Eni may spin off new satellites for high-investment oil projects

ROME, May 13, 2024 – Eni is considering spinning off new satellite companies for high-investment oil and gas projects, including ones in Indonesia and Côte d’Ivoire, Reuters reported on Monday.

The agency cited company sources as saying Eni plans to extend its strategy of securing new funds for oil and gas projects via spinoffs, as seen in its merging of almost all of its UK upstream assets with those of local player Ithaca Energy, creating a new entity in which Eni holds 38.5%.

CEO Claudio Descalzi has termed the strategy the company’s “Satellite Model.”

The model involves spinning off high-potential, high-investment hydrocarbons project stakes into new entities to secure new revenue for energy transition projects.

It also includes the spinning off of renewables businesses, such as the company’s retail and renewables unit Plenitude, a stake in which was sold to Swiss investment company Energy Infrastructure Partners.

“The satellite model is an approach we have built to have additional funding sources to keep together the need to meet demand for traditional products, while also developing new, greener products,” Reuters cited CFO Francesco Gattei as saying.

Photo courtesy of Eni.

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