Eni expects lower capital spending in ’09

Eni s.P.a expects decreased capital expenditures this year compared to last year, company management said in first-quarter financial filings released on April 24.

The Italian major did not quantify the decrease, but said capital spending for 2009 would be “directed mainly to the development of oil and natural gas reserves, the upgrading of construction vessels and rigs and the upgrading of natural gas transport infrastructures.”

Eni spent about 14.5 billion Euros on capital expenditures last year. Presenting 2008 year-end results in February, Eni executives planned to spend 14.1 billion Euros in capital expenses this year, part of a four-year 48.8 billion-Euro capital program.

Earlier this year, Eni suspended drilling at the Nikaitchuq unit in the waters off the North Slope. If brought online, the project would be Eni’s first production base in Alaska. After slowing down the project, Eni asked the state to extend the term of the Nikaitchuq unit agreement by two years. The comment period on the request closed April 27.

—Eric Lidji