Eni Buys Dominion GOM Assets for $4.8B

30 April 2007

Italian energy group Eni is acquiring the Gulf of Mexico (GOM) production, development and exploration activities of Dominion in a US$4.757 billion cash transaction.

The transaction, with an effective date of 1 July 2007, includes assets located in deepwater Gulf of Mexico, in the continental shelf and in Texas and Louisiana state waters as well as the staff based in New Orleans.  Around 60% of the overall leases are operated.

The acquisition will increase Eni’s equity production in the Gulf of Mexico from the current 36,000 boepd (barrels of oil equivalent per day) to more than 110,000 boepd in the second half of 2007 and the 2P (proven plus probable) equity reserves by 222 million boe, at an implied cost per barrel of US $18.4.  In 2007/2010, production from the acquired assets will average more than 75,000 boepd.

Main fields are Devils Tower, Triton and Goldfinger (75% operated) and Front Runner (37.5%) producing fields as well as San Jacinto (53.3% operated), Q (50%), Spiderman (36.7%) and Thunderhawk (25%) developing fields. These fields account for around 70% of total 2P reserves acquired from Dominion.

In addition, Eni will further enhance its portfolio in the Gulf of Mexico thanks to new leases with significant exploration potential.

Eni has been operating in the United States since 1966 with exploration and development activities and currently holds interests in 242 leases in the Gulf of Mexico and 151 leases in Alaska.