The Ministry of Energy of Kazakhstan, KazMunayGas (KMG) and Eni have signed a protocol granting the company the right to use the subsoil for the exploration and production of hydrocarbons through joint operations in the Abay area, offshore Caspian Sea.
The Abay block is located in the northern Kazakh part of the Caspian Sea, approximately 50 km from the coast, in water depths less than 10 meters. The block is estimated to have significant potential for hydrocarbon resources.
Eni and KMG will both hold a 50% stake in the Abay block and Eni will bear the share of KazMunayGas costs during the exploration period. The block will be operated by the "Isatay Operating Company", a joint venture equally owned by Eni and KMG and thanks to which the two companies, which also operate in the Isatay block, will be able to further maximize synergies and operational efficiency.
This is the first case in Kazakhstan where a joint venture operates two projects. The "Isatay Operating Company" will benefit from the proprietary technologies of Eni, a global leader both in the exploration sector and in the accelerated development of projects and with extensive experience in the technical and environmental fields in remote areas such as the Caspian basin.
This new project will further strengthen Eni's activities in Kazakhstan and consolidate the strategic alliance with KazMunayGas, a key partner for Eni.
Eni has been present in Kazakhstan since the early 90s. It is co-operator in the Karachaganak field (FPSA) and is a partner in the North Caspian Sea Production Sharing Agreement (NCSPSA) for the Kashagan super-giant. Together with the state-owned company KazMunayGas, Eni is the operator of the Isatay block and currently produces around 170 barrels of oil equivalent per day in the country. Eni is working on the construction of a renewable energy project, Badamsha, a 48 MW wind farm in northwestern Kazakhstan.