Press Esc to close

WorldOil

World Oil News Center



Eni gas renegotiation effects are retroactive; talks going well


BY LIAM MOLONEY
 
MILAN – Eni’s key renegotiations of its natural gas supply contracts are progressing well and the benefits of a successful outcome are retroactive, said a leading executive of Italy' s largest energy company by market value Wednesday.

"There is quite good traction [in the discussions]...the effects are all retroactive to January 2013, with some to 2012," said Marco Alvera, head of Eni Trading, at a conference call to comment on first-quarter results.

Eni is holding talks with its main gas suppliers, such as Gazprom and Algeria' s Sonatrach, as part of its plan to make such contracts profitable, which were signed under long-term take-or-pay agreements. Such contracts tie the price of the gas Eni has to buy to more expensive oil prices.

Earlier Wednesday, Eni reported first-quarter results in which the gas and power division had $192.4 million in operating loss. This contrasts with a EUR1.02 billion profit in the same period of 2012, which was boosted by the successful conclusion of a separate round of gas contract renegotiations.

 

04/24/2013

 

Bookmark and Share


WO DATA HUB

EngineeringTablesIcon-Large

Engineering Data Tables

World Oil's specialized upstream Engineering Data Tables featuring the Drill Bit Classifier, Tubing Tables and more. Get Total Access today.

WO SUPPLEMENTS

2013 Fracturing Technology

2013 Fracturing Technology

MEDIA CENTER

By Digital Publisher

Drill Bit Classifier World Oil published its renowned Drill Bit Classifier in September 2013. The Drill Bit Classifier is a comprehensive listing of major manufacturers' d...

ENERGY EVENTS