Eni’s future in Nigeria: a rebalanced portfolio

Nigeria

Fabrizio Bolondi, managing director and vice-chairman of Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR), talks to The Energy Year about the future of Eni in Nigeria. NAE and AENR are exploration and production subsidiaries of Eni in Nigeria, where the company has operated since 1962.

This interview is featured in The Energy Year Nigeria 2025

What were the key drivers behind Eni’s decision to divest to an indigenous player, and how will the move impact the company’s presence in the country?
Eni is pleased to have concluded the divestment of its wholly owned subsidiary, Nigerian Agip Oil Company (NAOC), to Oando PLC, one of Nigeria’s leading indigenous energy companies. This transaction followed a thorough and exhaustive process, receiving approval of all relevant authorities in the country. The operation was seamless, as demonstrated by the smooth take-off of the operations.
This move aligns with Eni’s growth-focused strategy, which centres on rationalising its upstream activities and rebalancing its portfolio. It also supports Eni’s Nigerian Content policy, which is designed to create opportunities and value for local stakeholders and ensure sustainable development in the countries where it operates. Strategically, the divestment reflects Eni’s shift away from onshore oil and gas exploration and production to a greater focus on deepwater projects in Nigeria.
However, Eni’s commitment to Nigeria’s oil and gas sector remains strong. The company shares a long history of partnership and cooperation with Nigeria, and the company continues to have a significant presence in the country, with ongoing investments in deepwater projects.
These include Abo Field, operated by Eni’s subsidiary NAE; and, as a partner in a non-operated project, Bonga Field – where an FID was signed in December 2024 that guarantees an investment of over USD 5 billion, with Eni’s share being more than USD 600 million – for the development of the Bonga North project, which is expected to deliver a production increase of over 100,000 bopd.

Can you share your thoughts on the main initiatives launched by the federal government and NUPRC to increase domestic production and the role Eni will be playing to support them?
NAE had the pleasure of participating as a panellist at the event organised by NUPRC to celebrate its third anniversary, where it launched the 1MMBOPD initiative to increase domestic production. This initiative has been commended by industry players and seen as one of several efforts by the current government to boost oil and gas production in Nigeria.
To sustain the initiative, and to play its role in ramping up oil output, NAE is currently reshaping and repositioning after the recent portfolio optimisation by Eni in Nigeria. Our equity production is currently around 50,000 boepd.
More specifically, NAE is the 100% operator of the Abo Field, a brownfield asset that started production in 2003. There, we are working in two directions. One direction is a rationalisation of the operating cost of the mature asset, with the aim of extending the life of the field. With the second, we are studying opportunities for drilling new production wells.
On this point we applaud the initiative of NNPC that is leading the effort to establish a rig club, with a harmonised drilling programme and also industry-wide collaboration in the services sector. This effort will surely bring additional opportunities for all the operators in the country. In addition, we retain interest in the onshore Shell Production Development Company joint venture through our affiliate AENR and interest in the Bonga Field with our affiliate NAE.
Our efforts were further bolstered by the recent presidential directives on local content compliance issued in 2024, aimed at attracting investments in the oil and gas sector, restoring economic growth and creating a conducive operating and investment environment. This practical initiative addresses key industry challenges, such as a lengthy contracting cycle and contracting costs. It will enhance profitability for both the government and oil companies while spurring increased production.
Additionally, the newly introduced deepwater tax incentives are designed to accelerate the development of Nigeria’s deepwater oil and gas resources, positioning the country as a globally competitive player. These incentives are expected to attract the needed investments into the sector by improving the cost competitiveness of oil and gas projects in Nigeria. This is a significant enabler that has already reawakened interest in the country’s oil and gas projects.

What steps has the company taken to capitalise on gas and derivatives for the benefit of the country?
Gas is part of Eni’s industrial identity and is a key part of our strategy to achieve net-zero emissions by 2050. The gas component will be increasingly prevalent in our global production mix, accounting for 60% of hydrocarbons production in 2030 and over 90% by 2050. In Nigeria, Eni’s role in the gas sector is spread across the gas value chain in the country, especially in the upstream and midstream sectors.
Eni currently holds a 10.4% participating interest in Nigerian Liquified Natural Gas (NLNG). As a pioneer in domestic gas supply, we have been playing a key role as a shareholder in NLNG, contributing significantly to harnessing Nigeria’s vast gas reserves and supplying gas to the plant since its inception.
It is noteworthy that, since NLNG started operations in 1999, it has been instrumental in significantly reducing Nigeria’s gas flaring. Alongside other suppliers, Eni has consistently met its gas supply commitments to NLNG, a major undertaking supported by substantial investments in infrastructure, including a dedicated pipeline for transporting gas to the Bonny LNG plant.
NLNG is the largest single supplier of liquefied petroleum gas (LPG) in the country, and through NLNG, we are actively supporting the country’s quest for clean, safe and environmentally friendly cooking gas. This will improve access and affordability of LPG in the local market, reducing the adverse impacts associated with traditional cooking fuels.

