Execution, implementation essentials and insights of Eni’s“Dual Exploration Model”

doi:10.3969/j.issn.1672-7703.2025.06.005

Abstract

Abstract: Under the dual pressures of global energy transition and low oil price cycles, major oil and gas companies worldwide face survival challenges, including shrinking exploration investments and tight cash flows. By innovatively developing a “Dual Exploration Model”, Italy’s Eni Group has leveraged its technical advantages in deep-water fields and achieved early value realization through equity sales after exploration discoveries, successfully establishing a closed-loop system of “discovery–monetization–rediscovery”. The connotation, execution status, and implementation essentials of the model have systematically been reviewed, and typical case studies from Mozambique, Egypt, and C?te d’Ivoire have been analyzed to reveal its path of achieving low-cost discoveries and high-efficiency development through technology-driven approaches, capital optimization, and strategic coordination. The study results show that the “Dual Exploration Model” is featured by the foundation of low cost and major discoveries, essence of high equity and fast monetization, and guarantee of retaining operator status and risk diversification. The main implementation process consists of three stages (block acquisition, independent exploration, and self-recycling) and 10 detailed steps. It is applicable for low oil price periods but requires specific resource, pipeline, policy, capital, and technical conditions. Currently, it still faces numerous challenges including scarce resources, external market environment, and internal technical capabilities. Based on the current status of CNPC’s overseas oil and gas assets, it is proposed that full-lifecycle assessment systems and equity management matrices should be established for current projects and a new business philosophy of “sustainable monetization” should be formed when acquiring new projects.

Key words: Dual Exploration Model, Eni Group, business strategy, investment portfolio, satellite model, upstream assets

CLC Number:

TE122.11

Qin Yanqun, Xiao Kunye, Chen Zhongmin, Yuan Shengqiang, Wang Li, Ou Yafei, Yang Yu, Zhou Hongpu. Execution, implementation essentials and insights of Eni’s“Dual Exploration Model”[J]. China Petroleum Exploration, 2025, 30(6): 58-69.

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