Eni and Sonangol Sign PSC for Exploration Block 15/06

Eni S.p.A.

Eni on Monday signed a production sharing contract (PSC) with concessionaire Sonangol for exploration Block 15/06, located in deepwater offshore Angola 350 km off the coast of Luanda.

Block 15/06 lies in high-potential mining acreage covering 2,984 square km. Eni is the operator of the project with a 35% interest. The contract was assigned last may following a highly competitive international tender with fourteen bids submitted. The deal involves drilling 8 wells and conducting 3D seismic surveys on a 1,500 square km area, which will be carried out in the first 5 years of exploration.

For Eni the deal represents a further step in strengthening its presence in Angola and reinforces its commitment to deepwater developments. The technological complexity of these frontier projects requires specific skills and expertise that are key factors in the company's success.

Eni's operatorship of the project also allows it to leverage its deepwater experience, gained through its participation in the adjacent Block 15, where it holds a 20% interest. Angola, together with Algeria, Egypt, Libya, Nigeria and Kazakhstan, is one of the world's fastest growing oil producing countries. Eni has identified these countries as strategically important for increasing its oil production.

Eni first entered Angola in 1980 and has since established a significant production base in the country, where it is currently producing above 150,000 net barrels of oil per day.