Italy's Eni plans to boost its upstream oil and gas spending by a third in 2023-26, leading to slightly higher production growth than previously forecast. The strategy will help address energy security and affordability, the company said today.
Eni said it is aiming for 3-4pc/yr production growth over the next four years. Its previous strategy, released a year ago, targeted 3pc/yr growth out to 2025. To achieve this, Eni plans to raise its upstream capital expenditure (capex) budget to an average of €6bn-€6.5bn/yr ($6.4bn-6.9bn/yr) in 2023-26. Its previous plan was to invest an average of €4.5bn/yr in 2022-25.
Beyond 2026 Eni expects its production to plateau through to 2030, by which time the share of natural gas in its output mix will have increased to 60pc from 53.4pc in 2022. Eni said it plans to secure gas supplies for its customers via "a more diversified, flexible and integrated portfolio" that will see its contracted LNG volumes rise to more than 18mn t/yr by 2026, double that of 2022.
To achieve its upstream goals, Eni said it is developing new gas resources, diversifying its geographical footprint and making use of exploration and the fast-track development of projects. It plans to add around 800,000 b/d of oil equivalent (boe/d) to its production from start-ups and ramp-ups by 2026. The company also aims to add 2.2bn boe to its resource base over the next four years, of which 60pc will be gas.
Despite the plan to boost hydrocarbon production, Eni said it is sticking with targets to reduce its scope 1, 2 and 3 emissions by 35pc by 2030 and by 80pc by 2040 along the way to net zero by 2050.
Outside of the upstream sector, Eni is accelerating its ambition in bio-refining, raising the capacity target for its Sustainable Mobility segment to more than 3mn t/yr by 2025, from 2mn t/yr previously, and to over 5mn t/yr by 2030. And it expects its Plenitude retail, renewables and e-mobility business to grow its renewable generating capacity to more than 7GW by 2026 and at least 15GW by 2030.
Overall, Eni expects its "underlying" capex budget across all its businesses to be 15pc higher in dollar terms than in its previous plan.
The company said its shareholder remuneration policy has been simplified so that 25-30pc of cash flow from operations will now be distributed in dividends and share buybacks. The proposed 2023 dividend has been increased by 7pc to €0.94 per share, while the latest share buyback programme has been set at €2.2bn. Eni completed its previous €2.4bn buyback programme in November last year.
Earlier today Eni reported a profit of €13.81bn for 2022, more than double the €5.82bn it made in 2021.
