Italian oil company Eni foresees a 3 percent grow in its hydrocarbon production per year across the 2017-2020 period, according to the company's CEO Claudio Descalzi in a press release on Wednesday.
The company's oil price forecast indicates a slow increase up to $70 per barrel by 2020, according to Eni's 2017-2020 Strategic Plan, presented by Descalzi to the financial community.
Eni signaled that it sees exploration as a fundamental value driver for the company, after two years of lower investment and fragile confidence across the global oil industry, the press release read.
In accordance with the company's plan, it expects to deliver new discoveries of 2-3 billion in oil equivalents - almost twice those stipulated in the previous plan, by drilling around 120 wells in more than 20 countries, the press release shows.
Eni operates in 69 countries and explores and produces hydrocarbons in Italy, Africa, the North Sea, the Gulf of Mexico, Kazakhstan, and Australia.
In its new gas and power strategy, Eni plans to focus on maximizing the return of equity gas by developing a competitive LNG portfolio and transforming the retail business into a subsidiary.
Moreover, the company's earnings before interest and tax (EBIT) from 2019 are expected to be in excess of €600 million, it said in the press release.
"We will remain disciplined, maintaining our capital expenditure cash neutrality below $45 per barrel, on average over the four year period. Financial flexibility will help secure the sustainability of our remuneration policy as oil prices remain lower and enable us to capture upside should the economic environment improve” Descalzi said in the press release.
The Italian company produces and imports natural gas for sale in Italy and Europe. The company also transports gas via pipeline, generates and trades electricity, refines oil also operates gasoline service stations.
By Muhsin Baris Tiryakioglu