ISI EMIS Industry Insights | Recent Hot Topics in the Global Fossil Energy Sector

1. Oil Exploration and Production Venezuela’s oil output rose 23% since January: Venezuela’s oil production continued its upward trend, increasing from 1.095 million barrels per day (bpd) in March to 1.136 million bpd in April—a rise of 40,000 bpd, or 3.7%. This data comes from the official report released by the Organization of the Petroleum Exporting Countries (OPEC) on May 13. So far this year, output in this country—home to the world’s largest proven oil reserves—has grown by 22.9%, up from 924,000 bpd in January. Output rose to 1.021 million bpd in February and further to 1.095 million bpd in March. The average price of Venezuela’s Merey 16 crude reached USD 90.47 per barrel. According to specialized economic media reports, this marks the first time in over a decade that Merey crude has traded at USD 90 per barrel. In 2016, Merey crude closed at USD 35.15 per barrel. Merey crude is one of Venezuela’s primary heavy crudes and serves as a benchmark for pricing Venezuelan oil. Following January 3, 2026, the Trump administration issued a series of licenses partially lifting its unilateral restrictions on Venezuela’s oil and gas sector—restrictions that had been in place for over a decade. Eni Group makes major offshore discovery in the Kutai Basin, expanding Indonesia’s natural gas portfolio: Italian multinational energy company Eni Group announced an important natural gas discovery at the Geliga-1 exploration well in the offshore Ganal Block, Indonesia. The Group operates across multiple global markets in oil, natural gas, and renewable energy, and has maintained a significant presence in Southeast Asia since 2001. The discovery is estimated to hold approximately 5 trillion cubic feet of natural gas and 300 million barrels of condensate, underscoring the resource potential of the Kutai Basin. High-productivity reservoir zones have already been confirmed at the well, and further testing is planned to determine commercial flow rates. Moreover, the discovery lies adjacent to existing and planned infrastructure—including liquefied natural gas (LNG) facilities and floating production systems (FPS)—which could accelerate commercialization and improve project economics. For the energy industry, this development highlights the robust momentum in upstream natural gas exploration across Southeast Asia, especially as countries seek to balance energy security with low-emission fuel sources. Increased Indonesian natural gas supply may influence regional LNG trade flows and support industrial demand across the Asia-Pacific region. Strategically, the discovery strengthens Eni Group’s asset base and advances its integration plans with regional partners through its joint venture platform. Against the backdrop of ongoing portfolio restructuring and potential equity sales, this discovery may also enhance the valuation of Eni’s Indonesian investment portfolio. For investors, it signals continued bright prospects for exploration—and sustained long-term production growth—in this vital emerging energy hub. 2. Natural Gas Exploration and Production Australia to impose a 20% domestic allocation requirement on LNG exports starting in 2027: The Australian federal government has announced a Domestic Gas Reservation Policy, under which LNG exporters must allocate 20% of their total production to the domestic market, effective July 1, 2027.

Italy’s Eni S.p.A.: One of the World’s Seven Major Oil Companies

In 1860, two oil wells—32 meters and 45 meters deep—were drilled by the Ozzano Aquili Toncelli Company in Parma Province, yielding a daily output of 25 kilograms. This marked the origin of Italy’s oil and gas industry. Eni S.p.A., Italy In 1926, Italy established AGIP (Azienda Generale Italiana Petroli), the Italian General Petroleum Company. During this period, Italy also formulated national policies on oil and natural gas. In 1953, Italy founded Eni S.p.A. with an initial capital of USD 1.1 billion as a state-controlled corporation. Its purpose was to consolidate all energy-sector activities in Italy under a single entity to formulate and implement the nation’s energy strategy. State Recognition of an Entrepreneur Eni’s headquarters is located at Piazza Enrico Mattei 1, Rome. This address commemorates Enrico Mattei—the first president of Eni—as the founding father of Italy’s oil and gas industry. It represents the highest form of national recognition for an entrepreneur’s contributions. Before assuming the presidency of Eni, Mattei had served as acting president of AGIP and possessed comprehensive knowledge of Italy’s national energy policy as well as energy development and production. Later, under his leadership, Eni absorbed AGIP into its corporate structure. From its inception, Eni faced two formidable challenges: First, post-war economic recovery generated surging energy demand, yet Italy’s domestic hydropower and coal resources were insufficient to meet this growing need—forcing the country to continue importing large volumes of oil from petroleum-producing nations. However, the international landscape had shifted after the war; great powers could no longer secure oil and gas resources through the same coercive means employed previously. Second, domestically, Italy’s indigenous hydrocarbon resources consisted primarily of natural gas. To reduce dependence on imported oil, Italy needed to leverage its comparative advantage by intensifying the development and utilization of its natural gas resources. The Genesis of OPEC In 1957, Eni secured oil concessions in Iran, agreeing to a profit-sharing ratio of 75:25 in favor of Iran. Throughout the 1960s, Eni obtained cooperative agreements for oil and gas exploration, production, and refining operations in more than a dozen Middle Eastern countries, gradually diversifying its business scope. This concession-based model replaced the pre-war hardline stance adopted by Western oil companies toward producing nations—granting host countries greater decision-making authority over issuing exploration and development licenses, and thereby enabling them to capture significantly larger shares of the benefits. This new collaborative approach ultimately led petroleum-producing countries to establish the Organization of the Petroleum Exporting Countries (OPEC), allowing them full control over their own energy exploration and production. The shift toward more equitable agreements between developed nations and oil producers began with Italy’s Eni. Eni S.p.A., Italy In the 1970s, following its acquisition of the mining company EGAM, Eni gained substantial oil resources from the Middle East, Algeria, and the North Sea. In 1981, Eni signed a Sino-Italian cooperation agreement on research and development with China’s Ministry of Chemical Industry Research Institute, initiating collaboration in petrochemicals and synthetic materials. In 1989, Eni formed a joint venture—Enimont—with Montedison, with each party holding a 40% stake. *In 1990, Montedison withdrew its equity stake from Enimont. In 1991, Enimont was renamed EniChem.

Medco Energi to Take 10% Stake in Four Eni Oil and Gas Blocks in Indonesia

17 hours ago

Indonesian energy firm Medco Energi agreed to acquire a 10% interest in four Eni-operated oil and gas blocks in East Kalimantan, including the Geliga gas field. The deal expands Medco's presence in the established LNG value chain.

reuters

2026-10-11

Medco Energi to Take 10% Stake in Four Eni Oil and Gas Blocks in Indonesia

Medco Energi to Take 10% Stake in Four Eni Oil and Gas Blocks in Indonesia

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