Eni To Particpate in the Baku-Tbilisi-Ceyhan Pipeline Project

Eni announces the positive conclusion of the negotiations with Socar for its participation in the Baku-Tbilisi-Ceyhan project (BTC). Eni acquires a 5% interest in the entire project from Socar which holds 50%.

"We are pleased to announce today our participation in the important Baku-Tbilisi-Ceyhan pipeline project. Eni has been one of the first companies to support the Baku-Tbilisi-Ceyhan line since our preliminary evaluation is that the hydrocarbon potential emerging in the North Caspian Sea will call for a multiple system of transportation routes which takes into account not only the amounts of oil likely to be carried, but also the capacity of the end markets to absorb such amounts" Eni's Chief Executive Officer, Vittorio Mincato, has declared.

The project, which is currently in the Detailed Engineering Phase, envisages the construction of a pipeline to deliver the oil produced from the Caspian area to the Mediterranean Sea. The pipeline, approximately 1,740 km long, will connect, via Georgia, the capital of the Republic of Azerbaijan, Baku, with the Turkish port of Ceyhan on the shores of the Mediterranean Sea.

The maximum transportation capacity of the Baku-Tbilisi-Ceyhan pipeline is estimated at approximately 1 million barrels of oil per day.

The project already benefits from the Inter Governmental and Host Government Agreements which was entered into in November 1999 by the Governments of the three countries crossed by the pipeline in order to guarantee the fiscal regime and the necessary rights of way to the participants in the project.

In addition to Eni, the other companies participating in the project are SOCAR, BP, Unocal, Statoil, TPAO, Itochu and Delta Hess.