CNOOC Limited announced that its wholly owned subsidiary, CNOOC Hong Kong Holding Limited, 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 Company National Company 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 square kilometers.
According to the terms of the contract, the first stage of the exploration period shall be 9 years. CNOOC Hong Kong Holding Limited and KMG shall each hold 50% interests. The two parties shall establish a joint operating company and act as the operator.