The oil giant Eni has lowered its long-term oil price assumptions on Tuesday, saying that the coronavirus pandemic would have “an enduring impact” on the global economy and energy industry.
Eni also cut its 2020-2024 and long-term oil and gas pricing scenario, warning of $4 billion (3.5 billion euro) in post-tax impairment charges against non-current assets for the second quarter, plus/minus 20 percent, weeks after BP and Shell revised down their long-term price assumptions.
According to the European oil firm, Brent Crude prices at $60 a barrel in 2023 compared to its previous assumption of $70 a barrel. For the years 2020-2022, Brent prices are expected to be at $40, $48, and $55 per barrel, respectively, compared to the previous assumptions of $45, $55, and $70 a barrel.
Eni’s CEO Claudio Descalzi said, “We confirm our strategy to become a leader in the decarbonization process, notwithstanding the enduring impacts of the COVID-19 pandemic on the global economy and the Company. We are assessing how to speed up our plans,”
“This ongoing evolution will allow the Company to achieve a better-balanced portfolio, reducing the exposure to the volatility of hydrocarbon prices, while progressing towards our targets of sustainability and profitability.”