Latest news with #ClaudioDescalzi
Yahoo
3 hours ago
- Business
- Yahoo
Eni and PETRONAS Sign JV Deal to Combine Asia Oil & Gas Assets
Italian energy major Eni S.p.A. E has signed a major Framework Agreement with Malaysian state energy giant PETRONAS to merge their upstream oil and gas assets in Indonesia and Malaysia, paving the way for a new jointly operated company. The deal was formalized on June 17 in Kuala Lumpur and follows an earlier Memorandum of Understanding between the two parties. The proposed joint venture (JV) will be equally owned, with both companies agreeing to a 50:50 valuation of the contributed assets. The new entity will be financially self-sufficient and strategically aligned with Eni's proven satellite model — an approach the Italian energy major had previously used to launch successful ventures like Var Energi in Norway and Azule Energy in Angola. This JV is expected to combine about 3 billion barrels of oil equivalent (boe) in reserves with a production outlook of 500,000 barrels of oil equivalent per day (boepd) — primarily natural gas. Furthermore, it boasts an additional exploration potential of over 10 billion boe and a combined portfolio of more than 50 trillion cubic feet (TCF) of low-risk gas prospects. Eni CEO Claudio Descalzi described the deal as a milestone that brings together assets, expertise and financial strength. He stressed its transformational impact, noting that it will support energy security, infrastructure growth and job creation in both Indonesia and Malaysia. The companies have informed both governments of their progress, and the final agreement, expected by fourth-quarter 2025, is subject to financial due diligence and necessary regulatory and partner approvals. Once finalized, the JV will solidify Eni and PETRONAS as major gas players in Southeast Asia, offering a strong production base, substantial reserves and significant long-term growth potential. The move comes at a time when the region's energy demand is projected to rise sharply, particularly for natural gas as a transition fuel. E currently carries a Zack Rank #4 (Sell). Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Oceaneering International, Inc. OII and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering Internationaland RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore. The Zacks Consensus Estimate for SUBCY's 2025 EPS is pegged at $1.31. The company has a Value Score of A. Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability. The Zacks Consensus Estimate for OII's 2025 EPS is pegged at $1.79. The company has a Value Score of B. RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC's current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. The Zacks Consensus Estimate for RES' 2025 EPS is pegged at 38 cents. The company has a Value Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report RPC, Inc. (RES) : Free Stock Analysis Report Subsea 7 SA (SUBCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
2 days ago
- Business
- Zawya
Oil markets see closure of Hormuz Strait as unlikely, Eni CEO says
The CEO of Italian energy company Eni said on Wednesday oil markets are signalling that an escalation between Israel and Iran and the closure of the Strait of Hormuz is unlikely. About a fifth of the world's total oil consumption passes through the Strait, which lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. "The markets have not pushed the value of crude oil above $80, $90 a barrel (signalling that) they are predicting that more extreme situations, including the closure of the Strait of Hormuz, are unlikely," Eni's Claudio Descalzi said on the sidelines of an energy conference. Israel launched strikes against Iran on June 13, saying it targeted nuclear facilities, ballistic missile factories and military commanders during the start of an operation to prevent Tehran from building an atomic weapon. Iran, which has denied such intentions, has in the past threatened to close the Strait of Hormuz for traffic in retaliation against Western pressure. Descalzi said that a potential closure of the Strait would first affect Iran's oil sales and would probably involve U.S. intervention. "All things that, even though we are in an extreme volatile situation, I think that the world's leaders will try very hard to avoid," Descalzi said. Oil prices were steady on Wednesday, after a gain of 4% in the previous session, with Brent crude futures hovering around $76.6 per barrel at 1225 GMT. Eni CEO said the state-controlled group had been working for years to reduce its exposure to oil by developing new businesses including renewable and biofuel ventures. The group is likely to generate 2 billion euros ($2.3 billion) from a planned sale of a 20% stake in its renewable unit Plenitude by the end of this year, Descalzi told reporters. Eni said in May it had entered exclusive talks with investment firm Ares Alternative Credit Management on the disposal of the 20% Plenitude stake. ($1 = 0.8685 euros) (Reporting by Francesca Landini. Editing by Jane Merriman)
Reuters
2 days ago
- Business
- Reuters
Oil markets see closure of Hormuz Strait as unlikely, Eni CEO says
MILAN, June 18 (Reuters) - The CEO of Italian energy company Eni ( opens new tab said on Wednesday oil markets are signalling that an escalation between Israel and Iran and the closure of the Strait of Hormuz is unlikely. About a fifth of the world's total oil consumption passes through the Strait, which lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. "The markets have not pushed the value of crude oil above $80, $90 a barrel (signalling that) they are predicting that more extreme situations, including the closure of the Strait of Hormuz, are unlikely," Eni's Claudio Descalzi said on the sidelines of an energy conference. Israel launched strikes against Iran on June 13, saying it targeted nuclear facilities, ballistic missile factories and military commanders during the start of an operation to prevent Tehran from building an atomic weapon. Iran, which has denied such intentions, has in the past threatened to close the Strait of Hormuz for traffic in retaliation against Western pressure. Descalzi said that a potential closure of the Strait would first affect Iran's oil sales and would probably involve U.S. intervention. "All things that, even though we are in an extreme volatile situation, I think that the world's leaders will try very hard to avoid," Descalzi said. Oil prices were steady on Wednesday, after a gain of 4% in the previous session, with Brent crude futures hovering around $76.6 per barrel at 1225 GMT. Eni CEO said the state-controlled group had been working for years to reduce its exposure to oil by developing new businesses including renewable and biofuel ventures. The group is likely to generate 2 billion euros ($2.3 billion) from a planned sale of a 20% stake in its renewable unit Plenitude by the end of this year, Descalzi told reporters. Eni said in May it had entered exclusive talks with investment firm Ares Alternative Credit Management on the disposal of the 20% Plenitude stake. ($1 = 0.8685 euros)
