By Stephen Jewkes and Ron Bousso
MILAN/LONDON, June 3 (Reuters) - Italian oil major Eni
is planning to create a division to focus on new energy
solutions which could be headed by its CFO, as it steps up
preparations for a decarbonised future, two sources said.
Eni's restructuring plans come as the oil and gas sector
faces a collapse in global oil consumption following the
coronavirus epidemic and long-term uncertainty over energy
demand as governments battle climate change.
The state-controlled group is looking to create the new
green division to look after renewables and other clean energy
business while keeping oil and gas activity in a separate unit,
the sources familiar with the matter said.
Long-time CFO Massimo Mondazzi could be moved across to head
up the new division, or part of it, one of the sources said,
adding that no final decision had yet been taken.
"Mondazzi is going to be head of downstream, chemicals and
renewables," the second source said.
Eni declined to comment.
Italian daily Il Sole 24 Ore reported the potential overhaul
on Tuesday.
Eni, headed by veteran oilman Claudio Descalzi, pledged
earlier this year to slash its greenhouse gas emissions by 80%
in one of the most ambitious clean-up drives in an industry
under pressure from investors to go green.
To reach the goal it is looking to have less oil and more
gas in its portfolio, build its renewable capacity, convert
refineries to bio-fuels and step up forestry and carbon capture
projects.
"The restructuring underway is a move that will focus minds
and give the market an idea of the actual size of Eni's green
business," one of the sources said.
The sources said the new division was likely to include the
group's chemical business Versalis, its retail activities and
probably refining, though final details had yet to be ironed
out.
(Reporting by Stephen Jewkes;Editing by Elaine Hardcastle)
BP (BP.)
