KMG,CNPC agree on expansion of technical cooperation
Kazakhstan’s national oil and gas company KazMunaiGas (KMG) and the China National Petroleum Corporation (CNPC) will jointly work on increasing the oil recovery and utilization of the accompanying gas at fields in southern Kazakhstan.
The agreement on the expansion of technical cooperation in the oil and gas sector between CNPC and KMG will serve as a basis for this. The agreement was inked in Astana after a meeting of the Kazakhstan-China Business Council with the participation of heads of governments of the two countries.
The document stipulates that the KMG and CNPC will expand technical cooperation in the oil and gas industry, including in boosting the oil recovery of the oil fields in the ‘South Turgai’ basin in Kazakhstan.
PetroKazakhstan Kumkol Resources JSC through a pilot experiment on polymer pumping (pumping of polymer solutions) is developing the field.
In case of a positive result, the PetroKazakhstan Kumkol Resources JSC will consider the possibility of introducing this technology at other fields in the ‘South Turgai’ basin.
Aside from that, under the agreement the Kazakh and Chinese companies will conduct researches on enhancing the reservoir recovery by selective injection of water into oil horizons at the Kalamkas field, which is being developed by the joint venture, Mangistaumunaigas JSC.
It was also agreed to develop cooperation on gas utilization in the Kyzylorda region of Kazakhstan through researches on turning the accompanying gas into liquid hydrocarbons.
In case of positive results on this work, the parties will support the realization of a gas and chemical project in this region.
Under the agreement, KazMunaiGas – Processing and Marketing JSC, a subsidiary of KMG, and CNPC will establish a joint production of diesel fuel, synthetic natural gas and other petrochemical products.