Eni S.p.A. E recently started production from the Agogo oilfield, located offshore Angola. Notably, the production commencement in the 15/06 block occurred only nine months following its discovery. It was supported by operational synergies from the Floating Production Storage Offloading (FPSO) vessel Ngoma, located just 15 kilometres away from the oilfield.
The Agogo-1 well was drilled at a water depth of approximately 1700 meters and currently produces 10,000 barrels of oil per day. The output is expected to double in the next few weeks. The oilfield is anticipated to have 650 million barrels of oil. Encouragingly, new delineation wells will be drilled to uphold the field’s further potential. The company’s initiatives to start production in just nine months, with the help of existing infrastructures that maximize project value, are commendable.
West and East Hubs are two running projects of the company in the Block 15/06, which has several discoveries and two FPSO platforms under its belt. The production hubs incorporate a total of eight fields and 42 underwater wells. Total oil output from the two platforms surpassed the 180-million barrels mark by 2019-end.
The company, along with joint venture partners, Sonangol and SSI Fifteen, had launched a new exploration program in the block in second-half 2018. The exploration campaign led to five new discoveries that are expected to hold 2 billion barrels of oil. These developments strengthened Eni’s footprint in the region and boosted organic growth. The company is the operator in the block with a 36.8421% stake. Its equity production from Angola currently stands at around 145,000 barrels of oil equivalent per day.
In a separate announcement, the company reported that it has won a new exploration and production license in the Namibe basin offshore Angola. The local government assigned block 28 to the company. Therein, it holds an operating interest of 60%. The block is located 10 kilometres away from the coast, at a water depth of 1000-2500 meters.
Eni’s shares have slipped 7.3% in the past year compared with 6.9% fall of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, Eni has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the energy sector include Chevron Corporation CVX, Repsol SA REPYY and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron’s bottom line for 2020 is expected to rise 5.5% year over year.
Repsol’s bottom line for 2020 is expected to rise 51% year over year.
Enbridge’s revenues for fourth-quarter 2019 is expected to rise 8% year over year.
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