Wed, Sep. 30, 2:58 PM
- Mexico awards three of five production-sharing contracts in the second round of its oil auction aimed at drawing private companies into its petroleum sector, earning a better reception than the first auction in July when only two of 14 blocks attracted bids.
- Eni (E +1.5%) wins the contract for the Amoca, Mizton and Tecoalli fields while a consortium led by U.S.-based Fieldwood Energy secures the Ichalkil and Pokoch fields, and a team fronted by Argentina's Pan American Energy gets the Hokchi field.
- Eni's three fields, containing light crude and gas, have certified proven reserves of 62.8M boe, and proven and probable reserves of 121.5M boe.
Mon, Sep. 28, 12:28 PM
- Eni (E -2.4%) faces further delays in the development of its Goliat oil field in the Arctic and has yet to obtain permission from Norwegian authorities to start production.
- Eni said last month it was only a few weeks away from producing its first barrels at Goliat - the first oilfield to be developed in the Arctic - but the field has been hit by several cost overruns and delays during construction.
- The company maintains its belief that production will start later this year, rejecting a media report that output from the FPSO unit could be delayed until 2016.
- When the field comes on stream, it would become the world's northernmost producing offshore oilfield, with output expected to peak at ~34M barrels of oil per year.
Fri, Sep. 4, 3:34 PM
- Eni (E -2.1%) is in touch with cash-rich state holding Cassa Depositi e Prestiti as it looks for ways to take the debt of its Saipem (OTCPK:SAPMY) unit off its balance sheet, Eni's chairwoman says.
- One of the solutions reportedly under consideration if for CDP, already the key shareholder in Eni, to take a direct stake in Saipem.
- "Our aim is to de-consolidate Saipem's debt... we're studying several options," Emma Marcegaglia says.
Mon, Aug. 31, 12:27 PM
- Eni’s (E +2.6%) discovery of a “super giant” natural gas field off the Egyptian coast will help make the company’s cash flow position "much more robust" and "positively" affect its dividend, CEO Claudio Descalzi says.
- Eni says the deepwater deposit in the Zohr Prospect in the Shorouk block may hold 30T cf of gas; the CEO hopes Eni can begin producing gas "in a couple of years,” the development will be “low cost” since it is located near facilities it has in the area, and the company is open to selling a stake in the field.
- The huge find could help meet energy-starved Egypt's gas needs for decades and complicate Israel's plans to export gas to Egypt; companies including Noble Energy (NBL -2.3%) and Delek Group (OTCPK:DGRLY -9.6%), which are developing gas fields in Israel, have been pushing plans to export the fuel to Egypt, Jordan and the Palestinian territories.
Fri, Apr. 17, 5:36 PM
Wed, Apr. 15, 12:32 PM
- Anadarko Petroleum (APC +2.1%) says it may close sales accords in the coming months that would enable it to authorize a Mozambican project that has the potential to make the country one of the top three liquefied natural gas exporters.
- A final investment decision depends on converting a non-binding heads of agreement that the APC-led project has in place for 8M metric tons/year of gas with customers in Japan, China, Thailand and Singapore into a sales contract.
- APC’s Area 1 and Eni’s (NYSE:E) Area 4 in the Rovuma Basin off Mozambique’s north coast together hold technically recoverable reserves of 120T cf, according to industry consultant Wood Mackenzie.
Wed, Apr. 8, 3:48 AM
- European energy shares are having a party in early trading following confirmation of Shell's blockbuster deal to buy BG Group for $70B.
- Tullow Oil (OTCPK:TUWLF) soars 11.5%, BP (NYSE:BP) is +4.2%, Repsol (OTCQX:REPYY) +2.2%, Total (NYSE:TOT) +1.3% and Eni (NYSE:E) +1.5%. The STOXX Europe 600 Oil & Gas index is +5.4%.
- "The deal is done on a net asset value basis, and the good price tag is set to trigger some re-rating across the whole sector," says a Paris-based trader.
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Thu, Apr. 2, 8:51 AM
- In a bit of good news for a beleaguered oil services company, Hercules Offshore (NASDAQ:HERO) +8.8% premarket after agreeing to a five-year contract with Eni (NYSE:E) for use of the Hercules 260 drilling rig in West Africa.
- HERO says the dayrate under the contract will range from a minimum of $75K/day when the price of Brent crude oil is $86/bbl or less to a maximum of $125K/day when the price of Brent crude is $125/bbl or more.
Mon, Mar. 30, 3:58 PM
- Exxon Mobil (XOM +2.4%) says it began production at its Hadrian South gas development in the deepwater Gulf of Mexico with facilities tied back to the nearby Lucius project, reducing additional infrastructure requirements.
