Eni hits back at Knight Vinke’s ideas of a company breakup
It is perhaps ironic that Paolo Scaroni, chief executive of Eni, was discussing the company’s South Stream gas pipeline venture in Moscow when Knight Vinke, the activist investor, launched its attack yesterday.
The Moscow discussions raised the prospect of a third partner joining South Stream. The WSJ reports that the interested party is EDF, the French utility.
While Mr Scaroni was meeting his counterpart at Gazprom in Moscow, back in Milan Knight Vinke, which says it owns about 1 per cent of Eni, held a press conference to announce that the Italian energy group needed to break up in order to realise its full value. In fact, Knight Vinke believes Eni could squeeze out an extra 50bn Euros in value by splitting its upstream and oil assets from its gas and power division.
Crude oil prices dipped after rising by more than $3 a barrel in the previous session, following the latest US inventories data.
Nymex November West Texas Intermediate fell 61 cents to $70.00 a barrel and ICE November Brent lost 50 cents at $68.57 a barrel.
The Source: Texas turns to big wind, will Kerry-Boxer be quick enough? India embraces nuclear, Pakistan awards oil blocks, China goes green, Exxon’s trouble in Indonesia
On Energy Source:
Texas stays on top with wind power
Will Kerry-Boxer bill pass in time for Copenhagen?
Chevron’s O’Reilly getting out at right time
China’s place in the green energy world
Oil slips after $3 jump Wednesday
Elsewhere:
Pakistan’s government awards oil, gas exploration blocks (Bloomberg)
Trouble for Iraqi elections in oil hub (AP)
Which countries are stocking up on emergency oil reserves? (Daily Reckoning)
India forsees big increase in nuclear energy (WSJ)
ExxonMobil sells stake in two blocks to Petronas (Jakarta Post)
Pertamina chief gets impatient with ExxonMobil over Cepu output (Dow Jones)
And one more just for fun:
The BBC’s need to find oil (Evening Standard)
Texas uses wind power to stay world energy capital
For years now, Houston has been known as the energy capital of the world. When renewables started to appear on the horizon, many in the Lone Star State feared Texas’s days in that leadership capacity were numbered. People increasingly said they no longer wanted to rely on fossil fuels and particularly oil – the stuff Texas was famous for.
Fast forward a few years and it is clear Texans are much more than just a bunch of oil men, they are entrepreneurs.
Spot News
China’s balancing act on climate change (FT)
Chevron chief executive steps down (FT)
Knight Vinke urges the break-up of Eni (FT)
Chinese invest again in Kazakhstan’s oil industry (FT)
Ukraine’s gas company battles to avert default (FT)
US Senate considers steep emissions cuts (FT)
US plants face curbs on emissions (FT)
US to approve seven major, renewable-energy transmission projects on western federal lands (WSJ)
EPA Proposes Tough Greenhouse-Gas Rules for Big Industries (WSJ)
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