Eni Sells Two Alaska Fields to Hilcorp for $1 Billion

Eni SpA has completed the divestment of the Nikaitchuq and Oooguruk fields in Alaska to Hilcorp Energy Co. for $1 billion.

The sale is part of Italian government-controlled Eni’s goal to generate $8 billion of net portfolio inflow between 2024 and 2027.

The integrated energy company’s strategic plan for the four years also includes keeping capital costs at EUR 7 billion ($7.5 billion) yearly, down over 20 percent compared to the previous target. Eni plans to execute capital discipline through “optimization, improved project quality and greater portfolio management”, it said in a statement March 14 announcing strategic targets for 2024–27.

Announcing the closure of the sale to Hilcorp this week, Eni said in a statement, “The transaction, which received the approval of all relevant authorities, is in line with Eni’s strategy focused on the rationalization of the upstream activities by rebalancing its portfolio and divesting non-strategic assets”.

“Within Eni’s financial structure, supporting the Company’s distinctive growth-oriented strategy, Eni is committed to delivering a net €8 billion of net portfolio inflow over the 2024-27 Plan and considering completed deals and actions in progress Eni now expects to substantially achieve the target by 2025, in less than two years”, added the statement on the company’s website.

“Proceeds are anticipated to come from three main sources: high-grading the Upstream portfolio, diluting down high equity ownership exploration discoveries, and accessing new pools of capital via Eni’s satellite strategy to support the growth of its transition businesses while confirming progress in value creation”.

The satellite strategy involves creating “focused and lean companies able to attract new capital to create value through operating and financial synergies and the acceleration of growth”, in the company’s words.

Nikaitchuq started producing January 2011. Located offshore the North Slope in a water depth of three meters (9.8 feet), the field is estimated to hold 200 million barrels of oil. It is Eni’s first operated asset in Arctic waters, according to the company.

Oooguruk began production 2008. It sits around five kilometers (3.1 miles) off the coast of the North Slope.

“Eni will continue to be present in the USA in the upstream of Gulf of Mexico as well as in energy transition projects in the renewables, biofuels and magnetic fusion”, the statement said.

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