CNOOC Ltd has announced its wholly owned subsidiary, CNOOC Hong Kong Holding Ltd, has entered into the Contract for Exploration and Production of Hydrocarbons (EPC) on the Zhylyoi Subsoil Area with Ministry of Energy of the Republic of Kazakhstan and Joint Stock Co. National Co. KazMunayGas (KMG).
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 km2.
According to the terms of the contract, the first stage of the exploration period shall be 9 years. CNOOC Hong Kong Holding Ltd and KMG shall each hold 50% interests. The two parties shall establish a joint operating company and act as the operator.