Eni Inks Agreement with Republic of Congo to Strengthen Ties

Italy-based Eni SpA (E) has inked a cooperation agreement with the Congolese Minister of hydrocarbons in Brazzaville. The pact, signed in the presence of President of Congo and the Italian Prime Minister, declares Eni’s aim to pursue new initiatives in the Congolese coastal basin, which spreads across onshore Mayombe to the deep-offshore.

Eni reiterated the historical and strategic significance that the country holds for the company. It also reasserted the continuation of its activities in the region, with emphasis on the fields for which the Congolese government has extended permissions (Madingo, Marine and Marine VI VII). Notably, these permissions were given in late 2013 after strategic talks.

Eni’s presence in Republic of Congo dates back to 1968. In 2013, the country produced about 120,000 barrels of oil equivalent per day. In Sub-Saharan Africa, Eni operates in Angola, Ghana, Gabon, Mozambique, Nigeria, Democratic Republic of the Congo, Togo, Kenya and Liberia. Currently, the company’s output in Sub-Saharan Africa is about 450,000 of oil equivalent per day, mainly due to a boom in exploration activity and growth.

Eni, along with its consolidated subsidiaries, is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are Exploration and Production, Gas and Power, and Refining and Marketing. The company conducts its major exploration and production activities for hydrocarbons.

The company’s constant efforts to expand its upstream operations in Cyprus, Egypt, Vietnam, Indonesia, Pakistan and Kenya will go a long way in driving future growth. Moreover, project start-ups, inputs from big projects in Algeria, Iraq, Australia, Russia and Egypt, as well as its strategic position in non-conventional gas, are expected to augment volumes going forward.

Currently, Eni carries a Zacks Rank #3 (Hold). Meanwhile, one could consider better-ranked stocks in the same industry like ConocoPhillips (COP), Statoil ASA (STO) and BPZ Resources Inc (BPZ), all of which sport a Zacks Rank #1 (Strong Buy).

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