BAKU, Azerbaijan, July 16. Kazakhstan's National Oil and Gas Company KazMunayGas (KMG) and China's CNOOC Group discussed joint execution of the Zhylyoi oil and gas exploration project.
This was reflected in the statement published by KMG.
The discussions were held during the talks between Kurmangazy Iskaziyev, First Deputy Chairman of the Management Board of Kazakhstan's National Oil and Gas Company KazMunayGas (KMG) and Zhang Chuanjiang, Chairman of CNOOC Group, and Liu Yongjie, CEO of CNOOC International.
A central focus of the negotiations was the joint execution of the Zhylyoi oil and gas exploration project, located in the transit zone of the northeastern part of the Caspian Sea. The venture is structured on a 50/50 parity basis, with the Chinese corporation fully financing the initial exploration period, which carries a minimum investment of approximately $31.5 million.
To map the block's potential, the partners plan to initiate active field operations in the near future.
"By the end of 2026, the joint venture is scheduled to commence 3D field seismic exploration works covering an area of 400 square kilometers," KMG announced.
In addition to the 3D seismic campaign, the minimum work program includes reprocessing 400 linear kilometers of historical 2D seismic data, drilling a 2,000-meter-deep supra-salt exploration well, and potentially drilling a deeper, 4,500-meter pre-salt exploration well depending on the seismic results.
During the talks, the delegations also reviewed prospects for expanding KMG and CNOOC cooperation through new oil and gas assets in Kazakhstan. Notably, the Chinese side expressed strong interest in participating in large-scale seismic exploration targeting deep sub-salt Paleozoic sediments within the broader Pre-Caspian sedimentary basin.
