Reuters reported that Italian oil and gas group Eni has signed a cooperation agreement with Kazakhstan state oil company KazMunayGas on exploration and production activities in Kazakhstan.

Under the agreement, Eni and KazMunayGas will jointly study the Isatay and Shagala exploration areas located in the Caspian Sea. The agreement also includes the optimization of gas usage in Kazakhstan and a number of industrial initiatives including a gas sweetening plant, a gas turbine power plant a dry dock shipyard and the upgrading of the Pavlodar refinery.

The agreement follows a preliminary Memorandum of Understanding signed in July 2009.

Eni said it expects to further strengthen its presence in Kazakhstan, where it is co-operator in the Karachaganak field and equity partner in the Kashagan field.

(Sourced from Reuters)