Italy

Oil & Gas

Eni raises output target as Q2 profits slump on Saipem

Italian oil and gas group Eni raised its production targets for the year on Thursday as second-quarter net profit slumped due to lower oil prices and a heavy loss at oil contractor subsidiary Saipem. State-controlled Eni said adjusted net profit in the second quarter was 0.14 billion euros ($153 million), below the consensus forecast of 0.48 billion euros in a Reuters poll of analysts. Stripping out the Saipem effect, adjusted net profit was 0.45 billion euros. On Tuesday, Saipem reported a quarterly adjusted operating loss of 738 million euros after heavy writedowns as part of a turnaround plan.

Health, Safety & Environment

Italy’s Foreign Minister urges ‘prudence and discretion’ over kidnappings

Italy’s Foreign Minister said “prudence and discretion” were essential as the country attempts to bring four kidnapped oil workers home from Libya. The families of four men have been in an anxious wait for news after they were taken near to an industrial complex owned by energy company Eni in the western city of Mellitah. Foreign Minister Paolo Gentiloni said: "Prudence and discretion....are needed to bring home our four countrymen.

Africa

Four workers kidnapped in Libya

Four Italian workers have been kidnapped in Libya. The incident happened near an industrial complex owned by energy company Eni in the western city of Mellitah. The Italian Foreign Ministry said the employees had been kidnapped on Sunday.

Europe

Russia’s Gazprom cancels Saipem deal on the Black Sea gas pipeline

Russia's Gazprom has cancelled a contract with Italian oil services group Saipem to build the first line of a gas pipeline beneath the Black Sea, the Russian state gas company said in a statement on Wednesday. Gazprom said it will start talks with other potential contractors to build the first line of the Turkish Stream pipeline, which would run beneath the Black Sea to Turkey. The project would consist of four lines, each capable of carrying 15.75 billion cubic metres of gas per year. Saipem said last month it was asked by Gazprom to start work on a pipeline under the Black Sea, which should avoid Ukraine as a transit country for roughly half of Russian gas shipped to Europe.

Oil & Gas

Sound Oil granted approval for Italian exploration well

Sound Oil has gained approval of its Environmental Impact Assessment (EIA) for the Badile exploration well in Italy. The drilling authorisation from the Italian Ministry of Economic Development is expected to follow with the endorsement of the Lombardy Region. The approval of the European and Mediterranean focused oil and gas company’s application will allow it to prepare for the forthcoming exploration well.