Kazakhstan's KMG, China's CNOOC establishing operator for Zhylyoi project on Caspian Sea; investment in exploration will amount to $31.5 mln

ASTANA. Sept 1 (Interfax) - KazMunayGas (KMG) and China National Offshore Oil Corporation (CNOOC) are establishing a project operator company for the complex Zhylyoi hydrocarbon project in Kazakhstan on a parity basis, KMG's press service said.

The head of KMG, Askat Khasenov, met with the head of CNOOC, Zhang Chuansheng, in Beijing and discussed jointly implementing the Zhylyoi project with him. The project is located in the transit zone of the northeastern part of the Caspian Sea.

"Work is currently underway to establish the project operator - Zhylyoi Operating LLP," the press service said following the meeting.

Minimum investment at the hydrocarbon exploration stage will amount to approximately $31.5 million, it said.

"The partnership provides for the joint implementation of the Zhylyoi project on a 50-50 parity basis, with CNOOC providing financing for the exploration period," KMG said.

The minimum work program for the planned exploration work on the project includes 3D seismic surveying (fieldwork, processing and interpretation of results over 400 square kilometers); new processing of historical 2D data (400 linear km); drilling one supra-salt exploration well (an independent phase) with a depth of 2 km, and also, depending on the results of the obtained 3D seismic survey data, drilling one sub-salt exploration well (a dependent phase) with a depth of 4.5 km.

KazMunayGas is Kazakhstan's national operator for the exploration, production, processing and transportation of hydrocarbons, representing the state's interests in the oil and gas sector.

CNOOC specializes in the exploration and production of hydrocarbons. The company is involved in implementing major projects in more than 20 countries.