Italian energy group Eni has unveiled its 2016-2019 strategic plan, aiming at an annual growth in production by more than 3% (+13% cumulated by 2019, thanks to the ramp-up and start up of new projects with a total contribution of around 800 kboe/d). Throughout the plan, Eni expects new discoveries of 1.6 Gboe at a competitive cost of US$2.3/bbl. The group also plans to cut its upstream capital expenditures by 18% compared to its previous plan. The group has cut the average break-even of new projects, from US$45/boe to US$27/boe.
Eni will continue to restructure its Mid-Downstream businesses and to renegotiate long-term contracts and reductions in logistics costs. The company has achieved 90% of the previous 4-year plan disposal target and now plans to dispose of another €7bn of assets by 2019, mainly through the dilution of its stakes in recent and material discoveries as part of its dual exploration model strategy. Eni will maintain its current refining capacity, which should generate a cumulative cash flow from operations contribution of €2.9bn over the plan period. In order to address the structural weaknesses in the refining sector, Eni’s target is to lower its break-even to around US$3/bbl by 2018.