Eni Starts Talks with GIP for Carbon Capture Unit Stake Sale

© Dmytro Surkov - stock.adobe.com / Adobe Stock
© Dmytro Surkov - stock.adobe.com / Adobe Stock

Eni has entered exclusive talks to sell a 49.99% stake in its carbon capture, utilisation and storage (CCUS) business to BlackRock's infrastructure fund GIP, the Italian energy group said on Tuesday.

The move is part of Eni's broader strategy to develop dedicated units - or satellites - and sell minority stakes in them to fund their growth.

That allows Eni to expand its low-carbon businesses while preserving its capacity to invest in oil and gas activities, Chief Transition and Financial Officer Francesco Gattei recently said.

Eni CCUS Holding includes the Hynet and Bacton projects in Britain and L10 in the Netherlands, and has future rights to acquire Italy's carbon capture project in Ravenna.

According to the agreement under negotiation, GIP will not only acquire a stake but also support investments to develop the CCUS projects, Eni said in a statement.

The Italian group said the agreement came after a selection process among several suitors.

Sources told Reuters in March that GIP, HitecVision, Macquarie, Italy's Snam and Thailand's PTT Exploration and Production Public Company had presented non-binding bids for the business.

CCUS technology removes CO2 produced by industrial processes from the atmosphere or captures it at the point of emission and stores it underground.

The International Energy Agency says the technology can play a vital role in achieving global climate goals. But critics say it risks prolonging the use of fossil fuels and question its commercial viability.


(Reuters - Reporting by Francesca Landini, editing by Gavin Jones and Jan Harvey)

Current News

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

ABL Lands Work on BP’s Indones

Seatrium Picks ABB to Supply Electrical Equipment for Petrobras' FPSOs

Seatrium Picks ABB to Supply E

Germany's SEFE and Azerbaijan's SOCAR Enter Long-Term Gas Supply Deal

Germany's SEFE and Azerbaijan'

Tower Resources Lines Up ADES Jack-Up Rig for Cameroon Drilling Op

Tower Resources Lines Up ADES

Subscribe for OE Digital E‑News

 
Offshore Engineer Magazine