Eni is considering spinning off some stakes in oil and gas projects in Asia and Africa to have partners for their development, while setting aside more money for low-carbon energy projects, sources at the major told Reuters Italian.
For years, Eni has taken a different approach to the development of conventional and green energy, unlike other large international oil and gas companies.
Now the Italian company is divesting or creating joint ventures to manage oil and gas assets internationally, while grouping some low-carbon initiatives and projects into separate companies.
The key to these spin-offs and the so-called ‘satellite strategy’ are the companies’ separate balance sheets. This will allow the parent company to show very “Green” balance sheets, even in ESG assessments.
“The satellite model is an approach that we have built to have additional sources of financing to keep together the need to satisfy the demand for traditional products, while developing new, more ecological products,” Eni’s financial director, Francesco Gattei, told Reuters .
For example, late last year Eni agreed to sell a 9% stake in its low-carbon energy unit Plenitude, valuing the business at around $10.8 billion (10 billion euros). Plenitude is active in the energy generation market, including renewable energy sources, in the sale of energy and energy solutions and in an extensive network of EV charging points.
Furthermore, last month the Italian Group reached an agreement with leading British oil and gas producer Ithaca Energy to combine in a joint venture substantially all of its upstream activities in the United Kingdom, excluding activities in the East Irish Sea and CCUS activities, in “a strategic move to significantly strengthen its presence on the UK continental shelf”.
Commenting on the agreement, Eni’s CEO, Claudio Descalzi, said: “This agreement represents a further example of Eni adapting to the needs of the evolving energy market and, in this case, of using our successful Satellite Model ”.
According to company sources who spoke to Reuters, Eni is now considering spin-offs of oil and gas projects in Indonesia and Ivory Coast. These projects will be the basis for new joint ventures which, apparently, will detach them from the control of the company which, in this way, will be able to boast a greater ecological commitment, while continuing to keep a foot in traditional energy.
Earlier this year, Eni announced a major discovery offshore Côte d’Ivoire, the second largest in the country, after the Baleine field discovered by Eni in September 2021.
Offshore Indonesia, Eni announced late last year a major gas discovery in the Kutei basin, approximately 85 km (53 miles) off the coast of East Kalimantan.
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