Eni to Divest Stakes in Cote d'Ivoire and Congo Assets to Vitol

Eni S.p.A E, the multi-energy company of Italy, has announced the sale of interests in certain assets in West Africa to Vitol. Vitol has agreed to acquire a stake in certain assets owned and operated by Eni for a total consideration of $1.65 billion. The completion of the deal is subject to obtaining the necessary regulatory approvals.This includes Eni’s oil and gas-producing assets as well as blocks where exploration activities are underway. Per the terms of the deal, Vitol shall acquire interests in Eni’s assets in Cote d’Ivoire and the Republic of Congo.Vitol’s Acquisitions in Côte d’Ivoire and Republic of CongoEni’s assets in Cote d’Ivoire include the giant Baleine discovery. The Baleine field is Eni’s first development in Cote d’Ivoire, with a 77.25% ownership interest. Vitol will be acquiring a 30% participating interest in this field. Furthermore, the Congo LNG project in the Republic of Congo, where E holds a 65% participating interest, is also included in the agreement. Vitol will acquire a 25% participating interest in the project.Strengthening the Eni-Vitol Partnership in West AfricaThe two companies have previously worked together, as they are partners in the OCTP and Block 4 projects in Ghana, West Africa. The latest agreement further strengthens the relationship between the two companies in the region. Vitol, which has long maintained an upstream presence in West Africa along with investments in infrastructure and downstream operations, is solidifying its presence in the region.Eni’s decision to sell the stake in its West Africa assets aligns with the broader upstream strategy that focuses on optimizing the portfolio of upstream assets. The company follows an approach known as the dual exploration model which involves readjusting its asset portfolio by reducing stake in exploration discoveries, thereby lowering financial risk, while also realizing the value of new finds early.Vitol’s Gains: Expanding Upstream PresenceThe transaction enables Vitol to gain access to high-value upstream assets in West Africa. Per Eni, the current production at the Baleine field is approximately more than 60,000 barrels of oil equivalent. Additionally, the Congo LNG project’s current production totals 1 billion cubic meters per year. It began exporting LNG from the facility in February 2024. With the second phase of the project slated to start by 2025-end, Congo’s gas exports are anticipated to increase to 4.5 billion cubic meters per year. The deal should enable Vitol to diversify its portfolio and further strengthen operations in West Africa.E’s Zacks Rank and Other Key PicksE currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and NextDecade Corporation NEXT. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and NextDecade carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII's proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean burning fuel continues to grow and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report NextDecade Corporation (NEXT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks