Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

- Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

Tuesday, August 30, 2011
Knight Ridder/Tribune Business News
by Adnkronos International, Rome

Paolo Scaroni, chief executive officer of Eni met with Libyan rebel leaders in Benghazi Monday where they signed a non-binding agreement to restore the Italian oil company's pre-civil war role as the North African country's biggest oil and natural producer.

"With the memorandum, Eni and the National Transition Council (NTC) are working to recreate the conditions for a swift return of Eni's activities in the country," the Rome-based company said in a statement.

The agreement would allow Eni to resume gas imports to Italy via the Greenstream pipeline, a move that Scaroni last week said was important ahead of winter when demand for the fuel increases.

Scaroni's trip to Libya makes him the first head of a major oil company to visit Libya since rebels last week took over the capital Tripoli, putting an end to Muammar Gaddafi's 42-year-old authoritarian government.

News reports said Scaroni met with the head of Libya's National Oil company, in addition to the NTC, the rebel's political leadership.

Eni is expected to supply Libyan rebels with fuel as part of an international effort to create security and infrastructure in post-Gaddafi Libya.

Oil traders said Eni was trying to hire a tanker to travel to Libya this week, Reuters news agency reported.

Eni needs between 6 and 18 months to restart its oil and gas fields in Libya, Scaroni said Thursday in Milan following a meeting with NTC prime minister Mahmoud Jibril.

Eni has been in the country since 1959 and got 13 percent of its revenue from Libyan natural resources prior to the conflict that broke out in February.

(c)2011 Adnkronos International (Rome). Distributed by MCT Information Services.

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Eni Signs Libya Agreement, Paving Way to Restart Of Operations

- Eni Signs Libya Agreement, Paving Way to Restart Of Operations

Monday, August 29, 2011
Dow Jones Newswires
ROME
by Giada Zampano

Italy's energy giant Eni said Monday it signed a memorandum with the Libyan National Transitional Council, or NTC, that strengthens co-operation in the country and paves the way to the restart of Eni's oil and gas operations there.

Under the terms of the agreement Eni and NTC committed "to creating the conditions for a rapid and complete recovery of Eni's activities in Libya and to doing all that is necessary to restart operations on the Greenstream pipeline" that brings gas from Libya to Italy.

Following previous pledges by the Italian government, Eni will provide a first supply of refined petroleum products to the transitional government, to contribute to the basic and most urgent needs of the Libyan population.

Eni will also provide technical assistance to assess the state of facilities and energy infrastructure in Libya and to define the type and extent of operations required to safely restart the activities.

Eni, which is the largest foreign player in Libya, has been active in the country since 1959.

Monday, the Italian company said it is evaluating with NTC "various possible forms of co-operation in order to ensure the timely resumption of operations in the oil and gas sector and to enhance the country's natural resources to benefit the Libyan people and in respect of the existing contract."

Copyright (c) 2011 Dow Jones & Company, Inc.

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Eni Makes Gas Discovery Offshore Indonesia

- Eni Makes Gas Discovery Offshore Indonesia

Thursday, July 28, 2011
Eni S.p.A.

Eni has made a new hydrocarbon discovery offshore Indonesia. As the operator, Eni has successfully drilled an exploration well on the Jangkrik North East structure, located in the Muara Bakau block Kutei Basin, east of Kalimantan, 15 Km from the Jangkrik field.

The Jangkrik North East discovery represents a significant success in Eni's exploration efforts in the Kutei Basin and further confirms the high potential of its portfolio in the area. The Jangkrik North East NFW is located approximately 70 kilometers from the coast of Indonesia and has been drilled to 3633m at a water depth of 460m.

The well contains more than 60m of net gas pay in excellent quality reservoir sands of Pliocene and Miocene age. During the production test, the well produced high quality gas at a tubing constrained rate of 30.6 MMscfd.

Eni, through its Indonesian subsidiary, is the operator of Muara Bakau PSC with a 55% interest. GDF SUEZ holds the remaining 45% interest in the project.

Overall, in Indonesia, Eni holds working interests in thirteen blocks, and operates seven of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra West Timor and West Papua. In the Kutei basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan, where Eni has an equity production of approximately 20,000 boed and has recently been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC) through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The Sanga Sanga project would be the first LNG plant in the world to be supplied by CBM.

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Eni Hits Hydrocarbon Pay Offshore Ghana

- Eni Hits Hydrocarbon Pay Offshore Ghana

Thursday, July 28, 2011
Eni S.p.A.

Eni has made a new hydrocarbon discovery offshore Ghana through the Gye Nyame 1 well, which is located in the OCTP block 50 km off the Ghanaian shoreline.

The well, which was drilled in 519 meters of water, was drilled to a total depth of 3,349 meters and encountered significant thickness of gas and condensate sands with excellent reservoir characteristics. Oil mineralization was also discovered in the underlying sands. Its significant potential will be further assessed through a delineation program.

The discovery is located 16 km east of the Sankofa gas discovery, and confirms the important role of this block in the development of non-associated gas resources in Ghana.

Eni has already begun talks with the Ministry of Energy and the partner organization, GNPC (Ghana National Petroleum Corporation), aimed at fast-tracking the development of Sankofa which will contribute to the valorization of the gas on the domestic market, thus contributing to the ambitious growth targets of the country.

Thanks to the discovery of Gye Nyame, Eni can now also study important development and production synergies. By consolidating gas volumes of the two discoveries, this development opens up opportunities for exploiting the international market for liquefied gas, through offshore facilities of which Eni has significant knowledge and appropriate technology.

Eni, through its subsidiary Eni Ghana Exploration and Production Limited, is the operator of the OCTP license with a 47.22% interest. Other partners are Vitol Upstream Ghana Limited, with a 37.78% stake, and state company GNPC with a 15% stake. GNPC has a back-in option for an additional 5% of the license.

Eni is also finalizing the farm in to the Keta block as operator with a 35% stake. The block is located offshore the eastern coast of Ghana, bordering Togalese waters, where Eni acquired two exploration licenses in 2010. Partners in the Keta Block Joint Venture are Afren Energy Ghana Ltd., wholly owned subsidiary of Afren plc, with a 35% stake, Mitsui E&P Ghana Keta Ltd. with 20% and GNPC with 10%.

Eni has been present in Sub-Saharan Africa since the early 1960s and is currently operating in Angola, Nigeria, Togo, Ghana, Republic of Congo, Gabon, Democratic Republic of Congo and Mozambique. Eni's operated production in the area is around 450,000 barrels of oil equivalent per day.

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Eni Signs Memorandum Of Understanding With Sinopec

- Eni Signs Memorandum Of Understanding With Sinopec

Friday, July 22, 2011
Dow Jones Newswires
ROME
by Liam Moloney

Eni confirmed it signed a memorandum of understanding with China Petroleum & Chemical Corp., or Sinopec, as Italy's biggest oil and natural gas company strengthens its ties with Chinese hydrocarbon firms.

Eni confirmed an earlier report from Italian newswire ANSA on the accord.

Eni is particularly interested in the development of shale gas in China, said Chief Executive Paolo Scaroni, according to ANSA.

The deal "signed today allows us to analyze together a series of opportunities in China and outside China," said Scaroni, according to ANSA. "I believe that if shale gas is found in China, its development will be strong."

ANSA wrote details of the deal will be announced in the coming days.

Once the companies move from assessing the situation to an operational phase in China, Eni will sign deals in which it become the owner of gas produced, said Scaroni, wrote ANSA.

Chinese companies are interested in expanding abroad through deals with Eni, especially in Africa, said Scaroni, according to ANSA.

Eni and Sinopec are no strangers as they have some joint deals, such as Angola's 15/06 block.

Eni, which entered the Chinese market in 1984, is a small player is the world's number two economy with a daily output of 12,000 barrels of oil equivalent, according to figures released earlier this year.

The Italian company is seeking to tap into China's gas market, which is still in its infancy when compared with coal. At the start of the year, Eni signed a deal with China National Petroleum Corp., or CNPC, as part of this strategy.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Eni Picks Up Tab for PDVSA's Junin 5 Development

- Eni Picks Up Tab for PDVSA's Junin 5 Development

Friday, July 15, 2011
Eni S.p.A.

The Minister of Energy and Petroleum of Venezuela and President of PDVSA, Rafael Ramírez and Eni's CEO Paolo Scaroni, met yesterday in Caracas to discuss the significant joint projects between PDVSA and Eni in Venezuela.

In particular, the primary topic of discussion was the development of the Junín 5 heavy oil block, located in the Faja of Orinoco, which holds 35 billion barrels of certified oil in place and is operated by two mixed enterprises (PetroJun í n for the upstream and PetroBicentenario for the downstream) owned 60% PDVSA, 40% Eni.

