Eni is continuing to work on several additional transactions to support the company’s portfolio and debt reduction. (Source: Shutterstock)
Eni SpA, which has a binding agreement to divest its Alaskan assets to Hilcorp Energy Co., expects to close the deal before year-end 2024, according to the Italian company. The financial terms of the divestment were not disclosed.
Per the agreement, Eni will divest 100% interest in its Nikaitchuq and Oooguruk assets in Alaska.
The deal is part of Eni’s push to high-grade its upstream portfolio, Eni CEO Claudio Descalzi said July 26 during the company’s second-quarter 2024 webcast. The planned Alaska divestment will assist Eni in reducing its leverage, Descalzi said.
When the deal was announced June 27, Eni said it was consistent with its strategy to focus on the rationalization of its upstream activities. This strategy calls for a rebalancing of the company’s portfolio and divesting non-strategic assets.
Hilcorp is the biggest oil and gas operator, and natural gas supplier in Alaska. The Houston-based company initially entered Alaska in 2011 as larger producers were exiting the Cook Inlet Basin. Hilcorp boasts over $1 billion in investments in the Cook Inlet and has produced over 700 Bcf of gas since entering Alaska, the company said in a statement on its website.
Eni is continuing to work on several additional transactions to support the company’s portfolio and debt reduction, Descalzi said.
“We have good assets,” Descalzi said. “So, we have a lot of talks with different kind[s] of entities and companies that they are interested [in] our asset[s].”
Second quarter 2024 results
Eni reported pro forma adjusted EBIT of €4.1 billion (US$4.44 billion) in the second quarter 2024 and adjusted net profit of €1.5 billion (US$1.62 billion), the company said in its quarterly financial statements. This compares to pro forma adjusted EBIT of €4.2 billion (US$4.54 billion) in the second quarter 2023 and adjusted net profit of €1.9 billion (US$2.05 billion).
Eni reported an average hydrocarbon production of 1.71 MMboe/d in second-quarter 2024, up 6% compared to 1.62 MMboe/d in second-quarter 2023.
Higher production in the second quarter was supported by the Neptune acquisition (about 120,000 boe/d), ramp-ups at the Baleine project in Côte d'Ivoire, the Coral project in Mozambique as well as higher production in Libya, which were partly offset by mature fields decline, Eni said.
Recommended Reading
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Analysis: Middle Three Forks Bench Holds Vast Untapped Oil Potential
2025-01-07 - Williston Basin operators have mostly landed laterals in the shallower upper Three Forks bench. But the deeper middle Three Forks contains hundreds of millions of barrels of oil yet to be recovered, North Dakota state researchers report.
Shell Takes FID on Gato do Mato Project Offshore Brazil
2025-03-23 - Shell Plc will be the operator and 50% owner, with Ecopetrol holding 30% interest and TotalEnergies 20%.
US Drillers Cut Oil, Gas Rigs for First Time in Six Weeks
2025-01-10 - The oil and gas rig count fell by five to 584 in the week to Jan. 10, the lowest since November.
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.