KazMunayGas, Uzbekneftegaz sign agreement on Zharkyn exploration project

ASTANA. Nov 17 (Interfax) - JSC National Company KazMunayGas (KMG) and JSC Uzbekneftegaz have signed a statement of principles on the Zharkyn project in the Mangystau region, KMG's press service said.

"Zharkyn is the first joint project of the two countries' national oil and gas companies in geological exploration. The initiative aims to strengthen energy cooperation between Kazakhstan and Uzbekistan. The agreement that was signed defines the main terms of the strategic partnership for the project. KMG and Uzbekneftegaz agreed to implement the project on a parity basis of 50/50, with the Uzbek side providing financing for the exploration period," the press service said.

Earlier, as part of geological subsoil study, KMG conducted 2D seismic exploration on the Zharkyn site totaling 1,275 linear km, based on the results of which prospective structures were identified. According to the agreements reached, KMG and Uzbekneftegaz plan to drill two exploration wells, each 2,000 meters deep.

The document was signed in Tashkent as part of the state visit of Kazakh President Kassym-Jomart Tokayev to Uzbekistan.

KazMunayGas is the Kazakh national operator for the exploration, production, processing and transportation of hydrocarbons, representing the state's interests in the oil and gas sector.