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ENI S.p.A. (E)

  • Nov. 24, 2014, 9:13 AM
    • Ghana's government gives Eni (NYSE:E) its final approval to develop gas resources in the Offshore Cape Three Points block, expected to begin production in 2017.
    • The government also says it plans to acquire a third FPSO vessel, to be used for the $6B project, which still must be approved by Ghana's parliament.
    • Ghana hopes the project will deliver up to 170M cf/day of gas for the next 20 years; the country already produces ~100K bbl/day of oil and 120M cf/day of gas from the offshore Jubilee field, and expects to begin production of oil and 50M cf/day of gas from the TEN offshore field by 2016.
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  • Nov. 20, 2014, 8:39 AM
    • Israel's Tamar gas field reportedly would get a $1.5B-$2B expansion of production capabilities with new wells, platform upgrades and an underwater pipeline to Egypt if a final supply deal is signed with Spain's Union Fenosa Gas.
    • If the deal is finalized, the U.S.-Israeli group running Tamar would cover pipeline costs up to the maritime border with Egypt and UFG would pay for the rest.
    • The group includes Noble Energy (NYSE:NBL), which holds 36%, in addition to Israeli companies Avner Oil (OTCPK:AVOGF) and Delek Drilling (OTC:DKDRF); Union Fenosa Gas is a joint venture between Spain's Gas Natural (OTCPK:GASNY) and Italy's Eni (NYSE:E).
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  • Nov. 20, 2014, 8:11 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it has sold its stake in a set of oil wells and processing plants in Nigeria’s Niger Delta to locally owned Newcross Exploration for ~$600M.
    • Shell says it sold its 30% stake in Oil Mining Lease 24, along with smaller shares owned by Total (NYSE:TOT) and Eni (NYSE:E).
    • Shell has struggled in the area with oil theft and other security issues.
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  • Nov. 14, 2014, 4:56 PM
    • New developments and the expansion of older oil fields are expected to lift deepwater Gulf of Mexico production 18% Y/Y to 1.9M boe/day in 2016, the first new production peak seen since 2009, according to Wood Mackenzie’s latest outlook.
    • However, production is expected to plateau for the remainder of the decade following the 2016 peak due to the depletion of legacy fields and a limited number of new projects coming onstream.
    • Among top Gulf producers: RDS.A, RDS.B, BP, CVX, BHP, APC, APA, HES, E, EXXI.
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  • Nov. 10, 2014, 8:43 AM
    • BP and its partners plan to invest $240M over 6-8 years in new gas exploration blocks in Egypt after being awarded the licenses in September.
    • One of the blocks will be BP’s first entry into the Onshore Nile Delta, while the company will team up with Eni (NYSE:E) for the Karawan block in the Mediterranean Sea.
    • BP produced 38K bbl/day of oil and 444M cf/day of gas from its licenses in Egypt in 2013.
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  • Nov. 5, 2014, 5:35 PM
    • Eni (NYSE:E) reportedly is working with Credit Suisse bankers to explore options for the  sale of its 43% stake in oil service company Saipem (OTCPK:SAPMY).
    • Rosneft (OTC:RNFTF) recently said it was waiting to see what Eni planned to do with its Saipem stake before deciding whether to buy into the Italian oil services company, but some sources say Eni would not sell to Rosneft because the sanctions in place against the Russian company mean it could not raise funding in Europe.
    • Eni is eager to sell its Saipem debt, worth ~$3B at current market prices, to help underpin its dividend, and proceeds from any sale could be used to accelerate its makeover into a slimmer upstream oil and gas player.
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  • Oct. 30, 2014, 11:59 AM
    • Eni (E +0.9%) reports Q3 earnings that beat analyst estimates, as a lower tax rate offset falling crude prices and a weaker performance in its E&P business.
    • Q3 adjusted net income rose 2.5% Y/Y to €1.17B ($2.15B), easily beating the €896M analyst consensus estimate, however revenues fell 11% to €26.6B.
    • Q3 adjusted net profit at Eni’s E&P unit, which accounts for the vast majority of the company’s earnings, fell 26%.
    • Operating cash flow was €3.98B, which the company says was its best Q3 result in five years.
    • Q3 oil and gas production fell 3.5% to 1.58M boe/day, as declines in mature fields and unscheduled interruptions dragged down production gains in the U.K., Algeria and the U.S.; reaffirms expectations for full-year output to finish in-line with 2013.
    • Reiterates that Saipem, the oil services unit it controls with a 43% stake, is not considered a strategic asset and could be sold.
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  • Oct. 21, 2014, 11:59 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it has signed agreements to sell all the Nigerian oil assets it put up for sale last year, as it continues to reduce its exposure to the area amid violence and rampant oil theft.
    • Shell says that, together with its partners Total (NYSE:TOT) and Eni (NYSE:E), it signed an agreement to sell OML 18 to a consortium led by Canadian oil and gas company Mart Resources (OTCPK:MAUXF); it has now made sale and purchase agreements for four oil blocks, and made an agreement for the Nembe Creek Trunk Line pipeline.
