ENI CEO Vittorio Mincato used the occasion of his keynote speech to the Cambridge Energy Research Associates’ 2001 Global Forum in Houston to announce the selection by the joint venture companies of ENI as the single operator for the vast North Caspian Sea Project PSA offshore Kazakhstan.
He was outlining his company’s growth strategy as it differs from the mega-mergers recently witnessed in the industry.
“The mega mergers do not solve the underlying problems of the oil industry,” he said, and then pointed out some of the shortcomings that characterized the oil industry in the nineties, such as a diminished search for new frontiers, the excessive outsourcing of key competencies, and the too frequent choice of strategies dictated by management gurus or financial analysts.
Mincato claimed Eni's autonomy and its constant search for new frontiers enable the company to operate today worldwide on the most advanced frontiers of the oil and gas sector.
And in that context, said, “I am proud to announce that Eni was appointed single operator of one of the most promising oil discoveries in recent years.
This result rewards our long international experience and the technological know-how and competencies that Eni developed in the course of time.”
Eni, through its affiliate Agip Caspian Sea B.V., was chosen by the other joint venture companies Shell, TotalFinaElf, ExxonMobil, BG, BP, Statoil, Inpex, and Phillips Petroleum. Last summer, the group announced an interesting hydrocarbon discovery in this area Offshore Kazakhstan, made on the "Kashagan" structure located some 70 km southeast of Atyrau.
The Contract Area is made up of 11 blocks in the Kazakh North Caspian Sea, covering more than 5,500 sq km in water-depth ranging from two to ten meters.
The second exploration well is currently being drilling on the Kashagan structure, located some 40 km from the first.
Considering the hydrocarbon potential of the existing structures and the area's challenging technological and operational aspects, mainly due to a context of shallow waters and icy weather conditions for about six months of the year, the North Caspian Sea Project constitutes an industrial venture of major importance.
Mincato noted that ENI is fully aware of operating in a highly sensitive environment and will adopt the most advanced technologies and work methodologies to ensure the highest level of safety and environmental protection in the North Caspian area.
By Dev George, Houston
© 2001 Mena Report (www.menareport.com)
