Eni and KazMunaiGas Sign Co-Operation Agreement in Italy
In the presence of the President of the Republic of Kazakhstan, Nursultan Nazarbaev and the Italian Prime Minister, Silvio Berlusconi, the Eni CEO, Paolo Scaroni and KazMunaiGas President, Kairgeldy Kabyldin have signed a cooperation agreement on exploration and production activities as well as strategic industrial facilities in Kazakhstan.
Under the agreement, which follows a preliminary Memorandum of Understanding signed in July 2009, Eni and KazMunaiGas (KMG) will jointly study the Isatai and Shagala exploration areas located in the Caspian Sea, the optimisation of gas usage in the Republic of Kazakhstan and a number of industrial initiatives including a gas sweetening plant, a gas turbine power plant, a dry dock shipyard and an upgrade to the Pavlodar refinery, in which KMG holds a majority interest.
Final investment decisions on all these projects are expected within 2 years after the completion of the detailed technical and commercial studies.
Eni is expected to further strengthen its presence in the Republic of Kazakhstan, where it is co-operator in the Karachaganak field and equity partner in the Kashagan field. Within this project, Eni is carrying out the execution of the first phase of development, according to Your Oil and Gas News.