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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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