Eni and Shell Lose Arbitration Case in Kazakhstan, Liable for Up to $4B in Compensation
Written by Emily J. Thompson, Senior Investment Analyst
Oil majors that operate the Karachaganak field in Kazakhstan, including Eni (E) and Shell (SHEL) lost an international arbitration case, leaving them liable to pay as much as $4B in compensation to Kazakhstan's government, Bloomberg's Nariman Gizitdinov reports, citing people familiar with the matter. The court has yet to rule on the specific amount the field's partners will be ordered to pay, and the Karachaganak venture could still appeal the decision, the author notes. Other partner companies involved in Karachaganak include Chevron (CVX), Lukoil (LUKOY), and KazMunaiGas.
Analyst Views on E
Wall Street analysts forecast E stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for E is 18.24 USD with a low forecast of 17.25 USD and a high forecast of 19.23 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 40.020
Low
17.25
Averages
18.24
High
19.23
Current: 40.020
Low
17.25
Averages
18.24
High
19.23
About E
Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company's segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