The development plan calls for an early production phase of 75,000 barrels of oil per day starting in late 2013, and a full phase of 240,000 barrels of oil per day in 2018, along with the construction of a new refinery on the coast, in Jose.

In yesterday's meeting PDVSA and Eni also discussed options to anticipate the early production start up in late 2012 using synergies with existing PDVSA facilities to transport an initial gross production of 7 to 10 kbopd. PetroJun í n expects to award the main engineering contracts for the EP phase (processing facilities and pipelines) and the drilling contracts in 3Q 2011. It is anticipated that approximately 10 wells will be drilled this year. In addition, by year end the award of the engineering contract for the downstream (refinery) is also planned.

Eni agreed to finance PDVSA's share of development costs for Junín 5's early production phase up to a total of $1.5 billion USD.
As a social project to help the country, Eni will dedicate a tranche of the Junín 5 bonus and make additional financing to PDVSA for a combined total of $500 million USD, dedicated to fund a power station to be built in the Güiria peninsula.

In Venezuela, Eni is co-operator with a 50% stake, in the Cardon IV Operating Company which manages the offshore block where the super-giant Perla gas field is located. Perla has over 16 Tcf of estimated gas in place (2.9 billion barrels of oil equivalent). Cardon IV completed the FEED for the early production phase (300 MMscf/d) and is discussing a gas sales agreement with PDVSA.

Eni is also present in Venezuela through its participation in Petrosucre (PDVSA 74%, Eni 26%), the company which operates the Corocoro oil field.

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Eni CEO, Egyptian PM Confirm Commitment in Egypt

- Eni CEO, Egyptian PM Confirm Commitment in Egypt

Tuesday, July 12, 2011
Eni S.p.A.

The Egyptian Prime Minister HE Essam Sharaf and Eni CEO Paolo Scaroni met today in Cairo confirming the commitment of Eni to Egypt, following the recent agreements.

The new activities will take place in the Western Desert, in the Mediterranean and in the Sinai, and will cover both exploration and development, through the drilling of additional wells and the acceleration of production from new discoveries.

With these additional activities, Eni's investment in Egypt in the years 2011 and 2012 will amount to approximately US $3 billion. Eni will also sponsor a training plan for national staff working in the Petrobel and Agiba joint ventures with EGPC. Furthermore, in accordance with the Ministry of Petroleum, Eni will support the Sinai community with social activities.

Eni is the first international operator in Egypt with total operated production of round 500 thousand boe/day.

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Eni Takes Risk; Develops Nikaitchuq Field

- Eni Takes Risk; Develops Nikaitchuq Field

Friday, July 08, 2011
Rigzone Staff
by Jaime Kammerzell

Eni began oil production at the Nikaitchuq field in February 2011. The field is located in the Beaufort Sea off the North Slope of Alaska in 3 meters of water. It is also Eni's first operated Arctic project.

Eni owns 100% interest in the Nikaitchuq field, which is a risk for the operator. The Nikaitchuq field is a marginally economic field with cold viscous crude oil. The reservoirs are about 4,000 ft TVD with long step outs. However, Eni also reaps all the benefits of its hard work. The operator estimates recoverable reserves at 180 MMbbl and expects Nikaitchuq to produce for over 30 years with peak production of 28,000 b/d. Total investment will amount to about $1.45 billion.

Field Development

In January 2004, Kerr-McGee drilled the Nikaitchuq No. 1 vertical well, which tested more than 960 b/d of 38 degree API crude oil from the Sag River Formation. Kerr-McGee then drilled the Nikaitchuq No.2 well 9,000 ft southeast of the No.1 well in March 2004 and successfully extended the accumulation down dip.

Kerr-McGee operated the NW Milne Point field with a 70% interest in 2004. Armstrong Alaska, Inc. held the remaining 30% interest.

Nearly a year later, Kerr-McGee tested the Schrader Bluff reservoir at the Nikaitchuq No. 4 horizontal appraisal well. The well tested at rates of up to 1,200 b/d and the oil tested at 16 to 17 degrees API. Kerr-McGee estimated the discovery to hold 100-200 MMboe.

Eni, which previously bought out Armstrong Alaska's 30% interest, bought out Kerr-McGee's operatorship and 70% interest in the Nikaitchuq field in April 2007.

