Kazakhstan is stepping up support for investors in geological exploration and the oil and gas sector

In Almaty, at the “Geoscience & Exploration Central Asia” forum, Vice Minister of Energy of the Republic of Kazakhstan Erlan Akbarov spoke about recent measures to attract capital into exploration and hydrocarbon production. According to him, 433 billion tenge has been invested in this sector since 2023, and the number of exploration and production contracts has reached 319.

Key changes for business
The government is implementing the President’s instructions: by 2026, the area of surveyed subsoil will increase from 1.5 to 2.2 million square kilometers. Amendments have been introduced to the laws—defining the term “unconventional hydrocarbons,” simplifying online auctions, and preparing a new contract template with tax incentives for complex projects.

Investors have received concessions: they can now correct errors in applications and relinquish blocks without penalties if drilling has not justified expectations—saving up to 300,000 dollars at this stage. Digitization has delivered results: 11 auctions sold 121 blocks with obligations totaling 55 billion tenge.

Support for projects and oversight
An “alternative tax” regime has been launched for mature fields, extending operating terms up to 25 years. On large projects, the national company takes at least a 50% stake. Over the past two years, 35 oil fields have been launched into production, and gas is already being pumped at Rojkovskoe, Yuzhno‑Aksay and Anabai.

The updated Subsoil Code eases launching operations in new territories. Soon, prospective blocks will be offered at auction, which will ensure Kazakhstan’s energy security for many years ahead. Recall that the Ministry of Energy had previously warned about a possible decline in oil and condensate production in 2026 to 96–98 million tonnes.

An “alternative tax” regime has been launched for mature fields, extending operating terms up to 25 years. On large projects, the national company takes at least a 50% stake. Over the past two years, 35 oil fields have been launched into production, and gas is already being pumped at Rojkovskoe, Yuzhno‑Aksay and Anabai.