Italian major Eni said it intends to expand in the Middle East after a spree of deals in the Gulf last year, pressing ahead with plans to reduce its reliance on Africa and oil and gas exploration. Since last March Eni has secured nine deals in the United Arab Emirates, gained a foothold in Bahrain and expanded in Oman to underpin its future growth. Last month it pledged $3.3 billion to buy part of the world’s fourth-biggest refinery in the UAE, increasing its own refining capacity overnight by more than a third.
Chief Executive Claudio Descalzi said there were huge opportunities to grow in the Gulf area and rebalance the group’s operational portfolio. “It’s not finished, we’ve just started,” he told analysts on a conference call after its fourth-quarter results, adding long-term the group aimed to produce 100,000 barrels per day in the area. Eni, which generates more than half its output in Africa, produced a record 1.851 million barrels of oil equivalent per day in 2018, lifted by operations in Egypt, Indonesia and Kazakhstan. Giant gas discoveries in Mozambique and, more recently, Egypt have given the energy major the strongest discovery record in the industry, boosting its credentials with oil-producing nations.
“We’ll be able to enter new markets thanks to our technology and know-how,” Descalzi said. The 63-year-old said that besides the Gulf Eni is also looking to Asia to boost its gas prospects as well as Alaska to increase its oil production. “That’s a main oil target for us,” he said. Eni said it had made a 470 million euro ($529.50 million) writedown on reserves in Venezuela where it has a 50 per cent stake in the giant Perla gas field and 40 per cent of the Junin 5 oilfield.
Chief Executive Claudio Descalzi said there were huge opportunities to grow in the Gulf area and rebalance the group’s operational portfolio. “It’s not finished, we’ve just started,” he told analysts on a conference call after its fourth-quarter results, adding long-term the group aimed to produce 100,000 barrels per day in the area. Eni, which generates more than half its output in Africa, produced a record 1.851 million barrels of oil equivalent per day in 2018, lifted by operations in Egypt, Indonesia and Kazakhstan. Giant gas discoveries in Mozambique and, more recently, Egypt have given the energy major the strongest discovery record in the industry, boosting its credentials with oil-producing nations.
“We’ll be able to enter new markets thanks to our technology and know-how,” Descalzi said. The 63-year-old said that besides the Gulf Eni is also looking to Asia to boost its gas prospects as well as Alaska to increase its oil production. “That’s a main oil target for us,” he said. Eni said it had made a 470 million euro ($529.50 million) writedown on reserves in Venezuela where it has a 50 per cent stake in the giant Perla gas field and 40 per cent of the Junin 5 oilfield.
Source Link: www.omanobserver.om
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