KazMunayGas, CNOOC advance joint hydrocarbon projects

The sides discussed ongoing joint projects as well as prospects for strengthening cooperation in the field of geological exploration and oil and gas production. The parties also reviewed the progress of the subsoil use contract for the Zhylyoi block, located in the transit zone of the northeastern part of the Caspian Sea.

Earlier, a joint venture - LLP Zhylyoi Operating - was established to implement the project. Work is underway to reprocess and reinterpret 400 linear kilometers of historical 2D seismic data, coordinate project documentation, and prepare for 3D seismic fieldwork covering 400 square kilometers. Drilling of a supra-salt exploration well with a depth of 2,000 meters is also planned. Depending on the results of the 3D seismic survey, drilling of a sub-salt exploration well (4,500 m) is planned.

The project marks the first entry of CNOOC into Kazakhstan's upstream sector through investments in geological exploration. Minimum investments at the exploration stage will amount to about $31.5 million. The partnership provides for project implementation on a 50/50 parity basis, with CNOOC financing the exploration period.

In addition, partners from China are currently studying other promising exploration blocks of KMG.

Following the meeting, the parties agreed to expand mutually beneficial cooperation in all key areas.