Eni sells stakes to Vitol in upstream projects in Ivory Coast and Congo

The Italian energy group Eni announced on Wednesday that it had agreed to sell its stakes in the upstream assets of the Ivory Coast, and the Republic of the Congo, to the global energy trader Vitol.

Eni stated that the deal is worth $1.65bn based on an appraisal from January 1, 2024. However, there will be a cash payment at closing.

Eni announced that Vitol would acquire an interest on oil and gas producing assets, and blocks, which are undergoing exploration appraisal and development. Eni will retain a 77.25% stake in the Baleine Project in Ivory Coast and Vitol a 30% interest. The Congo LNG project, in the Republic of Congo, will be a joint venture between Eni and Vitol. Eni will hold a 65% interest in the project and Vitol a 25% stake.

The agreement is part Eni's "dual exploration" strategy. This is based upon spinning off stakes from high-potential projects in order to generate rapid incomes. Last year, sources at the Italian energy company said that Eni might sell stakes in upstream projects it has in Ivory Coast or Indonesia.

Eni and Vitol have already partnered in Ghana on the OCTP Block 4 project. This latest agreement consolidates the cooperation between both companies in West Africa. The giant Baleine oil field was discovered in Ivory Coast in 2021. Current hydrocarbon production in the area exceeds 60,000 barrels equivalent of oil per day. Eni is the first company to develop in Ivory Coast and it's also the first net-zero project in Africa.

Congo LNG began exporting liquefied natural gas in February 2024. Currently, it produces 1 billion cubic meters (BCM) of LNG per year. Francesca Landini is the reporter. (Editing by Gavin Jones, Mark Potter and Gavin Jones)

(source: Reuters)