Italian energy group Eni has asked Morgan Stanley to help it to raise funds from investment firms such as Apollo, KKR and Stonepeak in a possible deal backed by its floating liquefied natural gas (FLNG) assets, three people familiar with the matter said.
The contacts between Eni and the funds are at an early stage and there is no certainty that a deal will be completed, the sources cautioned.
Any potential transaction is expected to generate at least one billion euros for Eni, one of the sources said.
The move would be in line with Eni's broader strategy of tapping investment from infrastructure funds to help free up capital for new projects.
Under one proposal being discussed, the infrastructure fund would make an initial cash injection into a special purpose vehicle, which would be entitled to receive payments coming from the FLNG assets, the sources said.
Apollo, Eni, KKR, Morgan Stanley and Stonepeak declined to comment.
Talks between Eni and infrastructure funds come as Europe and Asia compete for LNG cargoes on the global market, with supply disrupted by the fallout from the Iran war.
Eni has gained extensive expertise in setting up and operating so-called 'floaters', including three floating liquefied natural gas units that process and liquefy gas from offshore fields in Mozambique and Congo to export it to foreign markets.
Eni plans to deploy another floating LNG platform in Mozambique, a project that could cost more than $7 billion, and two in Argentina for state oil company YPF YPFDm.BA by 2030.
The assets at the centre of the transaction would give investors exposure to Africa and other geographies outside the Middle East, offering diversification away from an area still embroiled in the Iran war, another of the sources said.
(Reuters - Reporting by Francesca Landini and Elvira PollinaEditing by Keith Weir)