Saipem: No Complaints about Kashagan Leaks

Italian oil industry services company Saipem said on Tuesday it had not received any complaint regarding pipes it laid for the giant Kashagan offshore oil field in Kazakhstan where production has been halted due to leaks in the network.

Production at Kashagan, the world's biggest oil find in 35 years, started last September but was stopped in early October after gas leaks were found in the pipeline network.

"Saipem laid the pipes, welded them and tested the welding before delivery in 2008," Chief Executive Umberto Vergine told reporters on the sidelines of Saipem's annual shareholders' meeting.

"I don't know what the root problem is and the consortium is making a comprehensive evaluation. At the moment there hasn't been any complaint," he added.

The Kashagan consortium includes Italy's Eni, Exxon Mobil (XOM), Royal Dutch Shell (RYDAF), Total and Kazakh state oil firm KazMunaiGas.

Two people who recently returned from the $50 billion project have said oil majors have found that whole kilometers of pipeline are defective and replacing the damaged section may be a better bet than trying to repair it.

In April the chief executive of Eni, the biggest shareholder in Saipem, said he was not counting on any production from Kashagan this year or possibly next due to faulty welding.

(Reporting by Giancarlo Navach; Writing by Danilo Masoni; Editing by Greg Mahlich)