Italy's biggest oil and natural gas company by volume,
) has signed three production sharing contracts for the acquisition
of exploration blocks: L-21, L-23 and L-24. All three blocks are in
the deep and ultra-deep waters of the Lamu Basin, off the coast of
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The blocks awarded to Eni by the government of Kenya span over
21,747 miles (35,000 square kilometers). Eni has gained the
operatorship of the blocks with 100% participation. The company is
also entailed to carry out the seismic acquisition program.
The deal marks a major step in the company's effort to build a
worldwide unconventional portfolio. It will also provide Eni a base
to grow further in the country. The company's entry into Kenya
provides Eni an opportunity to explore the frontier basins of East
Africa, where huge deposits of natural gas have been recently
discovered, particularly in the deep waters of Mozambique.
Eni is constantly engaged in expanding its exploration activities
in the rapidly growing Sub-Saharan market. The company already has
operations in Nigeria, the Republic of the Congo, Ghana, Togo,
Angola, the Democratic Republic of the Congo and Mozambique with an
operated overall daily output of 450,000 barrels of oil equivalent.
The exploration activity in these regions is growing rapidly.
Eni, with its consolidated subsidiaries, is engaged in oil and gas
exploration, electricity generation, petrochemicals, oilfield
services and engineering industries. The company, which competes
with other major European energy outfits like
Royal Dutch Shell plc
), holds a Zacks #3 Rank that translates into a Hold rating for a
period of one to three months. Longer term, we maintain our Neutral
recommendation on the stock.