The development plan called for 71 wells, including oil producers, water injectors, and water source/disposal wells. Eni planned to drill one-third of the wells from shore and the remainder from an artificial island to be constructed about 2.8 mi from shore in Phase 2 of the field's development.

Field development started Jan. 25, 2008. Though the operator slowed drilling and development operations in March 2009, all wells should be completed by 2014.

Eni is drilling the Nikaitchuq wells horizontally through thin layers of oil-bearing rocks. They are at 4,000 ft VD and have a horizontal reach of up to 20,000 ft. The produced oil is viscous and thick. So to speed the flow, Eni injects water from the Ivishak formation and produced water. The Ivishak water is about 195 degrees, which when mixed with the crude (about 87 degrees) will help it move through the subsea pipeline to the processing facility quicker.

Eni contracted an offshore rig for the offshore drilling pad in 3Q 2010. The offshore wells require electric submersible pumps, which are housed on the drilling pad.

Eni designed the onshore processing plant at Oliktok Point to handle sand and water as well as crude. Two process modules built in Louisiana weigh about 4,000 tons each. They will work with 22 smaller module units, built in Alaska, to treat up to 40,000 b/d of heavy crude with sand and up to 120,000 b/d of water.

A 3.8-mile-long under seabed pipeline bundle, which is the heaviest bundle ever installed in the Arctic, connects the offshore facility to the onshore facilities. Eni contracted INTECSEA to perform the Pre-FEED, FEED, detail design and construction support on the subsea flowlines. The flow line and utility bundle connect to the onshore facility at Oliktok Point. The pipleline bundle was installed in 2008 and includes an outgoing pipe that takes water to the drilling pad, a diesel line, and cables. Hot water flows out to the drilling pad through a concrete-coated pipe.

Production flowline bundle included:

• 3 phase PIP production flow line 18-inch x 14-inch
• 12-inch water injection Flow line (2-inch insulation/1-inch concrete)
• 6-inch spare Flow line (single wall)
• 4-inch x 2-inch PIP diesel line
• Fiber optic cable with bundle
• Separate fiber optic and power cable bundle

Nikaitchuq Field

Alaskan Future

In 2008, Eni won 18 exploration leases in northern offshore Alaska in Lease Sale 193.

The blocks are in the Chukchi Sea, in 30 to 50 m of water. According to the company, this area possesses a high exploration potential recognized by several oil majors who competed for the blocks. Eni jointly owns 14 of the leases with Statoil-Hydro and wholly owns four of the leases. These leases position Eni as a major player in Alaska.

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Eni Flows First Oil from GOM Appaloosa Field

- Eni Flows First Oil from GOM Appaloosa Field

Wednesday, July 06, 2011
Eni S.p.A.

Eni has started oil production from the Appaloosa field, located in the US Gulf of Mexico deepwater, 60 miles offshore the Louisiana coast southwest of New Orleans, in 2500 feet (approximately 760 meters) of water depth.

The producing well is located within the MC 459 Federal Unit (comprising blocks MC 459, 460 and portions of MC 503 and 504). Eni holds a 100% working interest in the field.

Appaloosa production commenced on June 21, 2011 through a subsea development and a twenty-mile long flow line tied back to the Corral Platform (operated by Eni). The well is presently flowing at a rate of approximately 7,000 barrels of oil equivalent per day. This is the second Eni field producing on the Corral Platform, which in aggregate is now processing 46,600 gross barrels of oil equivalent per day (33,000 net to Eni).

This development, the second start-up this year for Eni in the US following the Nikaitchuq field start up in Alaska, further strengthens Eni's role as an operator and enhances Eni's position as one of the top producers in the Gulf of Mexico.

In the US, Eni owns lease interests in 333 blocks in the Gulf of Mexico and in 411 leases in the Barnett gas shales onshore Texas, in partnership with Quicksilver. In addition, Eni owns interests in 140 leases in Alaska, between offshore and the North Slope, where it is currently operating the Nikaitchuq oil project.

Eni's total daily net production in the US is in excess of 100,000 barrels of oil equivalent (60% of which is operated).

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Mustang Completes Engineering Gig at Eni Nikaitchuq Facility

- Mustang Completes Engineering Gig at Eni Nikaitchuq Facility

Mustang, a Wood Group company, provided the detail engineering, design and procurement services for two processing modules for the new Eni Nikaitchuq processing facility on the North Slope of Alaska, 60 miles west of Prudhoe Bay. The facility, which began oil production in late January 2011, has a treatment capacity of 40,000 BPD oil, 41,000 BPD produced water, 56,000 BPD source water and 6.1 MMscfd gas. In addition, the facility has a water injection capacity of up to 90,000 BPD water. Nikaitchuq is Eni's first operated development in Alaska.

