Eni (E) to Initiate Exploration in Portugal, Shares Up

Zacks

Italian operator EniSpA’s (E) share price rose by about 3% following the announcement of the company’s finalization of a farm in agreement with Petrogal, a wholly owned subsidiary of the Portuguese company, Galp Energia.

The agreement relates to the acquisition of a 70% stake and operatorship of the Gamba, Santola and Lavagante permits. It also guarantees the exploration rights for an unexplored area of 9,100 square kilometers in offshore Portugal.

Petrogal received the exploration permits for the three blocks in 2007 from the Portuguese State. Eni partnered with Galp Energia after Petrobras dropped out of a previous partnership last year. The agreement forms a part of the strategy targeted at diversifying and expanding Eni’s exploration portfolio.

Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments include Exploration and Production (E&P), Gas and Power, and Refining and Marketing. The company conducts major exploration and production activities for hydrocarbons.

Eni operates these activities out of Italy, Croatia, North Africa, West Africa, the North Sea, the Gulf of Mexico, the Middle and Far East, the Caspian Sea, Australia and Latin America.

Other segments in which Eni is involved in are Chemicals, Services & Engineering, Other & Corporate, and Corporate & Financials. Additionally, Eni is involved in offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies.

Eni carries a Zacks Rank #5 (Strong Sell). Investors could consider other stocks like Spectra Energy Partners, LP (SEP), Seadrill Partners LLC (SDLP) and Sandridge Mississippian Trust II (SDR), all of which sport a Zacks Rank #1 (Strong Buy).

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