Italian oil group creates strong bonds in the Middle East

/ Financial News / Tuesday, 22 January 2019 10:28

The oil and gas giant Eni announced a series of acquisitions that will enable it to strengthen its presence in the Middle East.

The company signed an agreement with the Oman Oil Company Exploration and Production Company (OOCEP) for the exploration and exploitation of Block 47 in the Sultanate of Oman. The Italian giant will hold a 90% stake and OOCEP 10%.

It has also signed with BP and the Ministry of Petroleum a MoU concerning the acquisition of exploration and production rights for block 77.

Eni and BP must have a 50% share each.

The Italian group has also obtained exploration rights to zones A, B and C in the Sharjah Emirate. Eni will be the operator with a 75% share, while SNOC (Sharjah National Oil Corporation) will hold 25%.

“These agreements mark another important step in terms of growth in the United Arab Emirates,” said Head of Eni, Claudio Descalzi, while touring the Middle East.

He emphasized that all signed contracts were a “further confirmation of the (group's) willingness to root (its) presence in the Middle East, creating long-term strategic alliances”.

Eni's presence in the Middle East grew significantly last year with the start of its exploration activity in Oman and the signing of major contracts in Abu Dhabi with the Abu Dhabi National Oil Company (ADNOC).

Eni has also signed two new agreements in Abu Dhabi for the acquisition of a 70% stake in two offshore exploration concessions. Its partner will be the Thai PTT Exploration and Production Company Limited (PTTEP).

The Italian group has also signed a MoU with the National Oil and Gas Authority in Bahrain (NOGA) regarding exploration of Block 1, an offshore area that is still largely unexplored.

Eni is also present in Lebanon and Iraq.

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