Eni Aims for 4 Percent Production Increase

Italian major Eni will aim to increase gas and oil production by 4 per cent in the years 2013-2016, the company said in a strategic plan released today.

This strategy, it said, was focused on organic development, thanks to in large part to several assets worldwide, include assets in Yamal, Russia, the Barents Sea, Kazakhstan, Venezuela, the Far East and the sub-Saharan region.

In addition, new projects which have yet to be launched will boost daily production by 700,000 barrels of oil equivalent per day, with 80 per cent of this figure coming from certain large projects. 40 per cent will also come from the implementing new phases to current producing fields. 

On the supply side, Eni says it will challenge an oversupplied Italian market, and a global market which remains weak, through a strong focus on its retail and LNG activities.

The company credited a sharp reduction in debt with facilitating the growth strategy, saying it was "supported by a transformed balance sheet, with net debt at the end of 2012 almost halved compared with 2011." On the back of this, Eni plans to make approximately €56.8 billion of investments over the three-year growth period period, an increase, of approximately €1.6 billion from the last plan period.

This larger investment capability is due to increased exploration and production possibilities, the company said, particularly in Mozambique. The company today announced that it had sold a 20 per cent stake in its Area 4 field in the country to China's CNPC at a cost of $4.21 million (€3.24 million). Eni still retains a 50 per cent stake in the project.