Eni's Solid Upstream Overshadowed By Multiple Downstream Issues
Stephen Simpson, CFA
Stephen Simpson, CFA
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.
Fri, Apr. 29, 12:23 PM
- In what would be the first post-sanctions cargo to hit Italy, that country's IPLOM has booked a 1M barrel cargo of crude from Iran, reports Reuters. Sources also says Greek refiner Motor Oil Hellas is set to receive its first post-sanctions Iranian oil.
- France's Total (NYSE:TOT), Spain's Cepsa, and Greece's Hellenic Petroleum have also booked Iranian crude this year, while others like Eni (NYSE:E) have expressed interest.
- At their peak, Iranian exports in 2011 hit over 2.5M barrels per day.
Fri, Apr. 29, 12:22 PM
Mon, Apr. 18, 11:44 AM
- Royal Dutch Shell (RDS.A, RDS.B) says theft of crude oil from the pipeline network of its Nigerian subsidiary fell to 25K bbl/day in 2015, ~32% below 2014 levels.
- Nigerian Pres. Buhari has said theft siphons as much as 250K bbl/day of crude out of the country's ~2M bbl/day of production and last week promised to crack down on groups responsible for pipeline attacks.
- Still, sabotage-related spills remain a serious problem for the country; Shell has a force majeure in place on Forcados crude oil exports following an attack on a subsea pipeline in February, while Eni (NYSE:E) reportedly declared force majeure on Brass River exports late last week.
- Now read "Inside Shell, there is a £24 company trying to get out" - Morgan Stanley
Fri, Apr. 15, 9:19 AM
- Eni (NYSE:E) plans to invest €20B ($22.5B) in developing oil and gas in Africa over the next fours, ~60% of the company's investments during the period, CEO Claudio Descalzi says.
- The CEO says Eni, which is involved in projects in 15 African countries, also will help boost and diversify Africa's energy mix through investments in renewables.
- Descalzi says Africa's solar power potential is ~300K GW, and that Eni is ready to spend "hundreds of millions" of euros in developing solar power projects in Africa.
- The CEO also confirms that the company is focused on starting production at its giant offshore Zohr gas field in Egypt by year-end 2017.
- Now read Eni eyes more than €13B in cost cuts, asset sales over four years
Tue, Apr. 12, 5:40 PM
Wed, Apr. 6, 1:14 PM
- Eni (E +1.4%) says it will ask an Italian court to reconsider a decision to seize its Viggiano oil treatment plant in Basilicata after the authorities opened an investigation into waste disposal.
- The plant, which treats acidic oil from Basilicata’s 75K bbl/day Val d’Agri field, was seized March 31 as part of a probe into the disposal of contaminated water, halting production from the field; Eni says its practice of “water re-injection was not dangerous and complied with Italian law and international best practices.
- Eni CEO Claudio Descalzi was defiant before Italian lawmakers today as he stressed the company’s respect for environmental standards, an attitude some analysts say indicates the company likely can count on political support in the matter.
Tue, Apr. 5, 10:34 AM
- Kazakhstan has filed a $1.6B claim against a group led by Eni (E -1.8%) and BG Group which is developing the Karachaganak gas condensate field.
- The dispute relates to a formula which determines how profit from the development is split between the companies and the government, consortium member Lukoil (OTCPK:LUKOY, OTC:LUKOF) said in its financial report published yesterday, which also said the parties were in talks on a possible settlement.
- Eni and BG, recently acquired by Royal Dutch Shell (RDS.A, RDS.B), each own 29.25% of the project in northwest Kazakhstan, which they jointly operate; state-owned KazMunayGaz owns 10%, Chevron (CVX -0.3%) has 18% and Lukoil 13.5%.
- The Kazakh government has said the consortium would start an expansion project in 2017 that will cost $12B; in 2015, the field produced 141M boe.
- Now read Russian oil output hits 30-year high, dampens hope for production freeze
Wed, Mar. 30, 12:45 PM
- Eni (E +2.7%) confirms that three people died when one of its oil pipelines in the Niger Delta region in Nigeria exploded during repair works.
- Eni believes the pipeline was damaged during an act of sabotage on March 24, after which production was shut and repair works were carried out; the repairs were concluded on Saturday, but the bodies not found until Sunday.
- Nigeria has suffered several attacks on pipelines in recent months, caused by attempted oil theft, including two refineries shut in January because of sabotage.
Wed, Mar. 30, 10:57 AM
- Nigeria is in talks with Chevron (CVX +1.2%), Total (TOT +2.8%) and Eni (E +4%) to get help in revamping the country's aging refineries, the oil minister tells Reuters.
- The country, Africa's top crude oil producer, has been trying to restart its outdated refineries in Port Harcourt, Warri and Kaduna to end its dependency on costly fuel imports.
- The minister also says the state-run oil firm NNPC has reached deals with oil majors, with which it works in joint ventures, to help make up for a shortage of dollars due to a slump in oil revenues hindering fuel imports.
Mon, Mar. 28, 12:37 PM
- The world’s biggest oil companies are draining their petroleum reserves faster than they are replacing them, a symptom of how the oil price decline is reshaping the energy industry’s priorities, WSJ reports.
- The seven biggest publicly traded Western energy companies - including Exxon Mobil (NYSE:XOM), Royal Dutch Shell (RDS.A, RDS.B), BP and Statoil (NYSE:STO) - last year replaced only 75% of the oil and natural gas they pumped; among the group, only Chevron (NYSE:CVX), Total (NYSE:TOT) and Eni (NYSE:E) added more new barrels than they pumped.
- For XOM, 2015 marked the first time in more than two decades it did not fully replace production with new reserves, replacing 67% of its 2015 output, but it certainly is not about to run out of crude, retaining enough reserves to last 16 years at the current rate of production.
- Low oil prices mean “it becomes less important” to replenish stockpiles, says Eni's chief exploration officer, one of several oil producers that have shifted spending in favor of squeezing more out of fields that are already producing.
Thu, Mar. 24, 6:03 PM
- Exxon Mobil (NYSE:XOM) is in advanced talks to acquire from Eni (NYSE:E) a stake in a giant natural gas development project offshore Mozambique, and a deal could be announced in the coming weeks, Dow Jones reports.
- Terms of the deal are not clear, but XOM may be looking to buy a stake of ~20% from Eni, which owns 50% of the development, according to the report; a 20% stake in the field sold for more than $4B in 2013, before energy prices tanked.
- Eni has estimated that the Mozambique Area 4 development may hold enough gas to meet U.S. residential consumption for nearly two decades.
Wed, Mar. 23, 5:48 PM
- The Chevron-led (NYSE:CVX) Angola LNG export project signs a supply deal for global commodities trader EDF Trading with liquefied natural gas through 2018.
- The agreement marks Angola LNG's return to the market after restarting in January following a rupture on the flare line that forced a shutdown in April 2014.
- CVX owns a 36.4% share in the plant, while Angolan state oil firm Sonangol has 22.8%; other stakeholders include Total (NYSE:TOT), BP and Eni (NYSE:E).
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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