By Alex Kimani - Jul 16, 2026, 2:00 PM CDT
The oil and gas industry is shifting its capital investments toward Southeast Asia and Latin America due to prolonged shipping disruptions in the Strait of Hormuz, Eni S.p.A (NYSE:E) CEO Claudio Descalzi has revealed. Speaking to a parliamentary committee on Thursday, the leader of Italy’s Oil & Gas major says that geopolitics in the Middle East will remain a permanent risk even after peace is established, emphasizing that major producers like Russia and the Gulf nations are likely to face long-term supply constraints, fundamentally reshaping global energy flows.Southeast Asia is seeing a surge in final investment decisions (FIDs) for natural gas extraction, which could boost regional output by ~18%. Eni and Malaysia's PETRONAS have officially launched Searah, a 50/50 joint venture consolidating 19 upstream gas assets across Indonesia and Malaysia. The JV aims to accelerate regional gas developments and drastically ramp up production in Southeast Asia. Core operations are heavily anchored by Eni’s deepwater developments in the Kutei Basin (offshore East Kalimantan, Indonesia), including the North and South Hub projects.Similarly, South America is experiencing a massive energy transformation with tens of billions in capital pouring into mega-developments to secure global supply. Argentina and Guyana have emerged as the twin engines driving this regional boom, rapidly expanding the continent's oil and natural gas footprint. Eni and Abu Dhabi's XRG are currently helping to develop the ~$30 billion Argentina LNG (ARGLNG) export complex in Río Negro province. Additionally, the $1.2 billion, 527-kilometer trunk pipeline drawing gas from the Neuquén basin to the Atlantic coast is under construction.Descalzi has also highlighted North and Sub-Saharan Africa as vital for the world’s long-term energy security. Eni already has a large footprint in Sub-Saharan Africa, which accounts for roughly 19% of its overall production.By Alex Kimani for Oilprice.comMore Top Reads From Oilprice.comIndia Hikes Diesel and Jet Fuel Export TaxBrent Futures Flip to Backwardation as Middle East Supply Risks ReturnU.S. Gasoline Prices Could Hit $4 Per Gallon Within Days
