Eni to Divest Alaskan Oil Fields to Hilcorp Energy Co.

Eni SPA has announced plans to divest its non-strategic Nikaitchuq and Oooguruk fields in Alaska to Hilcorp Energy Co. The Italian government-controlled company stated that the transaction value would be disclosed upon closing. The deal is subject to regulatory approvals and customary conditions. Nikaitchuq, Eni’s first operated asset in Arctic waters, began production in January 2011.

Located offshore on the North Slope at a depth of three meters (9.8 feet), the field holds an estimated 200 million barrels of oil. Oooguruk, located approximately five kilometers (3.1 miles) off the North Slope coast, started production in 2008. “This transaction aligns with Eni’s strategy of rationalizing upstream activities by rebalancing its portfolio and divesting non-strategic assets,” Eni stated. The company has reduced its target net capital expenditure for 2024–27 by over 20 percent compared to last year’s plan, aiming to maintain capital costs at UR 7 billion ($7.5 billion) annually during this period. Eni plans to exercise capital discipline through “optimization, improved project quality, and greater portfolio management,” according to a statement released on March 14 outlining strategic targets for 2024–27. Announcing the Alaska sale, Eni emphasized its commitment to delivering a net €8 billion ($8.6 billion) portfolio inflow, front-loaded over the 2024-27 plan.
Proceeds are expected from three main sources: high-grading the upstream portfolio, diluting high equity ownership in exploration discoveries, and accessing new capital pools via Eni’s satellite strategy to support the growth of its transition businesses and confirm progress in value creation.

Bloomberg reported that Eni is considering upstream disposals from its global portfolio to raise EUR 4 billion ($4.3 billion), potentially including operations in Cyprus and Indonesia. The report, citing anonymous sources, suggested that Eni might divest smaller projects attractive to local buyers and consider selling stakes in major projects. Eni could gain between EUR 850 million ($912.3 million) and EUR 1 billion ($1.1 billion) from the sale to Hilcorp and a similar amount by offloading a 30 percent stake in the Ivory Coast. The company anticipates generating about EUR 13.5 billion ($14.5 billion) in cash flow from operations before working capital this year and EUR 62 billion ($66.5 billion) over 2024–27, with a projected upstream production growth rate of three to four percent annually during this period.