Exploration business boosts Eni’s profits

Eni's Claudio Descalzi
Eni's Claudio Descalzi

Italian operator Eni has reported a surge in its full-year profits, largely down to its exploration business.

Adjusted net profits were £4billion for 2018, up 90% on £2.1bn the previous year.

The firm said it reached record production of 1.85 million barrels per day during the year, with the price of Brent crude oil averaging 25% higher than 2017.

Eni’s UK presence includes interests in 4 production areas of which the Liverpool Bay is operated by Eni with a 100% interest and Hewett Area is operated with an 89.3% interest.

Its other non-operated fields are Elgin/Franklin (21.87%), Glenelg (8%), J-Block and Jasmine (33%) as well as Jade (7%).

Eni also operates the Rowallan prospect which spudded at the end of last year, estimated to hold up to 60million barrels of oil equivalent.

CEO Claudio Descalzi, said: “2018 was a strong year for Eni both financially and operationally, which was characterized by a robust fourth quarter performance.

“In our Upstream division we achieved our highest ever level of production of 1.85 million barrels per day, with a cash flow per barrel of $22.5, achieving our 2022 target four years early.

“The proven reserves replacement ratio was once again higher than 100%, for a three‐year average of 131%.

“Gas & Power achieved its highest ever operating profit since the spin‐off of regulated transport and distribution activities, equal to €0.5 billion, while the performance of Refining & Marketing and Chemicals highlights the division’s progress and resilience, despite a less favorable market environment.

“With a view to the future we strengthened and geographically diversified our Upstream portfolio, expanding our growth prospects with the establishment of Vår Energi in Norway and building of a significant presence in the Middle East, while keeping costs low and maintaining a high level of profitability.”