Italy’s Eni SpA moved forward with plans to discover 700 million equivalent barrels (MMboe) of resources in 2023 with the addition of significant new volumes in first-quarter 2023.

Resource additions during the quarter came from near-field discoveries in Egypt, Algeria and Norway and significant new discoveries in Egypt, Cyprus and Mexico, the company announced on April 28 in first-quarter 2023 earnings.

Aldo Napolitano, Eni’s executive vice president of exploration projects management, said during the company’s first-quarter earnings webcast that resource additions from Cyprus were the result of a well drilled around Christmas 2022.

“So there is, of course, the need for some time in order to assess the actually recoverable volumes from the discovery. So the allocation of the volumes entered into the first quarter, it is always a rolling process,” Napolitano said. “So for example, in the discovery this quarter—you see a discovery in Congo—and we are assessing the recoverable resources. And so these volumes instead will enter into the second quarter.”

In 2022, Eni discovered approximately 750 MMboe of resources mainly in Cȏte d’Ivoire, Cyprus, the United Arab Emirates and Algeria, according to the company .

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Discoveries in the first three months of 2023 are part of others Eni anticipates over the next four years as the company targets adding 2,200 MMboe during the 2023 to 2026 timeframe. The company has set a capex target of €37 billion (US$40.75). During the period, Eni aims to focus around 90% of its exploration efforts in areas close to near-field producing assets and existing infrastructure.

At year-end 2022 the Italian company had net proved hydrocarbon reserves of 6,600 MMboe with a reserves-to-production or R/P ratio of 11.3 years, according to details in its annual report.

Eni is targeting a shift in its production matrix with an aim of gas reaching 60% of its production mix by 2030. The successful ramp-up of the Coral South, offshore Mozambique, and new Eastern Mediterranean discoveries are all in line with reaching this objective, company executives said during the webcast.

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Lower commodity prices impact adjusted net profit

Eni reported adjusted net profit of €2.9 billion during the first quarter of 2023 compared to €3.3 billion in the same quarter a year ago.

The results were driven by average production of 1.66 MMboe/d, flat compared to first-quarter 2022 and a dated Brent price that fell 20% and spot gas price at the Italian PSV, or virtual exchange point, that fell 42%.

“Eni has delivered an excellent set of operating and financial results despite a weakening scenario. This was driven by a resilient E&P result that featured a recovery in hydrocarbon production and very strong gas and LNG performance,” Eni CEO Claudio Descalzi said in Eni’s first quarter of 2023 release. “We also saw a steady contribution from biorefineries, the commercial network and continued growth from Plenitude and Power.”

Eni accelerates net zero targets

Eni continues to eye net zero greenhouse gas emissions by the middle of the century, in line with a push to boost gas in its production mix as part of an ongoing industry-wide energy transition away from coal and oil.

Eni is now targeting net-zero emissions by 2030 for Scope 1 and 2 emissions instead of 2035 as earlier forecast, executives said during the webcast. The company continues to aim for a 65% reduction in Scope 1 and 2 emissions by 2025 compared to the 2018 baseline.

Long-term, Eni’s 2050 carbon neutrality target for Scope 1, 2 and 3 emissions, which aims for a reduction of 35% by 2030 and 80% by 2040 compared to the 2018 baseline, remains unchanged.

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