KazMunayGas has finalized deal with Eni to transfer 50% of subsoil use rights in the Isatay block in Kazakh Caspian Sea.

The agreement finalization follows completion of all the required procedures under Kazakh laws by KMG to acquire subsoil use rights in the block as well as related commercial agreements.

Under the deal, KMG and Eni will launch a 50/50 joint venture (JV) to operate the Isatay block.

The JV will utilize Eni’s proprietary technology and its expertise and exploration capabilities in challenging conditions of the Caspian Sea shelf.

In June 2014, Eni’s participation was signed as part of a strategic agreement between the companies to develop shipyard project in Kuryk, located on the Caspian Sea coast of the Mangystau region.

Eni said that the agreement will strengthen its presence in the country, where it co-operates the Karachaganak and Kashagan fields, among others.

The transaction is subject to approval of the Kazakhstan Government.