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Bank clerk and beachgoers may save Italy's oil industry

By Stephen Jewkes

MILAN (Reuters) - It is people like 58-year-old bank clerk Silvio Doria who may save Italy's oil industry.

Referring to a referendum on Sunday that will decide whether oil companies can continue to drill within 12 miles (20 km) of Italy's coastline, Doria said: "I'm not going to vote because I just don't know the issues well enough."

For the referendum to succeed, more than 50 percent of Italians must cast a ballot. Prime Minister Matteo Renzi says a "yes" vote against drilling would hurt jobs at a time when the economy is struggling to grow and has called on people to shun the ballot.

An opinion poll last month suggests three-quarters of Italians have scant knowledge of the referendum, which concerns a little-known industry mostly located off the east coast of Italy far from the major population centers.

The ballot was proposed by a number of regional assemblies which object to drilling platforms because of worries about seismic stability and the environment, as well as the impact on their tourist industries.

Italy imports around 90 percent of its energy needs and has been trying for years to get around grassroots opposition to boost domestic energy production and so reduce dependence on foreign suppliers such as Russia's Gazprom (GAZP.MM).

But if the referendum succeeds, fields run by the likes of Eni (ENI.MI) and Edison (EDF.PA) within 12 miles of the coast will be shut down when their concessions expire.

Should it fail, energy companies will be able to ask for further extensions until wells are depleted. Opponents of the vote say closing a subsea well with oil and gas still in it is a risky and costly business because of high pressure conditions.

"What worries me are the 11,000 jobs at risk," Renzi said earlier this month when inviting Italians not to vote.

Renzi has asked Italians to abstain, claiming the vote is pointless since the law has already been substantially changed. Asking people to vote no might also risk upsetting people inside his party where the issue is a sensitive one.

There are 69 exploration concessions in Italian waters, most of them gas, according to the industry ministry. Of these 44 could be affected by the referendum with 12 expiring in 2016.

Earlier this year Shell (RDSa.L) gave up on a 2-billion-euro project in the Gulf of Taranto after the 12-mile limitation, previously lifted, was reintroduced by the government for all new projects in an failed effort to head off the referendum.

Dublin-based oil explorer Proceltic International recently gave up on an exploration permit it was chasing while British-based Rockhopper Exploration (RKH.L) is considering suing Italy for damages after it was told a concession it has permits for would not be granted.