Profile: Eni SpA (E.N)
Eni SpA (Eni) is engaged in the oil and gas exploration and production, gas marketing operations, management of gas infrastructures, power generation, petrochemicals, oil field services and engineering industries. Eni has operations in 79 countries as of December 31, 2010. The Company segments include Exploration & Production, Gas & Power, Refining & Marketing, Engineering & Construction, Petrochemicals and other activities. In November 2010, Eni and the Venezuelan State Company PDVSA established a joint venture in charge of developing the Junin 5 oil field, located in the Orinoco Oil Belt. In April 2010, Eni sold to Libyan National Oil Corp (NOC) a 25% interest and the control of GreenStream BV, the Company owning and managing the gas pipeline for importing to Italy natural gas produced in Libya. In December 2010, Eni acquired Minsk Energy Resources which operates three exploration licenses in the Polish Baltic Basin. In December 2010, Eni acquired a controlling interest in Altergaz. In January 2010, Eni finalized an acquisition of downstream activities in Austria, including a retail network, wholesale activities, as well as commercial assets in the aviation business and related logistic and storage activities. In November 2011, the Company purchased a 32.5% interest in the Evans Shoal gas field in the Timor Sea, Australia.
Exploration & Production segment
Eni’s Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as liquefied natural gas (LNG) operations in 43 countries, including Italy, the United Kingdom, Norway, Libya, Egypt, Angola, Nigeria, Congo, the United States of America, Kazakhstan, Iraq, Russia, Venezuela and Australia. In 2010, Eni produced 1,757 thousand barrel of oil equivalent per day on an available for-sale basis. As of December 31, 2010, Eni’s total proved reserves of subsidiaries stood at 6,332 million barrel of oil equivalent. Proved undeveloped reserves as of December 31, 2010, totaled 2,821 million barrel of oil equivalent. During the year ended December 31, 2010, a total of 47 new exploratory wells were drilled (23.8 of which represented Eni’s share), which includes drilled exploratory wells that have been suspended pending further evaluation. In 2010, a total of 399 development wells were drilled. As of December 31, 2010, Eni’s mineral right portfolio consisted of 1,176 exclusive or shared rights for exploration and development in 43 countries on five continents for a total acreage of 320,961 square kilometers net to Eni of which developed acreage was 41,386 square kilometers and undeveloped acreage was 279,575 square kilometers.
Eni is the operator of the Val d’Agri concession (Eni’s interest 60.77%) in the Basilicata Region in Southern Italy. Eni is the operator of 15 production concessions onshore and offshore in Sicily. The producing gas fields are Annamaria B (start-up in 2010, as disclosed above), Ivana, Ika & Ida, Marica and Katarina are operated by Eni through a 50/50 joint operating company with the Croatian oil company INA. Eni holds interests in six production areas in the Norwegian Sea. In 2010, production was started-up at the Morvin field (Eni’s interest 30%) as three wells of the development program were put into production. Eni holds interests in four production licenses in the Norwegian section of the North Sea.
In 2010, Eni’s oil and gas production averaged 74 thousand barrel of oil equivalent per day. Operating activities are located in the Bir Rebaa area in the South-Eastern Desert and include exploration and production blocks, which include Blocks 403a/d (Eni’s interest up to 100%); Blocks 401a/402a Eni’s interest 55%); Blocks 403 (Eni’s interest 50%) and 404a (Eni’s interest 12.25%); Blocks 208 (Eni’s interest 12.25%) and 405b (Eni’s interest 75%) with ongoing development activities; Block 212 (Eni’s interest 22.38%) with discoveries already made, and Blocks 316b, 319a and 321a (Eni operator with a 100% interest) in the Kerzaz area with ongoing exploration activities.
In Libya, during 2010, Eni’s oil and gas production averaged 267 thousand barrel of oil equivalent per day. Onshore contract areas are Area A consisting in the former concession 82 (Eni’s interest 50%); Area B, former concessions 100 (Bu Attifel field) and the NC 125 Block (Eni’s interest 50%); Area E with El Feel (Elephant) field (Eni’s interest 33.3%), and Area F with Block 118 (Eni’s interest 50%). Offshore contract areas are Area C with the Bouri oil field (Eni’s interest 50%), and Area D with Blocks NC 41 and NC 169 (onshore) that feed the Western Libyan Gas Project (Eni’s interest 50%).
