Join OEdigital on Facebook Join OEdigital on LinkedIn Join OEdigital on Twitter

Eni enters series of Kazakhstan deals

Written by  OE Staff Thursday, 22 June 2017 10:37

Eni has lined up a series of agreements with the Astana government that will see the Italian giant have the rights to explore the Isatay block in the Caspian Sea.

Descalzi. Image from Eni.

Eni CEO Claudio Descalzi and JSC KazMunayGas (KMG) CEO Sauat Mynbayev signed a deal earlier today (22 June) at the Foreign Investors’ Council in Astana that renews the conditions for the transfer to Eni of 50% of the subsoil use rights in the Isatay block, in the Caspian Sea, for exploration and production of hydrocarbons.

The block, which is estimated to have significant potential for hydrocarbon resources, will be operated by a joint operating company (JOC) formed by Eni and KMG. The JOC will benefit from the proprietary technologies of Eni, a global leader in terms of exploration and with extensive experience in challenging technical and environmental areas such as the Caspian Basin, says Eni.

The JOC will begin working as soon as the transfer of 50% interest in the license is completed, subject to the approval of the transaction by the Republic of Kazakhstan.

Eni also signed a deal with KMG subsidiary KazMunayGas EP to further expand upstream technology co-operation and evaluate potential joint developments in new projects. The agreement also includes a technical and managerial training program for KMG EP staff.

Along with the Ministry of Energy of the Republic of Kazakhstan, together with JSC KazMunayGas (KMG) and the Kazakh Committee of geology and subsoil use, Eni signed a memorandum of understanding (MoU) to evaluate future cooperation terms in the Kazakh-Russian Pre-Caspian Basin where numerous discoveries of oil fields of considerable size have been carried out. The signing of this MoU is part of the Eurasia project promoted by the Ministry of Energy in order to study the depth exploration potential of the basin.

All the agreements signed at the Foreign Investors’ Council further expand the scope of Eni's activities in Kazakhstan and strengthen its presence in the country, as well as consolidating the strategic alliance with key partners such as KMG in the upstream sector and GE in the field of renewable energy.

In Kazakhstan, Eni is joint operator of the Karachaganak field as well as being an equity partner in various projects in the Northern Caspian Sea, including the giant Kashagan field.

Read 12828 times