• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Would bashing China solve all the problems of the United States
  • 31 mins Model 3 cheaper to buy than BMW 3 series.
  • 1 hour Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 40 mins Pompeo's Hong Kong
  • 11 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 day China to Impose Dictatorship on Hong Kong
  • 1 hour Thugs in Trumpistan
  • 6 hours China’s Oil Thirst Draws an Armada of Tankers
  • 31 mins Income report showing potential future spending and economic growth
  • 7 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 2 days Iran's first oil tanker has arrived near Venezuela
  • 1 hour US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 2 days Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 1 day 60 mph electric mopeds
Three Key Events In The Global Oil Patch

Three Key Events In The Global Oil Patch

While COVID-19 continues to dominate…

A Nightmare Scenario For Offshore Oil

A Nightmare Scenario For Offshore Oil

The offshore oil industry is…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Eni Adjusts Profits Amid Africa Chaos

Facing instability in Africa and bribery accusations against its drilling subsidiary Saipem, Italian oil giant Eni is now reporting an adjusted net profit of 1.2 billion euros for the third quarter, down 29% from the same period last year.

Overall production was down 3.8% for the quarter and 3.1% for the first nine months of 2013, with production averaging 1.65 million barrels per day for the quarter.

Looking ahead, Eni said it now expects full-year production to be lower than in 2012, its second cut in 2013 target output this year.

"The historically high exposure to Africa is one of the major problems facing the group and is why it trades at a discount to its European peers," Reuters quoted Andrea Scauri, oil analyst at Mediobanca, as saying.

Related article: Marathon Rethinks Libya Exit

Nigeria has been suffering its worst production disruptions in four years, with industrial-scale crude oil theft from pipelines, sabotage and technical problems causing crude output to drop overall to less than 1.9 million barrels a day over the summer.

In Libya, where Eni is the dominant foreign oil company, Eni was losing about 50,000 barrels per day in production in the third quarter. Libya's oil exports have dropped to less than 10% of capacity as protests and roving militias halt operations.

Eni's is also facing problems in Mozambique, where it has made a major gas discovery in the Rovuma basin with an estimated 80 trillion cubic feet of gas in place. But an escalation of tensions with the former rebel group Renamo threatens instability as the group pulls out of a 1992 peace accord.

 “Considering that these trends are temporary and given the solidity of our businesses, we will start the buyback program,” Paolo Scaroni, Eni’s chief executive said. Eni’s board has approved a share buyback program of up to 6 billion euros, which is expected to launch in the coming weeks.

Related article: North African Downfall Spells Success for Morocco

Eni is also being hurt by the performance of its Saipem drilling and construction subsidiary in which it owns a 43% stake. Saipem has been rocked by corruption scandals in Algeria and Nigeria. Saipem’s profit was down by about 39% for the quarter.

In July, Saipem was found guilty by Italian court of international corruption over Nigerian contracts won between 1994 and 2004 through a consortium that included Snamprogretti Netherlands BV—at the time a wholly owned Eni subsidiary.  Saipem was slapped with penalties of over 25 million euros and plans to appeal the verdict.  

Saipem is also embroiled in judicial investigations in Italy and Algeria for allegedly paying bribes to secure $11 billion worth of contracts.

By. Charles Kennedy of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News