Eni cuts capex, production target
Offshore staff
SAN DONATO MILANESE, Italy – Eni has reviewed its industrial plan for 2020-2021 in light of current global developments.
The company will reduce capex planned for 2020 by 30% to around €2.3 billion ($2.47 billion), with further cuts of €2.5-$3 billion ($2.69-$3.23 billion) anticipated in 2021, (30%-35% below original plans).
Cutbacks will also lead to lower production this year, at around 1.75-1.80 MMboe/d.
This does not take into account possible impacts associated with the recently announced OPEC+ cuts, which will be implemented on a field-by-field basis.
Eni is also undertaking E&P capex revisions with plans for re-phasing of certain projects. These should resume quickly once market fundamentals improve, the company added, thereby recovering any lost production volumes.
In its accompanying results presentation, the company assesses oil in place from its recent Saasken discovery in block 10 offshore Mexico at 200-300 MMbbl.
04/24/2020