Global Oil & Gas: Eni to push €3.5 bln into exploration, aims LNG portfolio boost

Italy’s state-controlled energy giant Eni has on Friday unveiled its strategic plans for the 2018-2021 period, aiming to invest approximately €3.5 billion ($4.3 billion) in exploration.

“Over the last 4 years, in a low price scenario, we have discovered 4.4 billion barrels and we have considerably increased our exploration licenses three times compared to 2013, and we are ready to open the new exploration campaign based on a potential of 10 billion resources is at our disposal,”Claudio Descalzi, the company’s CEO said during the presentations.

For the current year, Eni expects a production growth of 4 percent compared to 2017 which is above the previous guidance and would lead to a total of 900,000 barrels of oil equivalent a day in 2021.

Eni intends to accelerate its development of the LNG portfolio which will reach 12 million tons per year of contracted volumes in 2021 and 14 mtpa by 2025.

The four-year investment plan envisages capital expenditure of less than €32 billion, of which more than 80 percent will be in Upstream.

In a scenario of 60 $/barrel Brent price, cash generation will grow over the next 4 years, further in the event of higher oil prices, Eni said in its presentation.