I think it's time to ponder the following news from ENI, the Italian oil/gas giant. I have got the impression SibMach will have lots of work in this huge project.
eni.it
<<<Eni and Gazprom Reach Agreement on Blue Stream Project
Gazprom, the world's largest natural gas producer, and ENI, the Italian oil and natural gas company, have signed a Memorandum of Understanding for the joint participation in the "Blue Stream Project," which consists in the construction of a gas pipeline approximately 400 Km long connecting the Russian and Turkish coasts on the Black Sea, as well as the construction of a compressor station in the area of Dzubga, Russia.
Gazprom and ENI will participate in this project with a 50% interest each. Investment requirements for the project will be covered 20% from the equity of a company expressly established and 80% through debt. It is foreseen that a consortium of banks will provide credit guaranteed by SACE, the Italian export credit agency, and by other similar institutions.
The Blue Stream pipeline will have an annual minimum capacity of 16 billion cubic meters of natural gas. In accordance with their interest shares in the project, Gazprom and ENI will respectively be able to utilize 50% of the pipeline's transportation capacity.
As a result of a tender process, the contract for the construction of the pipeline is being assigned to Saipem, ENI's engineering and contracting company and a world leader in pipe-laying in very deep waters. Saipem detains the technology and infrastructure to carry out a highly complex project such as Blue Stream, which will be laid at depths of up to 2,100 meters.
Within the framework of their strategic alliance, Eni and Gazprom have also agreed to continue their commitment to studies relating to joint exploration and production activity in the Russian region of Astrakhan, and to pursue a possible acquisition by Eni of Gazprom's share capital.
Rome, February 3, 1999<<< |
