Italy's oil and gas company
) signed a memorandum of understanding (MoU) with Vietnam's
national oil company PetroVietnam. This will facilitate the
Italian giant in strengthening its foothold in and outside
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The agreement allows PetroVietnam to expand its international
business and Eni to have the opportunity to procure more blocks
in Vietnam. Eni added that it will offer PetroVietnam
participation in international projects in which it holds
exploration and development rights.
Since mid last year, Eni has been present in Vietnam with 50%
participation and operatorship of three exploration blocks
located in the Hong Son basin in the Gulf of Tonkin. The region
is estimated to hold 10% of the country's hydrocarbon resources.
This move is in sync with the company's strategy to strengthen
its traction in Asia where it has already marked its presence by
its recent exploration successes in Indonesia and Pakistan, and
acquisitions in Australia.
We believe that Eni's constant efforts to expand its upstream
operations in Egypt, Vietnam, Indonesia, Pakistan, Kenya will go
a long way in generating profitable growth in the future.
Moreover, project start-ups, inputs from big projects in Iraq,
Australia, Russia and Egypt as well as its strategic position in
non-conventional gas, are expected to augment volumes going
forward. In recent years, U.S. energy behemoths like
) have also been busy tapping hydrocarbon deposits in shale rock
In fact, Eni expects its full-year 2012 oil and natural gas
production to be higher than the reported 2011 level of 1.58
million barrels of oil equivalent per day (MMBoe/d), given the
ramp up in activities in Libya in an effort to attain the
pre-crisis level. With the expected strengthening of the global
economy and production ramp-up in the new licenses, we believe
that Eni's profitability over the coming quarters is quite
visible and assured.
Recently, Eni signed an agreement with the U.S. based
Anadarko Petroleum Corporation
) for the development of natural gas reservoirs offshore
Mozambique. Both the companies will carry out separate but
coordinated offshore activities in Area 4 and Area 1.
Eni, which recently received regulatory approval for the Goliat
oilfield in the Barents Sea, in partnership with
), holds a Zacks Rank #3 that is equivalent to a Hold rating for
a period of one to three months.