Eni Unloads Congo Oil Assets to Perenco for $300 Million
The transaction is part of a broader strategy by Eni to reduce its oil portfolio in favor of natural gas.
Eni has sold noncore assets in Congo to French independent Perenco for about $300 million.
The Italian oil major opted not to disclose the assets; however, it did note that they consist of different permitting interests that are not central to Eni's long-term development plan in the region.
The transaction is subject to customary adjustments, and its closing is subject to the authorization of relevant local and regulatory authorities.
Eni said the country remains at the core of its strategy and that it is committed to developing Congo’s vast gas resources, particularly through the Congo LNG project that will exploit the gas held in the Marine XII block and supply gas to fulfill the country’s power generation needs.
The project is expected to reach an overall LNG production capacity of about 3 mtpa from 2025.
The Congo LNG project is on an accelerated development schedule and includes the installation of two floating liquefied natural gas (FLNG) plants at the currently producing Nenè and Litchendjili fields and at fields yet to be developed.
The first FLNG plant, currently under conversion, has a planned capacity of 0.6 mtpa and is expected to begin production this year. The second FLNG plant, currently under construction, is expected to become operational in 2025 with a capacity of 2.4 mtpa.
Eni currently supplies gas to the Congo Electric Power Station, which provides 70% of the country's electricity production.