Italy's biggest oil and gas company
) entered into a Heads of Agreement (HOA) with US-based
Anadarko Petroleum Corporation
) for the development of natural gas reservoirs in offshore
ANADARKO PETROL (APC): Free Stock Analysis
ENI SPA-ADR (E): Free Stock Analysis Report
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Both the companies will carry out separate but coordinated
offshore activities in Area 4 and Area 1. While Area 4 is
operated by Eni, Area 1 is operated by Anadarko.
Anadarko has a 36.5% participating interest in Area 1 and its
other partners are Japan's Mitsui, India's BPRL Ventures and
Videocon, Thailand's PTT and Mozambique's Empresa Nacional de
Hidrocarbonetos (ENH). Eni has a 70% participating interest in
Area 4, with Galp Energia, South Korea's KOGAS and ENH having 10%
Jointly, Eni and Anadarko also planned to build a common onshore
LNG liquefaction facility in the Cabo Delgado Province of
northern Mozambique. The facility is expected to be in operation
by 2018 and expand to a 10-train 50 million tons per annum (mtpa)
Based in Rome, Italy, Eni Spa with its consolidated subsidiaries
is engaged in oil and gas, electricity generation,
petrochemicals, oilfield services and engineering industries. The
company's major business segments are Exploration and Production
(E&P), Gas and Power, and Refining and Marketing.
Anadarko primarily operates through three business segments: Oil
& Gas Exploration & Production, Midstream and Marketing.
The Oil & Gas Exploration & Production segment explores
and produces natural gas, crude oil, condensate and NGLs. This
division accounts for the lion's share of Anadarko's revenues and
Both, Eni and Anadarko hold a Zacks #3 Rank that is equivalent to
a Hold rating for a period of one to three months. Longer term,
we maintain our Neutral recommendation on the stocks.