The company is exploring the creation of a dedicated trading division and has held preliminary talks with independent commodity trading houses that could become partners, according to people familiar with the discussions, News.Az reports, citing CNBC.
Eni’s chief executive Claudio Descalzi said the group halted trading activities in 2019, but has since watched rivals generate substantial earnings from market swings.
“bp, Shell and TotalEnergies are major traders, and they earn billions from it,” Mr Descalzi said, pointing to the profitability of trading operations during periods of heightened volatility.
Energy trading has benefited from sharp price movements in recent years, fuelled by conflicts, sanctions and supply disruptions. While bp’s trading business has lifted profits on average over recent years, the company has also warned that performance can fluctuate, with gas trading results easing and oil trading weaker toward the end of last year.
Shell, meanwhile, has said it is reshaping its energy strategy to focus more heavily on trading and retail, where it believes it has competitive strengths.
Mr Descalzi said Eni has discussed the possibility of forming a joint venture with several commodity trading firms, including Swiss-based Mercuria. Reports of talks between the two companies were previously highlighted by Bloomberg.
He stressed that any partnership would be designed to support Eni’s broader business rather than transform the group into a purely commercial trading house. “We are not a company that defines itself as fully commercial,” he said.
Energy trading, particularly in derivatives such as futures and options, has become increasingly competitive. However, Eni believes its upstream assets could offer an advantage in partnerships, providing access to physical oil and gas flows that many trading houses lack.
According to the Financial Times, at least one trader has confirmed that discussions are under way, adding that many trading firms see potential value in combining their commercial expertise and logistics capabilities with Eni’s production portfolio. The proposed trading unit would operate independently from the rest of the company, Mr Descalzi said.
The renewed interest in trading comes as Eni continues to expand its upstream footprint. Earlier this week, the company announced a significant discovery of natural gas and condensate at the Calao South field offshore Ivory Coast. Separately, a joint venture between Eni and bp recently reported a major oil discovery in Block 15/06 off the coast of Angola.
Together, the developments underline Eni’s strategy of pairing new production with greater exposure to global energy markets, as companies seek to capture value across the supply chain in an increasingly volatile world.
