Eni also reported that its oil and gas production was down by 5.1% in Q1 2007, to 1.73 million barrels of oil equivalent per day, which means that full year production is expected to be in line with that of 2006.
Meanwhile, Eni’s gas sales were down by 9.8% in Q1 2007 compared to the same period in 2006, to 28.1 billion cubic meters, due to mild weather conditions. Nevertheless, Eni said that full year gas sales are expected to be higher than 2006.
Eni also revealed that, during the first quarter of 2007, the company’s spending on capital and exploration projects was up by 50% to E2 billion.
Investments included important acquisitions in Russia, central and eastern Europe and Angola. This included 102 retail fuel stations from ExxonMobil Central Europe located in Czechia, Slovakia and Hungary, as a result of which Eni’s 2007 retail sales of refined products are expected to slightly higher than in 2006.
The company also acquired Dominion Resources’ exploration and production activities in the Gulf of Mexico, interests in exploration and production onshore activities operated by Maurel&Prom in Congo, and the shares in the Nikaitchuq field in Alaska that the company did not already own. As a result of these acquisitions, Eni’s production growth target for 2007-2010 has been raised from 3% to 4%.
Paolo Scaroni, CEO of Eni, commented: The first quarter 2007 was affected by weaker oil prices, a strong Euro, and low seasonal gas and product sales due to unusually mild weather conditions. Despite these, Eni managed to deliver excellent results among the best in the European oil and gas sector.
Mr Scaroni concluded: In the first months of 2007 we undertook a successful acquisition campaign, purchasing attractive oil assets which will make an important contribution to our growth strategy in the following years.
