Eni to sell upstream assets in Alaska

Italian energy company Eni has signed a binding agreement with US-based private company Hilcorp for the sale of its 100% stake in the Nikaitchuq and Oooguruk assets in Alaska.

“This transaction is consistent with Eni's strategy focused on the rationalisation of the upstream activities by rebalancing its portfolio and divesting non-strategic assets,” the company stated.

Eni aims to achieve a net portfolio inflow of €8bn ($8.56bn) over the 2024-27 period. Proceeds are expected to come from three main sources: high-grading the upstream portfolio, diluting down high equity ownership exploration discoveries, and accessing new pools of capital via its satellite strategy to support the growth of its transition businesses while confirming progress in value creation.

The closing of this transaction is subject to appropriate regulatory approvals and other customary terms and conditions. The value of the transaction will be announced upon its closing.

Eni divested its 10% share in engineering company Saipem earlier this month for €393mn. Saipem is involved in various gas and LNG projects, including QatarEnergy LNG's North Field project. In March, the company announced the successful loading out of the first three topsides from its Karimun fabrication yard in Indonesia, destined for Qatar.

Eni in April said it would raise its planned 2024 share buyback by 45% after first-quarter net income beat expectations. However, the group's leverage ratio increased, coming close to the top end of the range indicated for the 2024-27 period.