KazMunayGas and Eni have finalized an agreement that defines the commercial terms of the transfer to Eni of 50% of the subsoil use rights in the Isatay Block in the Caspian Sea, according to a news release.

The block is estimated to have significant potential oil resources and will be operated by a joint operating company established by KMG and Eni on a 50/50 basis, the release said.

The transfer is expected to be completed within a few months subject to its approval by the Republic of Kazakhstan.

The terms of Eni’s participation in the Isatay Block were signed in June 2014 as part of an agreement between Eni and KMG which also involves the joint development of a shipyard project in Kuryk located on the Caspian Sea coast of the Mangystau region, the release said.

Offshore