NEW YORK--Eni SpA (E, ENI.MI) is rethinking the structure of its
relationship with oil-services provider Saipem SpA (SPM.MI) in
light of a criminal inquiry into the company for alleged bribes of
Algerian officials, Eni Chief Executive Paolo Scaroni said
Monday.
"What has happened leads us to think again and look again at the
situation," said Mr. Scaroni in response to a question about Eni's
stake in Saipem. "There is nothing worse than having no control and
full responsibility."
Last week Milan prosecutors placed Mr. Scaroni under
investigation as part of the Saipem inquiry. Prosecutors are
investigating whether Saipem, which is 43% owned by Eni, paid
bribes to secure billions of dollars in natural-gas contracts over
a period of years leading up to 2009, according to people familiar
with the investigation.
Mr. Scaroni and representatives from Eni said that they believe
he is being investigated due to a series of meetings he had with
Algeria's oil minister Chekib Kheli. On three or four occasions,
Mr. Scaroni said, Mr. Kheli was accompanied by Farid Bedjaoui, who
was introduced to Mr. Scaroni as a "personal assistant."
On Friday, Reuters first reported that the investigation into
Mr. Scaroni was based on meetings with Mr. Bedjaoui, who allegedly
distributed bribes to win gas contracts in Algeria.
In a statement Thursday, Eni said "Eni and its CEO declare
themselves totally unrelated to the object of the
investigation."
Mr. Scaroni said Monday that he and the company are fully
cooperating with authorities but Eni will not conduct its own
internal probe.
"We have nothing to investigate," he said. He also said that he
never discusses Saipem's business during meetings with customers or
other business contacts.
"Saipem has always been managed hands off completely," he
said.
Mr. Scaroni said he learned in November that Saipem had a
brokerage agreement in place since 2007, which could allow
intermediaries to be paid to help arrange contracts.
Eni, he said, "does not have any intermediation contracts, they
are forbidden." He said that when he learned of Saipem's
arrangements, he "acted immediately" by contacting the chairman of
Saipem.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com
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