Is Medco Interested in Buying Eni's US$1 Billion Assets in Australia?

Summary

Eni SpA and its adviser Citi expect binding bids for the Italian energy group's gas assets in Australia by the end of November in a deal that could raise around US$1 billion, two sources said as quoted by Reuters. Indonesia's Medco Energi Internasional and a consortium comprising Australian fund Macquarie and Neptune Energy are working on bids, the sources said. Morgan Stanley Infrastructure has also expressed an interest, one person said. “The sale has generated limited interest,” one of the sources said.

The Australia sale is part of Eni’s plans to sell non-core assets to raise cash after the global downturn triggered by the coronavirus pandemic and its drive to focus on cleaner fuels. “The sale will not include the solar assets the group has there,” one source said. The oil and gas major is also looking to sell assets in Pakistan, and the Congo, one of the sources said, without giving further details.

Eni operates a series of offshore gas fields in the north of Australia and has stakes in four exploration licenses. It owns the Blacktip Gas Project and has stakes in the Bayu-Undan gas and condensate field and the associated Darwin LNG plant. Eni Chief Executive Claudio Descalzi is looking to turn the oil and gas company into a greener business, focusing on clean, low-carbon products.

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