ASTANA: Kazakhstan’s national oil company, KazMunayGas (KMG), has entered into a significant agreement with China National Offshore Oil Corporation International Limited (CNOOC) to undertake a geological exploration project. The collaboration aims to develop the “Zhylyoi” subsurface block, a promising site for hydrocarbon resources.

According to Trend News Agency, the agreement was formalized during a meeting between KMG Chairman Askar Khasenov and CNOOC Chairman Wang Dongjin. The project will unfold in several stages, including comprehensive 2D and 3D seismic surveys covering 400 linear kilometers and 400 square kilometers, respectively. An initial exploration well is planned to reach a depth of 2,000 meters, with a potential secondary well extending to 4,500 meters based on the seismic data results.

KMG has projected that the geological resource potential of the Zhylyoi block could exceed 185 million tons of oil. This estimation underscores the strategic significance of the project for both KMG and CNOOC
in their quest for hydrocarbons. Chairman Khasenov highlighted the partnership’s importance for Kazakhstan, noting that collaboration with a major energy player like CNOOC is expected to invigorate the nation’s oil and gas sector and attract foreign investment. CNOOC is set to finance the exploration phase of the project.

The collaboration builds on a Memorandum of Understanding signed by KazMunayGas and CNOOC in August 2024 in Beijing, which expressed their mutual interest in pursuing geological exploration efforts together.