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Eni (E) to Buy Algeria Fields to Address Gas Demand in Europe
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Eni SPA (E - Free Report) signed an agreement to acquire BP plc’s (BP - Free Report) Algeria business, including two major natural gas fields.
The acquisition involves BP’s stakes in the In Salah and In Amenas gas fields in southern Algeria. BP holds a 45.89% stake in In Amenas and a 33.15% stake in In Salah. Both fields are operated by BP and partners.
In Salah covers seven gas fields, around 1,200 kilometers south of Algiers. Production from the field began in 2004, with the second phase in 2016. In Amenas produces gas and natural gas liquids from the Illizi basin in south-eastern Algeria, with its first production in 2006.
In 2021, the fields produced 11 billion cubic meters of gas and 12 million barrels of condensates and LPG. Eni expects production to increase as a result of the agreement. The company currently produces 100,000 barrels of oil equivalent per day (Boe/d). It expects its Algeria production to reach 120,000 Boe/d in 2023.
Eni has been planning to acquire stakes in the In Amenas and In Salah gas fields for several months. The agreement aligns with the company’s strategy to address the challenges of delivering secure and sustainable energy to customers. The acquisition will address Europe’s gas requirements and strengthen the company’s presence in Algeria.
BP has been contributing to Algeria’s growth for more than 30 years. The divestiture is part of BP’s plan to refocus its businesses by reducing debt, while addressing declining margins and climate pressures. Notably, the transaction is subject to the approvals of the competent authorities.
In March, Eni and BP created a 50/50 joint venture combining their Angola businesses, Azule Energy. The consolidation was part of the companies’ restructuring of oil and gas businesses amid their transition to a more sustainable, low-carbon economy. This is expected to help the companies reduce debt.
By combining two world-class businesses, Azule Energy will leverage synergies and premium assets, enhancing activities in Angola. It will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa. The joint venture will continue BP and Eni’s social investment commitments in Angola.
Company Profile
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. The company repurchased shares worth $4.1 billion in the May-July 2022 period and completed more than 80% of its target to buy back common stock worth $15 billion.
Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. MPC is expected to see earnings growth of 755.5% in 2022.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. As of Jun 30, 2022, its cash and cash equivalents were $32,848 million. This was enough to address the current borrowings of $14,589 million.
TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. TTE is expected to see earnings growth of 107% in 2022.
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Eni (E) to Buy Algeria Fields to Address Gas Demand in Europe
Eni SPA (E - Free Report) signed an agreement to acquire BP plc’s (BP - Free Report) Algeria business, including two major natural gas fields.
The acquisition involves BP’s stakes in the In Salah and In Amenas gas fields in southern Algeria. BP holds a 45.89% stake in In Amenas and a 33.15% stake in In Salah. Both fields are operated by BP and partners.
In Salah covers seven gas fields, around 1,200 kilometers south of Algiers. Production from the field began in 2004, with the second phase in 2016. In Amenas produces gas and natural gas liquids from the Illizi basin in south-eastern Algeria, with its first production in 2006.
In 2021, the fields produced 11 billion cubic meters of gas and 12 million barrels of condensates and LPG. Eni expects production to increase as a result of the agreement. The company currently produces 100,000 barrels of oil equivalent per day (Boe/d). It expects its Algeria production to reach 120,000 Boe/d in 2023.
Eni has been planning to acquire stakes in the In Amenas and In Salah gas fields for several months. The agreement aligns with the company’s strategy to address the challenges of delivering secure and sustainable energy to customers. The acquisition will address Europe’s gas requirements and strengthen the company’s presence in Algeria.
BP has been contributing to Algeria’s growth for more than 30 years. The divestiture is part of BP’s plan to refocus its businesses by reducing debt, while addressing declining margins and climate pressures. Notably, the transaction is subject to the approvals of the competent authorities.
In March, Eni and BP created a 50/50 joint venture combining their Angola businesses, Azule Energy. The consolidation was part of the companies’ restructuring of oil and gas businesses amid their transition to a more sustainable, low-carbon economy. This is expected to help the companies reduce debt.
By combining two world-class businesses, Azule Energy will leverage synergies and premium assets, enhancing activities in Angola. It will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa. The joint venture will continue BP and Eni’s social investment commitments in Angola.
Company Profile
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Zacks Rank & Other Stocks to Consider
Eni currently carries a Zack Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. The company repurchased shares worth $4.1 billion in the May-July 2022 period and completed more than 80% of its target to buy back common stock worth $15 billion.
Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. MPC is expected to see earnings growth of 755.5% in 2022.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. As of Jun 30, 2022, its cash and cash equivalents were $32,848 million. This was enough to address the current borrowings of $14,589 million.
TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. TTE is expected to see earnings growth of 107% in 2022.