Italy's ENI, through its affiliate Agip Caspian Sea B.V., was appointed single operator of the North Caspian Sea's Kashagan production sharing agreement.
To date, the joint operating company, Offshore Kazakhstan International Operating Co., has operated the concession.
The OKIOC group earlier announced a promising hydrocarbon discovery on the Kashagan structure some 42 miles southeast of Atyrau.
The contract area is composed of up to 11 blocks in the Kazakh North Caspian Sea, covering more than 5,500 square kilometers in water depths from 6.5 feet to 33 feet. The second exploratory well is now being drilled on the Kashagan structure.
ENI said it was aware of the responsibilities of operating in a highly sensitive environment, and would adopt the most advanced technologies and work methodologies to ensure the highest level of safety and environmental protection.
In related news, Statoil agreed to sell its 4.67 percent interest in the Kashagan field to TotalFina Elf. The deal is in accordance with Statoil's international upstream strategy of focusing personnel and resources on core assets and areas with operator potential.
Statoil said that even with the huge discovery, Kashagan does not meet the company's criteria for maturity and governance because its ownership in the prospect is too small.
However, Statoil said the Caspian remains a principal priority for the company. Remaining partners in OKIOC include Agip, British Gas, Exxon Mobil, Shell, Phillips Petroleum and Inpex.
© 2001 Mena Report (www.menareport.com)
