Latest news with #FrancescoGattei
Yahoo
5 days ago
- Business
- Yahoo
BlackRock's GIP to buy controlling stake in Eni carbon capture business
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. BlackRock's Global Infrastructure Partners signed an exclusivity agreement Tuesday with Italian energy company Eni for the potential sale of a 49.99% co-controlling stake in Eni's carbon capture, utilization and storage business. Eni CCUS Holding owns and operates several projects across Europe, including in the United Kingdom and Netherlands. The energy company's carbon capture subsidiary also has the future right to acquire a project in Ravenna, Italy, projected to annually capture and store 4 millions tons of carbon dioxide by 2030. Once the deal and acquisition are finalized, GIP will not only own a stake in Eni's business but also support investments to develop carbon capture and storage projects, the two companies said. Eni, which is headquartered in Rome, Italy, said additional ventures could potentially be added to this lineup to 'build a wide platform of CCUS projects.' The energy company said the agreement came after a thorough selection process that involved several suitors who expressed interest in the carbon solutions subsidiary. Eni called carbon capture, utilization and storage a 'mature and safe technological process' in a May 27 release, and 'one of the key levers for the energy transition being the most efficient and effective decarbonization tool to support hard-to-abate industries in reducing their emissions.' The agreement with GIP aligns with Eni's broader strategy to split some of its operations into separate entities or satellites, and then sell minority stakes to get more funding for their development. 'The satellite model is an approach we have built to have additional funding sources to keep together the need to meet demand for traditional products, while also developing new, greener products," Eni Chief Financial Officer Francesco Gattei told Reuters earlier this month. The deal will also allow GIP to expand its green infrastructure portfolio. The global infrastructure investor was acquired by BlackRock in September, after regulators greenlit a deal announced in January 2024 that placed the value of the purchase around $12.5 billion. The acquisition combined GIP's $100 billion in assets under management and its energy, transport, water, waste and digital infrastructure focused portfolio with BlackRock's $50 billion infrastructure platform. At the time, the nation's largest asset manager cited 'a movement toward decarbonization and energy security in many parts of the world' as a reason for the deal. Recommended Reading BlackRock buys Global Infrastructure Partners, makes $12.5B bet on infrastructure market
Yahoo
7 days ago
- Business
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Eni in talks with GIP for sale of 49.99% of carbon capture unit
By Francesca Landini MILAN (Reuters) -Eni has entered exclusive talks to sell a 49.99% stake in its carbon capture, utilisation and storage (CCUS) business to BlackRock's infrastructure fund GIP, the Italian energy group said on Tuesday. The move is part of Eni's broader strategy to develop dedicated units - or satellites - and sell minority stakes in them to fund their growth. That allows Eni to expand its low-carbon businesses while preserving its capacity to invest in oil and gas activities, Chief Transition and Financial Officer Francesco Gattei recently said. Eni CCUS Holding includes the Hynet and Bacton projects in Britain and L10 in the Netherlands, and has future rights to acquire Italy's carbon capture project in Ravenna. According to the agreement under negotiation, GIP will not only acquire a stake but also support investments to develop the CCUS projects, Eni said in a statement. The Italian group said the agreement came after a selection process among several suitors. Sources told Reuters in March that GIP, HitecVision, Macquarie, Italy's Snam and Thailand's PTT Exploration and Production Public Company had presented non-binding bids for the business. CCUS technology removes CO2 produced by industrial processes from the atmosphere or captures it at the point of emission and stores it underground. The International Energy Agency says the technology can play a vital role in achieving global climate goals. But critics say it risks prolonging the use of fossil fuels and question its commercial viability. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
16-05-2025
- Business
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Eni to divest 20% stake in Plenitude to Ares for over $13bn
