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Italy’s Eni Set to Begin Arctic Oil Quest, Even as Others Abandon Field

ON GOLIAT OIL RIG IN THE BARENTS SEA—Even as energy companies retreat from exploration in the Arctic, Italy’s Eni SpA will soon open the taps on the northernmost offshore oil platform in the world, offering a glimmer of potential for crude in the region—though at a considerable cost. In a field in the Barents Sea nearly 300 miles north of the Arctic Circle, Eni is set to begin pumping at its Goliat platform before the end of this year. It would open a flow that will eventually reach 100,000 barrels a day and place Eni among a select group of oil producers in the region. The rig’s imminent launch underscores the continuing appeal of the Arctic, but at the same time highlights the challenges of operating in a frontier region where crude is difficult and expensive to extract. The huge cost of pushing ahead with such projects, amid the […]

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Eni Swings to Net Loss on Low Oil Prices

MILAN— Eni E -1.19 % SpA said Thursday that it swung to a net loss in the third quarter as low oil prices reduced the profitability of the Italian company’s core oil and gas exploration business and another unit posted a large loss. The net loss in the three months to end-September was €952 million ($1.05 billion) compared with a net profit of €1.71 billion in the same period last year. Revenue declined by almost a third to €18.81 billion. Like its competitors, Eni is grappling with what industry executives and analysts say will be a sustained period of low oil prices. Brent, the global benchmark, averaged $50 a barrel in the quarter compared with double that in the same period last year. Cost cuts and a reduction in its dividend announced in March have helped Eni weather the two-thirds drop in the profitability of its oil and gas […]

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Eni: $55 per barrel oil what we need

Italian energy company Eni said it’s managed to maneuver effectively during a weakened crude oil market. File photo by num_skyman/UPI MILAN, Italy, Oct. 29 (UPI) — Italian energy company Eni said it would be able to cover its operational plans for 2015 assuming an average oil price of around $55 per barrel. Eni boasted of a strong track record , including wading into new territory in Mexico, for the third quarter and for 2015 so far. The company in October won all of the shares in three oil fields included under what the Mexican government categorized as Area 1 during a government auction. Eni said the combined reserves for the three fields are approximately 800 million barrels of oil and 480 billion cubic feet of associated gas. In August, the company announced the discovery of 30 trillion cubic feet of natural gas off the Egyptian coast, the largest discovery […]

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Eni Reports Third-Quarter Loss After Crude-Oil Prices Slide

Eni SpA, Italy’s largest oil producer, reported a net loss in the third quarter after crude prices slumped. The adjusted net loss was 257 million euros ($281 million) compared with net income of 1.17 billion euros a year earlier, the Rome-based company said Thursday in a statement. “The fundamentals of the oil market remain weak due to oversupplied global markets and uncertainties about the resilience of demand,” Eni said, announcing a reduction in its annual spending plan. The shares fell as much as 1.6 percent in Milan. The price of Brent crude, a global benchmark, has tumbled about 45 percent in the past year amid a persistent glut. Eni and its peers have been forced to cut spending, sell assets and cancel projects to weather a decline in earnings, which has been partly offset by higher margins from oil refining. The Italian company, which operates five processing plants in […]

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Eni takes lead in new Mexican oil era

Eni among early entrants into a reforming offshore Mexican oil sector. Photo by project1photography/Shutterstock MEXICO CITY, Oct. 1 (UPI) — Italian energy company Eni said it secured a production sharing contract to help develop oil fields off the eastern coast of Mexico. Eni said it won all of the shares in three oil fields included under what the Mexican government categorized as Area 1 during the latest government auction. The Italian company said the combined reserves for the three fields are approximately 800 million barrels of oil and 480 billion cubic feet of associated gas. Eni said it would move quickly on an appraisal campaign to confirm the reserve estimates with the ultimate goal of fast-track development. "Area 1 will be operated by the new company Eni Mexico," the company added. Eni was among the largest winners in the Mexican auction. The Wall Street Journal reports two areas on […]

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Eni starts production at giant Venezuelan gas field

Italian energy company Eni announces start to gas production at field in Venezuela said to be among the largest in the world. File Photo by UPI/Shutterstock/James Jones Jr. CARACAS, Venezuela, July 6 (UPI) — Italian energy company Eni said Monday it started production at the Perla gas field, the largest field of its kind found off the coast of Venezuela. "Perla was for Eni one of the most significant start-up projects of 2015, and the today result confirms the validity of our development model that allowed us to reach production in an industry-leading time to market," Eni Chief Executive Officer Claudio Descalzi said in a statement. Considered among some of the largest gas discoveries in the world, Eni said the Perla field off the coast of Venezuela holds an estimated 17 trillion cubic feet of natural gas. It’s situated about 30 miles offshore in the Cardon IV reserve area, […]

