) has initiated seismic survey work in the Fedynsky and Central
Barents license areas, in Russia's sector of the Barents Sea. The
survey is part of Eni's exploration pact with Russia's
state-owned giant Rosneft.
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The 2D seismic survey will cover 6,182 miles of the two license
areas, lying in the ice-free part of the Barents. The
survey, which follows the environmental and fishery studies,
conforms to the Russian legal environmental requirements and
Environmental monitoring is likely to be implemented at some
stage of seismic shooting. A specialized seismic survey vessel
will be employed to collect the data of the survey using
The two companies had set up a venture to explore each of the
Russian offshore projects. These projects form part of a wider
cooperation between Eni and Rosneft under the Strategic
Cooperation Agreement signed by the parties on April 25, 2012.
In the joint venture, Eni and Rosneft have a share of 33.33% and
66.67%, respectively. Per the agreement, Eni is responsible for
funding of exploration work.
The agreement includes the Western Chernomorsky block in the
Black Sea, along with the Fedynsky and Central Barents license
areas. Together, these areas are estimated to hold total
recoverable resources of 36 billion barrels of oil equivalent.
Eni's outlook for the upcoming months is favorable, given its
2013-2016 strategic plans to enhance production and implement
steps to control costs and recover profitability. The company
remains upbeat on its production growth target of more than 4%
growth annually in the said period and 3% annually until 2022.
Eni carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1
Alliance Resource Partners LP
Newpark Resources Inc
Boardwalk Pipeline Partners, LP
) - are expected to outperform in the near term.