(Yicai Global) Aug. 25 -- China's largest steel firm, Shanghai Baosteel Group Corporation, and Italy's international oil giant, Eni SpA [NYSE:E; BIT:ENI], signed an agreement for comprehensive cooperation in the field of pipelines. Under the deal, Baosteel Group will provide pipeline products and services for Eni SpA. The two companies reached the agreement following lengthy negotiations between their respective business and technical teams on quality control, delivery performance, and price mechanisms.

"The two sides have signed a framework cooperation agreement on the pipeline business," said Baosteel's parent company China Baowu Steel Group Corp. in a statement issued on its website on Aug. 23.

Eni SpA is the third firm among world's top 50 oil companies using Baosteel pipeline products following Norway's national oil company Statoil ASA [OSE:STL] and Royal Dutch Shell Group [LON:RDSA; AMS:RDSA], Baowu Steel said.

Public data show that oil companies deliver extracted oil, natural gas or water from the source to the oil and gas industry enterprises, and between upstream and downstream industries, through pipeline transportation.