Eni SPA plans to increase production of crude oil and natural gas by more than 4%/year through 2016 and 3%/year during 2016-22.
In a presentation in London of the company’s 2013-16 strategic plan, Chief Executive Officer Paolo Scaroni said the production growth is based on a crude oil price of $90/bbl to 2016.
It will come mainly from development hubs in Russia (Yamal), the Barents Sea, Kazakhstan, Venezuela, the Far East, and the sub-Saharan region, Scaroni said.
Projects scheduled to come onstream during the plan period will add 700,000 boe/d of production by 2016—80% from giant projects and 40% from new development of existing fields.
Through 2022, the company expects reservoir management and production optimization to keep the average decline rate at about 4%/year.
Key downstream projects, Scaroni said, are conversion of Eni’s 80,000-b/d Venice refinery to produce biodiesel and start-up in the second half of this year of a 23,000-b/d hydroconversion plant, based on the company’s proprietary Eni Slurry Technology, at its 200,000-b/d Sannazzaro refinery (OGJ Online, Sept. 24, 2012; May 16, 2011).
With net debt at yearend 2012 nearly half its level of 2011, Eni will invest about €56.8 billion during 2013-16, up about €1.6 billion from the last plan period. Most of the increase relates to growth opportunities in exploration and production.
Eni expects to generate about €20 billion/year in cash and to raise more than €10 billion from divestments, including interests in Galp Energia and Snam.