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ChemChina to Buy Controlling Stake in Pirelli

ENLARGE Pirelli tyres ahead of the Italian F1 Grand Prix in Monza in September 2014. China National Chemical Corp. and other investors are making a bid for Pirelli. Photo: Reuters MILAN—China National Chemical Corp. and other investors are making a bid for Pirelli & C. SpA that could value the Italian tire manufacturer at around $7.7 billion—one of the largest overseas acquisitions by a Chinese state firm in recent years. The deal will give China, the largest auto market in the world, control of one of the world’s top tire brands and if the tender is completed, the largest acquisition by a Chinese state firm since oil giant Cnooc Ltd.’s $15 billion acquisition of Nexen Inc. in 2012, according to Dealogic data. A unit of China National Chemical, known as ChemChina, will initially pay about €1.8 billion ($1.9 billion) to buy a 26% stake in Pirelli owned by Camfin, […]

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Eni Falls Deeper Into Red on Lower Oil Price

ENLARGE Eni SpA said its fourth-quarter net loss widened as lower crude prices hit revenue and triggered write-downs. Photo: Bloomberg News MILAN— Eni SpA has reported a wider net loss in the fourth quarter as the sharp drop in crude oil prices played havoc with the Italian oil and gas group’s performance, knocking revenue lower and triggering hefty write-downs. Eni said its net loss widened to €2.34 billion ($2.67 billion) in the three months to end-December, compared with a net loss of €647 million in same period the previous year, on a 10% drop in revenue to €26.83 billion. Adjusted profit, which strips out special items, dropped by two-thirds to €464 million, below a consensus analysts’ forecast €614 million. Showing similar strain to its bigger European rivals like Royal Dutch Shell NV, BP PLC, and Total SA, Eni said it marked down the value of its oil and product […]

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The other side of the peak: Italy’s collapse of oil and gas consumption

Italy peak oil consumption. We are back to 1967.   All the data in this post are from BP statistical review up to 2012, updated to 2013 from various sources. Sometimes, peak oil looks like an intellectual game that people keep playing by arguing whether it has arrived or not. But the point with oil is not how much of it is produced, somewhere, but how much you can afford to use. And, for Italy, the peak of consumption has already arrived, as you can see in the figure above. It is impressive: consumption went down of more than 30% in less than 10 years. Today we are back to the levels of 1967. And, in 1967, Italy’s population was around 50 million people, some ten million less than today. We really have reached the other side of the peak and we don’t see […]

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Italy Taps Oil for Crisis Fix

The impoverished region of Basilicata, in the instep of the Italian boot, has long been called the Texas of Italy for oil reserves so abundant that crude bubbles out of natural springs. For years, though, local governments have hindered production amid complaints that the region wasn’t getting its fair share of the rewards and worries about potential harm to its tourism industry and the environment. Now, the Italian government—hungry for revenue and desperate to create jobs and jump start the recession-weary economy—is trying to clear the path for the country’s own Eni ENI.MI -0.17% ENI S.p.A. Italy: Milan € 17.37 -0.03 -0.17% Jan. 13, 2014 10:31 am Volume : 1.89M P/E Ratio 8.64 Market Cap €63.23 Billion Dividend Yield 6.33% Rev. per Employee €1,611,870 01/10/14 Italy’s Eni Shuts Nigeria Pipe… 01/08/14 Lebanon Again Delays Offshore … 12/26/13 For Big Oil, Asset-Sale Option… More quote details and news » […]

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Snam Says First Gas Flows Coming from Libya After Stoppage

By Liam Moloney ROME–Snam SpA (SRG.MI), Italy’s biggest natural gas grid operator by pipelines, Wednesday said it is registering the first gas imports from Libya arriving in Sicily after unrest in the North African country blocked flows last week. Libyan gas flows are registered in the Sicilian Gela entry point, said Snam in a message sent via Twitter. It expects 3.5 million cubic meters of gas Wednesday, it added. Eni SpA (E), Italy’s biggest energy company by market value, said Nov. 11 that protesters in Libya had stopped gas exports to Italy. The protesters had blocked the key gas terminal of Mellitah, which is jointly run by Eni and the Libyan National Oil Co. The terminal facilitates gas exports via the Greenstream pipeline that can supply more than 10% of gas demand in Italy. Write to Liam Moloney at liam.moloney@wsj.com

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