Eni decides to write off 3.5 billion euros of its assets after lowering its forecast for oil prices


The Italian energy group Eni decided to write off about 3.5 billion euros (4 billion dollars) from the value of its assets after lowering its long-term forecasts for oil and gas prices due to the economic repercussions of the Covid-19 crisis.
In a statement on Monday, Eni announced that it had reduced its long-term forecast for Brent crude prices for the year 2023 to $ 60 a barrel from $ 70 in its previous estimates and reduced gas prices to $ 5.5 per million British thermal units, from $ 7.8.
“Changing long-term estimates four months after the Covid-19 pandemic spills over into our current outlook for the future of prices,” said Claudio Descalzi, Group CEO.
The move follows a similar write-off of assets from competitors such as BP and Shell, with demand deteriorating due to the Covid-19 crisis and the shift to low-carbon energy, which sparked a recalculation of reserves and asset values.
Eni said it now expects Brent crude at $ 40, $ 48 and $ 55 a barrel for the years 2020, 2021 and 2022, respectively, compared with previous estimates of $ 45, $ 55 and $ 70.
Discalzi confirmed the group’s strategy to become a leader in cutting carbon emissions despite the continuing repercussions of the Covid-19 pandemic on the global economy and the group.

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