Eni's Solid Upstream Overshadowed By Multiple Downstream Issues
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Jul. 21, 11:44 AM
- Samsung Heavy Industries (OTC:SMSHF) says it expects to receive an order this year from Eni (NYSE:E) to build a floating liquefied natural gas platform to process huge gas reserves in Mozambique, a sign a long-delayed project is moving ahead.
- Samsung Heavy is in exclusive talks with Eni as part of a consortium with France's Technip and Japan's JGC in a project worth ~$5.4B; Samsung's share would be worth $2.5B.
- Samsung's statement appears to open the door for Eni to make its final investment decision this year, which analysts say would make Anadarko Petroleum's (NYSE:APC) plans for a vast onshore development more likely to proceed.
Fri, Jul. 8, 10:57 AM
- Nigerian militants have launched a new round of attacks on oil pipelines belonging to Eni (E +1.4%) and others in the southern Niger Delta energy hub, the latest in a spate targeting the country's oil and gas facilities during recent months which earlier pushed oil production to 30-year lows.
- Niger Delta Avengers, the group that has carried out most of the attacks, says it blew up the Nembe 1, 2 and 3 trunkline, a 100 km long pipeline capable of carrying 600K bbl/day that moves Bonny Light crude oil to an export terminal; Royal Dutch Shell (RDS.A, RDS.B) sold the line to Italy's Aiteo last year but relies on it to get Bonny Light to international buyers.
- Eni says a separate attack on a crude pipeline in Bayelsa state had occurred; no group has claimed responsibility for that attack.
- Shell yesterday lifted its force majeure on Bonny Light that had been in place since early May; Eni's Brass River crude remains under force majeure declared after previous attacks, but it has been exporting crude oil even as the force majeure was in place.
Wed, Jul. 6, 10:05 AM
- Exxon Mobil (XOM -0.2%) and Qatar Petroleum are teaming up to evaluate gas fields in Mozambique owned by Anadarko Petroleum (APC +1.2%) and Eni (E -1.2%), Bloomberg reports.
- Investment from XOM and Qatar Petroleum, which have partnered in joint ventures for at least 15 years, would bring much needed funds for development and a tax windfall to Mozambique, which is trying to cope with a deepening debt crisis.
- XOM already has established a presence in Mozambique after winning three offshore exploration licenses in October for blocks to the south of the APC and Eni operations in the Rovuma Basin.
Tue, Jul. 5, 8:48 AM
- Nigerian terrorists say they blew up a Chevron-owned (NYSE:CVX) well, as well as a manifold and two crude oil trunk lines belonging to the state oil company.
- Over the weekend, the Niger Delta Avengers group said it had carried out five attacks on two wells run by CVX and three state-owned pipelines.
- Also, two oil workers working for Eni (NYSE:E) reportedly were killed after their boat came under fire in the Niger Delta last week, although the Niger Delta Avengers has not claimed responsibility.
- The Nigerian government had previously confirmed that a cease fire agreement had been reached with the terror group, which had helped restore oil output from ~1M bbl/day to nearly 2M bbl/day.
Fri, Jun. 24, 2:11 PM
Tue, Jun. 14, 9:58 AM
- Exxon Mobil (XOM -0.5%) CEO Rex Tillerson will attend a major investment forum in Russia this week, Reuters reports, which would end a two-year absence from the event that began when sanctions were imposed on Russia over the Ukraine crisis.
- The annual St. Petersburg International Economic Forum, where Rosneft chief Igor Sechin is listed as keynote speaker, is the marquee event in Russia's business calendar where investors seek the Kremlin's blessing for their projects.
- Tillerson is among other oil major chief executives on the forum agenda, including BP's Robert Dudley, Eni's (NYSE:E) Claudio Descalzi, Schlumberger's (NYSE:SLB) Paal Kibsgaard and Total's (NYSE:TOT) Patrick Pouyanne.
Fri, Jun. 10, 5:00 AM
- Oil prices have retreated to below $50 a barrel as a stronger dollar pulls crude off the 2016 highs hit this week despite a major attack by the Niger Delta Avengers.
- Militants blew up an Eni (NYSE:E) pipeline in Nigeria run by the company's Agip subsidiary, marking yet another strike aimed at the country's oil infrastructure.
- NNPC said Nigerian output stood at around 1.8M bpd in March, its weakest level in a year, and that figure is now likely significantly lower.
- Oil futures -1.5% to $49.81/bbl
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, OILX
Thu, Jun. 9, 5:26 PM
- Nigeria's Trans Niger Pipeline, one of two major pipelines that carries the Bonny Light crude grade for export, was shut down yesterday after a leak was found, Upstream reports.
- Royal Dutch Shell (RDS.A, RDS.B), one of TNP's partners, confirmed that the pipeline had shut down but declined to comment further; the other partners are Total (NYSE:TOT), Eni (NYSE:E) and Nigerian National Petroleum Corp.
- The shutdown comes just as repairs were completed on the Nembe Creek Trunk Line that also moves Nigeria's major export grade.
