Eni sees Russian gas exit by 2025
Eni said on July 29 that it could phase out 100% of Russian gas purchases, amounting to 20bn m3 by 2025 thanks to new supply agreements with Algeria, Egypt and Congo-Brazzaville.
A successful E&P campaign focused on Algeria and Egypt in the first half has expanded Eni's reserves base by around 300mn boe. Eni sees additional opportunities from other markets in its global gas portfolio, such as Libya, Indonesia, Italy, Angola and Mozambique. The Italian major on June 29 revealed further upside as Eni was selected to join Qatar's $28.8bn North Field East expansion project, with the deal set to provide Qatari LNG volumes before the end of 2025.
At the existing upstream portfolio, Eni generated €4.9bn ($5bn) of adjusted EBIT in the second quarter, up more than double yr/yr despite group output falling by 1% to 1.6mn boe/d. The decrease was blamed on force majeure events in three Eni operating markets, Libya, Nigeria and Kazakhstan.
Eni's net profit soared from €247mn in the second quarter of 2021 to €3.8bn this year, while cash flow rose by 86% to €5.2bn.
Eni's full-year guidance anticipates a production rebound to 1.67mn boe/d at a "price deck" of $105/barrel. It expects to find an additional 700mn boe of reserves for the full-year 2022, up from 600mn boe under its previous guidance update.