Eni SpA E has signed a deal with the government of Montenegro to explore four offshore blocks in the country for a period of 30 years. The blocks cover 1,228 square kilometres and the company received the exploration licence following the First International Competitive Bid Round.
Per the concession contract, Eni will be the operator of blocks 4118-4, 4118-5, 4118-9 and 4118-10 with a 50% interest. The remaining stake will be held by OAO NOVATEK — Russia’s leading gas player.
Eni management added that this contract reflects its aim to significantly strengthen the company’s upstream portfolio. The company has been present in the country as a leading upstream player since early '60.
Based in Rome, Eni, with its consolidated subsidiaries, is engaged in the oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are exploration and production, gas and power, and refining and marketing.
According to the recent reports of The Organization of the Petroleum Exporting Countries (OPEC) and The International Energy Agency (IEA), the crude market will remain oversupplied through 2017. While OPEC expects higher-than-expected production by non-OPEC members both this year and in the next, IEA cut the global oil demand forecast for 2016 and 2017. As a result, oil price is anticipated to remain weak till next year and is expected to hurt Eni’s upstream businesses.
The company currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include China Petroleum & Chemical Corp. SNP, Rice Midstream Partners LP RMP and Matador Resources Company MTDR. Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ENI SPA-ADR Price
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