- Meanwhile, Nigeria reports that its March crude oil production fell to just above 1.8M bbl/day, its lowest monthly level in at least a year and down more than 3% from February's 2M-plus bbl/day; Angola has now surpassed Nigeria as Africa’s largest crude oil exporter.
Thu, Jun. 9, 11:06 AM
- Eni (E -1.6%) and BP (BP -0.9%) say they made a significant natural gas discovery off the Egyptian coast, adding to a series of finds in the region in the last year.
- Eni, the operator, and BP each hold a 50% stake in the Baltim South exploration project in the Nile Delta.
- The discovery is 10 km from the Nooros field, which already is pumping 65K boe/day.
- Today’s news is “positive given unsatiated domestic gas demand” in Egypt, according to Tudor Pickering Holt.
Fri, Jun. 3, 9:09 AM
- The Niger Delta Avengers terror group claimed three new attacks on Nigeria's battered oil infrastructure overnight, promising to bring the country's oil production to "zero."
- The group says it blew up pipelines belonging to Royal Dutch Shell (RDS.A, RDS.B) and Eni (NYSE:E) early on Friday morning, just days after destroying two Chevron (NYSE:CVX) oil wells.
- Because the attacks were on infrastructure for oil streams already under force majeure, the immediate impact on Nigeria's exports was limited; the country's oil minister said yesterday that production remained ~1.6M bbl/day.
Wed, Jun. 1, 5:22 PM
- Kazakhstan’s government is seeking a greater share of profit from Karachaganak, the venture led by Royal Dutch Shell (RDS.A, RDS.B) and Eni (NYSE:E) that is the country’s second-biggest producing oil and gas field, Bloomberg reports.
- The government is in talks with the JV partners to change the formula in the production sharing agreement that determines the distribution of profit starting from this year, according to the report.
- Kazakhstan, which depends on energy products for ~75% of its exports, needs extra revenue to balance its budget after the collapse in energy prices.
- Shell took over 29.25% of Karachaganak when it acquired BG Group this year; Eni also holds a 29.25% stake, while Chevron (NYSE:CVX) owns 18% and state-run KazMunaiGaz has 10%.
Mon, May 23, 10:58 AM
- Eni's (E -0.1%) Agip pipeline in Nigeria was attacked and set afire over the weekend, marking the 14th terror attack against the pipeline over the past month amid a resurgence of militant violence.
- The attack comes just days after Nigerian Pres. Buhari said he had increased the military presence in the oil-rich Niger Delta region.
- A wave of violence in the area has sent oil production in the region to a 20-year low, and major companies including Chevron and Shell have been forced to cut production and evacuate key personnel amid constant terrorist attacks.
Thu, May 19, 9:57 AM
- Eni (E -1.7%) says attackers have blown up one of its gas pipelines in Nigeria's Niger Delta, in the latest in a string of attacks on oil and gas facilities in the country.
- Eni says "sabotage" of the pipeline had affected 1K boe/day; a radical group calling itself the Red Egbesu Water Lions has declared responsibility for the attack.
- A wave of recent attacks in the Delta has cut oil output to 1.4M bbl/day from 2.2M bbl/day, as has impacted facilities operated by Exxon, Shell and Chevron.
Tue, May 17, 11:59 AM
- South Africa, seeking to reduce its dependence on coal-fired power, is creating a unit to import liquefied natural gas for power plants as suppliers including Cheniere Energy (LNG +1.9%) await fuel tenders for at least 3M tons in annual shipments.
- Bloomberg reports that Cheniere is among companies interested in supplying South Africa’s gas-to-power program, which plans to add 3,126 MW of capacity during 2019-25.
- The new government unit may consider regional gas supplies from Botswana and Mozambique, which expects Anadarko Petroleum (APC +1.8%) and Eni (E -1.1%) to make final investment decisions on LNG export projects later this year.
Fri, May 13, 5:35 PM
- Global oil firms have warned Iraq that projects to increase crude oil output will be delayed if the government insists on drastic spending cuts this year, Reuters reports.
- Oil companies helping Iraq develop its oil fields must clear spending with the government each year, and they are then repaid with crude oil produced from existing fields; since crude prices have weakened, the government has been struggling to find enough oil to repay the companies for their investment and is spending heavily to fight Islamic State in its northern and western provinces.
- The Iraqi government request was contained in Oil Ministry letters to BP, Shell (RDS.A, RDS.B), Exxon (NYSE:XOM), Eni (NYSE:E), Lukoil (OTCPK:LUKOY, OTC:LUKOF) and Petronas, some of whom say that the proposed budgets may prevent them from continuing operations in the country.
Fri, May 13, 3:11 PM
- Eni (E -1.6%) says production from an exploration well in the Nooros field offshore Egypt reached 65K boe/day, just 10 months after the initial discovery in the Nile Delta.
- Eni plans to more than double current production to 140K boe/day by year-end.
- Eni says its equity production in Egypt as of last year was ~200K boe/day and that full-scale production from the Nooros field should help Egypt reduce its dependency on foreign gas imports.
Eni SpA engages in the exploration and production of oil and natural gas; processing, transportation, and refining of crude oil; transport of natural gas; storage and distribution of petroleum products; and the production of base chemicals, plastics and elastomers. It operates through the... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
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