Weighing approximately 4,000 tons each, the process and utilities modules were built in Louisiana and transported on barges through the Panama Canal to Alaska. The facility was designed to process 16-19 API oil with up to 2% sand content, to operate in –50°F arctic temperatures, to comply with the International Building Code, and to have minimal impact on the environment. These facilities allow Eni to ship sales-quality crude oil through the Trans-Alaska oil pipeline.

Mustang also provided detailed engineering for the integrated control and safety systems for the facility.

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AGR Selected for Eni's Barents Sea Project

- AGR Selected for Eni's Barents Sea Project

Wednesday, June 22, 2011
AGR Group ASA

ENI has chosen technology from AGR Drilling Services for multi-well projects in the Barents Sea and the Norwegian Sea.

The Cutting Transportation System (CTSTM) from AGR will be used on 24 wells drilled by the Norwegian arm of Italian energy company Eni.

The system will mainly be deployed on the Goliat field, the first oil field to be developed in the Barents Sea. Goliat lies some 85km
(51miles) northwest of Hammerfest in the far north of Norway.

CTSTM (example pictured) enables operators to take cuttings up to 2km (1.24miles) away from the wellhead. This means that the well area is kept debris free, helping ensure the operation proceeds as smoothly as possible – particularly when it comes to procedures such as laying cables and tying in umbilicals.

The CTSTM also makes it possible for operators to deposit cuttings away from environmentally sensitive areas.

Johan Møller Warmedal, Executive Vice President of AGR Drilling Services, said, "We are delighted to be working with Eni Norge for the first time and to add such an important new client to our roster of Norwegian Continental Shelf customers. The Barents is an area where we envisage that operators will benefit not only from the capabilities of CTSTM but also our other technologies such as Riserless Mud Recovery."

The use of Riserless Mud Recovery (RMR®) and CTSTM will soon surpass the 500-well milestone. RMR® enables top-hole sections to be drilled more safely, more quickly yet with less environmental impact.

With Eni Norge, 22 wells will be drilled on Goliat with the new semi-sub rig Scarabeo 8. The remaining two wells will be on the Marulk field in the Norwegian Sea and drilled by the Scarabeo 5.

The contract is for four years, with a one-year optional extension.

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Aker Signs 3-Year Frame Agreement with Eni

- Aker Signs 3-Year Frame Agreement with Eni

Tuesday, June 21, 2011
Aker Solutions

Aker Solutions' geo business has signed a three-year frame agreement with Eni Norge AS to supply sub-surface consultancy services within the areas of geology, geophysics, petrophysics, reservoir technology, well site and operations geology. Contract value is undisclosed.

The agreement is valid a period of three years. In addition, Eni Norge has options to extend the agreement with three one-year periods.

"This is an important contract for us with an oil company that has great ambitions for its activities in Norway," said Helge Nyrønning, head of sales and marketing in Aker Solutions' geo business.

"We are currently experiencing significant growth in demand for our services on the Norwegian continental shelf, which remains a highly attractive offshore market. To be awarded long-term frame agreements like this demonstrates that we possess the expertise that is needed to support oil companies with their exploration and field development work," added Nyrønning.

Aker Solutions' sub-surface consultancy business delivers services through the whole subsurface value chain, from exploration to production. The unit comprises a team of 70 geologists, geophysicists and reservoir engineers. Its main fields of activity are geological and geophysical interpretation, petrophysics, reservoir modeling and simulation, well site geology as well as production technology and operations.

Aker Solutions' contract party is Aker Geo AS.

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Kitan Field Start-up will be G'Day for Eni

- Kitan Field Start-up will be G'Day for Eni

Friday, June 10, 2011
Rigzone Staff
by Jaime Kammerzell

The Kitan field in permit JPDA 06-105 in the Timor Sea is 500 km off the Australian coast and 170 km off the Timor-Leste coast, northwest of the existing Bayu Undan gas condensate field. Eni announced it had made an oil discovery there in March 2008.

The Songa Venus semisubmersible drilled the well to 3,568 m (11,706 ft) in 310 m (1,000 ft) of water and encountered significant hydrocarbons.

