Eni Ups Stake in Alaska's Nikaitchuq Field to 100%

Eni acquired 70% and the operatorship of the Nikaitchuq Field, located on-offshore in the North Slope of Alaska. Eni, which already owned a 30% stake in the field, now holds a 100% working interest.

Eni acquired the additional interest and operatorship as the result of an agreement with Kerr-McGee Oil and Gas Corporation, a wholly owned subsidiary of Anadarko Petroleum Corporation.

Nikaitchuq would be the first development project operated by Eni in Alaska. Successful appraisal drilling has been completed, confirming the potential viability of the development project.

Plans for a phased development are currently being evaluated with the target of sanctioning the project by year end, and first oil to flow by the end of 2009.

The Nikaitchuq project comprises the drilling of approximately 80 wells, out of which 32 are located onshore and the remaining from an offshore artificial island. All wells will then be tied back to a production facility located at Oliktok Point to reach a production of 40,000 b/d. Total investment will amount to approximately US $900 million.

Eni has been present in Alaska since August 2005, following the acquisition of 103 exploration leases from Armstrong Oil & Gas in the North Slope area. Since then, Eni's portfolio in the region has grown and now encompasses 151 leases.

Eni is committed to growing globally through the exploration of new areas for both oil and gas, and believes that North America continues to hold promising opportunities, and Alaska, is one of the key areas. In particular the Beaufort Sea, where Eni holds 64 leases, is a largely untested area, with a high potential.

Eni, leveraging its technological know how and large international experience as operator of development projects in challenging conditions, is determined to build a significant position in Alaska. The acquisition of the Nikaitchuq Field is an important step in this direction.

To be successful, and to achieve its vision for Alaska, Eni fully recognizes the need to work in partnership with key stakeholders to ensure a mutual benefit. Though production operations are still some years away, Eni has clear plans to actively work with all relevant parties and is committed to listening to local communities and getting the best cultural and environmental information and input.

Eni group opened in March 2006 an operating office in Anchorage, with the ambition to be in Alaska for a long time.