Eni earns $1.9bn from further sale of subsidiary

ENI service station09 May 2013, News Wires – Italian energy group, Eni, has netted $1.9 billion from the sale of another 11.69% of its stake in Snam on Thursday, paving the way for its exit from the gas transport company.

The world’s seventh largest oil producer has been selling non-core assets as it focuses on more lucrative exploration and production business.

Last year the Italian government called on the Milanese explorer to sell its controlling stake in Snam as it seeks to improve competition in the gas sector and reduce prices.

The sale leaves Eni with 8.54% of Snam that is linked to a €1.25 billion convertible bond it placed in January and does not include voting rights, Reuters reported.

Eni chief executive Paulo Scaroni told journalists in London earlier this year that the explorer expected to gain about $4 billion from selling its interests in Snam and that of Portugal’s Galp Energia.

The sales are part of a $10 billion, four-year divestment plan that also includes Eni’s $4.2 billion farm-out to CNPC at Mozambique’s Area 4 and a further $1 billion to $2 billion in divestments that Scaroni said would likely include upstream portfolio moves.

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