One of the largest and most well known companies in the petroleum industry, Eni has organized a press tour for Kazakhstani journalists to Italy on more than one occasion. The purpose of the invitation was certainly to demonstrate the openness and transparency of the company’s activities, first of all, in our country. The single rule for Eni is the availability of information on the main areas of development, both within the group, as well as in relations with foreign partners.

The scope of activities at Eni is very extensive. The company has a huge number of departments. It is sufficient to say that about 80,000 people work across the company. Milan, the business and economic centre of Italy, is home to the administrative structure of the energy sector.

Kazakhstan media representatives and Regional Liaison Manager Karachaganak Activities  Jacopo Dainelli as well as a representative for the Sustainability Department,   Enrico Furegato, held a meeting in the company’s Milan office. The conversation began with a description of the company’s potential. The company is known as one of the largest in the world. Its main areas of activity are exploration, production and processing of crude hydrocarbon.

Its production growth rate for the past 10 years averaged 5%, which is a very good figure. The company's goal is to maintain growth of no less than 2-2.5%. Its stable financial performance ensures a high level of profitability for oil and gas production. There is solid experience gained in the generation and transportation of electricity. Large-scale studies are being conducted in alternative energy sources. The production of bio-fuels is under consideration as a new and promising area for development.

Despite the crisis, the level of investment has been preserved, and preference is given to long-term projects such as Karachaganak, which Eni is developing in collaboration with partners such as the BG Group (UK), Chevron (USA) and LUKoil (Russia).

To implement the Karachaganak project, these companies joined the consortium Karachaganak Petroleum Operating BV. Eni’s share in the integrated organization is 32.5%. Under the terms of the final production sharing agreement, KPO will manage production until 2038.

Karachaganak’s advantage lies in its compactness. In terms of hydrocarbons reserves, the field is one of the largest in the world. At the same time, it is located on a relatively small space. It is at Karachaganak where the latest technology and know-how available to the industry are tested and applied.

This includes gas re-injection into the reservoir, which has been shown to considerably increase productivity, and associated gas flaring is nearly reduced to zero.  That in return significantly improves the environmental health of the region. Reservoir pressure is maintained at the same time, which leads to a better recovery of hydrocarbon reserves.

The exploration of new reserves is linked directly with an increase in production volumes. New technologies also include drilling horizontal wells, which makes it possible to increase extraction of crude hydrocarbons significantly.

New infrastructure has been created for foreign investors’ production work. Wells have been reconstructed; a processing facility and a pipeline linking the field to the Caspian Pipeline Consortium have been built, allowing for the shipment of Karachaganak oil to foreign markets. The construction of the fourth stabilisation train is coming to an end, which will make it possible to increase significantly the production of stabilized liquid hydrocarbons.

As is well known, there are no absolutely safe production fields. The main operator’s goal is to reduce the environment impact to the absolute minimum. Environmental protection and safety are major priorities at Karachaganak and a full-scale risk management is implemented at the company.

A significant amount of funds are invested into social reconstruction. Over the last decade, KPO has invested $10 million annually into social projects in the West Kazakhstan Oblast. Two years ago, an agreement was reached to double this amount. Presently, one of the most ambitious construction projects in Uralsk is the laying of the Karachaganak-Uralsk pipeline. This new branch will help solve the longstanding problem of the gasification of settlements on the left bank of the Ural River, and bring natural gas to the most remote rural areas.

Certainly, the modern and expensive equipment at Karachaganak can only be trusted in skilled hands. Therefore, staff training and skill improvement are both priorities. The company provides various forms of education, beginning from mentoring and on-the-job training, and ending with training at prestigious universities, including foreign schools.

Local suppliers of goods and services are continuously engaged in cooperation. All these efforts are aimed at regional sustainable development. In addition, Karachaganak Petroleum Operating BV is the first to publish a report on sustainable development in the West Kazakhstan Oblast.

The Kazakhstani media delegation was told about progress at Kashagan. Production operations are conducted according to international quality standards, both at Karachaganak and Kashagan. When tenders are held, preference is given to those contractors that have confirmed their management system complies with ISO-90001 and CCA-14001 standards.

According to analysts, energy consumption will increase across the world by 30% over the next decade, and Eni is preparing for such growth today. This will not only be an increase in hydrocarbons production.

Innovative and practical no-waste hydrocarbons and gas processing technology has been designed and patented; and is being applied successfully during production. This was demonstrated to the journalists at the oil refinery  located in the town of Sannazzaro. This plant was founded in the early sixties, and over nearly a half a century the plant’s power has doubled. Processes and equipment are constantly being upgraded.

Fully automated production lines manufacture gasoline, jet fuel, diesel oil, bitumen and fuel oil. In addition, the synthetic gas is used as fuel for gas turbine power plants. The plant not only provides its products to all of northern Italy, but also sells them abroad.

The European Union has agreed  that member countries should produce no less than 20% of their energy from renewable sources by 2020.

With regard to photovoltaic activities, Eni has developed since 1980 plant engineering competencies. Since 2006 Eni has devolved such competencies to Enipower, which works throughout the solar activity cycle, from the production of photovoltaic cells and modules to the design and construction of photovoltaic systems in Italy and abroad, as explained by Alfredo Palestini, director of the Enipower production site located in the city of Nettuno.

The line for the manufacture of the crystalline silicon cells and modules is automated.

The photovoltaic systems may be used both as stand by systems and as power system connected to the grid. Currently, solar energy is also used in areas far from power lines such as farms, gas stations and service stations, and national parks.

Naturally, when you consider power production from photovoltaic sources you have to take climate into account. In the sunny south of Italy, a photovoltaic  system will provide a power production  higher than in the north.

But undoubtedly, the future lies for alternative energy sources. The company envisages this development in its future plans. Eni’s plans are designed for continuous development and improvement, and are oriented at the same time to meet demand and resolve the most pressing problems in the regions where the company’s divisions are located. There is no need to go far to find examples.

Currently, Eni and KMG are developing a feasibility study for the construction of a gas processing plant and a gas turbine power station in the West Kazakhstan Oblast.