Italy is a major investor to Kazakhstan’s oil and gas sector. Italian company Ajip participates in the development of Karachaganak – the largest gas deposit in the west of Kazakhstan. Another Italian company, ENI, leads an international consortium Agip KCO which is involved in the development of major Caspian oil field Kashagan. Italy’s ambassador to Kazakhstan, Bruno Antonio Pasquino, talked to New Europe correspondent Kulpash Konyrova about diversification efforts and Italy’s plans in the resource-rich state.

What are Italy’s plans with regard to diversification?
Diversification of routes is on the agenda of both Europe and Kazakhstan. During my meeting with the new Minister of Foreign Affairs Marat Tazhin, he said, ‘Your goal is our dream’, because the bulk of the Kazakh oil and gas supplies currently go through Russia. However, the situation today is such that diversification of energy supplies is not possible without diversification of politics. No energy route can be completed without a political decision. A vivid example of that is the Baku-Tbilisi-Ceyhan project (BTC). It is the first oil pipeline bypassing Russia, Belarus and Ukraine. But the construction of an oil and gas pipeline on the bottom of the Caspian Sea which could transport crude from the above-mentioned Kashagan in 2009 is directly subject to a political decision of five littoral states. Fifteen years have passed since Kazakhstan became independent, but the issue of division of the Caspian Sea still remains unresolved.
This is exactly why Italy talks about diversification of energy supplies in conjunction with the diversification of politics. The former cannot be achieved without the latter.
The search for alternative types of energy has also appeared on the agenda. I plan to propose to the Kazakh Minister of Ecology to combine the efforts of the Italian and Kazakhstan companies in extracting energy from industrial waste. A lot of such waste has accumulated in Kazakhstan. Italy has succeeded in the development of new technologies. I know that the current minister of ecology, Mr. (Nurlan) Iskakov, has shown himself as a champion of ecology. I plan to invite him to visit some of our plants to see how our scientists can help in receiving energy and clean water from waste.

What is the reason for delayed production from Kashagan? What are the difficulties that ENI is facing?
 During the two months that I have worked as an ambassador to Kazakhstan I have visited the oil field twice. The specialists have identified two reasons. The first reason is geographical. It means that they have to establish with certainty the location of oil and gas. Kashagan is the world’s largest field, and it has not been determined so far whether it is or it is not offshore. The water level over the field is very low, only four metres, so it is impossible to install an offshore platform there. At the same time, the field is not onshore either. This is why the consortium needs to build big and reliable islands to accommodate minimum 600 to 700 personnel, as well as buildings and the drilling equipment. In the local climate conditions, it is only possible to build such islands when the temperature is above minus 20 C° to avoid icing. In short, it is an ambitious project.
The second reason is the high concentration of sulfide gas. A 0.9 percent content of this gas in the atmosphere is a lethal doze. Here it is 20 percent. This means that maximum safety should be provided for the people who work and live in the area. A little leak of the gas may kill the entire town of Atyrau. ENI has a worldwide reputation for the most stringent safety rules. It is better to be behind schedule but to be sure that all works are done in accordance with the rules.
 
The Kazakh media has been talking a lot lately about tightening control over oil companies. What are your thoughts?
The Italian law is known as the most stringent law in the world. To participate in a tender, a company in our country must present a conformation from the ministry of internal affairs that it has no connection with the mafia. This rule is a norm. Each firm should show who stands behind it. So the Italian government regards the new requirements of Kazakhstan with due respect.