HomeIndustry SectorsFinance and PolicySA and Italy to co-operate on oil in Africa

SA and Italy to co-operate on oil in Africa

Eni operations in Libya 
Milan, Italy — ESI-AFRICA.COM — 07 June 2011 – Italian oil and gas giant Eni has announced that it has signed a cooperation agreement with South Africa’s state-owned oil company PetroSA, as it seeks to expand its footprint in Africa.

Reuters reports that Eni “’ the world’s No 7 listed oil company in terms of output “’ is one of the largest operators in Africa, where it produces about 1 million barrels of its daily 1.8 million barrel output.

“Under a memorandum of understanding, Eni and PetroSA will evaluate acquisitions of stakes in upstream projects for the development of both conventional and unconventional hydrocarbons,” Eni said in a statement issued here.

In January Eni and PetroChina agreed to study joint opportunities to expand operations in conventional and unconventional hydrocarbons in Africa.

Eni, which until now has not been present in South Africa, could supply crude oil and refined products to the South African market, it added. The two groups will also study liquefied natural gas (LNG) imports and the potential for long-term LNG supplies by Eni to PetroSA, Eni said.

Eni is the biggest foreign oil operator in Libya, where production has ground to a halt because of the uprising against strongman Muammar Gaddafi.