Eni Reinforces Ties with Kazakhstan through new Deal with KMG

Italy-based Eni clinched a deal with Kazakhstan’s KazMumayGas for joint exploration and production activities in Isatay, an offshore area located in Kazakh waters.

‘The agreement will result in KMG and Eni each holding 50% of exploration and production rights in Isatay, an offshore exploration area located in the north Caspian Sea. The block is estimated to have significant potential oil resources and will be operated by a joint operating company,’ reads a note released by the Italian giant on Thursday.

With the deal, Eni reinforces its position in Kazakhstan, where it also holds a 16.81% stake in Kashagan, the biggest global oilfield outside the Middle East. This could be a signal of easing tensions between the company and the Kazakh government, which bickered over overruns and delays of the Kashagan’s field.

Eni also operates the Karachaganak field. 

‘The agreement also involves the development of a shipyard project in Kuryk, located on the Caspian Sea coast of the Mangystau region. The shipyard will be managed by a project company which will be formed by Eni and KMG.’

On Friday, the country signed a deal with the companies developing the field, granting concessions to the partners.

Kazakhstan recently signed a treaty with Russia and Belarus to further foster integration, guaranteeing the free movement of goods, services, capital and work force.