Eni and KazMunaiGas to build shipyard at Caspian Sea14 june 2014, 14:00
Italian Eni and Kazakhstani KazMunaiGas will build a shipyard at the Caspian Sea, Tengrinews correspondent reported from the 27th session of the Foreign Investors Council (FIC) chaired by the President Kazakhstan in Astana. FIC is an advisory body aimed at improving the investment climate in Kazakhstan.
As part of the FIC meeting, Italian PM Matteo Renzi met with Kazakhstan President Nursultan Nazarbayev. They signed an agreement relating to geological exploration of Isatai oil and gas field. They also concluded an agreement to construct a shipbuilding and ship-repairing plant between KazMunaiGas JSC and Eni S.p.A. In addition, the parties entered into a memorandum of understanding between the Ministry of Industry and New Technologies of Kazakhstan, IVECO S.p.A. and Saryarka AvtoProm LLP.
“Eni Group has been working in Kazakhstan for a long time and it is involved in development of the gigantic Kashagan field. I hope that the work of this company will be successful. Italy is the largest consumer of Kazakh oil: Kazakhstan provides for 24 percent of its oil demand. Today we signed an agreement on Isatai field, and in return Eni will build a dry dock shipyard at the Caspian Sea to produce ships for oil production and tankers that will ship oil along alternative routes,” Nazarbayev said about the agreements.
The president noted that Italy was Kazakhstan’s third largest trade partner in the world after China and Russia. It was also number one among European states. About 320 representatives of Italian companies and joint ventures are present in Kazakhstan. Kazakh-Italian intergovernmental working group is functioning in the country as well.
"Relations between Kazakhstan and Italy in the course of all the years of Kazakhstan's independence have been traditionally very broad in all directions. Italy is a strategic economic partner of Kazakhstan in Europe. Italy accounts for 13 percent of all Kazakhstan’s foreign trade turnover. The total volume of all Italian investment in our country is $66.5 billion, and we have paid special attention to the use of our ties' potential," the president said.
Matteo Renzi thanked Nazarbayev for the support provided to Italian companies by Kazakhstan. "Today we have signed an important agreement on an oil and gas project. We also know that there are many other resources in Kazakhstan. We discussed development of agriculture. As for the involvement of Eni, the company’s investments in Kazakhstan constitute a big part of Italian economic participation," he said.
Nazarbayev’s meeting with ENI’s CEO Claudio Descalzi only a few days ago attests to the company’s significance in Kazakh-Italian relations. During the meeting the president expressed his concern over the situation around Kashagan oil and gas field: due to corrosion of the initially installed pipes from hydrogen sulphide it is possible that a complete replacement of all the pipes is required, which will cost billions of dollars and additional years of delay in production.
Reporting by Altynai Zhumzhumina, writing by Dinara Urazova