KazMunayGas to develop new oil field together with major Italian company

Business Materials 4 July 2019 17:37 (UTC +04:00)

Baku, Azerbaijan, July 4

By Nargiz Sadikhova - Trend:

On July 4, 2019, Kazakhstan’s national oil extracting company KazMunayGas, Italian Eni company and the Ministry of Energy of Kazakhstan signed a protocol on providing the right for development and extraction of hydrocarbons within the joint development of the Abay area in the Kazakh sector of the Caspian Sea, Trend reports with reference to KazMunayGas press office.

Following the trilateral meeting, an agreement on the payment of signing bonus in Kazakhstan’s favor was reached along with the agreement on the obligations of subsoil user by the criterion of local content.

The realization of the project will increase the investments in the exploration and extraction work in Kazakhstan’s sector of the Caspian Sea.

The next stage of cooperation is signing the contract on exploration and extraction of the Abay area, which includes drilling of the well 2,500 meters depth, carrying out 2D seismic exploration work and other type of work worth 14 billion tenge, the report says.

In March 2019, KazMunayGas and Eni signed an Agreement on joint work and the Agreement on financing within the joint implementation of the Abay area project.

Abay area is located in the North part of the Kazakh sector of the Caspian Sea. The closest port is Bautino port. The area is 65 kilometers away from the shore, and the depth of the water is about 8-10 meters.

(1 USD = 384.03 KTZ on July 4)


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