The transaction includes production, development and exploration assets located in deepwater Gulf of Mexico, in the continental shelf and in Texas and Louisiana state waters, as well as the staff based in New Orleans. Around 60% of the overall leases are operated.
The agreed price for the deal is $4.8 billion, inclusive of exploration assets for $680 million, and the effective date for the transaction, assuming all closing conditions are met, is July 1, 2007.
The acquisition will increase Eni’s equity production in the Gulf of Mexico from the current 36,000 boepd to more than 110,000 boepd in the second half of 2007 and the 2P equity reserves by 222 million boe, at an implied cost per barrel of $18.4. In 2007/2010, production from the acquired assets will average more than 75,000 boepd.
The main fields covered by the deal include the Devils Tower, Triton and Goldfinger producing fields, and the San Jacinto, Spiderman and Thunderhawk developing fields.
In addition, Eni will further enhance its portfolio in the Gulf of Mexico thanks to new leases with significant exploration potential.
The deal is consistent with Eni’s strategy of acquiring hydrocarbon reserves and production in key areas where it can increase materiality and play an important role as operator.