Songa Venus

Eni then drilled the Kitan-2 well later that month to confirm the oil accumulation. Initial test results indicated a flow rate of 6,100 b/d. The field has an oil density of 59 degrees API.

Eni operates the Kitan field with a 40% interest in the jointly-owned permit along with Inpex, with a 35% share, and Talisman Resources with a 25% share.

Eni declared the Kitan field as a commercial discovery on April 11, 2008. The partners estimate that Kitan holds about 68.8 million stock tank barrels of oil initially in place (STTOIP), with a 50% recovery factor, which would put ultimate recovery around 34.6 MMstb. In other words, the field has about 30 to 40 MMbbl and may produce up to 20,000 b/d when it comes online later this year, just 3 years after commercial declaration.

Development Plan

The Autoridade Nacional de Petroleo (ANP) approved the Kitan field development plan on April 22, 2010. The field is in the Joint Petroleum Development Area, which is jointly administered by Timor-Leste and Australia. It is expected to reach first oil later this year (second half of 2011). The total approximate project cost is around $1 billion.

Eni is developing Kitan through three subsea completion wells, Kitan-3, Kitan-4 and Kitan 2-ST1, tied back to an FPSO. Eni contracted FMC Technologies to manufacture and supply the subsea equipment. FMC has provided the three subsea production trees and all associated control systems and umbilicals. The company's Asia Pacific deepwater subsea organization has managed this engineering, procurement and construction (EPC) project. And FMC's operations in Singapore and Malaysia has engineered, manufactured and delivered all equipment.

Eni also contracted Bluewater Energy Services for the chartering, operation and maintenance of the Glas Dowr FPSO, complete with mooring system, including provision of logistics and ancillary services at the Kitan field. The initial contract is good for 5 years after start of production, but can be extended up to 10 years.

In September 2010, Bluewater Energy asked Sebcorp Marine to upgrade the Glas Dowr. The shipyard repaired the vessel to extend its life another 10 years as well as upgraded the FPSO's internal turret mooring and transfer systems. The marine, utility, electrical and communication, safety, control, monitoring, and production systems were also upgraded. The vessel was re-delivered to the owners in 2Q 2011 for deployment.

Bluewater Glas Dowr

Eni planned to utilize local labor and goods as the Timor Sea holds strong future potential for the operator. The operator has been present in Australia since 2000 and in Timor-Leste since 2006.

Eni also awarded Technip a contract to provide project management and engineering, to supply and install 23 km of flowlines and riser, and to install the umbilical system. Offshore installation started in the first half of 2011 using the Venturer construction vessel from Technip's fleet.

Australia Rigs

Australia has 10 rigs currently contracted to drill in its waters — one jackup, one drillship, and eight semisubmersibles.

Atwood Oceanics' Atwood Osprey semisubmersible has the highest dayrate in the high $400s. The rig is contracted to Chevron, which is currently drilling the Zagreus-1 well.

Atwood also has its Atwood Eagle semisubmersible contracted to Chevron with a dayrate in the high $300s. The rig is currently drilling the West Tryal Rocks-4 well.

Atwood Osprey

Diamond Offshore also has two semisubmersible contracted. The Ocean America is drilling the Argus-2 well for Woodside at a dayrate in the low $400s, and the Ocean Patriot will start its contract with PTTEP at the end of June at a dayrate in the low $200s.

Ocean Patriot

Maersk Drilling, too, has two semisubmersibles contracted to Woodside. The Maersk Discoverer is drilling the Opel-1 well at a dayrate in the mid $400s and the Nanhai VI has a dayrate in the low $300s.

Maersk Discoverer

Stena and Transocean each have one semisubmersible contracted. The Stena Clyde is drilling the Mutineer-4 well for Santos at a dayrate in the high $200s. And the Transocean Legend is drilling the Chester-2 well for Hess at a dayrate in the low $300s.

The Ensco 109 jackup is the only jackup working off Australia today. The rig is drilling for Apache at a dayrate in the mid $100s.

Likewise, the only drillship contracted to work in Australian waters is the Noble Discoverer, which is contracted to Shell at a dayrate in the mid $100s. However the drillship is currently in New Plymouth, New Zealand, having mooring equipment repaired that was damaged during a storm.

Noble Discoverer

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Eni Sells Stake in TAG Pipeline

- Eni Sells Stake in TAG Pipeline

Friday, June 10, 2011
Eni S.p.A.

