Astana, 22 October. The Energy Ministry has cancelled the auction for some of the hydrocarbon subsoil plots announced on 5 August 2026: 20 plots were withdrawn from the sale scheduled for 18 November because nobody wanted them, while bids came in for only six, the industry channel Oil and Gas of Kazakhstan reports.
Hydrocarbon subsoil use rights — the right to explore for and produce oil and gas on a specific plot — are sold in Kazakhstan at electronic auctions. The winner today is whoever offers the largest signature bonus, a one-off payment to the state for signing the contract. A plot also cannot find an owner if only a single participant bids for it.
At the next online auction on 25 December the ministry hopes to sell another 56 plots; how many of them will reach the sale is unknown. The ministry promised to offer at least 100 plots in 2026. In early September, at the KazDrilling-2026 conference in Atyrau, it announced a reform: the auction winner should be not whoever declares the largest signature bonus but whoever takes on the largest exploration commitments. The sources give no timeline for the reform.
What it means: The state cannot sell subsoil plots even at auction: most of the plots offered found no takers, and a third of the 18 November sale was cancelled. This argues for the promised reform, under which plots would be awarded for exploration commitments rather than for a bonus.
Who benefits: The cancellation benefits neither the state, which will not receive signature bonuses or new exploration work, nor subsoil users. If adopted, the reform would favour companies willing to invest in exploration rather than pay a one-off bonus; the sources do not give investors' views.
Background: The Energy Ministry offers hydrocarbon subsoil plots at electronic auctions on a schedule; the order cancelling the auction for some plots has been published on the ministry's portal.
List of sources used: Energy Ministry of Kazakhstan, Oil and Gas of Kazakhstan
Artificial intelligence was used in preparing this material.
