Italian energy firm Eni reviewing Middle East projects

Italian energy firm Eni is reviewing its projects in the Middle East region as a result of the impact coronavirus and low prices.

Fuad, Krekshi, Eni’s executive vice president for the region, revealed that the firm was reviewing all on going projects for 2020 and 201 during a media conference call on 24 March. “We expect to come out with the revised plan sometime next month.”

Eni’s projects in the Middle East include upstream and downstream projects in the UAE, Oman, Lebanon and Bahrain.

“It is not just coronavirus here,” said Krekshi. “You are talking about a market with a sudden drop of oil prices by 50 per cent.”

The news followed shortly after it was reported that Abu Dhabi National Oil Company (Adnoc) had notified contractors and suppliers that it would review existing contracts to find ways of reducing costs due to the fall in oil prices. Oil prices have fallen from $68 in January to $28 this week as the impact of the coronavirus outbreak and the collapse of the alliance between Opec and Russia to cut oil production.

Krekshi told the media call that there would be joint review with Adnoc regarding Eni’s projects in the UAE. In 2018, Eni was awarded a 25 per cent stake in the Ghasha sour gas field in Abu Dhabi.