Eni’s main operated oil producing interests in Congo are the Zatchi (Eni’s interest 65%) and Loango (Eni’s interest 50%), Ikalou (Eni’s interest 100%), Djambala, Foukanda and Mwafi (Eni’s interest 65%), Kitina (Eni’s interest 35.75%), Awa Paloukou (Eni’s interest 90%), M’Boundi (Eni’s interest 83%) and Kouakouala (Eni’s interest 75%) fields. Eni holds a 16.81% working interest in the NCSPSA. In 2010, production of the Karachaganak field averaged 228 thousand barrels per day of liquids (65 net to Eni) and 812 mmCF/d of natural gas (221 net to Eni).
Gas & Power segment
Eni’s Gas & Power segment engages in supply, trading and marketing of gas and electricity, managing gas infrastructures for transport, distribution, storage, re-gasification, and LNG supply and marketing. This segment also includes the activity of power generation that is ancillary to the marketing of electricity. In 2010, Eni’s worldwide sales of natural gas amounted to 97.06 billion cubic meters, including 5.65 billion cubic meters of gas sales made directly by the Eni’s Exploration & Production segment in Europe and the United States of America. Sales in Italy amounted to 34.29 billion cubic meters, while sales in European markets were 54.52 billion cubic meters that included 8.44 billion cubic meters of gas sold to certain importers to Italy.Through Snam Rete Gas, Eni operates an Italian network of high and medium pressure pipelines for natural gas transport that is approximately 31,600-kilometer long, while outside Italy, Eni holds capacity entitlements on a network of European pipelines extending for approximately 4,400 kilometers made up of high pressure pipelines to import gas from Russia, Algeria, Libya and Northern European production basins to European markets. Snam Rete Gas, through its 100%-owned subsidiary Italgas and other subsidiaries, is engaged in natural gas distribution activity in Italy serving 1,330 municipalities through a low pressure network consisting of approximately 50,307 kilometers of pipelines as of December 31, 2010. Snam Rete Gas, through its wholly owned subsidiary Stoccaggi Gas Italia operates in natural gas storage activities in Italy through eight storage fields. Eni produces power and steam at its operated sites of Livorno, Taranto, Mantova, Ravenna, Brindisi, Ferrera Erbognone, Ferrara and Bolgiano with a total installed capacity of 5.3 gigawatts as of December 31, 2010. In 2010, sales of power totaled 39.54 terawatthour.
Eni operates a re-gasification terminal in Italy and holds indirect interest or capacity entitlements in a number of LNG facilities in Europe, Egypt and the United States of America. Though its subsidiary Distrigas, Eni increased its development opportunities in the LNG business with access to new supply sources mainly from Qatar, under a 20-year agreement with RasGas (owned by Qatar Petroleum with a 70% interest and ExxonMobil with a 30% interest) and the Zeebrugge LNG terminal on the Western coast of Belgium. Eni, through its interest in Union Fenosa Gas, owns a 40% interest in the Damietta liquefaction plant with a capacity of approximately five million tons per year of LNG, which equates to a feedstock of 7.56 billion cubic meters per year in natural gas, out of which the Gas & Power segment interest is up to 2.2 billion cubic meters per year to be marketed in Europe. Eni through Union Fenosa Gas holds a 21.25% interest in the Sagunto re-gasification plant, near Valencia, with a capacity of 8.8 billion cubic meters per year and a LNG storage capacity of 450,000 cubic meters.
Refining & Marketing segment
Eni’s Refining & Marketing segment engages in crude oil supply, refining and marketing of petroleum products mainly in Italy and in the rest of Europe, as well as crude oil and trading and shipping products. In 2010, processed volumes of crude oil and other feedstock amounted to 34.80 million tons and sales of refined products were 46.80 mmtonnes, of which 27.01 million tons were in Italy. Retail sales of refined product at operated service stations amounted to 11.73 million tons, including Italy and the rest of Europe. As of December 31, 2010, Eni’s refining system had total refinery capacity (balanced with conversion capacity) of approximately 37.8 million tons (equal to 757 thousand barrels per day).
