Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Eni Expands Down Under

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

If you travel to Australia these days, you'll see two things jumping: kangaroos and oil and natural gas companies. In fact, the companies may even outnumber the marsupials, if the way they're increasing their acreage Down Under is anything to go by. The latest to jump on the bandwagon is Eni (NYSE: E  ) .

Bigger footprint
Eni has increased its acreage in Australia through the purchase of a 40% stake in the Evans Shoal gas field in the Timor Sea. The deal with Santos will cost Eni $350 million, with an initial payment of $250 million and the rest coming in due course, depending on the investment decision and the level of reserves. Of the stake it acquired, Eni has agreed to sell off 7.5% to its Evans Shoal field project partner, Royal Dutch Shell (NYSE: RDS-A  ) (NYSE: RDS-B  ) . The company expects to commence exploration and drilling activities in the second half of 2012.

The offshore Evans Shoal field, which lies in the north Bonaparte Basin, promises a huge quantity of reserves for Eni --up to 7 trillion cubic feet of natural gas. Moreover, the fact that the exploration site is located near the LNG facilities of Darwin, where Eni has a non-operating interest, gives an added advantage

Oz on everyone's mind                
Eni entered Australia in 2000 and holds interests in 19 offshore exploration and production licenses. The company attaches a lot of importance to this part of the world, as do its peers that are involved in various Oz projects. For instance, ConocoPhillips (NYSE: COP  ) is the joint operator of the Australia Pacific LNG project, and Chevron (NYSE: CVX  ) and Apache (NYSE: APA  ) are operators of the Wheatstone LNG project.

The thrust has been on LNG because of Australia's proximity to the ultra-lucrative Asian markets. Eni is building bases not only in Australia, but also on the east coast of Africa and in Ukraine to cater to the demand of the emerging Asian markets.

Foolish bottom line
With the world attaching greater importance to greener energy, LNG's demand is bound to catapult -- and we're seeing it already in the huge demand in Asian markets. With a presence in major LNG acreages all over the world, especially in Australia, Eni is expected to grab these opportunities and boost its revenues. Keep track of Eni's Oz ventures and more by adding the stock to My Watchlist.

Fool contributor Amitabha Chakraborty owns no shares of any of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1737161, ~/Articles/ArticleHandler.aspx, 10/26/2016 5:31:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:02 PM
APA $61.68 Up +1.11 +1.83%
Apache CAPS Rating: ***
COP $41.80 Down -0.01 -0.02%
ConocoPhillips CAPS Rating: ****
CVX $101.19 Up +0.42 +0.42%
Chevron CAPS Rating: ****
E $29.47 Down -0.21 -0.71%
Eni CAPS Rating: ***
RDS-A $50.08 Down -0.43 -0.85%
Royal Dutch Shell… CAPS Rating: ****
RDS-B $53.09 Down -0.72 -1.34%
Royal Dutch Shell… CAPS Rating: ****