About Italy

Country Snapshot:
 
 
  • High demand for natural gas with favorable market pricing
  • Extensive reliance on natural gas-fired electric generation (50+% of total generation)
  • 2nd largest natural gas importer and consumer in Europe after Germany (2.2 Tcf imported and 2.5 Bcf consumed in 2013; 88+% imported)
  • Italy’s National Energy Strategy indicates strong desire to boost domestic oil & gas production
  • Long history of oil and gas development
  • More than 7,000 oil and gas wells have been drilled
  • 250,000 km of 2D and 35,000 km2 of 3D seismic analysis
  • 2.1 Tcf of natural gas proved reserves (6th largest in Europe) and 560 MMbbl of oil proved reserves (5th largest in Europe) (as of 1/1/14)
  • Well-developed gas infrastructure network
  • Need for more independent E&P companies like Avanti to develop onshore gas fields
 
Why we like Italy:

  • Excellent infrastructure
  • Fully deregulated gas market
  • Very strong natural gas market
  • Security of gas supply issues from North Africa and Russia, favoring domestic production
  • Opportunities for smaller E&P companies to rehabilitate onshore fields
  • Very reasonable fiscal regime, including low royalty rates
  • Groundbreaking recent legislation enacted to simplify and speed up permitting process
  • AVN management has experience in Italy and has secured specific gas development opportunity