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Eni to Divest Stakes in Cote d'Ivoire and Congo Assets to Vitol
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Eni S.p.A (E - Free Report) , the multi-energy company of Italy, has announced the sale of interests in certain assets in West Africa to Vitol. Vitol has agreed to acquire a stake in certain assets owned and operated by Eni for a total consideration of $1.65 billion. The completion of the deal is subject to obtaining the necessary regulatory approvals.
This includes Eni’s oil and gas-producing assets as well as blocks where exploration activities are underway. Per the terms of the deal, Vitol shall acquire interests in Eni’s assets in Cote d’Ivoire and the Republic of Congo.
Vitol’s Acquisitions in Côte d’Ivoire and Republic of Congo
Eni’s assets in Cote d’Ivoire include the giant Baleine discovery. The Baleine field is Eni’s first development in Cote d’Ivoire, with a 77.25% ownership interest. Vitol will be acquiring a 30% participating interest in this field. Furthermore, the Congo LNG project in the Republic of Congo, where E holds a 65% participating interest, is also included in the agreement. Vitol will acquire a 25% participating interest in the project.
Strengthening the Eni-Vitol Partnership in West Africa
The two companies have previously worked together, as they are partners in the OCTP and Block 4 projects in Ghana, West Africa. The latest agreement further strengthens the relationship between the two companies in the region. Vitol, which has long maintained an upstream presence in West Africa along with investments in infrastructure and downstream operations, is solidifying its presence in the region.
Eni’s decision to sell the stake in its West Africa assets aligns with the broader upstream strategy that focuses on optimizing the portfolio of upstream assets. The company follows an approach known as the dual exploration model which involves readjusting its asset portfolio by reducing stake in exploration discoveries, thereby lowering financial risk, while also realizing the value of new finds early.
Vitol’s Gains: Expanding Upstream Presence
The transaction enables Vitol to gain access to high-value upstream assets in West Africa. Per Eni, the current production at the Baleine field is approximately more than 60,000 barrels of oil equivalent. Additionally, the Congo LNG project’s current production totals 1 billion cubic meters per year. It began exporting LNG from the facility in February 2024. With the second phase of the project slated to start by 2025-end, Congo’s gas exports are anticipated to increase to 4.5 billion cubic meters per year. The deal should enable Vitol to diversify its portfolio and further strengthen operations in West Africa.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII's proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean burning fuel continues to grow and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.
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Eni to Divest Stakes in Cote d'Ivoire and Congo Assets to Vitol
Eni S.p.A (E - Free Report) , the multi-energy company of Italy, has announced the sale of interests in certain assets in West Africa to Vitol. Vitol has agreed to acquire a stake in certain assets owned and operated by Eni for a total consideration of $1.65 billion. The completion of the deal is subject to obtaining the necessary regulatory approvals.
This includes Eni’s oil and gas-producing assets as well as blocks where exploration activities are underway. Per the terms of the deal, Vitol shall acquire interests in Eni’s assets in Cote d’Ivoire and the Republic of Congo.
Vitol’s Acquisitions in Côte d’Ivoire and Republic of Congo
Eni’s assets in Cote d’Ivoire include the giant Baleine discovery. The Baleine field is Eni’s first development in Cote d’Ivoire, with a 77.25% ownership interest. Vitol will be acquiring a 30% participating interest in this field. Furthermore, the Congo LNG project in the Republic of Congo, where E holds a 65% participating interest, is also included in the agreement. Vitol will acquire a 25% participating interest in the project.
Strengthening the Eni-Vitol Partnership in West Africa
The two companies have previously worked together, as they are partners in the OCTP and Block 4 projects in Ghana, West Africa. The latest agreement further strengthens the relationship between the two companies in the region. Vitol, which has long maintained an upstream presence in West Africa along with investments in infrastructure and downstream operations, is solidifying its presence in the region.
Eni’s decision to sell the stake in its West Africa assets aligns with the broader upstream strategy that focuses on optimizing the portfolio of upstream assets. The company follows an approach known as the dual exploration model which involves readjusting its asset portfolio by reducing stake in exploration discoveries, thereby lowering financial risk, while also realizing the value of new finds early.
Vitol’s Gains: Expanding Upstream Presence
The transaction enables Vitol to gain access to high-value upstream assets in West Africa. Per Eni, the current production at the Baleine field is approximately more than 60,000 barrels of oil equivalent. Additionally, the Congo LNG project’s current production totals 1 billion cubic meters per year. It began exporting LNG from the facility in February 2024. With the second phase of the project slated to start by 2025-end, Congo’s gas exports are anticipated to increase to 4.5 billion cubic meters per year. The deal should enable Vitol to diversify its portfolio and further strengthen operations in West Africa.
E’s Zacks Rank and Other Key Picks
E currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Oceaneering International (OII - Free Report) and NextDecade Corporation (NEXT - Free Report) . Archrock currently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and NextDecade carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII's proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean burning fuel continues to grow and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.