Eni's Black Sea Operations Adhere To US Sanctions On Russia
Zacks Investment Research | Jan 25, 2018 09:50PM ET
Per Reuters, Eni S.p.A. (NYSE:E) is performing exploratory drilling for an offshore project in the Black Sea. Notably, the project is being led by Rosneft, an integrated oil and gas company, primarily owned by the Russian government. We note the U.S. government had imposed sanctions on Russia last year.
Eni - drilling an exploration well in the Black Sea - claimed that its work with Rosneft is in compliance with the latest U.S. sanctions on Russia. U.S. companies are not allowed to take part in energy projects of Russia, in particular on the Arctic offshore, deepwater and shale oil exploration and production projects. Notably, Eni and Rosneft have three licenses in the Barents Sea and Black Sea. The companies also operate in the prolific Zohr gas field in Egypt, along with British oil major, BP (LON:BP) p.l.c. (NYSE:BP) .
Per The U.S. Treasury’s Office, American energy companies cannot participate in projects where Russian companies hold 33% or more interests. Oil giants like ExxonMobil Corporation (NYSE:XOM) , which has a joint project with Russia’s Rosneft, had faced trouble due to the sanctions against Russia. A sanction waiver requested by ExxonMobil,in 2017 was also denied by the U.S. government.
Eni is an exception in the Zacks Investment Research
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