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Eni extends licence onshore Turkmenistan and considers ramping up offshore activity

18th November 2014

Eni has signed an agreement with the Turkmenistan government to extend its exploration and production licence in an onshore area of Turkmenistan in exchange for a 10 per cent farm-out of interest to state entity Turkmenneft

Eni extends licence onshore Turkmenistan and considers ramping up offshore activity
The addendum extends the duration of the PSA to February 2032 and a 10 per cent stake out of the contractor share is transferred by Eni, operator of the block, to Turkmenneft

The Turkmenistan director of the state agency for management and use of hydrocarbon resources, Yagshygeldy Kakayev, the chairman of state concern Turkmenneft, Tachdurdy Begdjanov, and Eni’s CEO, Claudio Descalzi, have signed an addendum to the Production Sharing Agreement (PSA) with respect to the onshore Nebit Dag Area located in West Turkmenistan.

The agreement was signed in the presence of the president of Turkmenistan, Gurbanguly Berdimuhamedov, and the Italian prime minister, Matteo Renzi.

The addendum extends the duration of the PSA to February 2032 and a 10 per cent stake out of the contractor share is transferred by Eni, operator of the block, to Turkmenneft.

Eni will keep the remaining 90 per cent interest stake in the PSA.

This agreement will enable further exploration and production investments in Burun and other satellite fields of the Nebit Dag block.

In a separate agreement, the two sides signed a memorandum to explore the possibility of extending Eni’s activities to Turkmenistan’s offshore sector of the Caspian Sea.

These strategic agreements strengthen Eni’s presence in Turkmenistan, a country with a high exploration upside, where it began activities in 2008, and consolidates Eni’s cooperation with the national authorities and Turkmenneft.

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