Italian oil and gas major
) has teamed up with Congo state-owned company Societe Nationale
des Petroles du Congo (SNPC) to explore the oil and gas potential
of the Ngolo block in the Cuvette Basin in Congo. The block is
situated about 350 kilometers north east to the capital
Brazzaville and spans 16 thousand square kilometers.
ENI SPA-ADR (E): Free Stock Analysis Report
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SNPC was awarded the Ngolo exploration license in Jul 2012, by
the Republic of Congo's Ministry of Hydrocarbons. Eni Congo, a
unit of Eni will operate the block in a joint venture with SNPC.
Exploration is scheduled to begin in the next few months and will
continue for over a decade, targeting the Mesozoic and Paleozoic
sedimentary geological sequences.
Both the parties have extensive operational experience and have
successfully developed projects onshore and offshore Congo. The
companies will contribute greatly to the exploration of the Ngolo
block by using advanced prospecting techniques comprising remote
sensing and geophysical surveys.
Eni's early access to the newest exploration frontier in Africa,
the Cuvette Basin, which remains largely unexplored, will assist
the company to strengthen its position for future growth. The
joint venture will also deepen the partnership of both the
companies as well as validate their roles as key players in the
research and appraisal of the new hydrocarbon potential of the
Eni's presence in Republic of Congo dates back to 1968.
Currently, it has an equity production of 110,000 barrels of oil
per day in the country and participates in exploration and
production projects in Angola, Congo, Ghana, Gabon, Mozambique,
Nigeria, Democratic Republic of Congo, Togo, Kenya and Liberia.
Eni carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1
(Strong Buy) stocks -
China Petroleum & Chemical Corp.
SM Energy Company
Range Resources Corp.
) - are good buying options for the short term.