Eni S.p.A., the Italian energy giant, has made significant strides in its strategic streamlining efforts. The company announced on Monday the successful sale of its entire stake in the Nikaitchuq and Oooguruk oil and gas assets in Alaska to Hilcorp for a staggering $1 billion. This transaction marks a key step in Eni’s ambitious plan to shed non-core assets and concentrate on high-growth, low-carbon energy solutions.
The sale was approved by all relevant authorities and aligns perfectly with Eni’s overarching strategy to streamline its upstream portfolio, a move aimed at maximizing efficiency and profitability. This strategic divestment not only strengthens Eni’s financial position but also significantly contributes to its goal of generating €8 billion in net portfolio inflows under its 2024-27 plan. Notably, the company now anticipates reaching this target by 2025, a year ahead of schedule.
Eni’s proceeds from this transaction will be strategically allocated to further enhance its Upstream portfolio by focusing on higher-value assets. The company plans to reduce its ownership in major exploration finds and secure new capital through its satellite strategy, which aims to fuel growth in its transition businesses, reinforcing value creation.
This latest development comes on the heels of Eni’s strong third-quarter performance. Despite a 14% year-on-year decline in adjusted EBIT to €3.4 billion, the company saw a 2% rise in hydrocarbon production and witnessed growth in its LNG trading business. Furthermore, Eni has raised its 2024 share buyback target by 25% to €2 billion and projects €1.70 million boe/d in hydrocarbon production for FY24.
The market has reacted positively to Eni’s strategic moves, with E shares rising 1.02% to $30.61 at the last check on Monday. This transaction highlights Eni’s commitment to its transition strategy and its ability to generate value for shareholders while focusing on a sustainable energy future.
