KazMunayGas and China’s CNOOC Ink Agreement on Jylyoi Exploration Project

Kazakhstan’s national oil company, KazMunayGas, has reached an agreement with China National Offshore Oil Corporation International Limited (CNOOC) on the terms for geological exploration of the Jylyoi site in the Atyrau region, Orda.kz reports.

According to KazMunayGas, the agreement was agreed upon during a meeting in Astana. The two companies signed documents on financing and joint operations, formalizing their strategic partnership.

The Jylyoi project will be carried out at a site of the same name, covering roughly 960 square kilometers, located in the northeastern transit zone of the Caspian Sea. A joint venture for exploration at Jylyoi was initially established in October of last year.

It should be noted that CNOOC is entering Kazakhstan for the first time with investments, starting with a geological exploration project,
 the KMG press service emphasized.

The project outlines joint geological exploration of the Jylyoi site on a 50/50 partnership basis, with exploration costs to be covered by the Chinese side.

Plans include seismic surveying, drilling of a supra-salt exploratory well to a depth of two kilometers, and, depending on the results, drilling of a deeper sub-salt well to a depth of 4.5 kilometers.

Original Author: Nikita Drobny