Commodity trader Vitol has agreed with Italian explorer ENI to acquire interests in certain assets owned by ENI in Côte d’Ivoire and the Republic of Congo for an aggregate consideration of $1.65Billion at 1 January 2024, with standard cash adjustment at closing.
“Vitol will acquire an interest in both oil and gas producing assets and blocks undergoing exploration, appraisal and development”, ENI said in a statement.
“These include the Baleine project in Cote d’Ivoire, where ENI has a 77.25% ownership interest and Vitol will acquire a 30% participating interest, and Congo LNG project in the Republic of Congo, where ENI has a 65% participating interest and Vitol will acquire a 25% participating interest”, the European major added.
ENI and Vitol are already partners in the Offshore Cape Three Points (OCTP) in Ghana, an integrated oil and gas project where the natural gas that is produced that is produced is entirely destined to meet the demands of Ghana. The two companies are also paters in the country’s Block 4, where there have been two undeveloped discoveries in the last five years.
“This agreement further consolidates cooperation between the two companies in West Africa”, ENI explained, adding that the “ transaction is in line with EN’s strategy of optimizing upstream activities, through a rebalancing of the portfolio that provides for the early valorization of exploration discoveries through a reduction of participations in them (the so-called dual exploration model)”.
Vitol, though primarily a commodity buyer and seller, has had an upstream presence in West Africa region in the last 15 years in addition to 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. Completion will be subject to conditions precedent, including the obtaining of relevant regulatory approvals”, ENI said.
