Eni CEO to Rethink Structure of Saipem Relationship
NEW YORK - Eni SpA is rethinking the structure of its relationship with oil-services provider Saipem SpA in light of a criminal inquiry into the company for alleged bribes of Algerian officials, Eni Chief Executive Paolo Scaroni said Monday.
"What has happened leads us to think again and look again at the situation," said Mr. Scaroni in response to a question about Eni's stake in Saipem. "There is nothing worse than having no control and full responsibility."
Last week Milan prosecutors placed Mr. Scaroni under investigation as part of the Saipem inquiry. Prosecutors are investigating whether Saipem, which is 43% owned by Eni, paid bribes to secure billions of dollars in natural-gas contracts over a period of years leading up to 2009, according to people familiar with the investigation.
Mr. Scaroni and representatives from Eni said that they believe he is being investigated due to a series of meetings he had with Algeria's oil minister Chekib Kheli. On three or four occasions, Mr. Scaroni said, Mr. Kheli was accompanied by Farid Bedjaoui, who was introduced to Mr. Scaroni as a "personal assistant."
On Friday, Reuters first reported that the investigation into Mr. Scaroni was based on meetings with Mr. Bedjaoui, who allegedly distributed bribes to win gas contracts in Algeria.
In a statement Thursday, Eni said "Eni and its CEO declare themselves totally unrelated to the object of the investigation."
Mr. Scaroni said Monday that he and the company are fully cooperating with authorities but Eni will not conduct its own internal probe.
"We have nothing to investigate," he said. He also said that he never discusses Saipem's business during meetings with customers or other business contacts.
"Saipem has always been managed hands off completely," he said.
Mr. Scaroni said he learned in November that Saipem had a brokerage agreement in place since 2007, which could allow intermediaries to be paid to help arrange contracts.
Eni, he said, "does not have any intermediation contracts, they are forbidden." He said that when he learned of Saipem's arrangements, he "acted immediately" by contacting the chairman of Saipem.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension