Eni to shed billions in assets
MILAN, March 18, 2016 – Eni made public its 2016-2019 Strategic plan on Friday, revealing a USD 7 billion asset disposal programme, lower capital expenditures and a cumulative output growth target of 13% for the given period.
While the Italian oil and gas major will reduce its upstream capital expenditure by 18%, it is nonetheless targeting an annual production growth of around 3%. By 2019, Eni expects that new projects will have contributed 800,000 boepd. Throughout the 2016-2019 period, during which time the company strives to discover 1.6 billion boe, Eni will work to keep its operational expenditure below USD 7 per barrel. Group capital expenditure is forecast at EUR 37 billion, some 21% less compared with the company’s previous strategic plan.
Eni hopes to achieve its divestment target by diluting high working interests. “In 2015, we achieved 90% of the previous 4-year plan disposal target. We have now increased our 4-year target and will dispose of another 7 billion euros of assets by 2019, mainly through the dilution of our stakes in recent and material discoveries as part of our dual exploration model strategy,” CEO Claudio Descalizi said in comments on the company’s disposal programme.