Yahoo
2 days ago
- Business
- Yahoo
Eni, Petronas partner to combine assets in Malaysia and Indonesia
Eni and Petronas have signed a framework agreement to establish a new jointly participated company that will oversee their combined assets in Malaysia and Indonesia. Signed in Kuala Lumpur, the agreement outlines the creation of the new company, which will be operated as a financially self-sufficient entity. Both parties have agreed on asset-level valuations to be contributed to the new company, leading to an equal 50:50 ownership split. The agreement follows an exclusive memorandum of understanding (MoU) signed by the companies in February this year. This strategic move aligns with Eni's satellite model, mirroring its upstream activities in Norway and Angola with Var Energy and Azule. The final agreements are expected to be signed by the fourth quarter of 2025, pending completion of financial due diligence. Eni CEO Claudio Descalzi said: 'This is another significant step towards the new company that Eni and Petronas have agreed to create across Indonesia and Malaysia, generating synergy in terms of assets, expertise and financial capabilities, in a transformational model that further strengthens the huge potential of the two countries. 'The new company will have a strong regional impact on gas production, bringing additional energy, infrastructures and employment for the benefit of both Indonesia and Malaysia. The new company will also have the opportunity to further build on an amazing, combined portfolio of more than 50 TCF [trillion cubic feet] of additional, low-risk exploration potential'. The new company is expected to deliver sustainable production of 500,000 barrels of oil equivalent per day, primarily from natural gas. Furthermore, it will merge approximately three billion barrels of oil equivalent (bboe) of reserves and offer an additional 10bboe of potential exploration upside. In a related development, Staatsolie has entered a production sharing contract (PSC) with Petronas and Paradise Oil Company for Block 66 in Suriname's deep offshore. Block 66, spanning approximately 3,390km², is situated in water depths ranging from 1,000m to 2,200m. Petronas, via its subsidiary Petronas Suriname, has acquired the exploration, development and production rights for the block through the PSC. The company now holds an 80% participating interest and operatorship in the block, with Staatsolie's subsidiary POC holding the remaining 20%. Petronas has committed to drilling two exploration wells in the block's promising areas during the initial exploration phase. "Eni, Petronas partner to combine assets in Malaysia and Indonesia" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
3 days ago
- Business
- CNA
Petronas, Eni to form Southeast Asia-focused gas venture by end-2025
KUALA LUMPUR :Malaysian state energy company Petronas and Italian energy group Eni said on Tuesday they were pressing ahead with a planned joint venture to develop gas assets in Indonesia and Malaysia with the signing expected by the end of this year. The final agreement will be subject to regulatory approvals by governments, authorities and partners, state-controlled Eni said in a statement, without providing a time frame. Petronas said the whole process could take one to two years from now. Tuesday's announcement follows a pact the companies signed in February, which they said could deliver in the medium term up to 500,000 barrels per day of oil equivalent (boe), combining about 3 billion boe of reserves with an additional 10 billion boe of potential exploration upside. By comparison, Eni's total hydrocarbon production was 1.71 million boe last year. "Asia has huge, huge potential," Eni CEO Claudio Descalzi told Reuters on the sidelines of the Energy Asia conference. "The cooperation between countries, to find synergies and exchange energies and put together resources and competencies, is essential. And that is a very strong example, Indonesia and Malaysia together," Descalzi said. The asset combination will likely focus on Indonesia's Kutai Basin, where Eni's portfolio includes developments in the Northern and Gendalo-Gandang hubs, which hold substantial gas reserves. "The new company will have a strong regional impact on gas production, bringing additional energy, infrastructure and employment for the benefit of both Indonesia and Malaysia," Eni said in a statement. The new company, based on existing gas production, is expected to develop its projects without burdening the balance sheets of Petronas and Eni, while paying dividends to its parent companies. "The whole idea of having this as a combination is to have an independent entity created in order to be self-financed," Mohd Jukris Abdul Wahab, executive vice-president and CEO - upstream at Petronas, said at the conference. This venture is part of Eni's "satellite" strategy under which the Italian group has created several spin-offs centred around specific businesses and has supported their growth to make them independent. In a similar transaction, Eni teamed up with BP in Angola to create their Azule Energy joint venture. Eni and Petronas will share assets in order to have a 50:50 proportion in the new company. Petronas has said it was looking to include oil and gas projects in Indonesia's Kutai Basin in the planned new company, proposing to swap interests for its assets in Malaysia and Indonesia with Eni's blocks there. However, Petronas said it would exclude Indonesian assets recently awarded to the company, such as the Binaiya and Serpang blocks.