Eni signed a purchase agreement with Cassa depositi e prestiti Spa (CDP) for the sale of 89% of the existing shares, corresponding to 94% of the economic rights held in Trans Gasleitung Austria GmbH.

Trans Gasleitung Austria GmbH is the company owning the transport rights for the Austrian section of the pipeline that connects Russia to Italy and that, in 2010, reported total revenues of 270 million euro.

This operation is part of the commitments taken by Eni in response to the European Antitrust Commission ruling on September 29, 2010, and it is subject to its approval.

The sale provides for the payment of €483 million, plus reimbursement of a shareholder loan granted by Eni to the company equal to 192 million euro (a total of $986MM), and these amounts will be subject to review at the closing date as per market practice.

The parties have also agreed to recognize an additional charge based on some earn-out mechanisms linked to the occurrence of certain events.

Following the conclusion of the operation, the ship-or-pay contract signed by Eni with TAG will remain into force.

By virtue of the nature of the counterparty and the economic importance of the contract for Eni, the transaction takes the form of an operation with a related party of minor importance for which a non-binding opinion has been required from the Committee for Internal control.

Mediobanca – Banca di Credito Finanziario S.p.A. and Rothschild S.p.A. for Eni and Credit Suisse for Cassa Depositi e Prestiti issued fairness opinion on the operation based on the assessment methodologies currently used for this type of operations.

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Eni Commits to Additional Exploration, Development in Egypt

- Eni Commits to Additional Exploration, Development in Egypt

Tuesday, June 07, 2011
Eni S.p.A.

The Egyptian Minister of Petroleum Abdallah Ghorab and Eni COO Claudio Descalzi met in Cairo to support the renewed commitment of Eni towards exploration and development activities in Egypt, highlighting the importance of such commitment for both Egpc and Eni.

The additional activities will take place in the Western Desert, in the Mediterranean and in the Sinai, and will cover both development, through the drilling of additional wells and the acceleration of production from new discoveries, and exploration, by drilling 12 exploratory wells.

With these activities Eni's investments in Egypt for the current and subsequent years will amount to approximately US $3 billion. Eni will also sponsor a training plan for national staff working in the Petrobel and Agiba joint ventures with Egpc, with a commitment of US $4.5 million. Furthermore, in accordance with the Ministry of Petroleum, Eni will support the Sinai community with social activities.

Eni is the first international operator in Egypt with total operated production of round 500 thousand boe/day.

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Eni, PetroSA Ink Cooperation MOU for S. Africa, Abroad

- Eni, PetroSA Ink Cooperation MOU for S. Africa, Abroad

Monday, June 06, 2011
Eni S.p.A.

Eni signed with South Africa's State-owned oil company PetroSA (Petroleum Oil and Gas Corporation of South Africa) a Memorandum of Understanding establishing mutual cooperation between the companies in the country and abroad.

The parties will evaluate the eventual acquisition by either party of participating interests in upstream projects for the development of both conventional and unconventional hydrocarbons. Moreover, the parties will evaluate the opportunity to participate jointly in projects in other African countries.

According to the MoU, Eni could also supply crude oil and refined products to the South African market, which is characterized by a fast-growing demand for such products.

Eni and PetroSA will also evaluate the possibility of leasing the Saldanha storage facility strategically located for the Asian, American and European markets.

Finally, the parties will also study joint initiatives for LNG import and will evaluate the potential for long-term LNG supplies to be provided by Eni to PetroSA for both power generation and GTL in South Africa, together with the possibility for Eni to support the realization of possible new power plants.

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Eni Extends Footprint in Indonesia

- Eni Extends Footprint in Indonesia

Monday, May 23, 2011
Eni S.p.A.

In the 2nd Indonesian International Bid Round 2010, Eni has been awarded the 100% participation interest and operatorship of Block Arguni I located on and offshore in the West Papua Province, Eastern Indonesia.

The Block Arguni I covers an area of 5,386 square km in the Bintuni Basin, a mainly gas prone, prolific hydrocarbon province, with several giant gas discoveries already in production. The deal involves the drilling of 2 wells and the carrying out of 500 km of 2D and 200 square km of 3D seismic surveys during the first 3 years of exploration. The Tangguh LNG processing facility is located about 10 km west of the Arguni I acreage.

This award confirms Eni as one of the major oil companies committed to invest in E&P activities in Indonesia. Eni has recently made an important discovery at Jangkrik in the offshore Kutei (Muara Bakau PSC), which has been successfully appraised and whose POD is currently being submitted.

