New Amendments to Kazakhstan’s Subsoil and Subsoil Use Code: Electronic Auctions, Underexplored Areas and a Stronger State Role

06.02.2026

The Senate of the Parliament of the Republic of Kazakhstan has approved amendments to the Subsoil and Subsoil Use Code aimed at digitalising procedures, increasing investment attractiveness and strengthening state oversight in strategic sectors.

Key changes include:

• the introduction of an electronic auction system for granting subsoil use rights for hydrocarbons, ensuring transparency, reducing the human factor and finalising results within one working day;

• the introduction of a new type of contract for exploration and production of hydrocarbons within underexplored areas, as well as clarification of the terms and criteria for classifying plots as such areas;

• lifting the ban on drilling within underexplored areas, provided that the subsoil user fulfils minimum obligations in respect of seismic surveys and intends to carry out additional drilling within the next three years;

• a mandatory participation interest of the national company in projects in underexplored areas of at least 50%;

• granting investors conducting geological study at their own expense the opportunity to extend the contract and move to exploration without a new tender/competition;

• limiting the period for which subsoil plots may be reserved by national companies for subsequent direct negotiations;

• encouraging the use of enhanced oil recovery technologies — such subsoil users may be released from certain domestic market obligations and may receive additional preferences;

• the possibility of flexible expansion of a subsoil plot upon cessation of activities by an adjacent subsoil user;

• extension of the mandate of the State Commission on Hydrocarbon Reserves until 2030;

• strengthening regulation of the uranium sector: the national company’s pre-emptive right to exploration and production, an increase in its minimum participation interest upon transfer of rights to subsidiary entities from 50% to 75%, and the possibility of returning explored plots to the state or granting the state a pre-emptive right to purchase uranium.

Conclusions based on the changes:

• The introduction of an electronic auction system is a key reform that radically simplifies access to subsoil plots and increases procedural transparency.

• The new regulatory model for underexplored areas creates additional incentives for geological exploration, while simultaneously increasing state participation in strategically important projects.

• Digitalisation and accelerated procedures reduce administrative barriers, thereby increasing private investors’ interest in new plots.

• The changes in the uranium sector strengthen state control over the most sensitive resources, which may affect the structure of future transactions and investor requirements.

• The amendments envisage more flexible management of subsoil plots and create additional opportunities for optimising subsoil users’ portfolios.

Recommendations for market participants:

• Prepare digital infrastructure and a complete set of documents in advance for participation in electronic auctions, taking into account the accelerated finalisation of results.

• Investors and subsoil users operating in underexplored areas should revisit their development strategies, including drilling plans and compliance with minimum obligations.

• Participants in geological study projects are advised to assess the option of moving to exploration without a new tender/competition and to evaluate the benefits of the updated contract model.

• Companies involved in uranium projects should review their asset ownership structures in light of the increased mandatory participation interest of the national company.

• Subsoil users implementing innovative extraction technologies should assess available incentives and incorporate them into financial and operational planning.

• All subsoil users should consider conducting a legal audit of existing subsoil use contracts to identify the impact of legislative changes and potential growth points.

The REVERA Kazakhstan team is ready to:

1. Support clients throughout participation in the new electronic auctions, including analysis of requirements, preparation of documentation and risk assessment;

2. Conduct a comprehensive audit of subsoil use contracts and identify changes affecting rights and obligations;

3. Develop a strategy for projects in underexplored areas, including compliance with requirements on mandatory participation by national companies;

4. Advise on ownership structures in the hydrocarbon and uranium sectors, taking into account the strengthened role of the state;

5. Prepare legal opinions and roadmaps for adapting to digitalisation and the updated regulation;

6. Support engagement with authorised bodies and national companies when amending contracts, expanding plots and implementing extraction technologies.

Send enquiries via direct message or by email: kazakhstan@revera.legal

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Author: Alisher Kissamenov.