BAKU, Azerbaijan, July 13. The drilling of an exploratory well on Kazakhstan's Zhenis offshore project confirmed the absence of hydrocarbons, Kazakhstan's KazMunayGas national oil company told Trend.
Zhenis is an offshore oil and gas geologic exploration project carried out through the operator, ZhenisOperating LLP, with an equal partnership between ZhenisOperating LLP and LUKOIL Kazakhstan Upstream LLP.
According to KazMunayGas, at the time of project assessment and initiation, the success probability stood at 20 percent. To conduct geological exploration activities and refine the prospectivity of the site, partner investments (represented by LUKOIL) were attracted through carry financing mechanisms.
Carry financing involves 100 percent investment by the partner during the geological exploration stage, with reimbursement of these costs during future production stages. If the geological exploration stage is unsuccessful, these costs are not reimbursed.
As noted by KazMunayGas, although exploration drilling showed no hydrocarbons, the results of the operations have provided valuable information on the subsurface structure within this sedimentary basin, enabling adjustments to the strategy for further geological exploration in other KazMunayGas projects.
