Eni Expands Footprint In Abu Dhabi With Ghasha Concession
Zacks Investment Research | Nov 14, 2018 08:11PM ET
In a bid to expand in the Arabian Peninsula, Eni SpA (NYSE:E) has inked a concession agreement. Per the deal, Eni received a 25% stake in Abu Dhabi National Oil Company’s (ADNOC) mega offshore gas project.
Located in the Emirate’s Al Dhafra region, the Ghasha Concession has a term of 40 years and comprises the Hail, Ghasha, Dalma and other offshore fields. To participate in the concession, the company will pay 25% of the development cost.
The Hail, Ghasha and Dalma are ultra-sour gas projects that will tap into the Arab basin. The basin is projected to hold multiple trillions of standard cubic feet of recoverable gas. The project, anticipated to be commissioned around the middle of the next decade, is estimated to produce more than 1.5 billion cubic feet of gas per day. The gas produced from these three fields is expected meet more than 20% of the UAE’s gas demand. On completion, the project will also produce more than 120,000 barrels of oil and high value condensate per day.
Early in 2018, Eni was awarded stakes in Abu Dhabi’s oil and gas sector. This marked the first instance that an Italian energy company was given concession rights in the country. In March 2018, Eni was awarded a 10% interest in ADNOC’s Umm Shaif and Nasr concession, while a 5% interest in the Lower Zakum concession.
Apart from United Arab Emirates in the Middle East, Eni is also present in Oman, Lebanon and Iraq.
Eni, based in Rome, Italy, is among the leading integrated energy players in the world. The upstream operations include the exploitation and production of oil as well as natural gas resources. The company transports and stores hydrocarbons through its midstream activities. The company is also engaged in refining hydrocarbons and distributing the end products in 73 nations. Apart from providing natural gas, the company also generates and sells electricity.
Zacks Rank & Other Key Picks
Currently, Eni sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked players in the same sector are Hess Corporation (NYSE:E) , Enterprise Products Partners L.P. (NYSE:EPD) and Energen Corporation (NYSE:EGN) , each sporting a Zacks Rank #1. You can see Zacks Investment Research
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