ENI is considering divesting $4 billion in production assets
Italian oil giant Eni is planning to divest more than $4 billion in upstream assets, with Indonesia and Cyprus among potential targets, Bloomberg reported Monday, citing unnamed sources.
Eni is looking to divest a total of 8 billion euros, or more than $4 billion, in upstream assets over the next three years, Bloomberg reported, with divestitures potentially including both smaller projects that could be acquired by buyers premises, as well as participations in larger projects.
Bloomberg's report follows last week's announcement that Eni would sell two high-grade upstream assets in Alaska, signing a binding agreement with Hilcorp , a large private US company, to sell the Nikaitchuq and Oooguruk assets, in which it holds a 100% participation. According to Reuters, financial analysts estimate the value of the deal to be between $428 million and $855 million.
Eni is pursuing a plan that aims to group its upstream activities into a “distinctive growth-oriented strategy”.
Eni has committed to achieving a net portfolio inflow of 8 billion euros, front-end loaded, during the 2024-27 Plan.
In May, Eni said it was considering spinning off some stakes in oil and gas projects in Asia and Africa to have partners for their development, while setting aside more money for low-carbon energy projects.
Overall, the Italian energy giant has approached things differently than its peers, looking to divest or create joint ventures or international oil and gas projects, while it has bundled and spun off some low-carbon projects into one “satellite strategy”.
Last year, Eni agreed to sell a 9% stake in its low-carbon energy unit Plenitude, valuing the business at about $10.8 billion. Plenitude is active in the energy generation market, including renewable energy sources, in the sale of energy and energy solutions and in an extensive network of EV charging points.
It seems that the company is trying to reduce its assets a bit in all sectors, as if it wants to shrink itself as a company. Which, for a company controlled by the Italian state, has a strategic and political significance, not just an economic one.
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The article ENI is considering divesting $4 billion of production assets comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/eni-sta-pensando-di-dismettere-4-miliardi-di-dollari-di-attivita-produttive/ on Tue, 02 Jul 2024 06:00:26 +0000.