Kazakh state-owned KazMunayGas (KMG) and Italian giant Eni finalized commercial terms to move 50% of the suboil use rights of the Isatay block in the Caspian Sea to Eni.
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Image from Eni. |
Isatay is located 45km north of the Bozashi peninsula in 4-8m water depth. It is estimated to have significant potential oil resources, with exploration targets Cretaceous, Jurassic, and Triassic terrigenous sediments.
The terms of Eni’s participation in the Isatay block were signed in June 2014 as part of a strategic agreement between Eni and KMG, which also involves the joint development of a shipyard project in Kuryk, on the Caspian Sea coast of the Mangystau region.
The block will be operated by the KMG/Eni joint operating company on a 50/50 basis.The joint operating company will benefit from Eni’s proprietary technology, industry-leading track record in exploration and extensive experience in the environmentally and technically challenging conditions of the Caspian Sea shelf, Eni said.
The dealis subject to the approval of the transaction by the Republic of Kazakhstan, with an expected completion within a few months.
Eni has had a presence in Kazakhstan since 1992, the same year negotiations began for the Karachaganak field, which Eni co-operates. Eni is also equity partner in several fields in the north Caspian Sea, including the giant Kashagan field (16.81%), which is believed to be one of the most important discoveries in the world, in the past 30 years, Eni said.
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