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Eni stops Appaloosa project in US Gulf

Italian oil giant Eni has stopped development of its Appaloosa project in the Gulf of Mexico because of the oil spill, Chief Executive Paolo Scaroni said today.

The Appaloosa project, part of the Greater Longhorn area, was expected to come online this year. The decision to stop the development was made earlier this week.

On Tuesday, a US judge struck down a six-month moratorium on deep-water drilling in the Gulf imposed after the BP oil spill that started in April, Reuters reported.

The federal government has said it would issue a new ban.

Eni has also halted work on its Allegheny project in the Gulf, according to data from the US Minerals Managment Service, now known as the Bureau of Ocean Energy Management.

Still, Scaroni told reporters at a United Nations event that the company had no plans to leave the Gulf of Mexico, where it produces about 100,000 barrels of oil equivalent per day.

Eni is also in the early stages of exploring for natural gas in Afghanistan, he said, although the work was in a very preliminary stage.

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