Croatia is stepping into Kazakhstan’s energy sector, with state-owned Geoenergija Razvoj set to finance oil exploration at the Shygys field in western Kazakhstan.

The project will be developed in partnership with KazMunayGas, following the signing of a joint agreement on equal terms, The Caspian Post reports via Kazakh media.

Under the deal, Geoenergija Razvoj will fully cover the exploration costs, marking a key investment step. The companies plan to:

Conduct 500 km of 2D seismic surveys

Drill an exploratory well reaching 3.5 km depth

The exact structure of the project has not yet been disclosed, though earlier discussions included the creation of a joint venture.

For Croatia, the initiative represents its first oil and gas project in Kazakhstan. The Croatian Hydrocarbon Agency, which oversees Geoenergija Razvoj, is expected to gain the status of a strategic partner to KazMunayGas.

The project follows Kazakhstan’s earlier proposal to Zagreb to participate in developing the Shygys field. After conducting feasibility studies, Croatian experts deemed the project promising.

Kazakhstan had set strict criteria for potential partners, including a minimum capital requirement of $200 million and full payment of a signing bonus.