KazMunayGaz (KMG) has announced that Turkish Petroleum (TPAO) is progressing towards forming a joint venture for the Bolshoy Zhambyl offshore exploration block in the Caspian Sea. This follows a visit by TPAO representatives to KMG's Astana headquarters on February 3rd to discuss cooperation, marking the second such meeting in ten days after an initial meeting on January 23rd.

Project Details and Proposed Cooperation

The Bolshoy Zhambyl block is a greenfield project that also encompasses the Zhambyl and Zhetysu structures. KMG has proposed that the initial phase of joint cooperation involve drilling an exploration well to a depth of 4,500 meters to confirm the presence of commercial hydrocarbons.

Background and Previous Partnership

KMG has been seeking a new partner for the shallow-water Zhambyl project since 2016, when a South Korean consortium led by Korea National Oil Company withdrew. The consortium, which held a 27% stake (with KMG holding 73%), spent $250 million on an exploration campaign that began in 2008. This campaign included building the Caspian Explorer drilling barge, collecting seismic data, and drilling two wells. While it confirmed natural gas, it failed to discover expected commercial oil reserves, leading to the consortium's exit. Prior to TPAO, KMG was also in discussions with China National Petroleum Corporation in 2023 regarding potential participation.

TPAO's Recent Experience

TPAO brings recent offshore exploration success to the potential partnership, having discovered the Sakarya gas field in the Black Sea in August 2020 and making several subsequent finds in the same area. The Turkish company has moved quickly to develop Sakarya, transitioning to acting as operator using its own fleet of drillships and seismic vessels, rather than relying on western oil majors.