Devil's advocate (Italian oil giant Eni)

Devil’s advocate (Italian oil giant Eni)

Fisher D. Forbes, 23 July 2007, Vol. 180, No. 2, Start page: 73, No. of pages: 4

Purpose – Spotlights how Italian oil company, Eni Spa, is hoping to develop a lucrative long-term relationship with Gazprom (Russia’s state owned oil company). Design/methodology/approach – Reports on how the chief of Eni Spa, Paolo Scaroni, is risking the oil company’s future on being able to cut a deal with Russia. Describes how Eni has become Gazprom (Russian state-owned oil company) largest customer, sharing control of one of the largest pipelines bringing Russian gas into Europe and planning, among other things, to build a pipeline across the Black Sea to Bulgaria. Investigates the reasoning behind why Scaroni believes that he will do better than a number of other major oil corporations and build a long-term relationship with Russia; looks at what’s in it for the Russians. Puts forward that while it is a risky gamble for Eni,the company is no stranger to high-risk deals; refers to the places where Eni has investments, many infamous for their corruption and tyranny; presents examples. Refers to the reasons why Scaroni’s willingness to cut deals with the Kremlin is not popular in Europe; charts the history of Eni; profiles Scaroni; highlights the challenges he faces. Originality/value – Examines how Eni is hoping to become the oil middleman between Europe and Russia.ISSN: 0015-6914Reference: 36AU778

Keywords: Corporate strategy, Eni, Gazprom, International trade,Investments, Oil industry, Russia