We have been present in the country since 1992, where we cooperate in the Karachaganak production field and we participate in the consortium (PSA), responsible for the Kashagan field. We also operate in the Exploration & Production, Refining & Marketing and Chemical, and Plenitude sectors.
In September 2023, Plenitude inaugurated its first photovoltaic farm in the Republic of Kazakhstan, in the village of Shaulder in the Turkistan region. With a capacity of 50 MW, the 100-hectare plant is equipped with more than 93,000 solar panels and will be able to produce up to approximately 90 GWh of energy per year.
The project, which complements the two wind farms Badamsha-1 and Badamsha-2, strengthens Plenitude’s presence in renewable energy production in the country through its subsidiary Arm Wind.
Exploration & Production
Below is the 2022 data on our production in the country.
Eni has been present in Kazakhstan since 1992 carrying out activities in the Exploration & Production sector. We are a co-operator of the Karachaganak producing field and is a part of the North Caspian Sea PSA (NCSPSA) consortium. In 2018 we became joint operator in the exploration block Isatay with KMG . In July 2019, KMG, Ministry of Energy of the Republic of Kazakhstan and Eni signed a contract for the exploration and production of hydrocarbons at Abay Block, which makes IOC the first joint venture holding two licenses in Kazakhstan. In 2021, the development activities of the Kashagan field (Eni’s interest 16.81%) concerned the phased expansion program of production capacity. The first development phase envisages increasing the production Management report | Consolidated financial statements | Annex 67 capacity up to 450 kbbl/d by upgrading the existing associated gas compression handling. The ongoing activities, sanctioned in 2020, mainly concerned increasing gas reinjection capacity by means of upgrading the existing facilities and delivering a part of gas volumes to a new onshore treatment unit operated by a third party, currently under construction. Within the gas treatment expansion projects of the Karachaganak field, activities concerned:
the Karachaganak Debottlenecking project was completed. The construction of a fourth gas reinjection unit is currently being finalized
the Karachaganak Expansion Project (KEP) to increase gas re-injection capacity progressed. The project is scheduled to be achieved in several phases. The development program of the first phase, sanctioned at the end of 2020, provides the construction of a sixth injection line, the drilling of three additional injection wells and of a new gas compression unit. Start-up is expected in 2024. The project includes an additional phase with the installation of a new treatment and compression units.
By building the Badamsha 1 wind farm (48 MW), which began operation in 2020, Eni entered the renewable energy production sector in the country. The initiative was Eni's first project development in the onshore wind energy sector, which was later strengthened with the second wind farm, Badamsha 2, which also has a capacity of 48 MW: this way, the company reached a total installed capacity of 96 MW in early 2022.
A 50 MW photovoltaic plant is currently being built near Shaulder, in the southern region of Turkestan.
The project was initiated through Arm Wind, a wholly owned subsidiary of Plenitude (100% owned by Eni), which will support our renewables strategy with the goal of achieving a balanced and diversified portfolio of more than 6 GW of installed renewable capacity by 2025 and more than 15 GW by 2030. These projects are in line with Eni's commitment to the energy transition process currently underway and contribute to Kazakhstan's carbon neutrality goals.
During the June 2023 meetingin Astana between the President of Kazakhstan, Kassym-Jomart Tokayev, Eni’s CEO Claudio Descalzi and the Kazakh state company KazMunayGas (KMG), the start of a joint project to build a 250 MW renewable-gas hybrid power plant in Zhanaozen in the Mangystau region was announced.
The project, which includes a photovoltaic system, a wind farm and a gas-fired plant to produce and supply electricity, will pave the way for the implementation of hybrid combinations of various technologies for decarbonized power generation in the country.
The agreement strengthens Eni's role in Kazakhstan's energy transition process, contributing to the acceleration of the country's decarbonization by developing renewables.
We create energy
Also in Eurasia we are integrating our business operations with social and environmental sustainability to create shared, long-term value. In Kazakhstan, for example, we work with universities to train Oil&Gas industry specialists, we have set up the Ural River Park Project to protect the River Ural ecosystem and we have launched initiatives to benefit children. Since 1999, we periodically organise for Kazakh children to spend time on the Adriatic coast, and, since 2018, with help from AC Milan Junior Football Camp, the top Italian trainers with experience in the junior division we are providing training to young local footballers. In 2021, Eni continues its commitment to support local communities in the nearby area of the Karachaganak field. In particular, initiatives progressed with professional training and realization of kindergartens and schools, roads maintenance, construction of sport centers and medical-health support also by means of the medicines distribution, following the health emergency resulting from the COVID-19 pandemic.
