Eni receives approval for the Abay subsoil use right
The agreement grants the subsoil use right for exploration and production of hydrocarbons within joint operations on Abay, an offshore area in the Kazakhstani sector of the Caspian Sea
The Kazakh Ministry of Energy, KazMunayGas (KMG) and Eni signed a protocol of direct negotiations to grant the subsoil use right for exploration and production of hydrocarbons within joint operations on Abay, an offshore area in the Kazakhstani sector of the Caspian Sea.
The Abay block is located in the northern part of the Kazakhstan sector of the Caspian Sea, approximately 50 km from the coast in a water depth of less than 10 meters. The block is estimated to have significant potential for hydrocarbon resources.
Eni and KMG will each hold a 50% share in the Abay block and Eni will carry KazMunayGas’s share of the costs during the exploration period. The block will be operated by the “Isatay Operating Company”, equally owned by Eni and KMG, that also operates the Isatay block, in order to maximise synergies and operation efficiencies. This is the first case in Kazakhstan where one Joint Company will operate two projects. The Company will benefit from Eni’s proprietary technologies as a global leader in terms of Exploration and reduced “time to market” project’s development, with extensive experience in challenging technical and environmental areas such as the Caspian Basin.
This new project will further expand Eni's activities in Kazakhstan and consolidate the strategic alliance with KazMunayGas, a key partner for Eni.