Eni Inks Kazakh Pacts
Thursday 22 June 2017
Eni has secured exploration rights to a prospective Caspian Sea block off Kazakhstan in one of several deals inked by the Italian operator with the Astana government.
The agreement renews conditions for Eni to gain 50% of subsoil use rights for exploration and production in the Isatay block under a joint venture with state-owned KazMunaiGaz (KMG).
Work on the tract, which has “significant potential for hydrocarbon resources”, will start once formal transfer of the stake has been completed on approval from the authorities, Eni said in a statement.
The Milan-based giant also signed a memorandum of understanding with KMG, the Energy Ministry and the Kazakh committee of geology and subsoil use for future co-operation on exploitation of the Kazakh-Russian pre-Caspian basin where numerous large oilfields have been discovered.
The MoU, which was among deals signed by Eni chief executive Claudio Descalzi at the Foreign Investors’ Council in Kazakh capital Astana, falls under the Eurasia project being promoted by the ministry to study the exploration potential of the basin.
In addition, Eni inked an agreement with KazMunaiGas EP to expand technology co-operation and evaluate potential new joint development projects.
A further co-operation deal was signed with GE to promote development of renewable energy projects in the country.
Eni said the latest pacts further expand its activities in Kazakhstan, where it operates the Karachaganak field and is a partner in several northern Caspian projects, while also consolidating strategic alliances with key partners such as KMG and GE.