Chinese companies claim lion’s share of oil fields at auction in Kazakhstan

Authorities placed six fields with potential oil and gas reserves up for auction / Photo: Shutterstock, photo editor: Arthur Aleskerov

Kazakhstan’s government conducted its tenth online auction for six oil and gas fields for further exploration and development. Several companies offered the biggest subscription bonuses; many of them were from China.

For instance, Pro Explore Mining Co. Ltd, established by Chengwei Yang, obtained the right to explore the Kigash field in the Atyrau region. As per the Ministry of Construction’s demand, the company must drill two wells and conduct seismic measurements. The estimated cost of the work is $9 million.

Sozak Oil and Gas acquired the Bestakyr field in the Ulytau region. This company was established by several Chinese companies: Sino-Science Netherlands Petroleum (a subsidiary of Hainan Zhenghe Industrial Group), Maten Petroleum (controlled by Sino-Science), Shenzhen Andachang Industrial Co., Ltd., Singapore Charter Power Pte. Ltd., and Singapore Starlights Energy Investment Pte. Ltd. Sozak Oil and Gas has been exploring oil and gas at several fields in Kazakhstan since 2007. The cost of the new project is estimated at $7 million.

Astana Guangming Mining Co., Ltd, registered with the AIFC, must conduct exploration and production at the Aznagul field in the Atyrau region. The company was established by Jiuyuan Trading SG Pte. Ltd from Singapore and is expected to allocate about $6 million for necessary work in the new field.

Another company registered with the AIFC, HarmonyOre Mining Co., Ltd, should allocate approximately $9 million to start exploration work on the field. The company was established by Yongyong Song, who also owns JinSheng Energy Co., Ltd and Kazakhstan Blue Ocean Energy Co., Ltd.

Kazakhstan Zhonghengyongsheng Energy Co., Ltd won the right to explore the Kulsary field in the Atyrau region. The company is registered with the AIFC and was established by Weiye Trading SG Pte Ltd from Singapore. The estimated cost of the work is $3 million.

RV-Oil & Gas, a company controlled by Farukh Adbulkhalilov, is set to explore the Chingiz-Telsu oil field in the West Kazakhstan and Aktobe regions. The company has never been engaged in field exploration as its core business was linked to fuel sales. Now, it is expected to allocate $4 million to start the work. Three of the aforementioned businesses were registered within the AIFC shortly before the auction in August and September this year.