National company "KazMunayGas" and Eni Isatay B.V. sign series of agreements on project "Abai"

12.03.19, 12:24
/KASE, March 12, 2019/ – National company "KazMunayGas" (Astana), whose securities 
are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE 
with the following press release of March 11, 2019:


On 11 March 2019 JSC NC "KazMunayGas" and Eni Isatay B.V. signed the Joint 
Operating Agreement (JOA) and the Carry Agreement (CA) for the purpose of joint 
implementation of the project on the Abai area, located in the Kazakh Sector of 
the Caspian Sea.

Under the signed JOA and CA, and in accordance with the Subsoil and Subsoil 
Use Code of the Republic of Kazakhstan, the parties will file a request with the
RoK Ministry of Energy for direct negotiations and conclusion of the hydrocarbons 
exploration and production contract.

Background information:

JSC "National Company "KazMunayGas" is Kazakhstan's national operation for 
exploration, production, refining and transportation of hydrocarbons. 90.42% of
shares of JSC NC "KazMunayGas" are owned by Sovereign Wealth Fund "Samruk-Kazyna" 
JSC, and 9.58%  - by the National Bank of the Republic of Kazakhstan.

Eni is an multinational energy company, present in Kazakhstan's oil and gas 
upstream sector since the beginning of the 90s. Eni is a co-operator of the 
Karachaganak field and a part of the North-Caspian PSA consortium, engaged 
in exploration and production at the Kashagan field. Jointly with JSC NC 
"KazMunayGas", the company has been the subsoil user under the Isatay offshore 
area exploration and production contract since 2017, where it is also a member 
of the operator company. Eni's total investment in Kazakhstan has exceeded 
15 billion U.S. dollars since 1992.

The Abai area is located in the northern part of the Kazakh sector of the 
Caspian Sea water area. The nearest port for ships is Bautino. Distance to 
shore – 65 km, water depth – around 8-10 m.