KazMunayGas and China’s CNOOC to Conduct Exploration in Kazakhstan
During his visit to China, A. Khasenov held meetings with the heads of leading Chinese companies China National Offshore Oil Corporation International Limited (CNOOC) and CITIC Group. This is reported by the KMG press service.
During the meeting, issues of implementing joint initiatives in the field of exploration, oil production and refining were discussed.
According to KMG, an agreement of intent in the field of exploration was signed during negotiations with CNOOC Chairman Wang Dongjing. The parties expressed interest in conducting joint geological research on promising exploration projects and the development of hydrocarbon deposits in Kazakhstan.
Problems with exploration financing in Kazakhstan
In 2023, Vice Minister of Industry and Construction of the Republic of Kazakhstan A. Beispekov reported that, compared with other countries, Kazakhstan has low government funding for exploration – only 8 US dollars /1 km2. For example, in Australia, $167 is allocated per 1 km2, and in Canada – $ 203. The Vice Minister noted that in order to explore the potential of Kazakhstan and increase investment in exploration, it is necessary first of all to provide appropriate funding for regional research. In total, the state balance sheet takes into account more than 8 thousand deposits for more than 100 types of minerals.
Over 12 years, more than 2 trillion tenge (4.1 billion US dollars) of private investments have been invested in conducting exploration in Kazakhstan. At the same time, the largest part of the funds is directed to the study of hydrocarbons, 479.7 billion tenge (about 1 billion US dollars) was spent on solid minerals.
China National Offshore Oil Corporation (CNOOC)
- one of the world leaders in the oil and gas industry, specializing in offshore exploration and production;
- The company actively cooperates with the world’s leading corporations and participates in the development of large deposits;
- CNOOC‘s assets are concentrated in more than 20 countries on 4 continents.
During the meeting with Chairman of the Board of Directors of CITIC Group Xi Guohua, the current status of the Aktau Bitumen Plant capacity expansion project (JV Caspi Bitumen) from 500 to 750 thousand tons/year of bitumen was reviewed. It is expected that construction and installation work will begin in the 4th quarter of 2024.
Theses of A. Khasenov:
- Kazakhstan has been cooperating with CITIC Group in the oil and gas sector for more than 15 years;
- We highly value our strategic partnership.
The head of KMG stressed the importance of launching the plant in March 2025 (before the start of the road construction season) and suggested changing the project schedule to provide for round-the-clock operation. The parties discussed the possibility of accelerated manufacturing of technological equipment at factories and optimization of logistics for its delivery to Caspi Bitum.
CITIC Group (China International Trust and Investment Corporation)
- one of the largest state-owned investment corporations in China;
- The headquarters is located in Beijing;
- CITIC Group is engaged in financial services, investments, construction, oil and gas production, as well as metal production.
Earlier, KMG signed an agreement on cooperation in the oil and gas sector with the National Oil Company of the Congo (Societe nationale des petroles du Congo, SNPC).
The agreement is aimed at exploring the possibilities of cooperation.
In July 2024, another Kazakh national company, QazaqGaz, signed an agreement with the American Chevron on cooperation on exploration in the Zhalibek subsurface area in the Aktobe region near the Zhanazhol and Urikhtau fields. Negotiations and technical preparations for this project have been carried out over the past year. The project is being implemented with the support of Samruk–Kazyna shareholder and the Ministry of Energy of the Republic of Kazakhstan.
