Eni SpA will be able to set in the coming weeks a timeframe and cost structure for the beginning of commercial extraction from the giant Kashagan field in the Caspian Sea, CEO Paolo Scaroni said.
When asked about the auditing process underway by the Kazakh government through its state-owned energy company KazMunaiGaz (KMG) on delays to the Kashagan field, Scaroni answered that the audits are ongoing and of no real surprise.
KMG has the right to audit these things. We are calm, since we believe we have done everything by the book," he said.
Eni was originally due to start oil extraction from Kashagan -- the biggest oil field discovered in the last 30 years -- in 2005 but has pushed the date back to 2009-2010, citing technological difficulties.
Financial analysts have expressed concern about mounting costs at the field, of which Eni is the operator.
KMG has an 8-percent stake in the consortium that is developing the field.
"Kashagan is proving itself to be more generous than we had first thought," said Scaroni.
Industry sources confirmed a report in the daily MF that Pietro Cavanna, former head of Eni's Kashagan project, has been hired by Edison SpA as head of its oil and gas exploration and production unit.
Scaroni also said he is unconcerned about an investigation by the Italian antitrust authority against nine oil companies, including Eni, for alleged restrictive practices in the setting of petrol pump prices.
(AFX News, 25/01/2007)