Italian oil company Eni and JSC KazMunayGas (KMG) have signed an agreement which renews the conditions for the transfer to Eni of 50% of the subsoil use rights in the Isatay block, in the Caspian Sea off Kazakhstan, for exploration and production of hydrocarbons.
To recall, almost two years ago, in June 2015, KazMunayGas and Eni made an agreement defining the commercial terms of the transfer to Eni of 50% of the subsoil use rights in the Isatay. The terms of Eni’s participation in the block were signed in June 2014 as part of a strategic agreement between Eni and KMG.
The new agreement which renews the conditions was signed on Thursday, June 22 by KMG Chief Executive Officer, Sauat Mynbayev, and Eni’s CEO, Claudio Descalzi, at the Foreign Investors’ Council in Astana, Kazakhstan.
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, Eni said in a statement on Thursday. 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 country’s government.
In addition, Eni and KazMunayGas EP, a subsidiary of KMG, have signed an agreement 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.
Furthermore, on Wednesday, Eni had signed a cooperation agreement with General Electric (GE) and the Minister of Energy of Kazakhstan, Kanat Bozumbayev, to promote the development of renewable energy projects in the country.
Under this agreement, Eni and GE will co-operate with the aim of evaluating the possibility of building a wind power plant with approximately 50 MW capacity and identifying further future initiatives that will contribute to achieving the country’s strategic goals in terms of sustainable development.
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 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.
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.