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Eni lowers oil&gas output amid COVID-19, OPEC+ commitments

Oil&Gas Materials 29 October 2020 11:44 (UTC +04:00)
Eni lowers oil&gas output amid COVID-19, OPEC+ commitments

BAKU, Azerbaijan, Oct.29

By Leman Zeynalova – Trend:

In the third quarter of 2020, oil and natural gas production of Italian Eni company averaged 1.7 million boe/d (1.74 million boe/d in the nine months), a decrease of 10 percent compared to the third quarter of 2019 (down by 6 percent from the nine months), Trend reports citing the 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, said the company.

“Production start-ups/ramp-ups in Algeria and Mexico, better contribution of Nigeria, as well as portfolio contributions in Norway, were partly offset by the lower volumes in Libya driven by an anticipated contractual trigger, lower entitlements/spending and force majeure, as well as mature field declines. In the nine months the results were supported by better field performance in Kazakhstan.

“Liquids production was 817 kbbl/d, down by 9 percent from the third quarter 2019 (854 kbbl/d in the nine months, down by 3 percent compared to the same period of 2019). The reduction in Libya and Kazakhstan, the effect of OPEC+ cuts as well as the mature fields decline are partly offset by production growth in Mexico due to the ramp-up of Area 1, Angola for the start-up of Agogo, Congo due to the Nenè phase 2B start-up and Algeria, as well as the contribution from portfolio activities.

Natural gas production amounted to 4,694 mmcf/d in the period, decreased by 685 mmcf/d or by approximately 13 percent y-o-y (4,705 mmcf/d in the nine months, down by 11 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 due to increasing activity and Algeria due to the start-up of the Berkine gas project,” reads the report.

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