Mubadala Petroleum and Eni Sign a Memorandum of Understanding for Cooperation in Energy Transition Initiatives

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Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, and Eni signed a Memorandum of Understanding (MoU) aimed at identifying cooperation opportunities in the energy transition sector, including the fields of hydrogen and carbon capture, utilization and storage, that align with their respective decarbonization targets. The scope of the cooperation covers potential joint opportunities in the Middle East, North Africa, South East Asia, Europe and other regions of mutual interest.

This agreement marks a further tangible step in line with Eni’s commitment towards carbon neutrality by 2050, promoting cooperation between different players in the sector and consolidating alliances for sustainable development aimed at tackling the energy transition challenges together.

Eni CEO Claudio Descalzi, said: “The agreement signed with Mubadala Petroleum, represents another step towards a low carbon emission future. Eni will leverage all its proprietary technologies, focused on energy transition. We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonization targets worldwide.”

Mansoor Mohamed Al Hamed, Mubadala Petroleum CEO, commented: “We are committed to playing our part in the energy transition. This includes pursuing a gas-weighted portfolio as a key bridge to renewables. It also includes investing in innovation and technology to advance decarbonization and support the industry’s evolution. Working with partners to build on the progress we have already made is vital and we look forward to advancing this collaboration.”

Eni decarbonization path envisages a Net Zero Carbon Footprint for Scope 1 and 2 emissions from upstream activities by 2030 and from all Group activities by 2040. This is aiming to accomplish the net-zero target on GHG Lifecycle emissions Scope 1, 2 and 3 by 2050 with full decarbonization of products and operations. This will be achieved through bio-refining, circular economy, efficiency and digital solutions, increased renewables capacity, blue and green hydrogen, carbon capture, utilization and storage projects and REDD+ initiatives. Recent initiatives include CO2 capture and storage projects in the UK, delivering carbon-neutral LNG cargos, enhancing electric charging services in Europe, new solar power capacity in Spain and France, and renewable energy projects in countries of operations such as Norway, Kazakhstan, Angola, and other.

Source: Eni

Eni strengthens its presence in the Emirate of Ras Al Khaimah through the award of Onshore Block 7

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The block represents an underexplored acreage in a complex thrust belt geological setting, similar to that of the recent discovery of Mahani in the adjacent Sharjah Emirate.

Eni, through its subsidiary Eni RAK, has been awarded Block 7 located in the onshore of Ras Al Khaimah, United Arab Emirates. The Exploration and Production Sharing Agreement was signed between the Chairman of Eni RAK, Fuad Krekshi, and the Chief Executive of the Ras Al Khaimah Petroleum Authority, Nishant Dighe, in the presence of His Highness Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council of the UAE and Ruler of Ras Al Khaimah.

Block 7 covers an area of 430 km2 onshore Ras Al Khaimah. Eni RAK will act as Operator of the Block with a 90% participating interest and Ras Al Khaimah’s National Oil Company RAK Gas as a partner with a 10% stake.

Block 7 represents an underexplored acreage in a complex thrust belt geological setting, similar to that of the recent discovery of Mahani in the adjacent Sharjah Emirate. The newly acquired 3D seismic will allow the joint venture to assess the geological setting of the area and eventually unlock its hydrocarbon potential. The presence of the existing gas processing facilities in the Emirate would also allow a rapid development of any discoveries.

Eni is already present in the Emirate of Ras Al Khaimah operating Offshore Block A where, after an initial geological and geophysical study period, preparations for drilling operations have started.

The acquisition of Block 7 represents another step in Eni’s positioning in the Middle East and in the UAE in particular, where Eni holds the largest exploration acreage among the IOCs present in the country with more than 26,000 km2 gross, comprising eight exploration blocks onshore and in shallow waters offshore across the Emirates of Abu Dhabi, Ras Al Khaimah and Sharjah.

Source: www.eni.com

Eni closes agreement for Damietta liquefied natural gas plant in Egypt

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 Eni announced that it has closed the agreement signed last December with the Arab Republic of Egypt (ARE), the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and the Spanish company Naturgy that will restart the Damietta liquefaction plant in Egypt, settle Union Fenosa Gas and SEGAS’s outstanding disputes with EGAS and ARE, and effect a corporate restructuring of Union Fenosa Gas, whose assets have been divided between Eni and Naturgy, as well as of SEGAS which will now be owned 50 percent by Eni, 40 percent by EGAS and 10 percent by EGPC.

