Eni, the Italian oil major that has been operating in Nigeria since 1962 alongside local communities with activities involving the exploration and production of hydrocarbons is currently looking at the direction of Iraq.
Chief Executive Officer of the company, Claudio Descalzi, met with Iraq’s Deputy Prime Minister of Energy Affairs, Thamir Al Ghadhban, to talk about collaboration between the two entities.
Eni’s presence in Nigeria dates back to the establishment of the Nigerian Agip Oil Company Ltd (NAOC). In 1965, the Ebocha and Mbede oil fields were discovered, with the Kwale, Okpai, Akri, Obiafu and Obrikom fields dating back to 1967. In the early 1970s, production began at the Ebocha and Mbede fields.
Through the Nigerian National Petroleum Corporation (NNPC), the nation acquired a stake in NAOC in 1972, opening the way for co-operation with Eni. The Brass oil terminal, about 100km west of Port Harcourt, in the state of Bayelsa, was inaugurated in 1973. The same year also saw the discovery of the Obama field and in 1975 the Ebegoro field.
In 1977, NAOC – in a joint venture with Shell – launched at Akri-Ouguta the first project for the conservation and enhancement of gas by reinjection into the wells. In 1985, a joint venture led by NAOC initiated a similar project in the Obiafu and Obrikom fields with two main objectives: to stop the burning of associated gas from seven oil fields and increase the amount of recoverable oil through the maintenance of reservoir pressure. After the success of this operation, the joint venture in 1987 identified another gas reinjection project in the Kwale and Okpai fields.
In 1988, a major social initiative was unveiled called the Green River Project, an integrated, modular agricultural project, which aimed to promote the self-sufficiency of rural populations, especially in the states of Rivers, Bayelsa, Delta and Imo.
The following year, NAOC became part of the NASE consortium that included NNPC (55 per cent), Shell (operator, 30 per cent) and Total (10 per cent) with a 5 per cent share. In 1996, Nigerian Agip Exploration Ltd (NAE) was set up for deep-water exploration. In 1998, NAOC signed an agreement with the Nigerian authorities to extend, for another 30 years, the licences for four blocks in the Niger Delta.
In 1999, NASE began supplying natural gas to the Bonny Island liquefaction plant which, in October 1999, began liquefied natural gas deliveries to European customers. In 2001, the Obiafu/Obrikom 69-Megawatt (MW) gas-fired electric power generating station was inaugurated, while in April 2005, in Delta State, the gas-fired thermal power plant at Okpai, with an installed capacity of 480 MW, began operations.
However, Eni in a statement said the pair “discussed future opportunities and development investments that will further strengthen Eni’s relationship with the country,” and Descalzi noted “potential synergies” surrounding energy projects in Iraq.
Eni has has a presence in Iraq since 2009 through its subsidiary Eni Iraq B.V., and with the ramp up of the Zubair Field Development Project (Eni 41.56%, Kogas 23.75%, BOC 29.69%, State Partner 5%) the company has become one of Iraq’s main operators in the oil sector. It operates 475,000 barrels of oil equivalent in the country per day.\
At Zubair, oil production has grown by over 100% since 2015 and a new 380 MW plant that will generate power for domestic consumption is in the final stages of construction.
Zubair is one field in the southern Iraq region of Basra, which is oil-rich but has seen protests in 2018 regarding a low standard of living and lack of access to basic necessities. In the meeting, Descalzi and Al Ghadhban discussed the progress of social projects that are currently underway in the Basra Governorate in the areas of healthcare, education, access to energy and clean drinking water.
This follows Eni’s January 2019 regional exploration spree that saw the company sign exploration deals in three countries within a matter of days, including the acquisition of a 70% stake in two Abu Dhabi offshore concessions.
