Interview with Claudio Descalzi, Chief Operating Officer Eni E&P

What should Kazakhstan do to increase the attractiveness of its non-extractive sectors of economy for investments?

Eni has been lucky enough to eye-witness the impressing economic and social progress that Kazakhstan has achieved over the last years. We are positive this advancement will continue in the future and eventually encompass the entire spectrum of industry sectors and society.

Kazakhstan can thrive on two natural assets: its hydrocarbon reserves and its geographical position, at the crossroads of the Euro-Asiatic continent. Leveraging on these two core assets will be the key to boost the entire economy and thus promote also of the non-extractive industries.

In order for this virtuous cycle to be sustained, cooperation with foreign companies will remain essential. Actually, to realize its full potential, the country will need to develop an efficient infrastructure base in key sectors, such as energy, transportation and communication. Foreign capital and know-how could dramatically facilitate and accelerate this process. Therefore, the country should maintain its “open door attitude” towards foreign companies and investors, by promoting a favourable political and economic climate and fostering stable and business-oriented legislation. 

Eni has based its cooperation with Kazakhstan on the grounds of a mutually beneficial partnership of equals. In line with our distinctive business model, we have adopted an integrated approach, which is not limited to the extractive sector, but embraces projects along the entire energy value chain.

The recent collaboration agreement between Eni and KMG provides a fitting example. This agreement entails the study of a gas-sweetening plant, a gas-turbine power plant, a shipyard with a drydock, and the upgrading of Pavlodar refinery. We will combine these initiatives, aimed at optimizing Kazakhstan’s domestic resources and promoting diversification from the extractive industry, with the implementation of social and educational projects.

Technology and know-how represent core assets for any oil company to achieve safe, sustainable development. Due to the technical and environmental challenges associated with the development, exploitation and transportation of hydrocarbons, the experience in Kazakhstan is emblematic.

Conscious of these challenges, Eni devotes substantial resources, in terms of people and money, to R&D projects. To-date we have more than 80 projects of technology transfer in place worldwide, some of which in the Kashagan and Karachaganak fields. Reciprocally, technology deployment and know-how transfer lie at the foundation of the sustainable growth of any fast-progressing country. We promote the spreading of knowledge through the employment of local content combined with best-in-class educational programmes. For this purpose, Eni has established dedicated organizations like Eni Corporate University and Scuola Mattei, in which thousands of students from all over the world have been successfully trained. The Kazakh students who attended MEDEA – Scuola Mattei’s Master in Management and Economics of Energy and the Environment – represent an example we are proud of.