Italian oil giant Eni is planning to divest more than $4 billion in upstream assets, with Indonesia and Cyprus among potential targets, Bloomberg reported on Monday, citing unnamed sources.
Eni is looking to divest a total of 8 billion euros, or more than $4 billion, in upstream assets over the next three years, Bloomberg reported, with divestments potentially including both smaller projects that could be acquired by local buyers and stakes in larger projects.
Bloomberg’s report follows last week’s announcement that Eni would sell two high-quality upstream assets in Alaska, signing a binding agreement with Hilcorp, a large private U.S. company, to sell the Nikaitchuq and Oooguruk assets, in which it holds a 100% stake. According to Reuters, financial analysts estimate the deal’s value at between $428 million and $855 million.
Eni is pursuing a plan to regroup its upstream activities into a “distinctive growth-oriented strategy”.
Eni has committed to achieve a net portfolio inflow of €8 billion, front-end loaded, over the course of the 2024-27 Plan.
In May, Eni said it was considering spinning off some of its stakes in oil and gas projects in Asia and Africa to partner with development partners, while putting more money aside for low-carbon energy projects.
Overall, the Italian energy giant has approached things differently than its peers, seeking to divest or create joint ventures or international oil and gas projects, while bundling and spinning off some low-carbon projects in a “satellite strategy.”
Last year, Eni agreed to sell a 9% stake in its low-carbon energy unit Plenitude, valuing the business at about $10.8 billion. Plenitude is active in the power generation market, including renewable energy sources, the sale of energy and energy solutions, and a large network of EV charging points.
It seems that the company is trying to reduce its assets in all sectors, as if it wanted to reduce itself as a company. Which, for a company controlled by the Italian state, has a strategic and political meaning, not just economic.
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