- XOM expects daily gross production from Hadrian South, its deepest subsea tie-back in nearly a mile and a half of water, to reach ~300M cf of gas and 3K barrels of liquids from two wells.
- Hadrian South is a subsea production system with flowlines connected to the Anadarko-operated Lucius truss spar, which started production in January.
- With the startup of Hadrian South and Lucius, XOM's total Gulf of Mexico net production capacity has increased by more than 45K boe/day.
- XOM holds a 46.7% interest in Hadrian South, with partners Petrobras (NYSE:PBR) at 23.3% and Eni (NYSE:E) holding a 30% stake; XOM owns a 23.3% interest in Lucius.
Mon, Mar. 16, 12:55 PM
- Eni (E -2.1%) says it has made a significant discovery of gas and condensate with a wildcat well drilled at its Bahr Essalam South exploration prospect off Libya.
- The well produced 29M cf/day and 600 bbl/day of condensate during the production test; once producing, the well is expected to deliver more than 50M cf/day and 1K bbl/day of condensate.
Fri, Mar. 13, 3:44 PM
- Eni (E -5.9%) is 6% lower after becoming the first global oil major to cut its dividend, as well as suspending the €6B ($6.7B) share buyback plan it announced last year.
- BP and Royal Dutch Shell (RDS.A, RDS.B) have said they would do their utmost to continue paying high dividends and would rather cut operating and capital spending, sell assets and increase borrowing than reduce payouts.
- "Everyone was convinced they'd do all they could to keep the dividend steady," says a fund manager at Ifigest, adding that the capex cuts and intensity of the asset sales - the company is eyeing ~$8.5B in sales - also are causes for concern.
- UBS calls Eni’s decision to cut the dividend a “bold step” because the higher payout risked skewing strategy to protect it; Eni’s dividend payout is now below several peers, including Shell, though the comparison is somewhat false as the other companies are paying partly in shares, UBS adds.
- Despite a proposed a 17% cut in planned capital spending over the 2015-18 period compared to previous plans, Eni says production will grow 3.5%/year in the four years on the back of several projects started in 2014 in Angola, Congo, the U.K., the U.S. and Norway.
Fri, Mar. 13, 11:13 AM
- Eni (E -5.2%) staggers to two-month lows after its new strategic plan outlines sharply lower spending, a big dividend cut and asset sales totaling €8B ($8.5B) over the next four years amid lower oil prices.
- Eni traditionally has one of the highest dividend payouts in the industry, but it now plans to pay an annual dividend of €0.80/share, a 29% reduction from last year.
- Eni's four-year plan for 2015-18 projects a 17% drop in capex compared with its previous plan.
Wed, Feb. 18, 9:02 AM
Fri, Jan. 23, 11:52 AM
- Eni (E -2.2%) expects to cut costs this year by 10%-15% while postponing investments in its most costly projects, Chairwoman Emma Marcegaglia tells WSJ.
- The company has managed to obtain better terms - discounts of as much as 30% vs. the recent past - on new contracts with its contractors and the governments in the countries where it operates, Marcegaglia also says.
Thu, Jan. 8, 9:14 AM
- DryShips (NASDAQ:DRYS) +3.9% premarket on news that its Ocean Rig UDW (NASDAQ:ORIG) subsidiary has secured a contract extension for one of its drillships with Eni (NYSE:E) and gains work for possibly another two units.
- As part of the contract extension for the Ocean Rig Poseidon, ORIG will adjust the existing dayrate of the Ocean Rig Poseidon contract and Eni will enter into two contracts for the employment of one or more of ORIG's available drillships in West Africa starting in Q1.
- DRYS says the agreement increases ORIG's total contract backlog by ~$187M.
Mon, Jan. 5, 2:44 PM
- Chevron (CVX -3.8%) is downgraded to Neutral from Buy at Citigroup after outperforming big oil peers in the past three months in a reflection of the resilience of CVX's balance sheet.
- Citi revises its earnings forecasts to reflect lower oil prices, and says the stock now offers little upside in absolute and relative terms, "certainly when balanced against a portfolio that still carries uncertainties around both execution and reinvestment."
- The firm also downgrades Eni (E -8.6%) and Repsol (OTCQX:REPYY -5.8%), whose business models and valuations will look more challenged in a lower oil environment, but prefers companies it says boast strong growth credentials, such as BG (OTCPK:BRGXF), Total (NYSE:TOT) and ConocoPhillips (NYSE:COP); it keeps Exxon (XOM -2.6%) at Neutral, thinking share buybacks likely will be dialed down to preserve the balance sheet for a prolonged period of lower prices or eventual acquisitions.
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