ASTANA, Kazakhstan, May 29. Chairman of the Management Board of KazMunayGas (KMG) Askhat Khassenov and Liu Yongjie, head of CNOOC International Limited, discussed prospects for strengthening cooperation in oil and gas exploration and production, Trend reports via KMG.
The sides reviewed ongoing joint projects, including the implementation of the subsoil use contract for the Zhylyoi block, located in the transition zone of the northeastern part of the Caspian Sea.
A joint venture, Zhylyoi Operating LLP, was previously established to implement the project. At present, work is underway on the reprocessing and reinterpretation of historical 2D seismic data covering 400 linear kilometers, as well as the approval of project documentation and preparation for 3D seismic surveys over an area of 400 square kilometers.
Plans also include drilling an over-salt exploration well to a depth of 2,000 meters. Depending on the results of the 3D seismic data, a deeper under-salt exploration well of 4,500 meters is also planned.
The project marks the first entry of major Chinese company CNOOC into Kazakhstan’s upstream sector through geological exploration investments. Minimum investment at the exploration stage is estimated at around $31.5 million. The partnership is structured on a 50/50 basis, with CNOOC financing the exploration phase.
According to KMG, Chinese partners are currently reviewing several other promising exploration blocks offered by KMG.
