Eni cuts CAPEX, plans further assets disposals

Eni of Italy plans to additionally cut its capital expenditure by 21 percent to €37 bln (approx. $41 bln) according to its strategic plan covering the period from 2016 to 2019.

Additionally, the company has already achieved 90 percent of its transformation target in the previous 4-year plan and it intends to shed a further €7 billion (approx. $7.9 billion) of assets by 2019.

Claudio Descalzi, Eni’s CEO said the company plans to dispose of the assets “mainly through the dilution of our stakes in recent and material discoveries as part of our dual exploration model strategy.”

Operational expenditure is targeted to remain bellow the $7/boe throughout the plan, Eni said.

Investment during the four-year plan is focused on high-value projects with accelerated returns and the development of conventional projects.

Eni expects its hydrocarbon production to grow by over 3 percent over the period from 2016 to 2019 despite an 18 percent upstream CAPEX reduction.

It expects new discoveries of 1.6 million boe at a cost of $2.3/b and an overall cumulative growth in production of 13 percent by 2019. The average breakeven price for the new projects has been reduced from $45 to $27/boe, Eni said.

LNG World News Staff