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Italy's Eni buys Dominion's Gulf of Mexico assets for US$4.8 billion

Italy's Eni buys Dominion's Gulf of Mexico assets for US$4.8 billion

Italian energy company Eni SpA said Monday it agreed to buy Dominion Resources Inc.'s production, development and exploration assets in the Gulf of Mexico for US$4.8 billion (euro3.52 billion).
Eni said in a statement that the purchase will increase its Gulf of Mexico production to 110,000 barrels of oil equivalent a day by the second half of the year, from the current 36,000.
CEO Paolo Scaroni said the deal will allow Eni to bring about synergies with its other activities in the United States, where the company has been operating since 1966.
The deal _ the latest in a series of acquisitions this year by Eni in Congo, Angola, Alaska and Russia _ is subject to government approvals and is expected to be completed on July 2.
Eni shares rose 0.4 percent to euro24.44 (US$33.34) in Milan.
Richmond, Virginia-based Dominion said in May that it was considering selling certain business units because of concerns that Dominion's stock was being undervalued. The exploration and production business had grown to become Dominion's most profitable unit, overshadowing the company's core utility and power generation businesses.
"Dominion has been extremely successful in the E&P business, but that success has not been fully reflected in our share price," CEO Thomas F. Farrell II said in a statement. "Our plan is designed to realize the value of these assets for our shareholders."
The company said in the statement that it continues "to pursue the disposition of its U.S. onshore E&P operations, except those in the Appalachian Basin, as well as its E&P operations in western Canada."
It said it expected to make further announcements "in the near future."
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Updated : 2021-07-27 00:03 GMT+08:00