Eni (E) Clinches Exploration Agreement With Oman Government

Eni SpA (NYSE:E) along with partner the state company Oman Oil Company Exploration and Production (OOCEP) has inked an Exploration and Production Sharing Agreement (EPSA) for Block 47 with the Government of the Sultanate of Oman.

Located onshore in the Omani A’Dakhiliyah Governorate, Block 47 spans across an area of about 8,524 square kilometers. Subsequent to their joint bid as part of the 2017 Oman Licensing Round, the Block has been awarded to Eni and OOCEP. Following the EPSA, Eni is the operator of this block with a participating interest of 90%, while OOCEP holds the remaining 10%. Exploration operations are anticipated to begin in 2019.

Additionally, Eni, along with the Ministry of Oil & Gas and BP plc (NYSE:BP) , has inked a Head of Agreement (HoA) that establishes the principles for the acquisition of the Exploration and Production rights of Block 77 onshore. Located 30 kilometers east of the BP-operated Khazzan Field, Block 77 spreads across an acreage of 3.100 square kilometers.

The Exploration and Production Sharing Agreement (EPSA) is expected to follow shortly after the signing of the HoA.

In the past year, Eni has increased its presence in the Middle East significantly. The company began exploration activities in the Sultanate of Oman and inked agreements relating to major offshore Concession Agreements with Abu Dhabi National Oil Company (ADNOC). Eni is also present in other countries of the Middle East like United Arab Emirates, Lebanon and Iraq. The above agreements further fortify Eni’s presence in The Sultanate of Oman and strengthen its alliance with OOCEP as well.

Zacks Rank & Key Picks

Currently, Eni carries a Zacks Rank #4 (Sell).

A few better-ranked players in the energy space are Shell (LON:RDSa) Midstream Partners, L.P (NYSE:SHLX) and Unit Corporation (NYSE:UNT) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Houston, TX, Shell Midstream Partners owns, operates, develops and acquires pipelines, as well as other midstream assets. The company is expected to witness year-over-year earnings growth of 18.7% in 2018.

Unit Corp is a diversified energy company. The company generated average positive surprise of 21.2% in the trailing four quarters.

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