Project documents for exploration

According to the geological exploration assets of KMG, work is being carried out on drafting exploration projects at the stage of searching and evaluating hydrocarbon deposits, author’s supervision over the implementation of design solutions for hydrocarbon exploration, operational calculations of hydrocarbon reserves.

Basic project documents for exploration, author’s supervision of their implementation and reports on the operational calculation of hydrocarbon reserves are compiled in accordance with the requirements:

• Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use” dated December 27, 2017 No. 125-VI;
• Environmental Code of the Republic of Kazakhstan No. 212-III dated January 9, 2007;
• Unified Rules on rational and Integrated Use of Subsurface Resources, approved by Order No. 239 of the Minister of Energy of the Republic of Kazakhstan dated June 15, 2018;
• Methodological recommendations for the preparation of basic project documents approved by the Order of the Minister of Energy of the Republic of Kazakhstan dated August 24, 2018 No. 329;
• The form of the report on the geological study of the subsurface (Appendix 2), approved by the order of the Acting Minister for Investment and Development of the Republic of Kazakhstan dated May 31, 2018 No. 419.

Exploration project

• The exploration project is drawn up within one year from the date of registration of the contract for the exploration and production of hydrocarbons.
• The exploration project is being developed for the entire period of exploration.
  • The exploration project should contain:
    a description of the types, methods, technologies, volume and timing of work on the exploration of hydrocarbons for each block;
  • measures to ensure the rational use and protection of mineral resources;
  • information about the terms, conditions and cost of performing work to eliminate the consequences of hydrocarbon exploration.
  • The exploration project must include the entire scope and timing of the work declared by the subsurface user in the work program.

The exploration project justifies:

• the volume and significance of the available historical data, the degree of study of the subsurface area for exploration;
  exploration tasks;
• the projected volumes and methods of field geological and geophysical research, the number and location of project wells, their design depths and the sequence of drilling when planning such works;
• intervals of core and sludge sampling, laboratory studies (standard and special core analyses) when planning such work;
• the procedure for testing oil and gas horizons during drilling and testing in a column;
• a complex of geophysical studies of wells in an open trunk and column, a complex of hydrodynamic studies of wells, selection and laboratory studies of deep and surface fluid samples;
• measures for the protection of mineral resources and the environment during exploration;
• volumes and deadlines of exploration work;
• investments and expected efficiency of geological exploration;
• the predicted flow rate of oil and gas for each project well during testing;
• the amount of the amount of ensuring the fulfillment by the subsurface user of obligations to eliminate the consequences of subsurface use;
• justification of the volume of planned work with the indication of exploration sites.

A preliminary environmental impact assessment (pre-assessment) is prepared for the exploration project.

Author’s supervision over the implementation of design solutions in the exploration of hydrocarbons

• Monitoring of the execution by the subsurface user of the exploration project and the trial operation project is carried out through the annual author’s supervision by the project organization.
• At the same time, the author’s supervision is not carried out for the exploration project that does not provide for drilling and (or) testing of wells.
• Monitoring of the execution of design decisions of the exploration project includes support of the work of the subsurface user under the project document with the submission of an annual report on author’s supervision to the authorized body in the field of hydrocarbons. At the same time, the author’s supervision is not carried out for the exploration project that does not provide for drilling and (or) testing of wells.
• The author’s supervision over the implementation of design solutions for the exploration of hydrocarbons is carried out by the involved design organization that has drawn up the exploration project.
• If it is necessary to replace the project organization previously attracted by the subsurface user with another one during the author’s supervision, such replacement is allowed with the consent of the author of the project document.
• In the process of geological exploration within the framework of the author’s supervision of the implementation of design solutions for the exploration of hydrocarbons, it is allowed to:
  • change the drilling schedule without reducing the number of independent projected wells provided for in the basic project document;
  • adjustment of the location of the projected wells;
  • changes in the types and volumes of research work;
  • adjustment of test objects and their number in drilled and projected exploration and evaluation wells.
• The adjustment of project indicators under the author’s supervision is made out by a joint protocol between the subsurface user and the author of the project.
• The annual report on author supervision uses the information obtained during the work, and the results are made out in the form of an information report.
• The annual report on author’s supervision is compiled in accordance with the normative and technical documentation on the preparation of author’s supervision over the implementation of basic project documents, developed and approved by the authorized body in the field of hydrocarbons.
• The annual report on the author’s supervision of the implementation of project decisions in the exploration of hydrocarbons is not subject to state expertise of the basic project documents and is sent by the subsurface user to the authorized body in the field of hydrocarbons in the notification procedure in electronic form.