KMG, CNOOC Partner for Exploration Project in Kazakhstan

KazMunayGas (KMG) and China National Offshore Oil Corporation International Limited (CNOOC) are partnering on a new geological project in Zhylyoi, Kazakhstan.

The two companies signed an agreement on the main terms of cooperation, KMG said in a news release.

The project activities covered in the agreement include 2D seismic surveys, consisting of the processing and interpretation of the data, and 3D seismic surveys, consisting of field operations, the processing and interpretation of the data from 154.4 square miles (400 square kilometers).

The agreement also includes the drilling of one post-salt exploration well 6561.68 feet (2000 meters) deep and the drilling of one pre-salt exploration well 14763.78 feet (4,500 meters) deep based on the results of 3D seismic data, according to the release.

According to a preliminary assessment made by KMG, the mineral site's oil reserves may be over 185 million tons. “The signed basic terms of cooperation serve [as] a testimony of CNOOC's serious interest in joint project realization, which gives new hydrocarbons exploration opportunities to both companies,” the Kazakhstan national oil company added.

KMG CEO Askhat Khassenov said, “We believe that the partnership with one of the world's leading energy companies will ramp up the oil and gas industry of Kazakhstan and bring foreign investments to the country as the exploration will be financed by CNOOC”.

In August, KMG and CNOOC had signed a geological exploration intent agreement.

Earlier in the month, the KMG CEO also met with China National Petroleum Corporation (CNPC) to discuss key oil and gas cooperation issues, including geological exploration, oil and gas chemistry, oil refining and transportation.

KMG and CNPC had signed a framework agreement on strategic cooperation in the oil and gas industry.

In addition, the parties agreed to hold joint Kazakh-Chinese technical seminars to exchange oil and gas exploration and development technologies.

CNPC is the parent company of PetroChina, one of the largest publicly traded oil and gas companies in the world. Its main business activities are oil and gas exploration and production, oil refining, petrochemical production, and petroleum products marketing.

Drilling Rig Tapped for Caspian Sea Project

Meanwhile, the first jack-up drilling rig built in Kazakhstan will start drilling operations in the Cheleken–Turkmenian sector of the Caspian Sea.

KNG subsidiary KMG Drilling and Services (KMG DS) owns the Satti, which is “a unique invention fully equipped with advanced technologies for challenging offshore drilling operations,” according to an earlier news release. KMG DS opened a branch in Ashgabat to help run drilling activities. In August, KMG DS and Dragon Oil Turkmenistan Limited signed a contract for drilling works in the Turkmen sector of the Caspian Sea.

In 2021, the Satti was modified, increasing its lifting capacity from 453 to 680 tons, allowing it to be used for larger projects. The rig is designed to drill wells up to 19685 feet (6,000 meters) deep.

“This event marks an important stage in [the] expansion of Kazakhstan's presence in the international oilfield services markets, and strengthens bilateral cooperation between Kazakhstan and Turkmenistan,” KMG said.

Oil Turkmenistan Ltd is a subsidiary of Dragon Oil (UAE), engaged in exploration and production of hydrocarbons in the Cheleken Block of the Caspian Sea. The company is owned by Emirates National Oil Company (ENOC).

To contact the author, email rocky.teodoro@rigzone.com