Eni, KMG sign Caspian exploration agreement

Italy’s Eni SPA and Kazakhstan’s state-owned KazMunayGas (KMG) have signed a strategic agreement in which each company will hold 50% interest in exploration and production rights for the Isatay exploration area in the north Caspian Sea.

Eni says the block is estimated to have significant oil resources and will be operated by a joint operating company.

The agreement also involves the development of a shipyard project, managed by a company formed by Eni and KMG, in Kuryk on the coast of Kazakhstan’s Mangystau region.

Eni’s presence in Kazakhstan includes co-operatorship of the Karachaganak field and equity partnerships in several fields in the north Caspian Sea, including the giant Kashagan field (OGJ Online, June 28, 2012; Sept. 11, 2013).