Eni, KazMunayGas sign preliminary agreement on oil and gas projects
ROME. Nov 6 (Interfax) - Italy's Eni and Kazakhstan's KazMunayGas (KMG) have signed an agreement on cooperation that paves way for billions of dollars of investment in Kazakhstan's oil and gas production and refining.
Eni said in a statement that the companies would explore the Isatai and Shagala deposits on the Caspian Sea shelf, study projects for gas usage enhancement, construction of gas processing and gas-turbine power plants, and a shipyard, as well as modernization of Pavlodar Oil Refinery.
The final decisions on investments in these projects will be taken within two years after the completion of detailed feasibility studies, the statement said.
The Financial Times quoted Eni CEO Paolo Scaroni as saying investment in these projects may amount to $40 billion-$50 billion, and that other partner companies, such as Chevron, Lukoil , BG Group and Total, could be involved in the projects.
Kazakh Energy and Mineral Resources Minister of Sauat Mynbayev said on June 17 that Eni intended to build a shipyard in the Kazakh sector of the Caspian Sea to produce 63,000 DWT oil tankers. He said that the gas turbine plant could generate 100 MW of electricity to be supplied to the West Kazakhstan region.
The agreement between Eni and KMG was signed during Kazakh President Nursultan Nazarbayev's visit to Italy.