QazaqGaz to team up with Chevron for exploration project at Zhalibek block in Kazakhstan

ASTANA. July 1 (Interfax) - National Company QazaqGaz JSC and Chevron Corporation, through its subsidiary Chevron Munaigas Inc., have agreed to cooperate in geological exploration at the Zhalibek Block in Kazakhstan's Aktobe region near the Zhanazhol and Urikhtau oil fields, QazaqGaz said in a press release.

The agreement of cooperation was signed by QazaqGaz CEO Sanzhar Zharkeshov and Chevron's Managing Director for Eurasia Derek Magness.

"During the first stage, Chevron will analyze a second time and interpret the available seismic data. The parties view the signed agreement as a potential start of their cooperation on a larger scale," the press release says.

According to QazaqGaz, negotiations and technical preparations for this project were carried out last year; the project will be implemented with the support of Kazakhstan's National Wealth Fund Samruk-Kazyna JSC, which is the sole shareholder of National Company QazaqGaz JSC.

"We are pleased to strengthen our cooperation with QazaqGaz through this important gas project. Our strategic partnership with Kazakhstan has spanned more than three decades, and this agreement creates new opportunities for potentially advancing Kazakhstan's energy sector. Chevron recognizes the importance of gas development and related potential opportunities within Kazakhstan's gas industry", said Derek Magness.

"We look forward to working with Chevron to find possible new gas prospects. Further geological exploration and development of a potential gas condensate or oil and gas condensate field at the Zhalibek site is expected to enhance the commercial gas resource base and drive economic growth in the country," said Sanzhar Zharkeshov.

The agreement "creates new opportunities for potentially advancing Kazakhstan's energy sector," said Derek Magness. "Chevron recognizes the importance of gas development and related potential opportunities within Kazakhstan's gas industry," he said.

QazaqGaz, formerly KazTransGas, is the national gas operator in Kazakhstan, including gas exploration, production, transportation and distribution. QazaqGaz operates gas pipelines totaling about 76,000 km in length, including 20,000 km of large pipelines with a yearly throughput capacity of 267.8 billion cubic meters of gas and 56,000 km of gas distribution networks.