Shell has signed a contract with Kazakhstan’s Ministry of Energy to carry out geological exploration at the Zhanaturmys oil and gas block in the country’s Aktobe region, according to Reuters.
The agreement was signed between the ministry and Shell’s Kazakhstan subsidiary and covers exploration activities in an area spanning 1,377 square kilometres. The block is located within one of Kazakhstan’s established hydrocarbon basins.
Under the contract, which runs until 2032, the project will involve seismic surveys, geological data collection and technical assessments. All activities will be carried out in accordance with regulatory requirements and subject to the necessary permits.
Kazakhstan’s energy ministry did not disclose the expected level of investment tied to the exploration program.
Exploration agreement comes amid ongoing legal disputes
The deal comes as Shell and its partners remain involved in arbitration proceedings connected to two major oil and gas developments in Kazakhstan.
In January, shareholders in the Karachaganak project — including Shell — lost an international arbitration case valued at up to $4 billion. The dispute was related to financial disagreements between the consortium and the Kazakh government.
Meanwhile, legal proceedings connected to the Kashagan oil project are still ongoing. Shell is also a shareholder in that development, which is one of the largest offshore oil projects in the world.
The litigation tied to Kashagan involves claims estimated at around $160 billion, highlighting the scale of the disputes surrounding major energy investments in the country.
Despite those challenges, Kazakhstan continues to seek foreign partners to explore and develop its oil and gas resources, which remain a cornerstone of the nation’s economy.
