Eni Announces Africa Highlights in Full Year Results
Thursday, February 23, 2023
In its Q4 and full year 2022 results, Italian major Eni provided numerous highlights emanating from its operations in the African continent, including the first loading of liquefied natural gas produced from the Coral gas field, in the ultra-deep waters of the Rovuma Basin in Mozambique, as follows:
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In FY 2022 around 750 mln boe of new resources were added to the reserve base continuing the delivery of outstanding exploration performance.
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Several discoveries were made close to existing assets and facilities as part of the company’s fast-track development model in Algeria, Egypt and Abu Dhabi.
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Important reserve additions were made with the appraisal wells of the offshore Ndungu oilfield in Angola and of the offshore Baleine oilfield in the Ivory Coast, allowing Eni to significantly raise the estimated hydrocarbons in place in both cases. The XF-002 in the UAE and the Cronos off Cyprus gas discoveries also significantly contributed to the year’s results. The later success of Zeus in Cyprus, still in evaluation at the end of the year and of Nargis in Egypt in January further confirmed the potential of the East Mediterranean area.
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Production for the year was 1.610 mln boe/d, down by 4% due to unplanned outages and force majeure.
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In Q4 2022, activities have been fast-tracked in Algeria and several fields have come onstream: two gas deposits as part of the new Berkine South contract, just six months from the closing, and then, the HDLE/HDLS project, in the Zemlet el Arbi concession in the Berkine North Basin, just six months after the discovery made in March.
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In November, the first loading of liquefied natural gas (LNG) produced from the Coral gas field, in the ultra-deep waters of the Rovuma Basin in Mozambique, was shipped from the Coral Sul Floating Liquefied Natural Gas (FLNG) facility, marking a milestone in the worldwide LNG business thanks to our ability to deliver the project on time and on budget notwithstanding the pandemic disruptions, while launching the country as a new relevant LNG hub.
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In November, construction works began to build a second 10 MW photovoltaic plant in partnership with Sonatrach in the Bir Rebaa North (BRN) production complex, South-Eastern Algeria, to decarbonize hydrocarbons operations. Another photovoltaic facility is planned at the Menzel Ledjmet East Project (MLE) production complex, with construction expected to begin in 2023.
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In December, a photovoltaic plant in Tataouine, Southern Tunisia, built by a joint venture between Eni and ETAP (Entreprise Tunisienne d’Activités Pétrolières) was linked to the national grid. The plant, with an installed capacity of 10 MW, is expected to supply over 20 GWh of renewable electricity per year under a 20-year Power Purchase Agreement.
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In December, as part of the Congo LNG project to exploit Eni’s gas reserves in block Marine XII and support the security of gas supplies to Europe, a turn-key contract was signed to build, install and commission a Floating Liquefied Natural Gas (FLNG) vessel with a capacity of 2.4 mln tonnes/year, which will pair the Tango FLNG vessel purchased earlier to speed up Eni’s development plans. LNG production is expected to reach a plateau capacity of 3 mln tonnes/year in 2025.
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In January, the company announced the non-operated Nargis gas discovery, offshore Egypt. The new reserves will be developed by leveraging Eni’s existing facilities.
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In January, Eni signed an agreement with the National Oil Corporation of Libya (NOC) for the development of the large gas reserves of A&E Structures, offshore Tripoli. Production is expected to start in 2026 to reach a plateau of 750 mmscf/d, with volumes destined both to the domestic market and to Europe via the existing Greenstream offshore pipeline leveraging synergies with the Mellitah Complex. The project comprises construction of an onshore Carbon Capture and Storage (CCS) hub.
Commenting on the company’s overall performance, Eni CEO Claudio Descalzi said: “In 2022, Eni was not only engaged in progressing its sustainable energy transition goals, but also in ensuring the security and stability of energy supplies to Italy and Europe, building up a diversified geographic mix of energy sources. The Company delivered excellent financial and operating results while contributing to the stability of energy supplies to Italy and Europe and progressing its decarbonization plans. During the year, we were able to finalize agreements and activities to fully replace Russian gas by 2025, leveraging our strong relationships with producing states and fast-track development approach to ramp-up volumes from Algeria, Egypt, Mozambique, Congo and Qatar. The recently signed deal with Libya’s NOC on the A&E Structures development and exploration successes off Cyprus, Egypt and Norway will further strengthen our integrated supply diversification. This prompt reaction to the gas crisis and the integration with the E&P activities were important driver (s) of the performance of our GGP business, which was able to ensure its supply commitments through different sources.
“Plenitude reached a renewable capacity of 2.2 GW, doubling last year level, and together with our newly established Eni Sustainable Mobility will continue to progress our plans to zeroing customers’ emissions. This new entity, leveraging our strong biofuels footprint will offer increasingly decarbonized mobility solutions to customers in Italy and Europe. While market conditions were clearly supportive, our 2022 financial results were underpinned by capital and cost discipline, operating performance and by effective risk management of price volatility and supply tightness. Strong cash generation with an organic CFFO of €20.4 bln allowed us to invest and grow the business, to reach an all-time low leverage of 0.13 and to return €5.4 bln to shareholders via dividends and an accelerated share buy-back program. Our strategic objectives are unchanged: we will invest to ensure stable and affordable supplies to meet energy market demand and decarbonize our operations and clients, while maintaining financial discipline to ensure attractive returns for our shareholders.”
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