Italian oil and gas company Eni is making strategic moves to finance development and shift capital towards low-carbon initiatives by exploring the possibility of spinning off stakes in promising oil and gas projects. This initiative, led by CEO Claudio Descalzi, aims to attract investment from investors interested in either traditional energy or green ventures through the creation of separate entities, or ‘satellites’. Eni CFO Francesco Gattei highlighted the benefits of this approach, stating that it allows for more targeted investment opportunities.
Eni has already established dedicated units for retail, renewables, and biofuels, with plans to partially sell these divisions to secure additional growth funds. This strategy reflects the growing trend among energy majors to invest in nascent businesses that struggle to deliver high returns compared to conventional oil and gas operations.
In line with this strategy, Eni recently entered into an agreement to merge its North Sea operations with Ithaca Energy, acquiring a 38.5% stake in the process. This deal, valued close to $1bn, not only reduces capital expenditure for Eni but also allows the company to potentially earn dividends from Ithaca. Eni is now considering replicating this model for other exploration and production projects that require substantial investments, with Indonesia and Ivory Coast being highlighted as potential candidates for this strategy. The company’s aim is to secure funding for traditional products while developing new, greener products to meet evolving market demands.
