BAKU, Azerbaijan, September 2. Kazakhstan's national oil and gas company KazMunayGas (KMG) and China National Offshore Oil Corporation (CNOOC) discussed the current status and prospects of bilateral cooperation, KMG's press service said.
KMG Chairman of the Management Board Askhat Khassenov met with CNOOC Chairman of the Board Zhang Chuanjiang in Astana.
The sides discussed the implementation of ongoing joint projects and plans for further cooperation, including the Zhylyoi geological exploration project in the transit zone of the northeastern part of the Caspian Sea.
"We highly appreciate the results of our joint work. Zhylyoi is an example of CNOOC's first entry, with investment, into a geological exploration project in Kazakhstan. We look forward to expanding mutually beneficial cooperation with our colleagues from China," Khassenov said.
The sides also discussed the potential participation of CNOOC in other KMG geological exploration projects.
The sides also focused on cooperation in oilfield services. Under a cooperation agreement, KMG's subsidiary KMG Drilling & Services and China Oilfield Services Limited (COSL) are strengthening cooperation in drilling and well servicing, the introduction of new technologies, development of local content and personnel training.
KMG noted that an operator company, Zhylyoi Operating LLP, has been established as part of the project. The parties are currently reprocessing and reinterpreting historical 2D seismic data covering 400 linear kilometers. Preparations are also nearing completion for 3D seismic exploration covering 400 square kilometers.
Following the processing and interpretation of the 3D seismic data, the location for drilling the first exploration well will be determined. The project is being implemented on a 50/50 parity basis, while Chinese partners are financing the exploration period.
