becomes effective theagreement signed in Astana on 14 December between the companies of the Karachaganak Petroleum Operating (KPO) consortium and the Republic of Kazakhstan. This was announced this morning by ENI which, together with BG, is co-operator of the consortium with 32,5%, together with the partners Chevron and Lukoil which have respectively 20% and 15%.
The agreement establishes the closure of all ongoing disputes between the parties. But not only. In this way Kazakh state-owned company KazMunaiGaz (KMG) will join the consortium with a 10% stake released on a pro rata basis by current partners and will provide a transport capacity of up to 2 million tonnes per year in the CPC pipeline. The economic and financial terms governing the agreement are the same as previously announced.
The entry of KazMunaiGaz represents a major step forward for the strengthening of cooperation between the parties who in the meantime have already started the preparatory activities for the future development of the field from which a substantial increase in the production of liquids and gases is expected.
Karachaganak is a giant oil, condensate and natural gas field with recoverable reserves estimated at 5 billion boe. Production from Karachaganak during the year was 239 kbbl/d of liquids (64 kbbl/d net to Eni) and 24 mmcf/d of natural gas (about 7 mm net to Eni).
A business square, around 11.30, the Eni share is in absolute parity at 15,98 euros per share.
