Italian Eni and Kazakh KazMunaiGas will jointly explore Isatay block located in the Kazakh sector of the Caspian Sea, the company said.
The companies finalized an agreement that defines the commercial terms of the transfer to Eni of 50 percent of the subsoil use rights in the Isatay block.
The Isatay block is estimated to have significant potential oil resources and will be operated by a joint operating company established by KMG and Eni on a 50/50 basis. The joint operating company will benefit from Eni’s proprietary technology, industry-leading track record in exploration and extensive experience in the environmentally and technically challenging conditions of the Caspian Sea shelf.
The agreement signals the successful completion by KMG of the requisite procedures under Kazakh laws to acquire subsoil use rights in the Isatay block and the finalization of related commercial agreements. The transfer is expected to be completed within a few months subject to the approval of the transaction by the Republic of Kazakhstan.
The terms of Eni’s participation in the Isatay block were signed last year in June as part of a strategic agreement between Eni and KMG which also involves the joint development of a shipyard project in Kuryk, located on the Caspian Sea coast of the Mangystau region.
