Online Reporter
Vitol Group agreed to buy into Eni SpA’s assets in Africa as the trading giant taps bumper profits to beef up its oil and gas portfolio.
Vitol will acquire stakes in projects in Ivory Coast and the Republic of Congo for $1.65 billion, according to a statement on Wednesday.
The deal deepens the company’s longstanding relationship with Eni in West Africa, where they’ve partnered in oil-producing assets in Ghana.
Vitol has enjoyed the most profitable period in commodity — trading history thanks to the wild price swings driven by Russia’s invasion of Ukraine.
It’s now plowing some of that windfall into acquisitions, striking deals for rival Noble Resources, refiner Saras SpA and fuel stations in Turkey and South Africa.
The latest acquisition comprises a 30 percent interest in the Baleine project in Ivory Coast and a 25 percent stake in Congo LNG, according to the statement. Bloomberg reported last year that Eni was looking for a buyer for Ivory Coast assets.
The deal marks further progress in Eni’s so-called satellite model, where it splits off operations to reduce risk while retaining an interest.
The transaction is part of Chief Executive Officer Claudio Descalzi’s plan to raise about €8 billion ($8.7 billion) from asset disposals — half in upstream.
Eni shares rose 0.7 percent at the open in Milan. — Bloomberg
Bongani Ndlovu