Kazakhstan is planning to establish a new oil exploration consortium involving US energy giant Chevron, British company Shell and Chinese firms Sinopec and China National Offshore Oil Corporation (CNOOC), with the companies potentially investing around $500 million in the joint venture.

Kurmangazy Iskaziyev, First Deputy Chief Executive Officer of Kazakhstan’s national oil and gas company KazMunayGas, said the companies had expressed interest in participating in the initiative, according to TASS.

“Western companies Chevron and Shell, as well as two Chinese companies - Sinopec and CNOOC - have expressed a desire to participate. We are considering not only seismic surveys but also the subsequent drilling of exploration wells. Negotiations are underway on 23 projects with the ministries; these involve separate investments. Capital investment in drilling will be higher, while the consortium itself will involve around $500 million,” Iskaziyev said.

The proposed consortium is considering drilling wells at depths ranging from 5.5 to 10 kilometers. By comparison, the maximum depth at major oil fields in Kazakhstan reaches approximately 5.5 kilometers.

According to the report, the consortium is expected to be established by the end of 2026.

All four companies already operate in Kazakhstan and participate in other consortia developing some of the country’s major oil fields.

Kazakhstan has more than 350 hydrocarbon deposits, most of them oil fields. Many of the fields currently in production are considered mature, meaning they have reached peak output or are experiencing declining production.

The government plans to expand geological exploration to help sustain and increase the country’s oil output by identifying new reserves.