It has been reported in the media during May 2020, that Eni SPA could be looking to exit its Australia exploration and production position. A divestment process could be launched by end-May 2020 as the company is reported to be working with investment bank Citi to prepare the offering. It is thought that a divestment of its northern Australian portfolio could also include its Timor Leste position also.  Eni's operations currently supply natural gas into the Australian Domestic market from the operated Blacktip gas field. Domestic markets are seen to be less exposed to the global demand and price fluctuations making the asset a stable, medium-term acquisition. Eni also holds an 11% stake in the Darwin LNG project, operated by ConocoPhillips (soon to be Santos).   Both assets are in natural reservoir decline with Bayu-Undan gas and condensate field expected to cease around 2023. Darwin LNG is planned to be backfilled by the Barossa field, in which, Eni does not participate. Moving past 2023, production for Eni could be limited to the declining Blacktip field until new assets come on stream. The project could keep producing to the domestic market until around 2048. No financial investment decisions have been made for Eni's 'upside' projects including: Evan Shoals, Blackwood or Penguin. Any future development decisions would unlikely see gas production before in the next 10-15 years, but the portfolio is estimated to contain in excess of 700 MMboe of remaining resources (net to Eni). Near filed exploration or field de-development is another option to increase the upside of the portfolio from Eni's existing oil assets, such as Woollybutt and Kitan.  Likely if sold, the assets could form one package, but could attract a consortium of buyers to handle the diverse nature of the assets across domestic gas production, LNG in Darwin and plant infrastructure.  During Eni's time in Australia and Timor Leste, it has participated in over 90 wells, including 43 new field wild cats, since 1984. Moving to the northern Australian offshore basins in 2000, Eni is now thought to be preparing to divest its remaining gas assets.
Eni Australia Ltd, Eni Timor Leste SpA could be looking to divest its entire Australian gas portfolio