(MEBG) - ENI was established in 1959, therefore it “missed” Saudi Arabia’s development into a major oil producer . However ENI's presence in Saudi Arabia dates back to 1967 when Agip conducted exploration activities in the Rub Al Khali and Al Khuff concessions. In 1972, the concessions were relinquished.
Oil & Gas Activities:
A sign of ENI’s strong and professional status in Saudis’s estimation is indicated by the fact that ENI was among a group of foreign oil companies whom crown prince Abdullah invited to submit proposals for future developments in the kingdom’s oil sector.ENI submitted proposals mainly for the gas sector, even though it believes that the Saudi gas market is mainly internal.
ENI proposed the development of a $3 billion gas pipeline for electricity projects in western Saudi Arabia. This is also considered by the company a good base towords a pipeline network to the Mediterranean. The company proposes working on a block that to date has almost not been explored.
Petrochemical Activities
AgipPetroli has purchased Arabian crudes and LPG. The company is also active in marine and aviation bunkering activities, as well as in the marketing of lubricant oils, in cooperation with local partners.
AgipPetroli, through its subsidiary Ecofuel, holds a 10 percent share in the Saudi European petrochemical company Ibn Zahr, which was established in 1984. The Ibn Zahr petrochemical complex, located at Al Jubail, produces about 1.2 million t/y of MTBE and 250,000 t/y of polypropylene. Ibn Zahr is implementing a project to expand the polypropylene production capacity to 640,000 t/y.
Engineering and Oilfield Services
In the engineering and oilfield services sectors, Snamprogetti and Saipem carried out several turn-key projects in Saudi Arabia, including the Zuluf offshore field platform for gas treatmentin 1984. In joint ventures with other partners, the two companies also wewre involved in a number of major crude oil projects, petroleum projects, and gas and water pipeline projects, including the construction of the 780 km IPSA II Phase II crude oil pipeline from the Khurais Pump Station to Yanbu and related facilities.
Snamprogetti also provided engineering services for the Grass Roots Rabigh Refinery in 1990, the expansion of the Al-Jubail MTBE Complex, desalination plants and several gas and crude oil pipelines.
At present, Snamprogetti and Saipem are carrying out contracts for the UBGT-3 pipeline project, two water pipelines and relevant facilities for the Shoaibah Phase 2 water transmission system and a multiproducts pipeline for the Riyadh products supply system.
Saipem, in joint venture , was awarded a turn-key contract for the laying of gaslines, with a toal length of 583 km, for the Hawiyah Gas Development project.
© 2000 Mena Report (www.menareport.com)
