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Eni Says Kashagan Pipeline Problem Mainly Related To Welding

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Reuters

MILAN, April 29 (Reuters) - The main problem behind the shut down of Kazakhstan's key Kashagan pipeline relates to the welding, the head of exploration and development at Italy's Eni said on Tuesday.

"The problem is worse than we considered," Claudio Descalzi told analysts.

He said it was likely that two pipelines at the Kashagan field would need to be replaced.

A tendering process for this had already begun, he said, adding in June a final idea of costs and timing would be known.

Descalzi, designated to take over as Eni CEO in May, said the group had made contingency plans to cover a lack of production at Kashagan in 2015.

(Reporting by Stephen Jewkes; Editrf by Oleg Vukmanovic)

Copyright 2014 Thomson Reuters. Click for Restrictions.

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