The chief executive of Italy’s oil major Eni SpA (
“OPEC alone is not enough…We have to find a more general consensus among all producers,” Descalzi – who is
Since OPEC agreed in late September that it would be working to reach a deal to limit production to 32.5 million bpd-33 million bpd, there’s been more than a month of reports, hints, and non-committal remarks regarding OPEC’s motivation, ability, and feasibility of scraping together a deal, as well as non-OPEC producers backing or not backing a freeze/cut.
Within OPEC alone, there is no understanding at all, except for giving Libya and Nigeria, and possibly Iran, an
Saudi Arabia and Iran are reportedly reverting back to their good old ways of
Descalzi, of course, hopes for a deal to be reached, and hopes that the deal, if reached, will also include non-OPEC producers, because, as he told Bloomberg, $50 oil “is OK” and enough for Eni’s breakeven price and for covering its investments, dividends, and operating cash flow.
Eni, whose third-quarter figures
Speaking to Bloomberg, Descalzi said on Monday:
“2017 will still be a very low capex year, and we have to try to optimize, and we have to reduce capex but be able to maintain production.”
By Tsvetana Paraskova for Oilprice.com
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