Italian oil and gas major Eni has inked a series of agreements for upstream and renewable energy sources in Kazakhstan to expand its footprint in the central Asian country.
Most significant of the agreements is the transfer of 50% of the subsoil use rights to Eni for exploration and production of hydrocarbons in the Caspian Sea located Isatay block.
The Isatay block will be operated by Eni and KMG through a new Joint Operating Company (JOC). It is estimated to have high potential for hydrocarbon resources.
The JOC is expected to leverage from Eni’s proprietary technologies and the company’s vast experience in challenging technical and environmental regions like the Caspian Basin. It will commence operations as and when the transfer of 50% stake in the block license is completed which would depend on an approval by the Kazakhstani government.
In another agreement which it has signed with KazMunayGas EP, Eni will be expanding an upstream technology co-operation with the KMG subsidiary. Further, the partners will also explore potential joint development opportunities in new projects.
Earlier this week, Eni forged a cooperation agreement with General Electric (GE) and the Kazakhstani government to boost the development of renewable energy projects in the country.
Eni and GE will work jointly to evaluate the feasibility of building a 50MW wind power plant and also in exploring further initiatives in Kazakhstan.
A statement released by Eni read: “The agreements expand the scope of Eni's activities in Kazakhstan and strengthen its presence in the country, as well as consolidating the strategic alliance with key partners such as KMG in the upstream sector and GE in the field of renewable energy.”