56 oil and gas blocks go to auction, a court rules against NCOC, Brent near $104
Published · 8 min read · 8 stories
The industry's main news this week: the Energy Ministry put 56 oil and gas blocks up for auction with a demanding work programme for winners. An Atyrau court rejected the Kashagan operator's claim against the collection of a 2.3 trillion tenge fine. Brent stayed above $100 all week but swung by almost $8 on news about the Strait of Hormuz, and the tenge firmed to 441.88 per dollar.
The week in a minute
- 1Auction of 56 oil and gas blocks: bids by 18 November, auction on 25 December, bonuses from 12.98 to 220.27 million ₸.
- 2A court rejected NCOC's claim against collection of the 2.3 trillion ₸ fine; there are 10 working days to appeal.
- 3Brent moved between $100 and $107.8 and stood at $103.89 on Friday evening; the tenge firmed to 441.88 per dollar.
- 4QazaqGaz has bought nearly 7.9 billion ₸ from domestic manufacturers and expects over 4 billion ₸ more in contracts by year-end.
The week on the map
The fields in this issue's stories; the number is the story.
The week in numbers
ICE Brent November futures, Friday quote at 22:08 Astana time (the settlement price was not published in our sources).
TTF October futures, morning of 24 September; our sources have no later quote for the week. Kazakhstan has no single price: wholesale caps run from 7,563 to 55,716 ₸ per 1,000 m³ excl. VAT by region (Energy Ministry Order No. 210), unchanged this week.
The National Bank's official rate for 26–28 September.
Regulation
The Energy Ministry puts 56 oil and gas blocks up for auction: bids by 18 November, auction on 25 December
The Ministry of Energy announced an electronic auction of subsoil rights to 56 hydrocarbon blocks in the Mangystau, Aktobe, Atyrau, West Kazakhstan, East Kazakhstan, Kostanay, Kyzylorda and Ulytau regions: 52 for exploration and production, 4 for production only. Starting signature bonuses range from 12.98 million tenge (3,000 MCI) for small exploration blocks to 220.27 million tenge for the Zhangurshi field; bids are accepted on the e-Qazyna platform until 18 November, and the auction is on 25 December. The winner must prepare an exploration project within a year, shoot 2D seismic within three years and drill at least one well within four; once in production, it must also spend 1% a year on training Kazakh staff, 1% on research and 1% of investment on regional development. Discoveries above 100 Mt of oil or 50 bcm of gas carry extra obligations to process in the country. According to Kursiv, this is the first batch of 112 blocks planned for auction by year-end; Kapital.kz gives the figure as 100.
Why it matters. This is the largest release of new acreage this year: the entry ticket is fairly cheap, but the mandatory work programme — seismic and a well within four years — needs money and equipment. All 56 blocks with their bonuses, fees, work programmes and dates are on the subsoil auction page; what follows the contract — field development stages.
- 1
Auction announced, bids open on e-Qazyna
- 2
Last day for bids
- 3
Auction. Then: a year for the exploration project, three for 2D seismic, four for a well
A chance to add acreage; the decision to bid is due by 18 November.
Low bonuses lower the entry threshold, but the work commitments and three 1% charges belong in the project model.
Every block means future orders for seismic and exploration drilling over the next four years.
Companies
An Atyrau court rejects NCOC's claim against the enforcement of a 2.3 trillion tenge fine
In a ruling of 23 September, the Specialised Inter-District Administrative Court of Atyrau Region rejected a claim by North Caspian Operating Company (NCOC), the operator of Kashagan, to cancel the enforcement documents for a 2.3 trillion tenge fine. The company had challenged July orders opening the proceedings, arresting property, seizing vehicles and restricting certain actions. The fine relates to violations at Kashagan that environmental inspectors found in 2022. The ruling can be appealed within 10 working days; it became public on 28 September.
Why it matters. Kashagan is one of the country's three largest fields, and 2.3 trillion tenge is about $5.2 billion at the end-of-week rate. The outcome affects the cash flow of every consortium partner, KazMunayGas included, and how investors price environmental risk in Kazakhstan.
- 1
Enforcement proceedings opened, property arrested
- 2
Order to seize vehicles
- 3
Restrictions on certain actions (23 and 30 July)
- 4
Court rejects NCOC's claim; 10 working days to appeal
A signal to every subsoil user: environmental violations can lead to forced collection with property arrests.
The risk of a large one-off payment for Kashagan's shareholders remains; watch the appeal.
No effect on current orders; demand for environmental monitoring and waste handling stays high.
PetroKazakhstan Kumkol Resources to pay $4.2 million in preferred dividends
The company, which develops the Kumkol group of fields in Kyzylorda Region, declared a second-quarter 2025 dividend of $0.4 per preferred share, about $4.2 million on 10.5 million shares. Payments start on 30 September. Through PetroKazakhstan Inc., about 67% owned by CNPC and the rest by KazMunayGas, the Chinese company will receive about $2.75 million, KazMunayGas $1.35 million and private holders of 2.35% of the preferred shares $99,000. In June $0.2 per share was already paid for the same quarter.
Why it matters. Kumkol's mature fields keep returning cash to shareholders, state-owned KazMunayGas included. The payout is a benchmark for the cash flow of older assets in Kyzylorda Region.
- CNPC — 2.75
- KazMunayGas — 1.35
- Private holders — 0.1
No effect on operations.
Regular preferred dividends are a plus for holders, minority ones included.
No direct effect on orders.
