The CEO of massive global energy company Eni, Claudio Descalzi, has stated that Italy is prepared to invest in Africa.
According to Reuters, he stated this during a political event in Rome on Saturday, December 16, that Italy is willing to invest in Africa for two main reasons.
First and foremost, to obtain the energy resources required for Italy’s economic expansion. Secondly, to deal with and oversee the matter of migrant flows.
Take note that Eni is a state-controlled energy giant and the biggest importer of natural gas into Italy. Since 2022, it has had decreased supplies from Russia.
Eni boosted the transportation of gas from Africa to offset this decline, taking use of its long-standing presence on the continent spanning several decades.
Descalzi also emphasized the possible benefits of strengthening ties between Italy and Africa. He referred to China’s substantial engagement in Africa throughout the previous thirty years, which was mainly concerned with obtaining vital resources like gas, oil, and supplies.
Italy wants to forge such connections that might lead to resource acquisition and commercial alliances that benefit both countries.
“Italy is ready to invest in Africa; this is also necessary because energy is currently flowing from the south to the north, and we must be the ones to steer this flow for the benefit of both Africa and ourselves,” he declared.
Eni announced a proposed deal with Oando PLC, a prominent Nigerian energy solutions provider, in September 2023, involving the sale of Nigerian Agip Oil Company Ltd, Eni’s wholly owned subsidiary focused on onshore oil and gas exploration, production, and power generation in Nigeria.
The proposed transaction is subject to regulatory bodies’ clearance.
NAOC Limited is a Nigerian company that operates in four onshore blocks (OML 60, 61, 62, 63). As a member of the NAOC Joint Venture, which is owned by NNPC E&P Limited 60%, Oando 20%, and NAOC Ltd 20%, it oversees these blocks.
In addition, NAOC Ltd manages two onshore exploration licences (OPL 282 and OPL 135, with respective ownership percentages of 90% and 48%), and is involved in the Okpai 1 and 2 power plants, which have a total capacity of 960 megawatts.
It is noteworthy to mention, meanwhile, that Eni is keeping its 5% share in the Shell-run SPDC JV. Eni made it clear that it would carry on with its operations in Nigeria, concentrating on independently managed offshore projects.
The business will continue to be involved in assets that are operated by third parties, both onshore and offshore, and it will continue to be a part of Nigeria Liquefied Nigeria Gas Limited.
This deal is in line with Eni’s 2023–2026 strategic plan. It seeks to support organic growth with strategic acquisitions that bring added value while divesting resources that could potentially offer more significant opportunities to new owners.
This deal can only go through if all the necessary local and regulatory authorities give their approval.