Eni has been operating in Indonesia since 2001. The company holds working interests in twelve permits and operates six of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei Basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan. Eni has an equity production of approximately 20,000 boed in this area and has been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC), through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The coal-bed methane coming from Sanga Sanga would be liquefied at the Bontang plant, representing the first LNG facility to be supplied with CBM.

Oil & Gas Post

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Eni, Sonatrach Team Up in Algeria Shale JV

Eni, Sonatrach Team Up in Algeria Shale JV

Thursday, April 28, 2011
Eni S.p.A.

Eni and Sonatrach signed a cooperation agreement for the development of unconventional oil, with particular focus on shale gas reinforcing the close relationship between the two companies.

With extensive experience in exploration and production of unconventional oil, Eni and Sonatrach will jointly implement activities to assess the technical and commercial feasibility of exploration and operational initiatives in shale gas.

Based on previous assessments, Eni confirms the significant shale gas reserves in Algeria which Eni and Sonatrach wish to explore and develop. This will enable both companies to make important discoveries which will enhance the gas potential of the country.

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Wednesday, April 20, 2011

Dow Jones Newswires

by Jacob Gronholt-Pedersen

Gazprom plans to acquire a 33% stake in ENI's Elephant field in Libya has been delayed, and will be finalized when the situation stabilizes in the North African country, Gazprom said Wednesday in a press release.

The announcement came following a meeting in Moscow between Gazprom Chief Executive Alexei Miller and ENI CEO Paolo Scaroni.

The two also discussed France's Electricite de France and Germany's Wintershall joining the South Stream project.

Drilling Commenced at Eni's Guendalina Gas Field

Drilling Commenced at Eni's Guendalina Gas Field

Monday, April 18, 2011
Mediterranean O&G plc

Mediterranean O&G provided the following operational update on the Guendalina Gas Field.

Italy - Concession AC 35 AG - Guendalina Gas Field (MOG interest 20%, ENI 80% and Operator)

The Operator, ENI, has informed the Company that following the installation of the platform jacket which was successfully completed in March, the Transocean jack up rig, GSF Key Manhattan, commenced drilling of the two development wells Guendalina 2D ("Gue 2D") and Guendalina 3 ("Gue 3") on 7th April 2011. The two wells are being drilled in parallel, by implementation of the skid drilling technique.

To date

• The Gue 2D well has been drilled to a depth of 400 meters. The set up of the casing has been completed.
• The Gue 3 well has been drilled to a depth of 350 meters. The set up of the casing is ongoing.

The planned total depth of the Gue 2D well is 3,290 meters (3,225 meters true vertical depth), while the planned total depth of the Gue 3 well is 3,190 meters. The Pliocene gas sand levels are expected to be encountered from a depth of about 3,000 meters.

ENI estimates that the drilling campaign, including completion of the two wells for production, will be completed by the end of July 2011. In parallel, the construction of the platform deck is progressing. Its installation is forecast to occur immediately after the completion of the development drilling phase.

Based on the information received from ENI, the Guendalina field development plan is progressing on schedule and first gas is forecast in September 2011.

Background

The Guendalina gas field is located 47 km off of the northeast coast of Italy in 42 meters of water, outside the offshore restricted area for E&P activities, which was introduced in August 2010 by the Italian Government.

ENI has independently certified 2P gas reserves of 22 Bcf (4.5 Bcf net MOG). An additional 5 Bcf (1.0 Bcf net MOG) of potential gas resources will be assessed during the current development drilling campaign by the Gue 2D well. Based on studies performed by ENI, the aggregate gas production from the field is expected to be around 20 MMcf/day (100% basis); 4MMcf/day net to the Company.

Funding

As announced on March 3, 2011 it is necessary for the Company to raise further funds to develop and progress its exploration, development and producing assets, as well as to meet the Company's working capital requirements. Negotiations for funding are on-going and the Company is hopeful it can conclude an agreement to resolve the Company's financial position satisfactorily. There can be no certainty that these discussions will result in a satisfactory outcome.

Sergio Morandi, the Company's CEO, stated, "The Guendalina development is entering the most exciting phase, with the development project remaining on schedule and progressing well.

The Guendalina development represents one of the key milestones of the Company's business plan that from the point of first gas is expected to generate significantly higher net gas production and revenues than those currently realized by the Company."