Prices and markets
Brent this week: from $100 to $107.8 and back to $103.9
On Monday evening Brent fell 3.7% to $100.02 as the market weighed signs of more supply and hopes for renewed US–Iran talks. It held near $100 on Tuesday, rose to $101.64 on Wednesday and jumped 4.6% to $107.82 on Thursday on concern over Middle East supply. On Friday evening Brent slipped 2.5% to $103.89 after reports that the sides were discussing a deal that could restore oil shipments through the Strait of Hormuz. That is 0.7% below the previous Friday's quote of $104.61.
Why it matters. The price stayed above $100 all week, which supports Kazakhstan's export earnings. But a swing of nearly $8 in a week shows how much the market hangs on news about the Strait of Hormuz: resumed shipments through it could quickly take part of the premium out of the price.
Evening quotes, Astana time (20:08–22:08). ICE Brent November futures.
Kapital.kz, 26 SeptemberOil above $100 keeps revenue per barrel high.
Producers' cash flow is supported, but volatility is high — worth testing projects at $80–90 in the economic model.
The price does not change this week's orders.
The tenge firms to 441.88 per dollar
The National Bank's official rate weakened to 448.44 tenge per dollar on Tuesday, but the tenge firmed by the end of the week: the rate for the weekend of 26–28 September was set at 441.88, 1.1% stronger than a week earlier (446.56). The rate is based on the previous day's trading on the Kazakhstan Stock Exchange (KASE).
Why it matters. The exchange rate sets exporters' tenge revenue, the cost of imported equipment and budget income all at once. A stronger tenge means fewer tenge for every dollar of oil sold.
National Bank rate for the date.
Kapital.kz, 26 SeptemberExport revenue in tenge is slightly lower, imports cheaper.
For a dollar-based investor tenge assets gained value, while exporters' tenge margins shrink.
Imported equipment and materials cost less in tenge.
Gas
QazaqGaz: purchases from Kazakh manufacturers near 7.9 billion tenge in 2026
The QazaqGaz group said its purchases involving domestic manufacturers passed 7.9 billion tenge in 2026, including more than 3 billion tenge (excl. VAT) of offtake contracts. On 24 September its subsidiary Intergas Central Asia signed two such contracts: with Zhaik Electric for welding equipment and with PRODCORE for automatic control systems for gas compressor units. Three more memoranda cover local production of gas pressure regulators, quick-release couplings and steel pipes. The group expects more than 4 billion tenge of further contracts by year-end.
Why it matters. An offtake contract is a commitment to buy products a manufacturer is only starting to make; for the plant it guarantees sales and helps with the bank. It is the main tool for raising in-country value in the gas industry.
All three are lower bounds: over 7.9, over 3 and over 4 billion tenge.
Forbes Kazakhstan, 24 SeptemberAn example of the localisation model other large buyers are expected to follow.
Small sums for the industry, but meaningful for local equipment makers.
A direct order channel: more than 4 billion tenge of contracts still to come this year.
Deals
The sale of LUKOIL's foreign assets, Kazakh stakes included, awaits US approval
The sale of LUKOIL's foreign assets to the investment firm Carlyle for about $20 billion has awaited US approval for almost ten months while several agencies review it. The temporary OFAC licence for negotiating the deal expires on 22 October. The assets include stakes in Tengizchevroil (5%) and Karachaganak (13.5%); services related to CPC, TCO and KPO are outside the restrictions. Interfax cites the Financial Times.
Why it matters. Who ends up owning these stakes will shape the shareholder line-up of the country's two largest projects. For now the operations of TCO, KPO and CPC are unaffected.
Operations at Tengiz and Karachaganak continue as normal.
Uncertainty over the change of shareholder persists; the key date is 22 October.
Service contracts with TCO, KPO and CPC are not affected by the restrictions.
Projects
Asker Munay Exploration to spend 1.25 billion tenge on exploration in Atyrau Region
The company works the Karatobe-Burbaital and Kobyakovskaya blocks in Atyrau Region, including the subsalt section; its sole shareholder is the Dutch Petroleum Partners B.V., and its ultimate owner the Maltese fund Falcon NR&I Fund Sicav. It will spend 1.25 billion tenge on exploration in equal instalments over 2026–2030. Its 2025 net loss shrank fivefold, from 10.45 to 1.97 billion tenge, but the accumulated deficit reached 46.7 billion tenge and equity is negative (−23.31 billion tenge).
Why it matters. A small but telling example: a foreign fund keeps financing exploration of Caspian subsalt structures despite the company's losses.
Small in scale; no effect on the industry as a whole.
Losses are shrinking, but negative equity calls for caution.
About 250 million tenge a year on exploration means orders for Atyrau service companies.
What's next
- KIOGE 2026 — the 30th Kazakhstan International Oil and Gas Exhibition and Conference, Almaty, Atakent, 30 September – 2 October.KIOGE
- Under the Energy Ministry's schedule, maintenance at Karachaganak, begun on 7 September, ends; the expected loss is 400–450 kt of oil and condensate.Интерфакс
- The next meeting of the seven OPEC+ countries, Kazakhstan included: a market review and November output levels.OPEC
- The temporary OFAC licence for talks on selling LUKOIL's foreign assets, including its TCO and KPO stakes, expires.Интерфакс
- The National Bank announces its base rate decision.Национальный банк РК
- Last day for bids in the 56-block oil and gas auction on e-Qazyna. The rules — hydrocarbon auction.Kursiv Media
prospect
A mapped trap with estimated volumes and a chance of success — a target ready to drill. Auction winners must shoot 2D seismic within three years to find such targets and drill at least one well within four. How the risk is judged — geological chance of success.
To the glossaryThe digest reviews the week's reports; the facts and figures belong to the sources cited. It is not investment or legal advice.