Eni Strengthens Position with Strategic Drilling and Financial Moves

Shares of Italian energy giant Eni are gaining traction following a series of strategic developments. The company is making headlines with the commencement of a significant deepwater exploration project and the successful issuance of a major bond, both aimed at reinforcing its operational and financial foundations.

In a key financial move, Eni strengthened its capital structure on January 19 with the successful placement of a new €1 billion subordinate hybrid bond. The offering witnessed robust investor demand, with total orders exceeding €6 billion. Listed on the Milan and Luxembourg exchanges, the bond carries a coupon of 4.125% until its first interest rate reset date in April 2032. Proceeds are earmarked for general corporate purposes and funding the company's energy transition initiatives.

Mediterranean Deepwater Exploration Commences

On the operational front, Eni has initiated an exploratory drilling campaign at the A1-38/3 deepwater site in the Gulf of Sirte, off the coast of Libya. The project, named "Moamel Almatsoula," is a joint venture with BP and Libya's National Oil Corporation. Utilizing the Saipem 10000 drillship, the operation is targeting a total depth of approximately 4,500 meters in waters around 1,900 meters deep. A successful outcome for this high-stakes well is a crucial component of Eni's strategy to replenish its regional oil reserves and stabilize production.

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Shareholder Returns and LNG Milestone Progress

Eni continues to execute its substantial capital return program for shareholders. To date, the company has repurchased shares worth €1.58 billion under the current buyback initiative, representing roughly 3.36% of its share capital. Furthermore, the third dividend installment for the 2025 fiscal year is scheduled for payment on March 25.

Simultaneously, the company is advancing its liquefied natural gas (LNG) growth portfolio. A major milestone was reached at the Coral North project in Mozambique, where the hull for the second floating LNG production unit was launched in South Korea. This facility, one of the largest of its kind, is designed to double production capacity in the Rovuma Basin and is expected to become operational by 2028.

The current investment case for Eni rests on this three-pronged approach: ambitious exploration, disciplined capital returns, and expansion in the growing LNG sector. Market attention will now turn to forthcoming operational results from Libya to assess the progress of the pivotal drilling campaign.