The liquefaction plant, owned by SEGAS, with a capacity of 7.56 billion cubic meters per year, which has been idle since November 2012, has resumed production. The first LNG cargo was carried out on February 22, followed by a second cargo on March 4, while a third, which is being loaded at the facility, will be sold directly by Eni to its customers in Europe.

The purchase of Egyptian LNG consolidates Eni’s integrated development strategy by increasing the volumes and flexibility of its portfolio, in synergy with its upstream assets.

Through this agreement, the company strengthens its presence in the East Mediterranean, a key region for the supply of natural gas, which is a fundamental resource for the energy transition, of which Egypt is the main producer in the area.

As for Union Fenosa Gas’ activities outside Egypt, Eni will take over the natural gas marketing activities in Spain, strengthening its presence in the European gas market.

The agreement comes at an important time when, thanks in part to the rapid entry into production of Eni’s recent natural gas discoveries, especially from the Zohr and Nooros fields, Egypt has regained full capacity to meet domestic gas demand and can allocate excess production for export through LNG facilities.

Source: ENI

ADNOC Awards Eni and PTTEP Consortium the First Offshore Exploration Block in Abu Dhabi’s Second Competitive Block Bid Round

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Italy’s Eni and Thailand’s PTTEP awarded exploration concession for Offshore Block 3 and will invest up to AED1.51 billion ($412 million) during the exploration phase

In the event of a commercial discovery, the consortium will have the right to a production concession for a term of up to 35 years

ADNOC continues to leverage and strengthen its strategic partnerships to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources

The Abu Dhabi National Oil Company (ADNOC) announced, today, the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Eni Abu Dhabi B.V., a wholly-owned subsidiary of Italy’s multinational energy company, Eni, and PTTEP MENA Ltd., a wholly-owned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP).

The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC). It follows ADNOC’s award earlier this month of an onshore block to Occidental, highlighting how ADNOC continues to leverage and strengthen its strategic partnerships to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources.

The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO; Claudio Descalzi, CEO of Eni; and Phongsthorn Thavisin, CEO of PTTEP.

H.E. Dr. Al Jaber said: “This concession award reinforces ADNOC and Eni’s growing partnership across our value chain and deepens our relationship with Thailand’s PTTEP, one of the key markets for our crude oil and products. This again validates our targeted approach to value-add partnerships that contribute the right combination of capital, technology, capabilities and market access to accelerate the development of Abu Dhabi’s hydrocarbon resources.

“Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round, underscoring our world-class resource potential and the UAE’s stable and reliable investment environment. We continue to welcome partners that share our vision to sustainably unlock value from our hydrocarbon resources for our mutual benefit, as we deliver on our 2030 strategy and enable long-term returns to the UAE.”

Under the terms of this agreement, Eni will operate the exploration phase of the concession, and PTTEP and Eni will collectively hold a 100% stake in the exploration phase, investing up to AED1.51 billion ($412 million) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3.

This award underscores the attractiveness of Abu Dhabi’s huge untapped resource potential and ADNOC’s ability to continue to secure foreign direct investment (FDI) to the United Arab Emirates (UAE), despite the tough market environment. Offshore Block 3 offers the potential to create significant in-country value for the UAE over the lifetime of the concession.

Claudio Descalzi said: “This award follows the one achieved by the same consortium in 2019 for offshore exploration Blocks 1 and 2 and represents a further important step towards the realization of Eni’s strategy to become a leading actor in the development and production in Abu Dhabi, a leading region for the oil and gas industry, while contributing through its expertise in exploration to add further resources and exploit all potential synergies with the surrounding fields. It also further strengthen our relationship with our valuable partner PPTEP. Offshore Block 3 represents a challenging opportunity that can unlock significant value thanks to exploration and appraisal of shallow and deep reservoirs”.

Following successful commercial discovery during the exploration phase, Eni and PTTEP will, together, have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase.

