KazMunayGas (KMG) Chairmain of the Management Board Sauat Mynbayev and Eni CEO Claudio Descalzi signed a strategic agreement that will result in KMG and Eni each holding 50% of E&P rights in Isatay, Eni said in a press release. Isatay is an offshore exploration area located in the north Caspian Sea. The block is estimated to have significant potential oil resources, the release said, and will be operated by a joint operating company.

The agreement also involves the development of a shipyard project in Kuryk located on the Caspian Sea coast of the Mangystau region of Kazakhstan. The shipyard will be managed by a project company, which will be formed by Eni and KMG.