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The Eni S.P.A. headquarters building in Italy. (Image: Bruno Ottavi via Flickr)
The Eni S.P.A. headquarters building in Italy. (Image: Bruno Ottavi via Flickr)

Italy’s Eni in broad restructuring to weather low oil price

MILAN (AP) — Italian oil and gas company Eni has announced a broad restructuring plan to weather low oil prices.

Eni announced Friday that it aims to sell 7 billion euros (nearly $8 billion) worth of assets by 2019, mostly by diluting stakes in recent discoveries, and make 3.5 billion euros in cost reductions through renegotiating contracts.

CEO Claudio Descalzi said in a statement that the industry “is facing a very complex challenge, reducing costs to fulfill short-term constraints while enhancing long-term value.”

Eni said it plans to reduce investments by a fifth, while it expects oil and gas production will grow by more than 3 percent annually over the next four years. The company will continue to make exploration one of its main focuses.

In related news, Italy’s Eni makes mega gas discovery off Egyptian coast.

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