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ENI SETS PUBLIC OFFERING FOP OIL, GAS UNITS

March 21, 1994

Italy's Ente Nazionale ldrocarburi expects to float off its oil and gas units as a single public company by spring 1995. Under a privatization plan approved by Italy's government late last year (OGJ, Oct. 11, 1993, Newsletter), a public offering of stock in the new company, tentatively named Super-agip, is expected to raise 3 trillion lire ($1.8 billion). It wig be the first part of an ENI privatization program that could take 5-10 years (OGJ, Aug. 2, 1993, p. 36).

Italy's Ente Nazionale ldrocarburi expects to float off its oil and gas units as a single public company by spring 1995.

Under a privatization plan approved by Italy's government late last year (OGJ, Oct. 11, 1993, Newsletter), a public offering of stock in the new company, tentatively named Super-agip, is expected to raise 3 trillion lire ($1.8 billion). It wig be the first part of an ENI privatization program that could take 5-10 years (OGJ, Aug. 2, 1993, p. 36).

The new company will include upstream unit Agip SpA, downstream unit Agip Petroli, natural gas unit Snam SpA, and engineering contractors Snamprogetti SpA and Saipem SpA.

ENI estimates the new company will rank seventh among world petroleum companies in projected revenues of $30 billion/year, eighth in hydrocarbon sales at 890 million bbl of oil equivalent, sixth in gas reserves, and 11th in oil reserves.

Overall, Superagip is to have an aggregate value of $24.2-30.3 billion.

The final privatization plan for ENI isn't settled, but it probably will be along the lines of U.K. public limited companies with a range of stockholders. That can be seen in recent Italian legislation that calls for the state treasury to approve sales of interests exceeding 10% of the company.

ENI recently agreed to sell its Nuovo Pignone pipeline unit to a group that includes General Electric USA, Dresser Industries Inc., and Ingersoll-Rand Co. (OGJ, Jan. 3, p. 28).