Kazakhstan and China Sign Agreement on Jylyoi Oil and Gas Project
Photo: KMG press service
Kazakhstan’s Ministry of Energy, KazMunayGas (KMG), and China National Offshore Oil Corporation International Ltd (CNOOC) have signed a contract for exploration and production under the Jylyoi project in the Atyrau region, Orda.kz reports.
According to KMG, CNOOC Hong Kong Holding Ltd, a subsidiary of the Chinese corporation, will explore and develop the complex Jylyoi area located in the northeastern part of the Caspian Sea.
The project will be operated by a joint Kazakh-Chinese company, established in October 2024, with each side holding a 50% stake. CNOOC will fully finance the exploration phase.
This event marks an important stage in the development of strategic partnership between Kazakhstan and China in the oil and gas sector. The large Chinese company CNOOC is entering Kazakhstan for the first time with investments, starting with a geological exploration project,
KMG stated.
The Chinese side will carry out seismic surveys over a 400-square-kilometer area, reprocess existing geological data, and drill a two-kilometer-deep post-salt well. If successful, a second well targeting sub-salt deposits will be drilled to a depth of 4,500 meters.
The Jylyoi site spans approximately 960 square kilometers, covering both land that was once submerged in the shallow Caspian Sea and sections that remain underwater.
KMG began seeking a partner for the project in 2023, and an agreement with the Chinese side was reached following a visit by Askhat Khasenov to Beijing, where he met with CNOOC leadership.
Previously, another Chinese company received approval to explore and develop the Ustyurt-2 oil field in the Mangystau region.
Original Author: Nikita Drobny
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