Phongsthorn Thavisin said: “This concession award offers another great opportunity for PTTEP to strengthen collaboration with world-class strategic partners Eni and ADNOC. The consortium will bring capabilities, experiences and technology to accelerate the development of Offshore Block 3, as well as Offshore Blocks 1 and 2, and lead to a successful discovery. The strategic partnership has been established to jointly contribute to the petroleum development in UAE and be part of the growing industry. Meanwhile, this business progress has also reinforced our presence in the Middle East following the company’s Execute and Expand strategy. Such approach aims to sustainably increase both petroleum reserves and production in the future.”

Offshore Block 3 covers an offshore area of 11,660 square kilometers northwest of Abu Dhabi city. New 3D seismic data has been acquired for a part of the block, which, combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential.

In addition to drilling exploration and appraisal wells, the exploration phase will see Eni and PTTEP leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data within the block area. This world’s largest 3D seismic survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology at ultra-deep locations below the surface and will be used to identify potential hydrocarbon reservoirs.

In January 2019, a consortium led by Eni and PTTEP was awarded two offshore blocks in Abu Dhabi’s first competitive bid round. The consortium continues to explore for oil and gas in the blocks known as Offshore 1 and Offshore 2, located northwest of Abu Dhabi city.

All exploration activities in Abu Dhabi are carefully planned to mitigate any potential impacts through the implementation of protection measures, the use of advanced techniques and technologies, and stakeholder engagement to minimize drilling activities in populated or environmentally sensitive areas.

ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of the SPC. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

This award comes about a month after the SPC announced the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB) and an increase in conventional oil reserves of 2 billion STB which boosted the UAE’s conventional reserves to 107 billion STB.

Source: adnoc.ae

Eni and Saipem sign a Memorandum of Understanding for decarbonization projects in Italy

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Eni’s CEO, Claudio Descalzi, and Saipem’s CEO, Stefano Cao, today signed a Memorandum of Understanding (MoU) to cooperate on the identification and engineering of decarbonisation initiatives and projects in Italy. In particular, the companies intend to identify possible opportunities for collaboration in the sector of the carbon capture, utilization and storage (CCUS) of CO2 produced by industrial districts in the Italian territory.

The objective is to contribute towards the decarbonisation process of entire production chains, particularly those of the highest energy intensity by taking clear steps with immediate action to combat climate change and to achieve CO2 reduction targets at national, European and global level.

Through the MoU, Eni and Saipem will also evaluate participation in programs financed by the European Union as part of the Green Deal Strategy, proposing the possible inclusion of specific initiatives within the plan for the use of funds intended to support Member States of the ‘European Union in the post-COVID-19 phase (“Recovery and Resilience Fund”).

Eni is committed to responding to the challenge of improving access to reliable and clean energy, counteracting climate change through concrete, rapid and economically sustainable solutions. Eni’s strategy combines the objectives of continuous development in a rapidly evolving energy market with a significant reduction in its carbon footprint.

Saipem is a provider of solutions aimed at enabling the hybridization and decarbonization of energy-intensive production complexes. It boasts a consolidated experience and solid skills in the construction of plants linked to the CO2 chain, with the ability to also act as an integrator of processes and technologies, taking into account the expertise and experience gained in the management of CCUS processes on multiple industrial complexes. Over the years, Saipem has designed more than 70 plants for the capture of CO2 and over 40 plants for the subsequent transformation into urea.

Claudio Descalzi, CEO of ENI, stated: “Through this strategic agreement, Eni intends to strengthen its leadership in the energy transition process, accelerating the evolution of its business model that combines economic and financial sustainability with environmental sustainability. The adoption of technological solutions for decarbonization such as carbon capture, utilization and storage, will be fundamental in the energy transition of the country, and Eni can provide unique skills and expertise in managing production processes and in the fight against climate change”.

Saipem’s Chief Executive Officer, Stefano Cao, commented: “The agreement signed with Eni strengthens Saipem’s role as a leading player in the CO2 capture, transport, reuse and storage sector. We are able to propose concrete solutions to support the process of reducing carbon dioxide emissions of the energy and production chains of the industrial districts in Italy and contribute to the achievement of ambitious national and European objectives. These solutions require a high level of specialization, competence and experience in this sector that Saipem has developed over the years and is ready to make available in its contribution to Italy’s sustainable recovery and in supporting the technological and industrial supply chain”.

The present Understanding could be subject to subsequent binding actions that the parties involved will define according to the applicable law, included that which regulates operations among related parties.

Source: saipem.com