Eni and its partners are accelerating a $4 billion expansion to an Ivory Coast oil & gas project. As the COO says, “the macro is favorable.”
The group made a final investment decision (FID) on phase 3 of the Baleine project:
➡️ Oil production will go from 60 to 150 thousand barrels per day.
➡️ Gas production will go from 80 to 200 million cubic feet per day.
It’s a huge step forward.
The FID also involves the development of a new floating production, storage and offloading (FPSO) unit.
As part of the agreement, all gas is going to the Ivory Coast market to promote energy security and ongoing development.
We’ve seen more capital flow toward the offshore segment in recent years, as the world increasingly recognizes just how robust oil & gas demand will be in the years and decades ahead.
Offshore requires huge capital deployments.
But the decline dynamics are favorable, as each project yields relatively low cost, relatively small environmental footprint barrels for years into the future.
Those are dynamics that make for an attractive investment case for shareholders.
While it’s easy to look past any single project, each one is a reminder that the world continues to marshal considerable capital toward an energy future in which oil & gas figure prominently.
The offshore segment is in favor all over the world right now.
It’ll be really interesting to see where the next big FID emerges.
