Eni Monetizes Oil Past to Finance Clean Energy Future: Report

The Italian oil and gas company Eni S.p.A. E reportedly plans to spin-off interest in high-potential oil and gas projects, including Indonesia and Ivory Coast.

The company plans to finance its development and focus on more capital on low-carbon activities, reported Reuters.

As per the report, such deals is expected to expand veteran CEO Claudio Descalzi’s strategy to split some of Eni’s operations into separate entities, to raise money and tap investors such as private equity firms and infrastructure funds.

Chief Financial Officer Francesco Gattei said, “The satellite model is an approach we have built to have additional funding sources to keep together the need to meet demand for traditional products, while also developing new, greener products,”

Last month, Eni inked an agreement with Ithaca Energy plc to substantially combine all of its upstream assets in the UK (excluding East Irish Sea assets and CCUS activities) in exchange for a 38.5% stake. 

Also, Eni reportedly planned to sell minority stakes in its biofuel and bio-plastic units by year-end and expects the divestiture to garner EUR1.3 billion.

Investors can gain exposure to the stock via Pacer Developed Markets International Cash Cows 100 ETF IDGT and AdvisorShares Dorsey Wright ADR ETF AADR.

Price Action: Eni shares closed higher by 0.96% at $32.64 on Friday.