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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