Wednesday, May 29, 2024

ENI spin off of promising oil and gas ventures Indonesia and Ivory Coast

Reading Time: 2 minutes
Journalist IBP




Italian energy behemoth Eni is embarking on a spin-off strategy for its potential oil and gas (O&G) projects, aiming to bolster these endeavors while sharpening its focus on low-carbon business ventures.

According to internal sources, Eni is eyeing O&G projects in Ivory Coast and Indonesia as prime candidates for the spin-off initiative.

In Indonesia, Eni plans to establish a gas hub following significant reserve discoveries in Geng North-1 and the consolidation of other upstream assets acquired from Chevron and Neptune Energy.

Meanwhile, in Ivory Coast, Eni recently announced a significant offshore discovery in March and is actively producing oil and gas from the expansive Baleine field.

This strategic move reflects Eni CEO Claudio Descalzi’s vision to divide certain Eni operations into separate entities or satellites, facilitating the accumulation of fresh capital and attracting investors, including private equity firms and infrastructure funds.

The division also affords investors the flexibility to allocate funds between the traditional O&G sector and low-carbon businesses, catering to diverse investment preferences.

“The satellite model is a framework we’ve developed to secure additional funding sources to support traditional endeavors while simultaneously advancing greener initiatives,” remarked Francesco Gattei Eni’s Chief Financial Officer (CFO), as quoted from Reuters on Monday, May 13, 2024.

In recent years, Eni has established retail and renewable energy units, Plenitude, with shares sold to infrastructure funds, and a biofuel division, Enilive, which Descalzi hinted may consider selling minority stakes.

Eni intends to divest its ownership in both entities to secure additional financing for their expansion. This approach sets Eni apart from other oil and gas companies venturing into renewable energy.

“This strategy aims to showcase to investors the potential of nascent businesses striving to compete with the advantages of traditional oil and gas operations,” highlighted Gattei.

Furthermore, it signals a transition away from fossil fuel operations. Last month, Eni agreed to merge its North Sea oil and gas operations with Ithaca Energy in exchange for a 38.5% stake in the company, valued at nearly US$1 billion. This transaction allows Eni to reduce capital expenditure while potentially receiving dividends from Ithaca.

Gattei revealed that the group is exploring similar strategies for other exploration and production projects necessitating substantial investments, such as those in Indonesia and Ivory Coast.

Journalist IBP






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


PT Medco Energi Internasional has announced the divestment of its stake in the oil and gas field Area 47 in Libya to the Libya National Oil Corporation (NOC).
Indonesia has harnessed less than 1 percent of its solar energy potential, lagging significantly behind neighboring countries as fossil fuels continue to dominate
CNGR, a major Chinese company in the nickel processing industry and a key supplier of battery components for US electric car producer Tesla, is aggressively increasing its investments in Indonesia.
PT Freeport Indonesia (PTFI) President Director Tony Wenas has confirmed that the copper smelter in the Java Integrated Industrial Port Estate (JIIPE) area in Gresik, East Java, is on track to start operations by June 2024.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
Coordinating Minister for the Economy, Airlangga Hartarto, met with Daisuke Arakawa, a senior executive at Nikkei Inc, in Tokyo on Friday, outlining the Indonesian government’s commitment to energy transition through collaboration with Japan. One key area of cooperation is investment in electric vehicles (EVs).