RIYADH: US energy firms last week cut the number of oil and natural gas rigs operating for an eighth week in a row for the first time since July 2020, energy services firm Baker Hughes Co. said in its closely followed report.
The oil and gas rig count, an early indicator of future output, fell by five drilling rigs to 682 in the week ending June 23, the lowest since April 2022.
Baker Hughes said that puts the total rig count down to 71 rigs, or 9 percent, over this time last year.
US oil rigs fell six drilling rigs to 546 this week, their lowest since April 2022.
According to Baker Hughes, the rig count fell by one to 50 in the Haynesville shale in Arkansas, Louisiana and Texas, the lowest since January 2022, and by one to 35 in Williston in North Dakota and Montana, the weakest since April 2022.
Data provider Enverus, which publishes its rig count data, said drillers cut eight rigs in the week ending June 21, reducing the overall count to 741. That lowered the total count to about 24 rigs in the last month and down 12 percent year over year.
Eni sees synergies worth $1bn from Neptune acquisition
Italian energy group Eni said synergies from the $4.9 billion acquisition of private-equity-backed Neptune Energy could reach $1 billion as the two groups integrate their operations across key geographies.
The acquisition announced on Friday is one of Europe’s biggest oil and gas deals in years and follows months of talks by Eni and its Norwegian unit Vaar to buy Neptune. It is expected to be completed in the first quarter of next year.
It fits the Italian group’s plan to increase the share of gas in its total hydrocarbon production and is expected to boost its earnings immediately, Eni said.
Eni’s top executives told analysts that synergies initially indicated at $500 million could double, and cash flow from operations could increase by $900 million next year.
“The geographic and operational overlap is striking, adding scale to Eni’s Vaar Energy, bringing more gas production and carbon capture and storage opportunities to the remaining North Sea footprint, building on Eni’s leading position in Algeria and deepening Eni’s presence in offshore Indonesia,” Eni CEO Claudio Descalzi said.
The acquisition would boost the outlook for the gas and liquefied natural gas division, which last year was one of the drivers of the group’s record earnings, and the potential for share buybacks to reward investors, Descalzi added.
(With input from Reuters)
