Eni records 7% increase in fourth quarter oil output

Italian major ENI reported that its average oil and gas output for the fourth quarter of 2012 averaged 1.75 million barrels of oil equivalent per day, in line with expectations.

The figure was a seven per cent improvement over fourth quarter 2011 and a 3.6 percent improvement over the previous quarter.

ENI confirmed that it had made a record amount of discovered resources during the year, with 3.64 billion barrels of oil equivalent (Bboe) found. Meanwhile, proved reserves were at an eight-year record by the end of 2012 at 7.7 Bboe.

ENI CEO Paolo Scaroni commented in a statement, “2012 was a record year for exploration at Eni with discovered resources about six times yearly production thanks to our outstanding achievements in Mozambique and our other successes in West Africa, in the Barents Sea and in Indonesia. We have also made significant progress in developing projects, further increasing our reserves to best ever levels.”

He said in Mozambique, ENI executed an exploration campaign during 2012 in its operated Area 4 offshore in the Rovuma Basin, where it proved the Mamba gas complex to be a world-class discovery.

He added that the company estimates the full mineral potential of Area Four at 75 trillion cubic feet of gas in place, and that it plans to drill at least two more wells there to fully establish the upside potential.

He further stated that the company expects production to grow further in 2013, the principal drivers of this being the start up of major projects: Kashagan in Kazakhstan, Angola LNG and the firm’s gas assets in Algeria.

With a capital budget of some Euro 12.8 billion, ENI said that during 2013 it will be focused on the development of reserves in West and North Africa, Norway, Iraq and Venezuela, as well as exploration projects in West Africa, Egypt, the US and emerging areas.