Seismic reflections: Italian drilling ban about turn?

Recent optimism among oil and gas companies over easing of a potential near-shore exploration drilling ban in Italy have been dashed. In a possible link to the sinking of the Costa Concordia, the country appears to have stepped back from a decree to its Environmental Code potentially relaxing the ban. As the rest of the world, including BP, moves on from Macondo, companies with near-shore Italian exploration targets continue to suffer drag from this ambiguous legislation. However, investors should note some smart operators who are limiting the impact of the ban through boundary changes and portfolio plays.

Download PDF