Eni SpA (E) Chief Executive Paolo Scaroni Wednesday said an oil pipeline project in Turkey that the Italian energy company is involved in is on hold because the potential returns from the initiative don't justify it, but added he was optimistic it will eventually be built.
Eni SpA (E) Chief Executive Paolo Scaroni Wednesday said an oil pipeline
project in
Turkey
that
the Italian energy company is involved in is on hold because the potential
returns from the initiative don't justify it, but added he was optimistic it will
eventually be built.
"This project [Samsun-Ceyhan oil pipeline] is dormant as it isn't
profitable as long as the oil tanker rates to transport crude through the
Bosphorous Straits remain at these [low] levels" said Mr. Scaroni on the
sidelines of a conference in
Rome
.
"I remain optimistic it will eventually be built as it is very
interesting," added Mr. Scaroni.
Earlier Wednesday, Turkish Energy Minister Taner Yildiz told reporters the
country will shelve Eni's energy projects after it was awarded hydrocarbon
exploration blocks in
Cyprus
in
January. It wasn't clear if the minister was referring to existing or planned
Eni projects in
Turkey
.
"I am sorry over the reaction from
Turkey
and I
am hopeful we will find an accord," Mr. Scaroni told reporters.
The Eni CEO also said he doesn't expect Turkey's reaction to impact its joint
venture with OAO Gazprom (GAZP.RS) on the South Stream project that will
transport Russian natural gas through the Black Sea, adding that it was up to
Gazprom to take the lead in that project.
Eni hasn't yet started the exploration phase of three offshore hydrocarbon
blocks it was awarded in January by Cyprus and doesn't know what its potential
is, said Mr. Scaroni.
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