Kazakhstan drills first exploratory well at Karazhar exploration site

Kazakhstan's Kazakhturkmunai (a 100% subsidiary of KazMunaiGas - KMG) has started drilling the first exploration well at the Karazhar subsoil site, News.az reports citing KazMunaiGas.

According to KMG, the work is being carried out within the framework of the Improved Model Contract.

This mechanism provides important regulatory and fiscal preferences, creating conditions for exploration and development of complex subsoil areas.

Recall that at the end of November 2024, KMG, together with Tatneft, began drilling the first exploratory well with a depth of 5.5 thousand meters at the Karaton Podsolevaya subsoil site in the Atyrau region.

In addition, in May 2024, drilling of a deep well (5.5 thousand meters) began as part of the Turgai Paleozoic project in the Kyzylorda region.

In 2024, KMG also planned to begin drilling offshore drilling of an exploratory well at the Abay block with a depth of 2.5 thousand meters together with the Italian Eni.

The company has not yet disclosed official information about this project, but in November 2024, Kazakhstani media, citing oil and gas industry analyst O. Chervinsky, reported that Isatay Operating Company (a 50-50 joint venture between Eni and KMG) had completed drilling, the geological program had been fully implemented, but, apparently, there were no commercial oil reserves in this structure.

KMG is focusing on the development of hard-to-recover reserves (HTR), expecting to secure about 70 million tons of additional oil production by 2050. Most of the HTR is concentrated in fields with high-viscosity oil, low-permeability and carbonate reservoirs.

News.Az