Italian energy giant Eni has entered an exclusivity agreement with Ares Alternative Credit Management for the potential sale of a 20% stake in its energy subsidiary, Plenitude. The equity value for this transaction is estimated at between €9.8bn ($10.9bn) and €10.2bn, leading to an enterprise value exceeding €12bn. The decision to negotiate with Ares comes after a comprehensive selection process that drew interest from numerous international investors, highlighting the attractiveness of Plenitude's business model and growth potential. The agreement is part of Eni's "satellite" model, which focuses on creating distinct divisions for either low-carbon enterprises or upstream initiatives, according to a Reuters report. These specialised units are designed to attract investment from financial collaborators. Eni chief transition and financial officer Francesco Gattei recently said that Eni can finance capital expenditure in low-carbon ventures by selling minority stakes in its subsidiaries, while still maintaining its ability to invest in oil and gas operations. Last year, Eni sold a 10% interest in Plenitude to Energy Infrastructure Partners (EIP) through a capital increase of approximately €209m, bringing the total investment by EIP to €800m (SFr748.3m). In addition to the exclusivity agreement, Eni has announced the initiation of a new share buyback programme, authorised by shareholders on 14 May 2025. The programme, to be executed by April 2026, will target the repurchase of up to 315 million shares, or roughly 10% of Eni's share capital, for a maximum of €1.5bn. This figure could rise to €3.5bn if favourable cash flow scenarios materialise. The purpose of the share buyback is to provide shareholders with additional returns beyond dividends. Acquired treasury shares will be cancelled by July 2026 without reducing share capital, as per the shareholders' meeting resolutions. The buyback transactions will be conducted on the Euronext Milan via an independent authorised agent and will be disclosed in compliance with applicable laws and regulations. Furthermore, Eni has commenced gas production at the Merakes East field off the coast of Indonesia. Eni, holding an 85% operating interest, anticipates the field will contribute up to 100 million standard cubic feet per day of gas, equating to around 18,000 barrels of oil equivalent per day. "Eni to divest 20% stake in Plenitude to Ares for over $13bn" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
15-05-2025
- Business
- Yahoo
Eni In Talks to Sell 20% of Its $13-Billion Low Carbon Unit Plenitude
Eni has launched exclusive talks with investment fund Ares Alternative Credit Management to potentially sell 20% in its low-carbon energy business Plenitude, which has an enterprise value of over $13.4 billion (12 billion euros), the Italian energy giant said on Thursday. 'The agreement follows a thorough selection process involving several prominent international players who expressed strong interest in the company, further confirming the great appeal of its business model and its growth prospects,' Eni said in a brief statement. At the end of 2023, Eni agreed to sell 9% in Plenitude to Energy Infrastructure Partners (EIP). Plenitude is active in the market of power generation including renewable energy sources, the sale of energy and energy solutions, and an extensive network of EV charging points. For years, Eni has been taking a different approach to conventional and green energy development, unlike any of the other major international oil and gas firms. The Italian major is divesting or creating joint ventures to operate oil and gas assets internationally while grouping some low-carbon initiatives and projects into separate firms. Eni says that its so-called 'satellite model' of managing various divisions is based on creating separate entities that can independently access capital markets to finance their own growth and be suitable for specialized investors. 'By being open to new investments, the satellite model allows us to reduce the capital absorption required to support new businesses, while safeguarding shareholder remuneration, which continues to be fed by the Free Cash Flow generated by traditional activities,' the Italian energy group says. Francesco Gattei, Chief Transition & Financial Officer, Chief Operating Officer, and General Manager of Eni, notes that 'satellites are the way we solve the energy transition equation, by managing new and traditional businesses and growing in both while ensuring continuity and security of sources, the availability of financing while pursuing all our business objectives.' By Tsvetana Paraskova for More Top Reads From this article on
Reuters
04-04-2025
- Business
- Reuters
Oil majors suffering from OPEC+ output hike, not from U.S. tariffs, Eni exec says
CERNOBBIO, Italy, April 4 (Reuters) - Oil majors are suffering after eight OPEC+ countries unexpectedly agreed to increase oil output in May, while tariffs imposed by U.S. administration had a muted effect on the sector, Eni's ( opens new tab top executive Francesco Gattei said on Friday. He added that energy groups could react to the possibility of tariffs denting global economic growth, reducing demand for power. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The actual increase in OPEC+ production could result lower than announced when taking into account a stricter U.S. embargo on Venezuela and the potential drop in Kazakhstan's oil flows, Gattei added, speaking on the sidelines of a business conference.
