Eni SpA, which has a binding agreement to divest its Alaskan assets to Hilcorp Energy Co., expects to close the deal before year-end 2024, according to the Italian company. The financial terms of the divestment were not disclosed.

Per the agreement, Eni will divest 100% interest in its Nikaitchuq and Oooguruk assets in Alaska.

The deal is part of Eni’s push to high-grade its upstream portfolio, Eni CEO Claudio Descalzi said July 26 during the company’s second-quarter 2024 webcast. The planned Alaska divestment will assist Eni in reducing its leverage, Descalzi said.

When the deal was announced June 27, Eni said it was consistent with its strategy to focus on the rationalization of its upstream activities. This strategy calls for a rebalancing of the company’s portfolio and divesting non-strategic assets.

Hilcorp is the biggest oil and gas operator, and natural gas supplier in Alaska. The Houston-based company initially entered Alaska in 2011 as larger producers were exiting the Cook Inlet Basin. Hilcorp boasts over $1 billion in investments in the Cook Inlet and has produced over 700 Bcf of gas since entering Alaska, the company said in a statement on its website.

Eni is continuing to work on several additional transactions to support the company’s portfolio and debt reduction, Descalzi said.

“We have good assets,” Descalzi said. “So, we have a lot of talks with different kind[s] of entities and companies that they are interested [in] our asset[s].”

Second quarter 2024 results

Eni reported pro forma adjusted EBIT of €4.1 billion (US$4.44 billion) in the second quarter 2024 and adjusted net profit of €1.5 billion (US$1.62 billion), the company said in its quarterly financial statements. This compares to pro forma adjusted EBIT of €4.2 billion (US$4.54 billion) in the second quarter 2023 and adjusted net profit of €1.9 billion (US$2.05 billion).

Eni reported an average hydrocarbon production of 1.71 MMboe/d in second-quarter 2024, up 6% compared to 1.62 MMboe/d in second-quarter 2023.

Higher production in the second quarter was supported by the Neptune acquisition (about 120,000 boe/d), ramp-ups at the Baleine project in Côte d'Ivoire, the Coral project in Mozambique as well as higher production in Libya, which were partly offset by mature fields decline, Eni said.

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