Eni to invest $ 8 bn to boost Libya production

Updated 17 December 2012
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Eni to invest $ 8 bn to boost Libya production

MILAN: Italy’s Eni plans to invest $ 8 billion in Libya over the next 10 years to develop its upstream business as it moves to strengthen its grip as the leading international oil and gas producer in the country. In a statement, Eni said its Chief Executive Paolo Scaroni had presented the plan to Libyan Prime Minister
Ali Zidan and Petroleum Minister Abdelbari Al-Arusi in Tripoli.
The investments are designed to develop ongoing production as well as new exploration activities, it said.
Eni, which has operated in Libya since 1959, had to halt production early in 2011 after civil war broke out.
Some analysts expressed concern at the time a new Libyan government could punish Eni because of lukewarm support offered by the then center-right government of Silvio Berlusconi to the opponents of the former regime.
Eni said the Libyan prime minister had also asked Eni at the meeting if it was prepared to develop new projects in the downstream sector “in conjunction with the new branch of the National Oil Corporation, which will be based in Benghazi.”
Eni, which produces about one third of Libya’s total output, was the first international company to resume production in September last year and currently produces 80 percent of pre-war output of roughly 280,000 barrels of oil equivalent per day.
The state-controlled major has oil production contracts in Libya that are in force until 2042 and gas contracts in force until 2047.
Eni also said a social sustainability agreement, worth about $ 400 million, had also been discussed, adding it could be signed during Ali Zidan’s visit to Rome in late January next
year.
Eni is the leading foreign oil and gas producer in Africa, an area of the world it expects will help it achieve its goal of a rise in oil and gas production of around 3 percent per year.


Boeing reports jump in 1Q profits, lifts 2018 forecast

Updated 55 min 51 sec ago
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Boeing reports jump in 1Q profits, lifts 2018 forecast

  • The aerospace giant reported that earnings surged 56.9 percent from the first three months of 2017
  • Boeing has often been seen as vulnerable to a trade war between Washington and Beijing

NEW YORK: Boeing profits jumped, and the company upgraded its earnings forecast for this year Wednesday amid a strong commercial aviation market and as executives expressed optimism the US and China will avoid a trade war.
The aerospace giant reported that earnings surged 56.9 percent from the first three months of 2017, rising to $2.5 billion. Revenues rose 6.5 percent to $23.4 billion.
The upbeat report sent the company’s share price higher, and reflects the health of the airline industry as flying becomes much more common in the Middle East, Asia and other developing regions.
A big player in China, Boeing has often been seen as vulnerable to a trade war between Washington and Beijing, a possibility that topped Wall Street’s list of worries earlier this month but has receded of late amid softer rhetoric between and the prospect of talks in coming days.
Boeing chief executive Dennis Muilenburg said he was encouraged that the US planned to send a high-level trade team to Beijing. President Donald Trump confirmed Tuesday that Treasury Secretary Steven Mnuchin, US Trade Representative Robert Lighthizer will travel to China soon.
“We know aerospace is very important to both countries and while some initial statements have been made about potential tariffs, none of those severe actions have been implemented,” Muilenburg said on a conference call with analysts and reporters.
“And we’re frankly encouraged by the continuing dialogue and we’ve heard from leadership in both countries that both are seeking to find negotiated positions that will be productive for both countries.”
Muilenburg said Boeing’s supply chain had not been significantly affected by tariffs on aluminum and other measures that have been implemented.
In the quarter ending March 31, Boeing notched higher commercial plane deliveries compared with the year-ago period. Planes with gains included the narrow-aisle 737 and the 787 “Dreamliner.”
The aerospace giant has been consulting with customers on launching a possible “middle market” plane that would fall between its narrow-body model, which carries up to 200 people, and its wide-body design, which typically flies around 300.
The company said it would raise production for the Boeing 767 plane to three a month from 2.5 due to strength in the cargo market as industrial demand picks up.
Earnings in Boeing’s defense division were lifted by strong weapons volume. The company won new business from Kuwait and said it was on track with the KC-46 tanker program, a US Air Force transport aircraft contract that has led to unexpected cost increases in prior quarters.
A report earlier this month by the US Government Accountability Office warned that deliveries of the first fully capable KC-46 tankers could slip to May 2019 from the current timetable of October 2018, citing a number of risks to the timeframe that need to be mitigated.
But Muilenburg said the company was making “steady progress” on the project and toward delivering the first 18 tankers this year.
Other key questions surrounding Boeing include the status of talks with Brazilian company Embraer on a potential collaboration that must be blessed by the government in Brasilia.
Boeing also could be impacted if President Donald Trump scotches the nuclear agreement between Iran and major governments that opened the door to commercial plane sales in the sanctions-constrained country.
Muilenburg said Boeing has delayed deliveries of 777 planes to Iran in line with the US government process and its targets for 2018 had not accounted for them.
“The plan that we outlined for your is not dependent on the Iranian orders,” he said. “If those orders do come to fruition, if we do ultimately deliver airplanes, those represent opportunities for us.”
Shares climbed 2.3 percent to $336.58 in midday trading, the biggest gainer in the Dow.