MILAN, Dec 14 (Class Editori) – The consortium composed of ENI, Shell, Chevron and Lukoil paid $1.3 billion to Kazakhstan in order to solve a dispute on the profits’ share. The announcement has directly arrived from the Ministry of Energy of the country. The counterparties- according to what the Ministry has pointed out- have also decided that Kazakhstan will receive a higher percentage of future profits.
Currently, they will go ahead with a project worth $1 billion in order to extend the production peak of the Karachaganak’s liquefied gas deposit. In particular, the Kazakh government will receive an extra amount of $600 million by 2037, if crude oil prices range between $40 and $50 million per barrel. In 2015, Kazakhstan lodged a complaint worth $1.6 billion against the foreign companies committed to the development of the Karachaganak’s liquefied gas deposit, by affirming that they have not received a correct profits’ share. After years of negotiations, the agreement has been finally reached.
Therefore, also thanks to the WTI crude oil increasing by 1.2% to 47.13 per barrel and Brent above the threshold of $50 ($50.57, +1.22%), as well as the confidence about vaccines against COVID-19 and the relative outlook of a recovery within next year, which would lead to a new increase in oil demand, ENI has gained 1.51% on the Milan Stock Exchange, up to €8.941, even though Massimo Mondazzi, Chief operating officer of the Energy Evolution division, resigned last Friday.
His Deputy, Giuseppe Ricci, is taking his place starting from January 1. At the same time, Massimo Mondazzi will join the Board of Directors of the ENI Foundation Enrico Mattei. “This move is a surprise and takes place a few months after Mondazzi, CFO for many years, had assumed this role, while the group is developing its activity of alternative energy solutions”, as Mediobanca Securities has affirmed this morning, by confirming the neutral rating and the target price at €9.50 on the ENI bond.
Mondazzi joined ENI in 1992, he has worked as CFO from 2012 to 2020 and was appointed COO of Energy Evolution on July 1, 2020. Giuseppe Ricci, instead, joined the oil giant in 1985, he became Executive Vice-President health, safety, environment and quality in 2012 and was appointed Chief R&M officer in 2016. “Therefore, he has gained a strong experience in strategic fields, such as circular economy, downstream, health, safety and environment, which will be very useful for his new role”, as Fidentiis has added. (All rights reserved)
(Source:Class Editori)
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