ENI (ITALY)
ENI is one of the largest integrated global oil-and-gas companies with subsidiaries operating in all phases of oil and gas production cycle. Company’s market capitalization amounted to more than 67 billion Euro.
Eni’s subsidiary Agip Petroli, which is the leader on the Italian market, is engaged in oil refining and oil product sales. Through Agip’s enterprises ENI is involved in exploration and production of hydrocarbons in Italy, Northern and Western Africa, in the North Sea, in Russia, Central Asia, in the Caspian region, China and the USA.
The Enichem subsidiary specializes in manufacturing of plastics and elastomers.
The Snamprogetti subsidiary specializes in engineering and servicing of units to generate electricity, in the chemicals production engineering and servicing. Sipem deals with well drilling, construction of gas pipelines and sea platforms, land and offshore units manufacture.
The Snam subsidiary is engaged in gas transmission and supply SNAM is authorized to regulate the gas import international network, owns and operates a primary gas distribution network in Italy.
Russia is one of the major suppliers of natural gas and oil to Italy.
Eni concern has been represented in the USSR since 1950-es following the first contract on crude oil delivery signing by Eni’s first President Enriko Mattei.
In 1969, Eni, through the Snam subsidiary, signed the first contract for 6 bcm of gas per year supply. In 1974, after commissioning a pipeline, which connected the USSR and Austria, regular gas supplies to the Snam Company started.
In 1992, Gazprom and Tragas (Snamprogetti/Nuevo Pignone Consortium) a contract on delivery of equipment to modernize the Russian pipeline system. In 1996, under the contract, Snam began to receive additional volumes of gas. In 1996, Snam signed the new contract with Gazprom to increase gas supplies in the future. In 1997, Snam received from Gazprom about 13.7 bcm of gas.
In September 1996, a contract was signed to deliver Siberian gas to Italy, as well as agreements to supply liquefied gas to Italy between the Gazexport and Snam companies were reached.
In 1998, Eni, through Snam, imported about 16,7 bcm of gas. In 2008, based on agreements signed, natural gas export to Italy will amount to 28 bcm per year.
In February 1998, an agreement on strategic alliance was signed between Eni and Gazprom, which has allowed Eni to lay the principles for joint projects in exploration and production of oil, gas transportation, development of joint projects in energy sector and in combined production of heat and power. These principles presumed Eni and Gazprom participation on a par in the Blue stream project involving construction and operation of the gas pipeline connecting Dzhubga area, Krasnodar region, with the town of Samsun on the Turkish coast of the Black Sea. The designed capacity of the gas pipeline is 16 bcm of gas per year.
Under the above-mentioned agreement with Gazprom, the Astrakhan region’s deeply deposited hydrocarbon exploration project is on the agenda.
In February 1999, a Memorandum of mutual understanding on joint participation in realization of the Blue stream project between Gazprom and Eni was signed.
In March 2000, Eni, Gazprom and Gaztelecom entered into an agreement on joint initiatives in telecommunications development. The companies will consider an opportunity to install high-speed optic-fiber line to laid in parallel to the Blue stream pipeline route. In future, this partnership can be expanded covering other regions of Southern and East Asia as well as the Mediterranean states.