Key Details of the Deal
The agreement includes interests in producing assets and exploration blocks in Ivory Coast and the Republic of the Congo. Specifically, Vitol will acquire a 30% stake in the Baleine project in Ivory Coast, where Eni holds a 77.25% ownership interest, and a 25% stake in the Congo LNG project, where Eni holds a 65% stake.
The Baleine field, discovered in 2021, is Eni’s first development in Ivory Coast and Africa’s first net-zero emissions project. It currently produces over 60,000 barrels of oil equivalent per day. Meanwhile, the Congo LNG project began exporting liquefied natural gas in February 2024, with an annual production capacity of 1 billion cubic meters (BCM).
Strategic Reinvestment of Profits
The deal is part of Vitol’s broader strategy to reinvest its bumper earnings from 2022-2023, a period marked by significant market disruptions caused by the COVID-19 pandemic, Russia’s war in Ukraine, and Europe’s energy crisis. Since the start of 2024, Vitol has made several acquisitions, including Asian energy trader Noble Resources and a controlling stake in Waste Plastic Upcycling. Last year, it acquired Italian oil refining and trading company Saras from the Moratti family.
Eni’s Dual Exploration Model
For Eni, the agreement aligns with its “dual exploration model” strategy, which involves spinning off stakes in high-potential oil and gas projects to generate rapid income from exploration discoveries. The Italian energy group has previously indicated plans to sell stakes in upstream projects in Ivory Coast and Indonesia.
Eni and Vitol are already partners in Ghana’s OCTP and Block 4 projects, and this latest deal further strengthens their collaboration in West Africa.
A Growing Partnership in West Africa
The Baleine and Congo LNG projects represent significant milestones in Eni’s operations in West Africa. The Baleine field, with its net-zero emissions approach, highlights Eni’s commitment to sustainable energy development, while the Congo LNG project underscores the region’s growing importance in the global LNG market.
Vitol’s investment in these projects not only enhances its upstream portfolio but also reinforces its presence in a region with substantial energy potential.
As Vitol continues to expand its footprint in the energy sector, the deal with Eni underscores the company’s ability to capitalize on strategic opportunities and reinvest its profits into high-growth areas. For Eni, the partnership with Vitol provides a pathway to accelerate the development of its West African assets while maintaining a focus on sustainability and innovation.
The agreement is expected to close with a cash adjustment based on the January 1, 2024, valuation of $1.65 billion, bringing the total transaction value to approximately $2.7 billion.