Changes to Eni’s approach to exploration: today we generate cash in advance, thereby reducing investments – as we have already done in Mozambique and Egypt.
The divestment of 40 per cent of the Zohr supergiant gas field offshore of Egypt in two separate transactions with BP (10 per cent) and Rosneft (30 per cent) and 25 per cent of Area 4 in Mozambique to ExxonMobil has been completed. Plus in March 2018, it was confirmed that a further 10 per cent stake in Zohr will be sold to Mubadala Petroleum.
The revolution started in Mozambique in 2013, when Eni transferred 20 per cent of its stake in Area 4 of the Mozambique offshore to the Chinese oil company China National Petroleum Corporation (CNPC), retaining 50 per cent. The new approach aimed at generating cash flow was launched in the exploration field, creating liquid assets way in advance of the expected timeframe. This strategy – known as the dual exploration model – is based on a simple principle: while the reserves of hydrocarbons grow, the company can benefit from selling minority shares to other players. Even after sales, the percentage of annual production replaced is extremely high – approximately 139 per cent against a peer average of 30 per cent. And the control and operatorship of the deposit stays with Eni. The further transfer of 25 per cent of the Mozambique deposit to Exxon Mobil represents a benchmark for the entire process. The dual exploration model is vital, not only for cash-flow purposes, but also as an acknowledgement of the importance of exploration assets and of the company’s profile.
In addition to the offshore project in Mozambique – which was split between Eni, CNPC and Exxon Mobil – in 2016 Eni agreed to sell stakes in the Shorouk Concession, where the largest natural gas deposit in the Mediterranean is located, to BP and Rosneft. The English giant took 10 per cent, while 30 per cent was transferred to the Russian company. In March 2018, a further 10 per cent was sold to Mubadala Petroleum using the same formula. The transaction with Mubadala Petroleum is subject to various conditions and to ExxonMobil.
This winning combination at the heart of the Dual Exploration Model allowed Eni to generate $10.3 bn for exploration activities between 2013 and 2017. By intersecting development and exploration, the time-to-market is quicker and the costs of transforming discoveries into production are reduced. This is the winning combination at the heart of the Dual Exploration Model that, since 2013, has allowed us to monetise reserves worth $10.3 billion from our exploration activities in advance. Overlapping the development and exploration stages reduces both the time-to-market and the costs of bringing discoveries into production.
Inserisci l’indirizzo email con il quale ti sei registrato all'area riservata. Riceverai all'indirizzo indicato la nuova password, che ti consigliamo di aggiornare dopo il primo accesso.
La nuova password è stata inviata alla mail indicata.