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Eni CEO says oil firms shifting bets to Southeast Asia, Latin America
Descalzi told a parliamentary committee that shipping disruptions through the Strait of Hormuz are driving capital redeployments and that Middle East geopolitics will stay a lasting risk.
Oil and gas companies are shifting investment toward Southeast Asia and Latin America as shipping disruptions linked to the Strait of Hormuz persist, Eni CEO Claudio Descalzi said, speaking to an Italian parliamentary committee on Thursday, according to OilPrice.
Descalzi said geopolitical risk in the Middle East is likely to remain permanent even if peace is established, and he added that major producers, including Russia and Gulf countries, could face long term supply constraints that reshape global energy flows.
The CEO pointed to Southeast Asia’s growing natural gas buildout, saying final investment decisions are rising and that the region could see output growth of around 18%. Eni and Malaysia’s PETRONAS also launched Searah, a 50-50 joint venture consolidating 19 upstream gas assets across Indonesia and Malaysia, aimed at accelerating regional gas development and ramping up production.
In parallel, Descalzi said South America is seeing tens of billions of dollars in capital directed to major energy projects to secure supply, with Argentina and Guyana highlighted as “twin engines” of the regional surge.
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