Eni, the Italian energy giant, is poised to re-enter the oil and gas trading market after a seven-year hiatus. The company’s CEO, Claudio Descalzi, revealed the company’s intentions to the Financial Times, highlighting that it aims to align itself with industry leaders such as BP, Shell, and Total who have been reaping significant profits from trading activities. Descalzi pointed out that trading operations contribute to average returns of 2% to 4% for these competitors, providing a strong incentive for Eni's return to this lucrative business.

To facilitate this re-entry, Descalzi noted that Eni is looking for a specialized ally in the trading field, suggesting that collaboration may be necessary for success in this competitive marketplace. Currently, the ideal candidate for partnership appears to be the Swiss-Cypriot trading group Mercuria, which ranks as the third-largest player in commodity trading, just behind Trafigura and Vitol. However, Mercuria has yet to comment on Eni's suggested interest, leaving questions about how quickly this partnership may materialize and what impact it could have on Eni's broader business strategy.

Descalzi admitted that trading is not in Eni’s core competencies, which emphasizes the significant shift in strategy that this move represents for the company. The decision to re-enter trading after a long break reflects the changing dynamics of the oil and gas sector and Eni's need to adapt to remain competitive, especially in a landscape where traditional oil revenues are being challenged by fluctuating market conditions and increasing focus on sustainable energy practices.