Portfolio development: 2016 key facts
Achieved start-ups in significant projects, such as:
- the Goliat Norwegian fields (Eni operator with a 65% interest) in the Barents Sea, achieving a production plateau of 100 kboe/d (65 kboe/d net to Eni)
- production re-start of the Kashagan field (Eni’s interest 16.81%) with the fully replacement of the damaged pipelines. Production capacity of 370 kbbl/d is expected by the end of 2017
- start-up of M’Pungi and M’Pungi North within the West Hub Development project in the offshore Block 15/06 (Eni operator with a 36.84% interest) in Angola, with a production ramp-up of approximately 81 kbbl/d in the area
- in February 2017, start-up of the East Hub Development project in the Block 15/06, five months earlier than scheduled and with a time-to-market among the best in the industry. The East Hub project will develop the reservoir in the north-eastern area by means of a development program similar to the West Hub
- the Great Nooros Area (Eni’s interest 75%) in Egypt, achieving a peak production of 85.5 kboe/d net to Eni. This record-setting production level was reached in just 13 months after the discovery and ahead of schedule. In addition, thanks to the mature operating environment and the conventional nature of the project, production costs are among the lowest in Eni’s portfolio.
- progressed construction activities at our development projects expected to come on stream in 2017 (Jangkrik in Indonesia, OCTP oil in Ghana as well as Zohr and East Hub, as discussed above). These projects, together with the ramp-up of 2016 new production from Kashagan and Goliat, will strongly contribute to the cash generation in 2017 and following years.
- signed in Mozambique a binding agreement between the partners of the Area 4 and BP for the sale, over a 20-year period, of approximately 3.3 million tons of LNG per annum (corresponding to about 177 bcf), which will be produced at the Coral South Floating facility. The agreement is a fundamental step towards achieving the Final Investment Decision of the project, targeting production of 5 trillion cubic feet of gas.
- in March 2017, ExxonMobil and Eni signed sale and purchase agreement to acquire a 25% indirect interest in the Area 4 block, offshore Mozambique. The agreed terms include a cash price of approximately $2.8 billion. The acquisition will be completed subject to satisfaction of certain conditions precedent, including clearance from Mozambican and other regulatory authorities.
- development expenditure was €7,770 million (down by 16.8% vs. 2015) to fuel the growth of major projects and to maintain production plateau particularly in Egypt, Angola, Kazakhstan, Indonesia, Iraq, Ghana and Norway.