Italian oil and gas group Eni SpA (E) is scouting for new prospects in Angola following successful offshore operations in the West African nation. Eni’s eagerness to explore the country is evident from its recent meeting with the President of the Republic of Angola.
The key takeaway of this meeting was the focus on the recent exploration success in Angola, including the discoveries made in offshore block 15/06. This block supposedly contains resources with high mineral potential. The progress shown by the company in its current projects was also covered at the meeting.
Eni always aspires to contribute to the local, economic and industrial development of the producing country. In this case, the parties will also be examining the potential for further development of hydrocarbon in the country under joint initiatives.
Angola has been a key country in Eni’s organic production growth strategy since 1980. Its current equity production is approximately 130,000 barrels of oil equivalent per day.
A few days ago, the Italian energy major announced that its local unit has won two new Production Sharing Contracts in Indonesia – one in the West Papua Province and the other in the offshore East Kalimantan Province. For the second contract, Eni will be co-partnered by Niko Resources Ltd., Black Platinum Energy Ltd, the Indonesian affiliate of Statoil ASA (STO) and GDF SUEZ.
We belief the company’s constant effort to expand its upstream operations and such endeavors in Iraq, Angola and Russia will go a long way to generate more revenue in future. Moreover, project start ups, inputs from big projects including Junin 5 and Perla in Venezuela, potential exploration scenario in Togo, Ghana, Democratic Republic of Congo and Mozambique, as well as the strategic position in non-conventional gas are expected to generate considerable output going forward.
Eni holds a Zacks #3 Rank, which translates into a Hold rating for a period of one to three months. For the long term, we remain Neutral on the company.
