Italian energy group Eni is considering spinning off stakes in high-potential oil and gas projects in Indonesia and Ivory Coast to finance their development while focusing on low-carbon activities. This move is part of CEO Claudio Descalzi’s strategy to split some of Eni’s operations into separate entities to raise money and attract investors.
Eni has already created separate units for retail, renewables, and biofuels, with plans to list them to raise further financing for their growth. The company aims to raise around 4 billion euros from listing or selling stakes in its low-carbon satellites and another 4 billion from oil and gas exploration and production units by 2027.
The strategy is unique among oil and gas majors seeking to branch out into renewables, showing investors the potential of early-stage businesses that struggle to compete with traditional oil and gas operations. Eni has already spun out fossil fuel operations, such as combining its British North Sea oil and gas operations with Ithaca Energy.
Eni’s focus on creating a gas hub in Indonesia and its major offshore discovery in Ivory Coast are key projects that could benefit from this spin-off strategy. The company’s flexible corporate structures and satellite model have attracted specialized capital, setting a valuation reference point for its units.
Analysts are optimistic about the potential benefits of Eni’s satellites, but some remain cautious about how investors will perceive these value crystallization events. Despite improvements in distribution policy and share buybacks, Eni’s CFO rejected the idea of special dividends linked to disposals.