Italian utility Eni has completed, through its subsidiary Eni Petroleum Company, the acquisition of US-based Dominion's upstream assets in the Gulf of Mexico. The move is in line with Eni's strategy of securing hydrocarbon reserves.
As a result of the acquisition, Eni’s equity production in the Gulf of Mexico is expected to rise from the current 36,000 barrels of oil equivalent per day (boepd) to more than 110,000 boepd in the second half of 2007. Eni has also acquired probable equity reserves of 222 million boe.
The main producing fields acquired are Devils’ Tower, Triton and Goldfinger (75% operated), and Front Runner (37.5%). In addition, other key fields currently in the development phase are San Jacinto (53.5% operated), Q (50%), Spiderman (36.7%) and Thunderhawk (25%).
In the period 2007 to 2010, production from the acquired assets will average in excess of 75,000 boepd, Eni revealed. In addition, the company will further enhance its portfolio in the Gulf of Mexico, adding new leases with significant exploration potential.
The acquisition is consistent with Eni’s strategy of securing hydrocarbon reserves and production in core areas where it can increase materiality and play an important role as an operator using its deepwater skills and technologies.
Eni has been operating in the US since 1966 with exploration and development activities, and currently holds interests in 462 leases in the Gulf of Mexico (including 263 from the Dominion acquisition) and 158 leases in Alaska.