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

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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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