Eni has finalized the sale of a 30% stake in the Baleine oil and gas project located offshore in Cote d’Ivoire to Vitol, the world’s largest independent oil trader. This transaction was confirmed on Thursday, marking a significant shift in ownership structure for the Baleine project, which is a vital component of the country’s offshore development.
Following this deal, Eni retains a 47.25% stake in the project, while Vitol now holds 30%. The remaining 22.75% interest is owned by Petroci, Cote d’Ivoire’s state oil company. The sale aligns with Eni’s strategy to optimize its upstream portfolio, aimed at accelerating the monetization of exploration discoveries through divesting equity stakes, a strategy referred to as the “dual exploration model.”
Significance of the Baleine Project
The Baleine field, discovered in 2021, represents a major advancement in Cote d’Ivoire’s oil and gas sector, being the first significant commercial discovery in two decades. Production commenced in record time in 2023, with current output exceeding 62,000 barrels of oil and 75 million cubic feet of gas daily from its initial phases. With the anticipated launch of Phase 3, production is projected to increase significantly, reaching 150,000 barrels of oil and 200 million cubic feet of gas per day.
Earlier this year, Eni announced that Vitol would acquire stakes in several upstream assets in West Africa from the Italian company for approximately $1.65 billion, subject to closing cash adjustments. This transaction is part of Eni’s broader initiative to engage in joint ventures that expedite oil and gas discoveries into production.
Vitol’s Expanding Role in West Africa
Vitol has been actively seeking to enhance its presence in both upstream and downstream sectors, especially following the exceptional profits generated during the volatile energy market conditions of 2022 and 2023. The partnership between Eni and Vitol extends beyond the Baleine project, as they also collaborate on the OCTP and Block 4 projects in Ghana. Through this latest agreement, the two companies are further consolidating their cooperation in West Africa.
Vitol’s longstanding involvement in the region includes a diverse portfolio of infrastructure and downstream investments, positioning the company as a key player in West Africa’s oil and gas landscape. As energy markets continue to evolve, this partnership reflects both companies’ commitment to enhancing their operational capabilities in a region rich with natural resources.
