Latest News
ENI cuts production guidance, cites Libya and Nigeria disruptions

ENI cuts production guidance, cites Libya and Nigeria disruptions

Share this! Share on LinkedInShare on FacebookTweet about this on TwitterShare on RedditShare on Google+Email this to someone

Italian oil major ENI said its oil and gas production is likely to fall  this year because of disruptions in Libya and Nigeria, with third quarter output down about 4% from a year ago.

ENI said Wednesday oil and gas production fell to 1.65 million b/d of oil equivalent in the third quarter.

Output was reduced by 50,000 boe/d in the quarter due to “force majeure events” in Nigeria and Libya, the company said.

It lifted production in Russia, Algeria, Angola and Egypt, but not by enough to offset the overall declines.

Earlier this year, ENI said new production coming online from the giant offshore Kashagan oil field in Kazakhstan would power growth of at least 3% for the year.

But the Nigeria and Libya disruptions negated that earlier guidance.

Pipeline thefts, sabotage, and flooding in Nigeria reduced ENI’s production there by about 30,000 boe/d, the company said.

Start up of Kashagan field in September encountered delays that caused a slow ramping of production.

ENI’s adjusted net profit for the year was Eur1.17 billion ($1.61 billion), down 29% on the year.

Part of the decline was due to higher tax payments. The company said its tax rate for the year was 63.4%.

Net income rose 62% to Eur3.99 billion because of a one-time gain of Eur3 billion from the sale to CNPC of its 28.57% stake in the Area 4 block off Mozambique.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>