NUR-SULTAN, Kazakhstan – Eni has signed a protocol of direct negotiations with the Kazakh Ministry of Energy and KazMunayGas (KMG) concerning E&P rights to the Abay block in the northern Kazakh sector of the Caspian Sea.
The concession is roughly 50 km (31 mi) from the coast in water depths less than 10 m (33 ft). According to Eni, there appears to be significant potential for hydrocarbon resources.
The company and KMG will each hold a 50% share in Abay, with Eni covering KazMunayGas’ share of costs during the exploration period.
Isatay Operating Co., the joint venture between the two companies that operates the offshore Isatay block, will manage activities in order to maximize synergies and efficiencies.
According to Eni, this will be the first instance in Kazakhstan of a joint company operating two projects.
It will be able to draw on Eni’s proprietary technologies for the exploration campaign and its experience in technically demanding and environmental areas elsewhere in the Caspian basin, notably the ultra-shallow Kashagan field development.