Italian Energy Company Eni Open To Selling Stake In The Zohr Gas Field After Huge Discovery

According to Reuters Africa, Italian, state-controlled integrated oil and gas company Eni SpA (ADR) E is willing to sell a stake in the Zohr gas field discovery off of Egypt, following the discovery of a huge gas field, CEO Claudio Descalzi said.

On Sunday, the company announced the finding of “the largest known gas field in the Mediterranean off Egypt, covering an area of about 100 square kilometers (60 square miles) and containing a potential 30 trillion cubic feet (tcf) of gas."

All About Dividends

Last year, Eni had to trim its dividend amidst an environment of tumbling oil prices. Now, the sale of the stake at Zohr is aimed at funding development without foregoing any more dividends; This is not the first in its kind. Recently, Eni sold part of its gas discovery in Mozambique, and has declared it is looking to reduce its exposure by another 15 percent.

In an interview published Monday from the Italian newspaper La Repubblica, Descalzi assured this is “an open door to give value and solidity to Eni's balance sheet.” However, “it will not be a necessary outcome. There is much less to spend than in Mozambique and the new gas is aimed at the local domestic market with prices disconnected from those of oil, which today are at six-year lows."

Shares of Eni surged 3.26 percent on Monday.