Eni’s Gulf expansion has just started -CEO

Eni’s Gulf expansion has just started -CEO
Updated 17 February 2019

Eni’s Gulf expansion has just started -CEO

Eni’s Gulf expansion has just started -CEO

MILAN: Italian major Eni said it intends to expand in the Middle East after a spree of deals in the Gulf last year, pressing ahead with plans to reduce its reliance on Africa and oil and gas exploration.
Since last March Eni has secured nine deals in the United Arab Emirates, gained a foothold in Bahrain and expanded in Oman to underpin its future growth.
Last month it pledged $3.3 billion to buy part of the world’s fourth-biggest refinery in the UAE, increasing its own refining capacity overnight by more than a third.
Chief Executive Claudio Descalzi said on Friday there were huge opportunities to grow in the Gulf area and rebalance the group’s operational portfolio.
“It’s not finished, we’ve just started,” he told analysts on a conference call after its fourth-quarter results, adding long-term the group aimed to produce 100,000 barrels per day in the area.
Eni, which generates more than half its output in Africa, produced a record 1.851 million barrels of oil equivalent per day in 2018, lifted by operations in Egypt, Indonesia and Kazakhstan.
Giant gas discoveries in Mozambique and, more recently, Egypt have given the energy major the strongest discovery record in the industry, boosting its credentials with oil-producing nations.
“We’ll be able to enter new markets thanks to our technology and know-how,” Descalzi said.
The 63-year-old said that besides the Gulf Eni is also looking to Asia to boost its gas prospects as well as Alaska to increase its oil production.
“That’s a main oil target for us,” he said.
Eni said it had made a 470 million euro ($529.50 million) writedown on reserves in Venezuela where it has a 50 percent stake in the giant Perla gas field and 40 percent of the Junin 5 oilfield.
“Outstanding arrears with the country amount to about $700 million,” said CFO Massimo Monduzzi.
A deep economic and social crisis in Venezuela has seen output plummet and the recent move by Venezuela’s opposition to oust president Nicolas Maduro has made matters critical.
In the fourth quarter Eni’s adjusted net profit jumped 55 percent to 1.459 billion euros ($1.65 billion), above an analyst consensus forecast of 1.19 billion euros.
Free cash flow after dividends was the highest since 2006, with excess cash for the year of 3.8 billion euros.
Massimo Bonisoli, oil analyst at Milan-based broker Equita, said that the strong set of results showed the improvement in the group’s asset portfolio.
“The improvement of shareholders’ remuneration is likely through buy-back and some dividend increase in 2019,” he said in a note.
At 1419 GMT Eni shares were up 2.1 percent while the European oil and gas sector was up 1.2 percent. ($1 = 0.8876 euros)


SABIC to begin construction of plastic recycling facility in the Netherlands

SABIC to begin construction of plastic recycling facility in the Netherlands
Updated 23 January 2021

SABIC to begin construction of plastic recycling facility in the Netherlands

SABIC to begin construction of plastic recycling facility in the Netherlands
  • The construction phase for the unit is expected to become operational in the second half of 2022
  • The project will be realized under a 50:50 joint venture

Saudi Basic Industries Corp. (SABIC) and Plastic Energy Ltd. announced plans to commence construction on the first commercial unit to produce its flagship certified circular polymers.

The construction phase for the unit, which will be located in the Netherlands, is expected to become operational in the second half of 2022.

The project will be realized under a 50:50 joint venture. It will be implemented with a top sector energy subsidy from the Ministry of Economic Affairs in the Netherlands.

The new unit will enable SABIC to significantly upscale the production of certified circular polymers to provide customers with greater access to sustainable materials which have been recycled, repurposed and produced in a way that can help protect our planet’s natural resources, while acting as a drop-in solution.