KazMunayGas and CNPC Sign Gas Processing Agreement for Urikhtau Field

Kazakhstan-based Urikhtau Operating and CNPC-Aktobemunaigas have signed an agreement to strengthen their collaboration on the Urikhtau gas project.

The deal, signed during the China-Central Asia Industrial and Investment Cooperation Forum in Astana, outlines plans to process raw gas from the Urikhtau field at the Zhanazhol Gas Processing Plant, with a preliminary investment of $138 million, The Caspian Post reports citing Interfax.

KazMunayGas (KMG), Kazakhstan's national oil and gas company, and China National Petroleum Corporation (CNPC) had previously signed a framework agreement to explore processing hydrocarbon resources from the Central Urikhtau field at the Zhanazhol facility, operated by CNPC-Aktobemunaigas.

CNPC-Aktobemunaigas, a major oil producer in Kazakhstan's Aktobe region, develops fields including Zhanazhol, Kenkiyak and Northern Truva. The company, ultimately owned by CNPC, operates three gas processing plants in the region.

Urikhtau Operating, established in 2009, is a wholly owned subsidiary of KMG. The company was appointed as the operator for exploration and production at the Urikhtau field under an agreement with KMG, which represents the Kazakh government's interests in the oil and gas sector.