of Kazakhstan.
For the curious, we recall that Russia also has a state mechanism for providing subsoil plots for geological study.
Recall that on December 21, 2022, KMG announced that it was studying the option of a trial shipment of a batch of oil to Germany in January 2023 to an oil refinery (refinery) in the city of Schwedt.
The head of KMG M. Mirzagaliyev said then:
- the resources of KMG’s oil-producing organizations are directed to loading domestic refineries to fulfill obligations for the supply of petroleum products to the domestic market of the Republic of Kazakhstan;
- export volumes of KMG oil are delivered to a single system trader – KMG Trading, which:
- prioritizes the needs of the KMG refinery in Romania,
- the rest is sold under long-term contracts;
- according to the instructions of the President of the Republic of Kazakhstan, KMG is considering the option of a trial shipment of oil to Germany as early as January 2023.