    • Shell also reportedly has agreed to sell another productive Nigerian oil block, Oil Mining License 29, and an associated pipeline, to a local consortium.
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  • Oct. 13, 2014, 3:53 PM
    • Eni (E -0.3%) has signed two production-sharing contracts for the exploration of blocks 116 and 124 off the coast of Vietnam.
    • Eni's wholly-owned Block 116, part of the Song Hong basin, covers 5K sq. km in 10-120 meters of water; the PSC provides for an exploration period of seven years divided into three phases.
    • Block 124, part of the Phu Khanh basin, covers 6K sq. km. in 50-2,600 meters of water; the PSC provides for a seven-year exploration period divided into phases; Eni operates the block with 60% interest.
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  • Oct. 10, 2014, 8:48 AM
    • BP says it will start production this month from the Kinnoull field in the North Sea in a $1.1B project expected to produce oil and gas into the next decade.
    • Output from Kinnoull is forecast to peak at 45K bbl/day, and is one of three reservoirs being developed as part of the Andrew area rejuvenation program; BP says the reservoir holds 45M boe.
    • BP owns a ~77% stake in the project, Eni (NYSE:E) holds 16.67% and JX Nippon Oil has the rest.
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  • Oct. 9, 2014, 7:19 PM
    • The cost of Kashagan, already the world’s most expensive oil project, is set to rise by at least $3.6B as the companies developing it are forced to replace more than 200 miles of leaking pipelines, FT reports.
    • The consortium - which includes Shell (RDS.A, RDS.B), Exxon (NYSE:XOM), Total (NYSE:TOT), Eni (NYSE:E) and CNPC (NYSE:PTR) - marked first production at the Kazakhstan field in September last year after spending $50B on its development, but production has been shut ever since, when sulfur-containing gas was discovered leaking from pipelines between the field and the shore.
    • FT says that a meeting of a Kazakhstan government group was told this week that the cost of replacing the pipelines and restarting production had been estimated at $1.6B-$3.6B, depending on the equipment chosen, and that the consortium would choose the more expensive, more corrosion-resistant option.
  • Oct. 1, 2014, 5:58 PM
    • Italian prosecutors investigating Eni (NYSE:E) over the purchase of a Nigerian oilfield three years ago allege that at least half the $1.1B paid was used for bribing local politicians, intermediaries and others, Reuters reports, citing official documents.
    • The prosecutors have placed the Italian oil company, former CEO Paolo Scaroni and current boss Claudio Descalzi under investigation for alleged international corruption surrounding the deal for the OPL 245 offshore oilfield concession in 2011.
    • Production from the deepwater oilfield is expected to begin in 2016 and is estimated to hold up to 9.2B barrels of crude, equivalent to nearly 25% of Nigeria's total proven reserves.
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  • Sep. 25, 2014, 9:16 AM
    • Eni (NYSE:E) says it was awarded three new exploration licenses in Egypt, including a 100% interest and operatorship of the onshore block South-West Melehia in Egypt's Western desert.
    • The new licenses will be formally awarded after the ratification and finalization of the concession agreements, the company says.
    • Eni has been present in Egypt since 1954 and produces ~220K boe/day in the country.
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  • Sep. 22, 2014, 6:12 PM
    • Six global energy companies - including Southwestern Energy (NYSE:SWN), Statoil (NYSE:STO), Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) - reportedly have agreed to work to reduce emissions of methane in partnership with more than a dozen national governments through a new United Nations framework.
    • Officials from the UN and governments that back curbing emissions are increasingly looking to push companies and emerging economies to take voluntary steps to reduce emissions, since the international community has failed to adopt strict binding regulations.
  • Sep. 18, 2014, 11:49 AM
    • Eni (E +0.5%) says it made an oil discovery in Ecuador at its Oglan-2 exploration well, located in the Block 10 concession in the Amazonas region, which could hold 300M barrels of crude oil.
    • Data from Oglan indicates a production capacity per well of up to 2K bbl/day of oil; Eni's nearby Villano field, also inside Block 10, currently produces ~12.5K bbl/day.
    • Yesterday, Eni announced a potential 300M barrel discovery at a deepwater prospect offshore Angola.
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  • Sep. 17, 2014, 7:58 AM
    • Eni (NYSE:E) says it made a new oil discovery at the Ochigufu exploration deepwater prospect off Angola; it is the 10th commercial oil discovery in the country's Block 15/06 and is estimated to contain 300M barrels in place.
    • Eni also says the Ochigufu 1 NFW well, which led to the discovery, will be brought into production "in record time."
    • Eni is operator of Block 15/06 with a 35% stake.
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Company Description
Eni SpA together with its subsidiaries offers integrated energy services. Its business segments include Exploration & Production, Gas & Power and Refining & Marketing.