Eni (E) Starts Oil & Gas Production From Baleine Offshore Field
Eni SpA E commenced hydrocarbon production from the Baleine field offshore Cote d’Ivoire within two years of the commercial discovery.
Baleine is currently the largest oil and gas discovery in the Ivorian sedimentary basin. The offshore field covers the CI-101 and CI-802 blocks. Petroci is the project’s other partner.
The Baleine field is estimated to hold 2.5 billion barrels of oil and 3.3 trillion cubic feet of associated gas in place. The project involves a multi-phase development to exploit the field’s resources.
In the initial stage, production is being implemented through the Baleine floating production storage and offloading unit. It can process up to 15,000 barrels of oil per day (Bo/d) and 25 million cubic feet per day (Mcf/d) of gas.
The second phase of the Baleine field development is expected to commence by the end of 2024. It is expected to boost field production to 50,000 Bo/d and 70Mcf/d of associated gas.
The third development phase is aimed at raising the field production to up to 150,000 Bo/d and 200 Mcf/d of gas. The field’s entire gas production will be carried onshore through a newly constructed pipeline to address the local and regional power demand.
The start of production from the Baleine field represents the first zero-emission (scope 1 and 2) production project in Africa. The project uses advanced technologies to minimize emissions.
Eni’s presence in Ivory Coast goes back to the 1960s. In 2015, the company re-entered the country and currently holds a stake in the CI-101 and CI-802 blocks, as well as four deep-water Ivorian blocks — CI-205, CI-501, CI-401 and CI-801.
The results show the core values of the company’s strategy, including Africa’s groundbreaking net-zero project, accelerated development, local gas supply and the promotion of a just transition.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 18% compared with the industry’s 8.6% growth.
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Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Some other top-ranked players in the energy sector are USA Compression Partners, LP USAC, currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories N.V. CLB and Sunoco LP SUN, carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression services providers across the United States in terms of fleet horsepower.
USA Compression Partners has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for USAC’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Core Labs’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields.
Core Labs has witnessed upward earnings estimate revision for 2023 and 2024 in the past 30 days. The consensus estimate for CLB’s 2023 and 2024 earnings per share is pegged at 88 cents and $1.17, respectively.
Sunoco is among the biggest motor fuel distributors in the United States wholesale market, in terms of volumes. For 2023, the partnership expects an adjusted EBITDA of $865-$915 million.
Over the past 30 days, Sunoco has witnessed upward earnings estimate revisions for 2023 and 2024, respectively. The Zacks Consensus Estimate for SUN’s 2023 and 2024 earnings per share is pegged at $4.37 and $3.81, respectively.
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