Eni SpA, the Italian energy giant, is contemplating the sale of a portion of its exploration operations in Ivory Coast.
The potential deal could be valued at approximately €1 billion ($1.1 billion), as reported by insiders familiar with the matter.
Collaboration with Advisors
Eni has engaged advisors, including Standard Chartered Plc, to explore this possible divestment. The company is open to selling up to 30% of its Ivory Coast business, and has reportedly garnered interest from various energy companies, including those based in Asia.
Positive Market Response
Following the news, Eni’s shares experienced a boost, rising by as much as 1.5% during Wednesday trading. The company currently holds a market value of around €45.7 billion. However, it’s important to note that the discussions are still in the preliminary stages, and Eni is yet to finalize the size of the stake it intends to sell. Both Eni and Standard Chartered declined to comment on the matter.
Alignment with Eni’s Strategic Goals
This potential divestment aligns with Eni’s broader four-year strategy, which aims to generate approximately €8 billion through asset sales. CEO Claudio Descalzi is implementing a “satellite model,” involving the separation of divisions and collaboration with external investors, with the ultimate goal of listing these units independently. This model was previously employed with Eni’s renewable energy unit, Plenitude, and is also planned for its biorefining and mobility division, Enilive.
Eni’s History in Ivory Coast
Eni’s involvement in Ivory Coast dates back to the 1960s, and the company re-entered the country in 2015. Eni’s operations in Ivory Coast include the Baleine offshore oil and gas field, a significant discovery that has elevated the country’s status as a regional energy hub.
Baleine commenced production in August, less than two years after its discovery, with an initial output of 15,000 barrels of oil per day (bopd) and approximately 25 million cubic feet of gas per day (MMcfgd). Eni estimates Baleine to hold reserves of 2.5 billion barrels of oil in place.