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Eni (E) Begins Production From Cabaca North Offshore Angola

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Eni SpA E recently commenced production from the Cabaça North development project in deep waters offshore Angola. The project is located in the Eastern area of Block 15/06. The Italian energy major is utilizing the Armada Olombendo Floating Production Storage and Offloading (FPSO) unit at the site.

Peak production from the Cabaça North development is expected to touch 15,000 barrels of oil per day (bpd). It is likely to boost and sustain the Armada Olombendo FPSO’s production. The vessel has an overall production capacity of 100,000 bpd, with no discharge and process flaring. Commencing output from the development marks Eni’s drive toward infrastructure-led exploration, creating sustainable opportunities from the existing infrastructure.

The Cabaça North development project marks the second start-up by Eni’s Angola unit this year, following the Cuica field in the same block. It is using the same FPSO vessel for producing hydrocarbons from the Cuica field. It was a milestone for the energy giant as it took only a little more than four months to bring the discovery into production. Within the next few months, the company expects its third project to come online from the Ndungu Early Production in the western part of the block.

The latest development further strengthened the company’s presence in the country, wherein it produced 37 million barrels of oil equivalent last year. Eni’s exploration campaign offshore Angola led to several major discoveries that are expected to hold billions of barrels of oil.

Eni is the operator at the Block 15/06 with a 36.84% stake. Another 36.84% interest is owned by Sonangol Pesquisa e Produção, while the remaining 26.32% is held by SSI Fifteen Limited.

Price Performance

Eni’s shares have increased 68.7% in the past year compared with a 59.7% rise of the industry.

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Zacks Rank & Other Key Picks

The company currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the energy space include RPC, Inc. RES, Cheniere Energy, Inc. LNG and Kinder Morgan, Inc. KMI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

RPC’s bottom line for 2021 is expected to surge 88.9% year over year.

The Zacks Consensus Estimate for Cheniere Energy’s bottom line for 2021 is pegged at $2.98 per share, indicating a massive improvement from the year-ago loss of 34 cents.

Kinder Morgan’s bottom line for 2021 is expected to rise 47.7% year over year.

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Eni SpA (E) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report

RPC, Inc. (RES) : Free Stock Analysis Report

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