Eni plans stake sale in Ivory Coast operation for over $1bn
TLDR
- Eni SpA plans €1 billion stake sale in Ivory Coast exploration operations with potential partners like Standard Chartered Plc.
- Sale, valuing 30% of business, attracts interest from Asian energy firms; aligns with Eni's €8 billion asset disposal strategy over four years.
- CEO Claudio Descalzi's satellite model strategy involves splitting divisions, partnering with investors, and potential listings like Plenitude, Enilive.
Eni SpA plans to sell a stake in its Ivory Coast exploration operations, potentially worth about €1 billion ($1.1 billion), according to Bloomberg. The Italian oil company is working with advisers, including Standard Chartered Plc, on the potential sale and may sell up to 30% of the business.
The sale is attracting interest from other energy companies, including those from Asia. Deliberations are at an early stage, and Eni is still evaluating the stake size to be sold. This move aligns with Eni’s broader four-year strategy to raise about €8 billion from asset disposals.
Chief Executive Officer Claudio Descalzi is implementing a satellite model, splitting off divisions and partnering with external investors, to eventually list them. Eni has already applied this model with its renewable unit Plenitude and plans to do the same with its biorefining and mobility arm, Enilive.
Key Takeaways
Eni SpA, which has been active in Ivory Coast since the 1960s and reentered the country in 2015, has operations that include the Baleine offshore oil and gas field, the largest hydrocarbon discovery in Ivory Coast. Production at Baleine started last August, less than two years after its discovery, boosting Ivory Coast's status as a regional energy hub. The initial production phase outputs 15,000 barrels of oil and 25 million cubic feet of natural gas per day. Baleine is estimated to contain 2.5 billion barrels of oil in place. This stake sale aligns with Eni’s strategy to raise about €8 billion from asset disposals over four years, following a model of partnering with external investors and listing split-off divisions.
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