LNG

Italian energy company Eni, which has stakes in the leading global LNG projects such as Mozambique and whose offshore discovery of the Zohr gas field transformed the energy fortunes of Egypt, has launched a new business structure to lead the company through the next 30 years.

The Milan-based company said it was creating two new business groups, Natural Resources to develop the upstream oil and gas portfolio sustainably and Energy Evolution, dedicated to supporting the company’s power generation and marketing.

The overhaul will help the implementation of Eni’s strategy to 2050, which it said combined value creation, portfolio sustainability and financial strength.

Eni’s main current LNG asset is its stake in the Rovuma Basin projects in Mozambique as part of the Area 4 resources development with ExxonMobil and China National Petroleum Corp.

The new organisation, presented by Eni’s Chief Executive Claudio Descalzi, sets down the markers for the evolution of the business over the next 30 years.

“The key and unique element of this strategy is the combination of growth objectives with financial value creation as well as environmental sustainability, which will lead to a significant reduction in full life-cycle carbon emissions,” said Eni.

The company stated that the new structure reflected Eni’s pivot to the energy transition.

“To make the plan come true, and position us to accelerate its delivery, we are creating two new business groups in our company,” explained CEO Descalzi.

The two new Eni business groups will maintain close links in the hydrocarbon value chain, with the objective of best managing the different phases of the energy transition.

“The Natural Resources business group will incorporate the company’s oil & gas exploration, development and production activities, natural gas wholesale via pipeline and LNG,” said Eni.

Alessandro Puliti will lead Natural Resources and Massimo Mondazzi will lead Energy Evolution.

A final investment decision on Mozambique LNG has been delayed for now but once it is sanctioned the project will produce LNG from three feed-gas reservoirs located in the Area 4 block.

ExxonMobil is the lead company for the Mamba gas fields and LNG project development and costs are estimated at around $30Bln.

A separate project for Area 4 resources is the Coral floating LNG joint venture with capacity of around 3.4 MTPA already under construction and scheduled to come on stream in 2022.

Eni has already been a leading company in developing LNG projects in other nations such as Nigeria, Angola, Egypt, Trinidad & Tobago and Indonesia.

The Natural Resources division will continue to build up the value of Eni’s oil and gas upstream portfolio, with the objective of reducing its carbon footprint by scaling up energy efficiency and expanding production in the natural gas business, and its position in the wholesale market.

Eni has been very successful in its E&P activities in Egypt and elsewhere.

The company discovered and developed the Zohr field in the East Mediterranean.

Zohr is located within the Shorouk concession, approximately 190 kilometres north of the city of Port Said.

Eni has a 50 percent stake in the block and is responsible for operations there. The other stakeholders are Russia’s Rosneft, BP of the UK and Mubadala Petroleum of the UAE.

ExxonMobil Corp. and Eni of Italy said their Mozambique LNG export project for the Area 4 licence of the offshore Rovuma Basin had been approved by the government of the southeast African nation.