Eni reached a agreement with the Dutch company Vitol is preferably used for sale of shares in some of its assets in Ivory Coast and the Republic of Congo. The operation, of Initial value of $1,65 billion with economic effect from 1 January 2024, could reach 2,7 billion of dollars following adjustments at closing. The agreement provides for the Transfer of shares in oil and gas production activities, as well as in blocks under exploration, evaluation and development.
Eni: the shares sold in energy projects
In detail, Vitol to acquire:
- 30% of the Baleine project in Ivory Coast, reducing Eni's share, currently at 77,25%.
- 25% of the Congo LNG project in the Republic of Congo, where Eni currently holds 65%.
The Courtauld Commitment agreement XNUMX Strengthens collaboration between the two companies, already partners in the OCTP and Block 4 projects in Ghana.
Upstream Portfolio Optimization
Eni stresses that the sale falls within the its upstream portfolio optimization strategy, based on the early valorization of exploratory discoveries through the so-called “dual exploration” model. The sale of shares allows the Italian multinational to free up financial resources to reinvest in new projects and diversify risk.
For its part, Vitol, active for years in the upstream sector in West Africa, strengthens its presence in the region, adding strategic assets to its investment portfolio, which already includes infrastructure and downstream activities.
Eni's projects in Africa: Baleine and Congo Lng
Whale, Eni's first project in Ivory Coast and the first zero-emission project in Africa, saw the discovery of a giant field in 2021. Production, which started in 2023, currently exceeds 60.000 barrels per day, with a forecast to grow to 150.000 barrels per day and 200 million cubic feet of associated gas. The gas extracted is entirely destined for Ivory Coast, contributing to the country's energy security and its role as a regional energy hub.
Congo Lng, instead, began exporting liquefied natural gas in February 2024, positioning the Republic of Congo among the main exporters of LNG. The project currently produces 1 billion cubic meters of gas per year, but with the second phase, scheduled for the end of 2025, production will increase to 4,5 billion cubic meters.
Next steps and closing conditions
The parties intend complete the transaction as quickly as possible, making it subject to obtaining the regulatory approvals required. Closing adjustments could therefore increase the overall value of the transaction by up to $2,7 billion, depending on the actual closing date.
