Lukoil has signed a contract with the Ministry of Energy of the Republic of Kazakhstan and KazMunayGas for hydrocarbon exploration and development of the Zhenis block in Kazakhstan's sector of Caspian Sea, Russia's second-largest oil producer announced on Wednesday.
The Zhenis block is located in the southern part of the Kazakh sector of the Caspian Sea, in 75-100 meters water depth, about 80 kilometers offshore.
Zhenis Operating, a 50/50 joint venture between Lukoil and KazMunayGas, will be the project's operator.
Under the terms of the contract, a 3D seismic survey will be performed and at least one exploration well will be drilled, Lukoil said.
"The new project in the Caspian Sea is an important step in expanding the resource base in the region which has a strategic importance for the company and where it has accumulated considerable expertise," Lukoil said in a press release.
In 2018 Lukoil and KazMunayGas concluded a joint operating agreement and a financing agreement on the Zhenis project, and in February 2019 the Ministry of Energy of the Republic of Kazakhstan issued mineral rights on the block.