Karachaganak
Located onshore in the western part of the country, Karachaganak (Eni interest 29.25%) is a giant field that produces oil, condensates and natural gas. The operations carried out by the Karachaganak Petroleum Operating consortium (KPO) are regulated by a Production Sharing Agreement, of which we and Shell are co-operators. In 2022, production of the Karachaganak field averaged 69 kboe/d net to Eni.
We hold a 16.81% interest in the North Caspian Sea Production Sharing Agreement (NCSPSA). The NCSPSA defines terms and conditions for the exploration and development of the giant Kashagan field, which was discovered in the Northern section of the contractual area in the year 2000 over an area extending for approximately 3,300 square kilometers (approximately 560 square kilometers net to Eni). The NCSPSA expires at the end of 2041.
Since 2017 we have signed numerous cooperation agreements to promote the development of renewable energy in the country and in 2018 we decided to invest in building Badamsha 1, a 48 MW wind farm in the north-west. We opened a second 48 MW wind farm in 2022. In addition, in March 2021 we inaugurate the construction work on a 50 MW photovoltaic plant in the Turkestan Oblast.
In 2022 we took part in the installation of solar panels and in other energy efficiency measures at a high school in the Turkestan region in southern Kazakhstan to promote access to clean energy by helping local communities invest in a greener future.
The 50 kW photovoltaic system provides heating, lighting and hot water, reducing electricity costs by 20%, also thanks to LED lights, and carbon emissions. We also provided energy-saving thermostats and insulation film and carried out an awareness campaign for students and school staff through seminars and information material on the subject and on renewable energy sources.
The initiatives involved 1,200 students and 200 teachers, for a total of 1,900 boys and girls who will benefit from the project.
All of this is the result of our collaboration with the United Nations Development Programme (UNDP) in Kazakhstan and the Turkestan Region, which will contribute to the achievement of the Sustainable Development Goals (SDGs), including 7 and 13, which are aimed at ensuring access to sustainable and affordable energy for all and combating climate change and its impact.
To prepare specialists from Kazakhstan for work in the energy industry, we offer high-level training courses at our Corporate University (Master MEDEA), and we work with Italy's top universities and with the Kazakh British Technical University (KBTU). At the initiative of the World Economic Forum, we have also developed a Petroleum Engineering Education Program in conjunction with Satbayev and Nazarbayev universities in Kazakhstan and thanks to a team comprising personnel from Eni and other global companies.
We consider safety one of the most relevant issues for the sustainability of a company and promote action on behaviour and processes, as well as action to improve preparedness and emergency response capabilities. We want to share our safety principles not only with our company but also with countries where we operate. The number of road traffic crash victims in Western Kazakhstan Oblast (WKO) is of concern to both the Oblast Authorities and the people. In this regard, the WKO Akimat announced the year of 2019 as the year of road safety to achieve a steady reduction in the number of road accidents and victims on the Oblast’s roads. To implement such large-scale program, WKO Akimat in partnership with Eni and Shell signed the Memorandum of Cooperation on Road Safety. Advisory support during the implementation of road safety initiatives was entrusted to the experts of EASST Eastern Alliance for Safe and Sustainable Transport, local NGO Gaukhar Zhol is coordinating the activities in the region.
A great number of initiatives was implemented throughout the year of Road Safety in WKO, namely training of police officers, teachers, students, NGO representatives, various road safety campaigns involving all road users, surveys covering various citizens, audit of risky road sections, mapping road accidents with high level of precision and detail, all these activities resulted in the Road Safety Strategy for WKO for 2020-2025, which has been approved by WKO Akimat and is now being implemented under close monitoring of the Working Group.
In 2019 Eni, the Italian Embassy in Kazakhstan and the Eurasian National University, the largest Academic institution in Kazakhstan committed in the teaching of foreign languages, inaugurated the opening of the Italian Culture Centre Enrico Mattei in the University premise. The aim of the Center is to promote the Italian language and culture in Kazakhstan, through language courses and other initiatives, with the goal of strengthening the relations between the countries.
Press releases
Keep up to date with the latest news about our work in the country and our projects in the region.
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