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Saipem in Talks to Lay Two New Pipelines in Kashagan

Posted by October 28, 2014

Italian oil service group Saipem is in talks with the consortium that operates the giant Kashagan oil field to lay two new pipelines that will replace damaged pipes that have halted production at the field, CEO Umberto Vergine said on Tuesday.

"We're talking of a (potentially) significant contract," Vergine told analysts.

The company's CFO Alberto Chiarini said a tolling agreement reached with the U.S. Department of Justice in relation to a corruption probe in Algeria would likely be renewed.

Saipem, which is 43 percent owned by Eni, is embroiled in judicial investigations in Italy and Algeria that claim it paid bribes to secure a series of contracts in the North African country worth $11 billion.

Last year it said it had entered a tolling agreement with the DOJ to extend by 6 months the limitation period applicable to any possible violations of federal laws of the United States with regard to Algeria.

That agreement expires in November, Chiarini said.

(Reporting by Stephen Jewkes)

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