In the conference room in Astana, two stacked maps outline the same transitional zone in the northeast of the Caspian Sea - one side is Hasenov, Chairman of Kazakhstan National Oil and Gas Company (KMG), and the other is Zhang Chuanjiang, Chairman of CNOOC. The two of them met this time not only to chat about old projects, but also to list the seismic data, exploration well locations, and subsequent oil service facilities of the Zhylyoi block one by one. For CNOOC, this is its first time entering the geological exploration field in Kazakhstan with a real investment identity; For KMG, it is pulling Chinese partners from the trade side to the upstream side of risk sharing.

Entering the upstream of Kazakhstan for the first time

The Zhylyoi project is located in the transitional zone of the northeast of the Caspian Sea, with a block area of approximately 958 square kilometers. Both parties hold 50/50 equal shares, and a joint operating company, Zhylyoi Operating LLP, has been established. The minimum investment for the exploration phase is about 31.5 million US dollars, all of which will be borne by the Chinese side. In exchange, the Chinese side will receive a ticket to participate in geological exploration in Kazakhstan for the first time through investment.

At present, the homework company is reprocessing and interpreting the historical 2D seismic data of 400 linear kilometers, and the field preparation for the 3D seismic exploration of 400 square kilometers is also nearing completion. After the 3D data processing is completed, the location of the first exploration well can be determined. According to the previously scheduled rhythm, first drill a 2000 meter salt exploration well, and then decide whether to go to a 4500 meter deep salt well based on the three-dimensional results. Ha Fang estimates that the oil resources in this block may exceed 185 million tons, but what is truly valuable is not just the reserve figures, but CNOOC's introduction of a complex offshore oil and gas exploration process to the Central Asian continent.

Follow up on oil service matching

Exploration is only the first half, and whether oil can be extracted and steadily produced depends on the oil service system. KMG Drilling&Services, a subsidiary of KMG, has signed a framework agreement with China Oilfield Services (COSL) to package and promote drilling, oil well maintenance, new technology application, localization content enhancement, and talent cultivation.

CNOOC has brought its independent "Xuanji" rotary directional drilling system, logging while drilling and other hard technologies into the cooperation list. KMG Engineering has simultaneously launched joint research and development, and Harbin technical personnel will also receive training at CNOOC's domestic base in batches. Unlike the past model of selling equipment and dispatching teams, this time technology transfer and localized employment are included in the terms - in the future, the proportion of local procurement and local employees in Kazakhstan will increase, and service centers and equipment assembly lines are also expected to be implemented. For CNOOC, it is about deeply binding technology to the long-term market; For Hafang, it is gradually transforming oilfield services from relying on Western giants to being autonomous and controllable.

Collaboration continues to spill over

This meeting did not just stop at the Zhylyoi block. Both sides have clearly put the feasibility of CNOOC's participation in other geological exploration projects of KMG on the table, and potential blocks around the Caspian Sea and the Caspian Sea Basin are in sight.

From the perspective of signing rhythm, CNOOC Hong Kong Holding Limited signed an exploration and production contract with the Ministry of Energy of Kazakhstan and KMG in June 2025. In September, the senior management of both parties held a meeting in Beijing, and the oil service framework agreement was implemented at the beginning of 2026. In July, Zhang Chuanjiang went to Astana to review the progress - China Kazakhstan energy cooperation is moving from single purchase and sale to exploration, development, services, and talent integration. For CNOOC, both upstream equity and presence in Central Asia have increased; For Kazakhstan, it is during the window period of the decline of Western oil services to find a partner who is willing to contribute money, technology, and help build the system. The wind of the Caspian Sea blows through the transition zone, and the cooperation map between the two companies is still expanding outward.Editor/Yang Meiling