Eni's Gulf expansion has just started: CEO
MILAN (Reuters) - 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.
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 on Friday 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
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
Eni said it had made a 470 million euro ($529.50 million) writedown on reserves in Venezuela where it has a 50 percent stake in the giant Perla gas field and 40 percent of the Junin 5 oilfield.
“Outstanding arrears with the country amount to about $700 million,” said CFO Massimo Monduzzi.
A deep economic and social crisis in Venezuela has seen output plummet and the recent move by Venezuela’s opposition to oust president Nicolas Maduro has made matters critical.
In the fourth
Free cash flow after dividends was the highest since 2006, with excess cash for the year of 3.8 billion euros.
Massimo Bonisoli,
At 1419 GMT Eni shares were up 2.1 percent while the European oil and gas sector was up 1.2 percent.
($1 = 0.8876 euros)Reporting by Stephen Jewkes; Editing by Mark Potter and Louise Heavens
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Massimo Trani is the Vice President of Proprietary Technology at Eni. He is a nuclear engineer, with a degree from Rome University in 1984.
Mr. Trani is based at Eni Refining & Marketing's headquarter in Rome. He is responsible for the coordination and actuation of technical aspects related to the licensing of new Eni technologies.
Massimo has 25 years of experience in refining and has held various positions in Performance Analysis and Optimization, Technology and Supply Departments. During the last 6 years, he has been responsible for Eni's Research and Development Downstream Labs, coordinating the development of several new technologies.
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