CNPC and “KazMunayGas” to collaborate in oil exploration in Kyzylorda region
The China National Petroleum Corporation (CNPC), together with the national oil and gas company of the Republic of Kazakhstan, “KazMunayGas” (“daughter” of “Samruk-Kazyna”) will participate in oil exploration in the Kyzylorda region of Kazakhstan. This was reported by JSC NC “KazMunayGas”.
According to the published statement, this partnership aims to expand geological exploration, investigate new territories, replenish oil reserves, and implement innovative technologies. While in 2013, oil production in the Kyzylorda region was 11 million tons, in 2023, it is expected to be less than 4 million tons. According to forecasts, this year the volume of oil production will decrease by almost 3% (3.6 million tons of oil expected to be produced this year, which is less by 100 thousand tons compared to 2023).
Oil production in the Kyzylorda region continues to decline due to depletion of reserves at major fields. At the same time, according to Askhat Hasenov, Chairman of the Management Board of KMG, the South Torgai oil and gas bearing area located on the territory of Kyzylorda and Karaganda regions has a significant potential for development and requires in-depth research.
Replenishing reserves, which the management of KMG considers possible only through extensive geological exploration together with foreign partners, is essential. The current agreements between KMG and CNODC (a subsidiary of CNPC) include a joint study of the geological exploration potential of the area. Based on the results, a decision will be made regarding exploration in specific sections.
Also, the Akimat of the Kyzylorda region, the Ministry of Energy and the joint venture “Kazgermunai” (75% owned by KMG and 25% by CNPC) signed a memorandum on the implementation of an investment project aimed at the socio-economic development of the region. At the gas processing facilities of the enterprise, it is planned to process raw gas from other fields to increase supplies of natural gas to the domestic market.
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