BAKU, Azerbaijan, September 25. Ensuring energy
security is currently the main priority for everyone, Saipem
Regional Manager for Azerbaijan, Kazakhstan, Romania and Türkiye
Ernesto Ferlenghi said at the 2nd Azerbaijan International
Investment Forum in Baku today, Trend’s correspondent reports from the
event.


He said everyone also recognizes the importance of oil and gas
resources in the Caspian Sea.


“The key issue is delivering these resources to the end
consumer. Bringing raw materials to the market requires substantial
investment. The new reality I am referring to — the volatility of
energy — creates additional pressure across the entire system. This
means higher insurance and supply chain costs, more expensive
equipment and facilities, and much greater difficulty in
forecasting the future.


“Let us look at the specific situation in the Caspian Sea.
Everyone wants to build new pipelines. But where are the parties
ready to invest in these projects? The main challenges are
technological difficulties, the need for innovation and a long-term
industrial approach. Oil and gas investors know very well that
capital invested today generates returns only after 10, 15 or 20
years. We need to understand that integrating infrastructure means
increasing the value of oil and gas and bringing it to the market.
This requires pipelines, production facilities, engineering
solutions and investors,” he said.


He noted that the new reality required increasing pipeline
capacity and creating reliable energy corridors from the region to
Europe.


“Since Europe imports more than 70% of its domestic gas demand,
it has a significant need for these resources. In this context, the
role of local content is substantial. If you can source the
products, equipment and services you need from the local market,
this gives you a major cost advantage. It is very difficult to
compete with the costs in the Caspian Sea.







“Much of the operations in the Caspian Sea depend on specialized
vessels. Bringing a vessel or skilled personnel to the region is an
extremely complex process. Currently, 55% of vessels used in the
oil and gas sector are built in China. They are cheaper, faster and
more competitive, but the overall paradigm is now changing.


“I think a long-term strategic vision needs to be developed
between the Caspian region and Europe. On the one hand, investment
in the region, new exploration and production activities, and on
the other, ensuring that investors can generate returns from the
end market are the key conditions,” Ferlenghi emphasized.


The second Azerbaijan International Investment Forum is
currently being held in Baku. The two-day forum is organized by
Azerbaijan's Ministry of Economy and the Azerbaijan Export and
Investment Promotion Agency (AZPROMO), under the ministry, in
strategic partnership with The European House – Ambrosetti.


The forum's plenary and panel sessions address strategic topics
including the Middle Corridor, energy and the green transition,
artificial intelligence and digital transformation, infrastructure,
industry and free economic zones, critical raw materials,
agribusiness, financial cooperation, small and medium-sized
business development, tourism, and investment in real estate and
human capital.