By the OGJ Online Staff
LONDON, May 22 -- ENI SPA is making its first foray into Russia as an operator following the signing of an exploration and development deal with Astrakhannafteprom for a swath of acreage neighboring giant Kashagan oil field in the North Caspian Sea.
Under the deal, ENI SPA's Caspian E&P arm, Agip Energy BV, will conduct exploration of a 1,800 sq km area of the Russian sector of the Caspian Sea at the mouth of the Volga River that borders on the large Precaspian sedimentary basin -- home to oil fields including Kashagan, Karachaganak, Zhanazhol, and Tengiz. Astrakhannafteprom is a 50:50 joint venture between the Astrakhan region and Russia's Stroitransgaz AOA.
The Italian parent company said its E&D activities would involve a seismic survey, along with the drilling of two wells "up to a depth of 6,500 m." A further four appraisals wells would follow.
Development of the field, according to ENI, would be advanced via a production sharing agreement.
The Astrakhan region is near the recently opened Caspian Pipeline Consortium oil trunkline, through which ENI has the right to transport up to 3 million tonnes/year.
"After decades of hydrocarbons imports, ENI becomes today, for the first time in its history, an operator in hydrocarbon exploration and development in Russia," said CEO Vittorio Mincato.
In February ENI was named "single operator" of the North Caspian Sea project, which includes Kashagan oil field off Kazakhstan. The company later said production tests at the Kashagan West 1 well had proved recoverable reserves of at least 10 billion bbl of oil (OGJ Online, May 4, 2001).
ENI said its latest deal builds on a strategic alliance set with Gazprom AOA in February 1998, targeting joint oil field developments, gas transportation infrastructure systems, and E&D projects in the Astrakhan region.
