Kazakhstan's KazMunaiGas hands 50% in Isatay offshore block over to Eni
ALMATY. June 23 (Interfax) - KazMunayGas (KMG) and Eni signed an agreement today at the Foreign Investors' Council in Astana that renews the transfer of a 50% license in the Isatay offshore block to Eni.
"The agreement renews the conditions for the transfer to Eni of 50% of the subsoil use rights in the Isatay block, located in the Caspian Sea, for exploration and production of hydrocarbons," Eni said.
"The block will be operated by a Joint Operating Company (JOC) formed by Eni and KMG. The JOC will begin operations as soon as the transfer of 50% interest in the License is completed, subject to the approval of the transaction by the Republic of Kazakhstan," Eni said.
Eni also signed an agreement with KazMunayGas EP, a subsidiary of KMG, to expand upstream technology cooperation and evaluate potential joint developments in new projects. The agreement also includes a technical and managerial training program for KMG EP staff.
In June 2014, KMG CEO Sauat Mynbayev and Eni CEO Claudio Descalzi signed a strategic agreement for exploration of the Isatay block.
The Isatay block is located in Kazakhstan's sector of the Caspian Sea, 45 km to the north of the Bozachi Peninsula coast. The field is in shallow water, with water depths ranging from 4-8 meters.
In Kazakhstan, Eni is a joint operator of the Karachaganak field as well as an equity partner in various projects in the Northern Caspian Sea, including the giant Kashagan field.