Eni increases oil production in Mexico

Eni S.p.A. reported that its oil and natural gas production in the first quarter of 2021 averaged 1,704 million barrels of oil equivalent (boe/d) and decreased 5% compared to the first quarter of 2020.

Net of positive price effects, the decline was 6% driven by the need to comply with OPEC + production cuts and portfolio effects (overall effect of two percentage points), a slowdown in spending on reserve development with lower contributions from Nigeria, Kazakhstan and Angola, as well as falls from mature fields.

«These negatives were partially offset by continued production growth in Mexico, a better contribution from Libya and increased gas supply to Egypt driven by a recovery in demand in the local market,» Eni said without specifying quantities.

Meanwhile, the production of liquids in the quarter was 814 kbbl / d (1,000 barrels per day), 9% less than in the first quarter of 2020.

According to Eni, the reduction was due to a slowdown in spending, the effect of OPEC + production cuts, as well as declines in mature fields partially offset by the continued increase in production in Area 1 in Mexico. and growth in Libya.

Eni

At the same time, the company‘s natural gas production in the first quarter amounted to 4,726 million cubic feet per day (mmcf/d), a slight decrease compared to the first quarter of 2020.

The lower production was partially offset by a strong recovery in natural gas demand in certain areas (mainly Egypt) and growth in Algeria due to the start-up of the Berkine gas project.

To conclude, in the first quarter of 2021, Eni’s capital investments amounted to 1,139 million euros, decreasing by 28% compared to the same period of the previous year.

These investments were mainly related to:

• Development activities (801 million euros) mainly in Indonesia, the United States, Egypt, the United Arab Emirates, Mexico and Iraq.
• Refining activity in Italy and outside Italy (€ 87 million) mainly related to activities to maintain integrity and permanence in the plants business, as well as HSE initiatives; marketing activity (8 million euros) for compliance with regulations and initiatives to stay in business in the retail network in Italy and in the rest of Europe.
• Initiatives related to the commercialization of gas and energy in the retail business (39 million euros).