Eni's Mpungi Field in West Hub Development Project Yields Oil
Eni SpA E commenced oil production from the Mpungi field in the West Hub Development Project.
Located within Block 15/06 of the Angolan Deep Offshore, about 350 kilometers northwest of Luanda and 130 kilometers west of Soyo, the Mpungi field represents the third milestone in the West Hub Development Project.
The West Hub Development Project’s first oil came from the Sangos field in Nov 2014. Thereafter, the Cinguvu field yielded oil in early Apr 2015. With the commissioning of the Mpungi field, production is expected to reach about 100,000 barrels of oil per day in the first quarter of 2016.
The scope of the West Hub Development Project includes development of the Sangos, Cinguvu, Mpungi, Mpungi North, Ochigufu and Vandumbu fields. These fields lie in water depths ranging from 1,000 meters to 1,500 meters. The wells are arranged in clusters and linked to the N’Goma Floating Production Storage and Offloading Unit (FPSO), which has a treatment capacity of 100,000 barrels of oil per day.
Eni’s exploration program in Block 15/06 is currently under way. The success of this program will lead to new discoveries that would be linked to the existing production infrastructure. This, in turn, would result in cost and time efficiencies in production.
East Hub Development Project, which is part of the Block 15/06, is under development and will commence production in 2017.
Eni’s presence in Angola dates back to 1980. The company has a net production of about 105,000 barrels of oil equivalent per day. Eni, the operator of Block 15/06, has a stake of 36.84%. Other partners in the joint venture are Sonangol Pesquisa e Produção and SSI Fifteen Limited, with stakes of 36.84% and 26.32%, respectively.
Eni carries a Zacks Rank #5 (Strong Sell). Some better-ranked players from the energy sector are Enbridge Energy Management LLC EEQ, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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