By Liam Moloney
ROME--Eni SpA (E) doesn't expect the repair costs for its
Kashagan field in Kazakhstan to be huge after spending $8.2 billion
so far on the project, said its Chief Executive Paolo Scaroni on
Thursday.
The Kashagan consortium, which includes other oil companies such
as Total SA and Royal Dutch Shell PLC, still hasn't decided how it
will repair the damaged pipelines, said Mr. Scaroni at the Italian
energy company's annual shareholders' meeting in Rome.
Among the options under consideration by the consortium is the
possibility of replacing the damaged pipelines or inserting new
tubes in the pipelines, he added.
The Kashagan field has so far cost $50 billion and is more than
eight years behind the original deadline.
Last month, Claudio Descalzi, chief operating officer at Eni's
exploration and production division, said the main problem on the
Kashagan pipelines was welding.
"I am confident that the Kashagan problems will be solved in
2015," said Mr. Scaroni.
Mr. Scaroni hasn't been designated by the Italian government,
which effectively controls Eni, to a fourth three-year term as CEO
and will be replaced by the company No. 2 official, Eni veteran Mr.
Descalzi, later Thursday.
Mr. Scaroni also said that the Kashagan consortium has appealed
a $800 million fine from the Kazakh ministry of environment.
Write to Liam Moloney at liam.moloney@wsj.com
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