China's state-owned oil and gas firm China National Offshore Oil Corporation (CNOOC) has signed production and exploration contract with Ministry of Energy of the Republic of Kazakhstan and state-owned operator KazMunayGas (KMG) for Zhylyoi Subsoil Area.
CNOOC signed the contract through its wholly-owned subsidiary CNOOC Hong Kong Holding Limited.
The Zhylyoi Subsoil Area is located partially in the Atyrau region and partially in the Kazakhstan sector of the Caspian Sea, with an area of approximately 958 square kilometers.
According to the terms of the contract, the first stage of the exploration period will be 9 years.
CNOOC Hong Kong Holding Limited and KMG will each hold 50% interests, and the two parties will establish a joint operating company and act as the operator, CNOOC informed.