JEDDAH, 2 May — Bids by major foreign oil companies for three Saudi projects were referred to the Supreme Petroleum Council (SPC) on Monday. Among the 12 oil companies is ENI, the Italian oil company which established itself in Saudi Arabia in the late sixties and has ever since been a major partner in the Saudi oil industry.
Arab News talked to ENI’s Chief Executive Aldo Carbone about the future of the Saudi gas industry as well as his company’s plans.
Q. In recent months ENI’s contracting arm has won two major construction contracts from Saudi Aramco. Can you comment on ENI’s relations with Saudi Aramco?
A. Our relationship with Saudi Aramco is a long-standing and well-established one characterized by both our managerial and technical skills and our respect for Saudi culture. To reach its goals, ENI is expanding its international activities. Among these I will mention the development of the South Pars gas field in Iran, the Blue Stream project which will bring Russian gas to Turkey and our recent appointment as sole operator of the Kashagan field, site of one of the most promising oil discoveries in recent years.
We therefore understand fully the need to cooperate with local partners and put the highest value on our relationship with Saudi Aramco.
Q. Snamprogetti, ENI’s contracting arm, is also part of a team which has been awarded the contract to construct the world’s largest NGL plant in Qatar. Will you bring similar expertise to Saudi Arabia?
A. ENI will be involved in all aspects of the Saudi gas initiative, from exploration, production, processing, transportation and distribution of gas to petrochemicals, power generation and water desalination. Once again, our long-standing experience in the gas sector and competency in the execution of large integrated projects will mark our distinctive contribution. We believe the development of the Saudi gas sector will be a strategic move, not only for the energy sector, but also for the further development of the Kingdom’s industrial base, with a significant positive impact on employment and the transfer of industry-specific technological and managerial know-how.
Q. What role will ENI play in Core Venture 1?
A. We aim to play a leading role in both the technological and managerial aspects of the project.
Q. Apart from the construction projects. What are ENI’s current operations in Saudi Arabia?
A. ENI, through Agip Petroli, our refining and marketing subsidiary, buys Arabian crudes. We also participate in marine and aviation bunkering activities as well as in lubricant oils marketing. AgipPetroli, through its subsidiary Ecofuel, holds a 10 percent share in the “Saudi European Petrochemical Company — Ibn Zahr”, established in 1984. 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. In addition, Saipem, with another partner, was awarded a turn-key contract for the laying of 583 km of gaslines for the Hawiyah Gas Development project.
In joint ventures with other partners, Snamprogetti and Saipem also carried out some major crude oil, petroleum products, gas and water pipeline projects. Snamprogetti also provided engineering services for the Grass Roots Rabigh Refinery, the expansion of the Al-Jubail MTBE Complex, desalination plants and several gas and crude oil pipelines.
Q. Apart from the Gas Initiative, does ENI have plans for other business in Saudi Arabia, and if so, in which fields?
A. Given the Saudi Arabia’s strategic importance in the international energy market, ENI will monitor every opportunity arising in the sector. The entrepreneurial mentality, the highly developed infrastructures, the large young and educated population represent the edge of Saudi Arabia in attracting foreign investments. ENI believes Saudi Arabia will grow stronger as it develops the country’s huge human and natural resources.
Q. What about your personal experience of Saudi Arabia?
A. After working with ENI in Europe, North Africa, the Far and Middle East, I had already become acquainted with your country and its central role in the Muslim world and the oil industry. Nonetheless when I first moved here in 1994, I had the pleasant feeling of discovering Saudi Arabia. For me one the most fascinating aspects is the coexistence of aspects typical of modern life — cutting edge technology and a modern business mentality — with the Kingdom’s unique cultural heritage and traditions. I have been impressed by the results achieved in the development of the economy, industry and by the construction of large infrastructures and industrial plants. The government wisely focuses on education and training and ENI is glad to share a common view in this important area. We have in fact explored several forms of collaboration with Saudi universities. Some Saudi graduates have already attended our Scuola Superiore E. Mattei, a post-graduate school specializing in energy-hydrocarbon programs.