...

Eni’s oil & gas production down in 2Q2020

Oil&Gas Materials 3 August 2020 10:15 (UTC +04:00)
Eni’s oil & gas production down in 2Q2020

BAKU, Azerbaijan, Aug.3

By Leman Zeynalova – Trend:

In the second quarter of 2020, oil and natural gas production by Italian Eni company averaged 1,713 kboe/d (1,744 kboe/d in the first half), a decrease of 7 percent compared to the second quarter of 2019 (down by 5 percent from the first half), Trend reports citing Eni company.

Net of price effects, the decline was due to COVID-19 effects and related OPEC+ production cuts as well as lower gas demand, mainly in Egypt.

The positive performance reported in Nigeria, Kazakhstan and Mexico and the additions due to the purchase of mineral interests in 2019 in Norway, more than offset the lower volumes in Libya driven by an anticipated contractual trigger, geopolitical instability and lower entitlements/spending.

Liquids production was 853 kbbl/d, down by 2 percent from the second quarter 2019 (873 kbbl/d in the first half, in line with the same period of 2019). Production growth in Kazakhstan and production ramp-up in Mexico, were offset by lower production in Libya and mature field declines.

Natural gas production amounted to 4,653 mmcf/d in the period, decreased by 577 mmcf/d or by approximately 11 percent y-o-y (4,711 mmcf/d in the first half, down by 10 percent). Lower production in Libya and the impact of lower natural gas demand in certain areas (mainly in Egypt), as well as LNG demand were partly offset by the growth in Nigeria and Kazakhstan.

In the second quarter of 2020, the Exploration & Production segment reported an adjusted operating loss of €807 million compared with an adjusted operating profit of €2,140 million in the second quarter of 2019.

Approximately 90 percent of the EBIT contraction was driven by a sharply deteriorated oil scenario as witnessed by a 58 percent decline in both the price of the Brent crude oil benchmark and in the benchmark gas price at the Italian spot market “PSV”, leading to reduced equity realization prices. Furthermore, the result of the period was affected by a loss incurred in reselling the gas entitlements of a Libyan partner, which were marketed in Europe. This reselling price is excluded from the calculation of Eni’s average realized gas prices disclosed above, because Eni’s realized prices are calculated only with reference to equity production.

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest