Geneva-based energy trader Vitol has agreed to buy a stake in Eni’s Congo LNG project as part of a deal announced on Wednesday.
According to a statement by Italy’s Eni, Vitol will acquire interests in certain assets owned by Eni in Cote d’Ivoire and the Republic of Congo for an aggregate consideration of $1.65 billion at January 1, 2024, with standard cash adjustment at closing.
Vitol will buy an interest in both oil and gas producing assets and blocks undergoing exploration, appraisal, and development.
These include the Baleine project in Cote d’Ivoire, where Eni has a 77.25 percent ownership interest, and the Congo LNG project, where Eni has a 65 percent participating interest.
Eni said Vitol will acquire a 30 percent participating interest in the Baleine project and a 25 percent participating interest in the Congo LNG project.
The two firms are already partners in the OCTP and Block 4 projects in Ghana, and this agreement further consolidates cooperation between the two companies in West Africa.
Eni said this transaction is in line with its strategy aimed at optimizing upstream activities through a rebalancing of the portfolio that provides for the early valorization of exploration discoveries through a reduction of participation in them.
Vitol has had an upstream presence in West Africa region for many years. In addition, it has a portfolio of infrastructure and downstream related investments.
“The parties will look to conclude the agreements for the sale and purchase of the interests described above as soon as practicable,” Eni said.
Completion will be subject to conditions precedent, including the obtaining of relevant regulatory approvals, it said.
Congo LNG
In February 2024, Eni shipped the first LNG cargo from its Tango floating LNG facility moored in Congolese waters, which arrived at Snam’s FSRU-based facility in Piombino.
Belgium’s Exmar recently said that Eni’s Tango FLNG is producing LNG above the guaranteed levels of 0.6 mtpa.
“Congo FLNG project is progressing towards its target completion by the end of 2025 with the launch of the hull of the Nguya floating vessel, which will increase the liquefaction capacity of the project from the current 0.6 to 3 mtpa,” Eni said in its recent results report.