ENI Reaffirms Commitment to Embattled CEO

By Sarah McFarlane and Eric Sylvers

Italian energy giant ENI SpA appointed Chief Executive Claudio Descalzi to a third term, the company said on Wednesday.

The appointment comes as Mr. Descalzi fights charges in a Milan court that he orchestrated the company's $1.3 billion payment for drilling rights in Nigeria with the understanding that most of the money would be paid out in bribes.

Mr. Descalzi, who was appointed to the top job in 2014, has denied any wrongdoing and ENI has backed him throughout the multiyear case. The verdict, which had been expected in the first half of this year, has been delayed due to the coronavirus pandemic that forced Italy into a nationwide lockdown and the suspension of almost all work in the judicial system, including Mr. Descalzi's case.

Mr. Descalzi, 65, had sought another term as CEO, but he said in an interview earlier this year, that he would consider resigning if found guilty. The first verdict can be appealed twice.

The extension of Mr. Descalzi's tenure comes as the virus has tanked oil demand, with benchmark oil prices sinking by half since mid-February. ENI's share price has fallen by around 38% since the start of the year, in line with other oil majors including BP PLC and Total SA.

The Italian government, which owns 30% of ENI, picked the company's CEO and chairman, who were then confirmed by shareholders at ENI's annual shareholder meeting on Wednesday. Lucia Calvosa, a law professor specialized in commercial law, will replace Emma Marcegaglia as chairwoman.

Write to Sarah McFarlane at [e-mail] and Eric Sylvers at [e-mail]

(END) Dow Jones Newswires

May 13, 2020 11:03 ET (15:03 GMT)

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