Eni and Vitol Strike $1.65B Deal to Reshape West Africa’s Energy Landscape

In a bold move that underscores the shifting dynamics of global energy markets, Italian energy titan Eni has inked a $1.65 billion deal with Vitol, the Swiss-based commodities powerhouse, to offload stakes in key West African assets. This strategic divestment, targeting offshore projects in Côte d’Ivoire and the Republic of Congo, marks a pivotal moment in Eni’s portfolio optimization strategy—a playbook increasingly adopted by energy giants navigating the transition to cleaner energy systems.

Under the agreement, Vitol will snap up a 30% stake in Eni’s Baleine project in Côte d’Ivoire, reducing Eni’s ownership from 77.25% to 47.25%. Additionally, Vitol will acquire a 25% interest in Congo LNG, trimming Eni’s stake from 65% to 40%. The deal, pending regulatory approvals, is set to solidify the two companies’ partnership, which already spans projects like Offshore Cape Three Points (OCTP) and Block 4 in Ghana. For Eni, this transaction is a calculated step toward rebalancing its upstream portfolio, leveraging its dual exploration model to monetize discoveries early while maintaining operational agility.

Baleine: Africa’s First Net-Zero Development

The Baleine project, Eni’s flagship venture in Côte d’Ivoire, is a game-changer in more ways than one. Discovered in 2021, this massive hydrocarbon field is not only the largest find in the region but also Africa’s first net-zero development. Production kicked off in 2023 with the deployment of the Baleine FPSO (floating production storage and offloading) unit, and Phase 2 launched in December 2024, ramping up output to 60,000 barrels of oil per day and 70 million cubic feet of associated gas. The project’s innovative design ensures 100% of processed gas feeds local energy demand, thanks to a pipeline built during Phase 1.

Looking ahead, Phase 3—currently in the study phase—promises to catapult production to 150,000 barrels of oil per day and 200 million cubic feet of gas. With the Petrojarl Kong FPSO and Yamoussoukro FSO units already in play, Baleine is a testament to Eni’s ability to scale cutting-edge energy infrastructure while minimizing environmental impact.

Congo LNG: Unlocking West Africa’s Gas Potential

Meanwhile, the Congo LNG project is making waves with its floating liquefied natural gas (FLNG) technology. Since February 2024, the Tango FLNG unit has been exporting 0.6 million tons per annum (mtpa) of LNG, tapping into the rich gas reserves of the Marine XII project. With a second FLNG unit under construction and set to come online by late 2025, annual production is expected to skyrocket to 4.5 billion cubic meters. GEOCEAN’s recent offshore operations to install a submerged swivel and yoke system (SSY) for the second FLNG unit highlight the project’s technical sophistication and ambition.

This deal isn’t just about dollars and cents—it’s a strategic pivot for both companies. For Eni, it’s a chance to streamline its portfolio and focus on high-impact projects. For Vitol, it’s an opportunity to deepen its footprint in West Africa’s burgeoning energy sector. Together, they’re rewriting the rules of energy exploration and production in a region brimming with untapped potential.