Italy, Russia, Turkey sign Samsun-Ceyhan pipeline agreement

ROME, Oct. 19 (Xinhua) -- The governments of Italy, Russia and Turkey signed on Monday a joint agreement for the construction of the Samsun-Ceyhan pipeline.

The pipeline is a strategic infrastructure which aims to transport oil from the Black Sea port of Samsun to the Mediterranean hub of Ceyhan across Turkey, avoiding shipping to cross the Istanbul Strait, according to local media.

The agreement was signed by Turkey's Energy minister Taner Yildiz, Italy's Industry minister Claudio Scajola and Russia's Deputy Premier Igor Sechin and Energy minister Sergei Shmatko.

"The planet needs climate-friendly energy infrastructures and this pipeline is fundamental in that it considerably reduces the number of ships crossing the Istanbul strait, thus limiting sea pollution," said Scajola.

The companies involved in the project are Italy's oil giant ENI, Turkey's Calik Holding AS, and Russia's Transneft and Rosneft.

On the same day, the three signed a memorandum of understanding to discuss building conditions, specifically those necessary to ensure the volume of Russian crude needed to guarantee the profitability of the project.

The governments will guarantee the stable and regulatory framework crucial for the construction of the pipeline, as part of their effort to enhance energy security via the diversification of transport routes.

According to ENI's communiqu, the participation of Russian oil companies to the pipeline project will "contribute to the strengthening of security of supply."

Earlier this year ENI said it would finance the cost of an engineering study for the possible construction of the oil pipeline, while an investment decision would be made only at its completion.

The Italian company has been involved in the pipeline project since 2005 and is set to play a leading role.

The 550-kilometer (342-mile) infrastructure, known as the Trans Anatolian Pipeline, will have a capacity of 1 million barrels a day which may increase to 1.5 million barrels, according to ENI.