Eni SPA has announced the sale of the non-strategic Nikaitchuq and Oooguruk fields in Alaska to Hilcorp Energy Co.

“The value of the transaction will be announced after completion,” the state-controlled Italian group Eni said in a brief statement. The transaction is subject to regulatory approvals and other customary conditions.

Production at Nikaitchuq began in January 2011. The field is located off the coast of the North Slope in water depths of three meters and is estimated to contain 200 million barrels of oil. According to the company, it is Eni's first operating field in Arctic waters.

Oooguruk began production in 2008. The facility is located approximately five kilometers off the coast of North Slope.

“This transaction is in line with Eni’s strategy to rationalise its upstream activities through portfolio rebalancing and divestment of non-strategic assets,” Eni said.

Eni has cut its net investment targets for 2024-2027 by over 20 percent compared to last year's plan. The new goal is to keep capital costs at 7 billion euros (7.5 billion dollars) annually during this period.

The integrated energy company plans to implement capital discipline through “optimization, improved project quality and better portfolio management,” Eni said in a March 14 statement announcing its strategic objectives for 2024-2027.

When announcing the Alaska sale, it was stated: “Within Eni’s financial framework and to support the company’s strong growth-oriented strategy, Eni is committed to achieving net proceeds of €8 billion. [$8.6 billion] of net portfolio inflows, front-loaded, over the 2024–27 plan.”

“Proceeds are expected to come from three main sources: the enhancement of the upstream portfolio, the dilution of high equity exploration discoveries and access to new capital pools through Eni's satellite strategy to support the growth of its transition businesses while confirming progress in value creation.”

Bloomberg reported on Monday that Eni is reportedly considering divestments of its global portfolio to raise 4 billion euros ($4.3 billion). Some operations in Cyprus and Indonesia are on the radar for possible divestments, the news agency reported, citing people familiar with the matter.

“The dual approach outlined by Chief Executive Claudio Descalzi would see Eni divest assets, including smaller projects that could be attractive to local buyers, while also considering selling stakes in some large projects,” Bloomberg wrote, citing the people who asked not to be identified.

The sale to Hilcorp could generate between 850 million euros ($912.3 million) and one billion euros ($1.1 billion) for Eni, and the company could raise a similar amount by selling a 30 percent stake in Ivory Coast, the sources said.

Eni expects to generate cash flow from operating activities before working capital of around €13.5 billion ($14.5 billion) this year and €62 billion ($66.5 billion) in the 2024-2027 period, representing growth of 30 percent.

Eni expects upstream production to grow by an average of three to four percent annually between 2024 and 2027.

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