In Germany, Eni holds an 8.3% interest in the Schwedt refinery and a 20% interest in Bayernoil, an integrated pole that included Vohburg and Neustadt refineries. Eni’s refining capacity in Germany amounts to approximately 60 thousand barrels per day mainly used to supply Eni’s distribution network in Bavaria and Eastern Germany. In addition, through its 33.34% interest in Galp, Eni participates two refineries in Portugal: a small one in Porto specialized in the manufacture of lubricant bases and a larger and more complex refinery in Sines integrated with petrochemicals production. In 2010, 463 service stations in Italy. At December 31, 2010, Eni’s retail network in Italy consisted of 4,542 service stations. At December 31, 2010, Eni’s retail network in the rest of Europe consisted of 1,625 units.
Engineering & Construction
Eni engages in oil field services, construction and engineering activities through its partially-owned subsidiary Saipem and subsidiaries of Saipem (Eni’s interest being 42.92%). Saipem provides a full range of engineering, drilling and construction services to the oil and gas industry and downstream refining and petrochemicals sectors, mainly in the field of performing large EPC (Engineering, Procurement and Construction) contracts offshore and onshore for the construction and installation of fixed platforms, subsea pipelaying and floating production systems and onshore industrial complexes.
Saipem’s offshore construction fleet is made up 33 vessels and a large number of robotized vehicles. Its vessels include the Saipem 7000 semisubmersible dynamic positioned vessel, with 14 thousand tons of lift capacity, capable to lay pipelines using the J-lay technique to the maximum depth of 3,000 meters; the Field Development Ship for the development of underwater fields in dynamic positioning, provided with cranes lifting up to 600 tons and a system for J-lay pipelaying to a depth of 2,000 meters; the Castoro six semisubmersible vessel, capable of laying pipes in waters up to 1,000 meters deep; the Saipem 3000 multifunction vessel for the development of hydrocarbon fields, able to lay rigid and flexible pipes and provided with cranes capable of lifting over two thousand tons, and the Semac semisubmersible vessel used for large diameter underwater pipelaying. The fleet also includes remotely operated vehicles (ROV).
Saipem operates in the construction of plants for hydrocarbon production (extraction, separation, stabilization, collection of hydrocarbons, water injection) and treatment (removal and recovery of sulfur dioxide and carbon dioxide, fractioning of gaseous liquids, recovery of condensates) and in the installation of large onshore transport systems (pipelines, compression stations, terminals). Saipem is the only engineering and construction contractor that provides both offshore and onshore drilling services to oil companies. In the offshore drilling segment, Saipem mainly operates in West Africa, the North Sea, the Mediterranean Sea and the Middle East.
Saipem’s offshore drilling fleet consists of 15 vessels fully-equipped for its primary operations and some drilling plants installed on board of fixed offshore platforms. Its major vessels are: the Saipem 12000 and Saipem 10000, designed to explore and develop hydrocarbon reservoir operating in excess of 3,600 and 3,000 meters water depth, respectively in full dynamic positioning. In 2010 those vessels operated in West Africa and Far East. Other relevant vessels are Scarabeo 5 and 7, third and fourth generation semisubmersible rigs able to operate at depths of 1,900 and 1,500 meters of water, respectively.
Saipem operates in this area as a main contractor for the international oil companies and NOCs executing its activity mainly in South America, Saudi Arabia, North Africa and, at a lower extent, in Europe. The 86 rigs owned by Saipem at year end were located as 28 in Venezuela, 19 in Peru, eight in Saudi Arabia, seven in Algeria, six in Colombia, four in Italy, three in Kazakhstan, three in Brazil, three in Ecuador, two in Ukraine, two in Congo and one Bolivia. Saipem also used rigs owned by third parties (six in Peru and two in Kazakhstan), as well as rigs owned by the joint company Saipar.
Eni operates in the businesses of olefins and aromatics, basic and intermediate products, polystyrene, elastomers and polyethylene. Its major production sites are located in Italy and Western Europe. Eni’s petrochemical activities include production of olefins and aromatics, basic intermediate products, polyethylene, polystyrenes, and elastomers. Eni’s petrochemical operations are concentrated in Italy and Western Europe. In 2010, Eni sold 6.1 million tonnes of petrochemical products.
Piazzale Enrico Mattei, 1