Kazakhstan to auction hydrocarbon blocks and expand oil refining

Kazakhstan is advancing its energy sector through new hydrocarbon auctions and plans for expanded refining capacity. The Ministry of Energy announced that 112 subsoil blocks for hydrocarbon use will be offered through auctions by the end of 2026. This includes 56 blocks scheduled for an electronic auction on December 25, covering regions such as Mangystau, Aktobe, Atyrau, West Kazakhstan, Ulytau, Kostanay, and Kyzylorda.

Successful bidders for these blocks will be required to commit to geological exploration, including seismic surveys and drilling. Contracts will also mandate investments in human capital, scientific research, and regional infrastructure. Specifically, winners must allocate 1% of production costs to training Kazakh personnel, 1% to research and development, and 1% to local socio-economic development.

In a separate move to bolster domestic energy security, Prime Minister Olzhas Bektenov has ordered a decision on the capacity and location of a fourth oil refinery by the end of 2026. The government aims to meet a long-term refining need of approximately 40 million tons per year. The Prime Minister emphasized that expanding refining capacity and market liberalization are essential for economic security and managing domestic fuel prices.