Can you give some examples of Eni’s projects oriented at strengthening the national power capabilities and the company’s undertakings to help the country abate domestic carbon emissions?
Eni has significantly contributed to strengthening the country’s power capabilities, transforming the energy landscape through a wide range of initiatives.
Although the NAOC divestment included most of this infrastructure, our commitment is shown by projects such as IPP Okpai Phase 1 and 2, launched to reduce the flaring of associated gas from our facilities, while reinforcing energy production within the country, and the off-grid system which provides electricity to over 48 communities. An additional 36 communities receive power directly from operational facilities, while more than 12 communities have been assisted in establishing connections to the national grid.
Another project is the 10-MW General Electric Gas Engine generator that presently supplies uninterrupted power to the corporate headquarters of the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, the NCDMB Oil and Gas Park and to Bayelsa State government infrastructure.
Regarding our sustainability strategy, Eni aims to achieve carbon neutrality by 2050 through a plan characterised by intermediate targets, based on established technologies and the development of cutting-edge solutions.
In Nigeria, we have launched several initiatives (both technical and commercial) to achieve zero routine flaring, and both NAE and AENR are currently implementing initiatives to reduce direct emissions (Scope 1). These include energy-efficiency and methane-emissions-reduction initiatives, within the OGMP 2.0 Framework that Eni voluntarily adheres to.
Moreover, for the emissions that are considered “hard to abate” – such as stationary combustion from power generation – NAE will implement offsetting projects. This strategy is in line with our upstream target to achieve a net-zero carbon footprint (Scopes 1 and 2) by 2030.

What is Eni’s commitment to local communities and local content development, and how does it relate to the promotion of ESG and CSR practices?
Eni companies in Nigeria have consistently demonstrated their commitment to supporting the country’s objectives in oil and gas exploration and production. In addition, throughout the years, we have made substantial investments in other sectors, including agriculture through the Green River Project and human capital development via initiatives in technology transfer and capacity building.
With sustainability and the development of the local economy as core drivers of our business values, we actively support the Nigerian government’s efforts to enhance local content development by, for instance, relying on Nigerian contractors in our operations and promoting R&D through active collaboration with Nigerian universities.
Concretely, since 2007, NAE has awarded annual postgraduate scholarships to Nigerian graduates to pursue studies in both overseas and Nigerian universities. For the 2024-2025 academic year, 30 graduates received scholarships, 10 to study abroad and 20 to study locally, and a total of 320 graduates have benefited from this initiative as of today.
Similarly, Eni, through NAE, has implemented other sustainability initiatives in Nigeria in areas of health, education, access to water and infrastructure provisions, as well as specific initiatives for stakeholder empowerment in local communities.
These include the provision of 22 integrated water schemes for domestic consumption and irrigation purposes in North East Nigeria and in the Abuja Federal Capital Territory, in collaboration with the Food and Agriculture Organization of the United Nations, to improve access to water for the communities affected by the humanitarian crisis in North East Nigeria. Overall, the initiative has assisted to improve sanitation and restore the livelihoods of about 67,000 people, including internally displaced people and their host communities.

In light of Eni’s more-than-60-year history in Nigeria, what is the vision set by Eni to continue actively engaging in E&P activities and fostering socioeconomic growth in Nigeria?
Eni, back then known as Agip, commenced activities in Nigeria in 1962 through NAOC, which focused on onshore exploration and production activities.
Over the years, Eni’s activities in Nigeria have expanded, leading to the establishment of other companies such as AENR in 1980 and NAE in 1996. In August 2024, as mentioned, we finalised the divestment from our onshore operations in Nigeria, selling NAOC’s operated assets to Oando, as part of a global strategy to rationalise our upstream activities and rebalance the company’s portfolio.
Eni’s investment plans in Nigeria encompass key socioeconomic development areas, including the deepwater sector (Abo and Bonga), LNG and innovative initiatives focused on energy transition, decarbonisation and economic diversification.
Future plans may include exploring the production of agri-feedstock for Enilive biorefineries, primarily sourced from agro-industrial residues. Additionally, we are evaluating nature- and technology-based projects, such as clean-cooking initiatives, aimed at reducing emissions and contributing to sustainable development in Nigeria.

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