Eni SpA operates as an integrated energy company. The company engages in oil and gas exploration, development and production; marketing of gas, electricity and LNG (liquefied natural gas); power generation; refining and marketing of petroleum products; production and marketing of petrochemical products; commodity trading; and oilfield services and engineering activities. It has operations in 83 countries. Segments The company’s segments include Exploration & Production, Gas & Power, Refining & Marketing, Chemical, and Engineering & Construction. Exploration & Production This segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Russia, Algeria, Australia, Venezuela, Iraq, Ghana, and Mozambique. As of December 31, 2014, the company’s total proved reserves amounted to 6,602 mmBOE (million barrel of oil equivalent), including proved reserves of subsidiaries totaled 5,772 mmBOE and the company’s share of reserves of equity-accounted entities was 830 mmBOE. This segment’s strategy is to pursue profitable production growth by developing its portfolio of projects underway and by optimizing its current producing fields. Gas & Power This segment engages in supplying, trading, and marketing gas and electricity; international gas transport activities; and LNG supply and marketing. This segment also includes the activity of electricity generation that is ancillary to the marketing of electricity. The company produced power at various operated sites in Italy with a total installed capacity of 4.9 GW as of December 31, 2014. Refining & Marketing This segment engages in crude oil supply, and refining and marketing of petroleum products at retail and wholesale markets primarily in Italy and in the rest of Europe. In 2014, processed volumes of crude oil and other feedstock amounted to 25.03 million tonnes (mmtonnes) and sales of refined products were 44.41 mmtonnes, of which 22.76 mmtonnes in Italy. Retail sales of refined products at the company’s service stations amounted to 9.21 mmtonnes in Italy and in the rest of Europe. The company also engages in commodity risk management and asset-backed trading activities. Through the trading department of the parent company and its wholly-owned subsidiary, Eni Trading & Shipping SpA, the company engages in derivative activities targeting the spectrum of energy commodities on both the physical and financial trading venues. Eni Trading & Shipping SpA and its subsidiaries also provide the company with crude oil and products supply, trading, and shipping services. Chemical This segment’s activities include the production of olefins and aromatics, basic intermediate products, polyethylene, polystyrenes, and elastomers. Its chemical operations are concentrated in Italy and Western Europe. In 2014, the company sold 3.46 mmtonnes of chemical products. Engineering & Construction This segment engages in oilfield services, construction and engineering activities through its partially-owned subsidiary, Saipem and Saipem’s controlled entities (the company’s interest being 42.91%). Saipem provides a range of engineering, drilling and construction services to the oil and gas industry and downstream refining and petrochemical sectors, primarily in the field of performing large engineering, procurement and construction contracts offshore and onshore for the construction and installation of fixed platforms, sub-sea pipe laying and floating production systems and onshore industrial complexes. Strategic Agreements In 2014, the company signed a strategic agreement with the Kazakh national company, KazMunaiGas, for the exploitation of exploration and production rights in the Isatay area, located in the North Caspian Sea, through a joint operating company. Dispositions In January 2014, the company sold its 60% interest in Artic Russia BV to certain Gazprom Neft subsidiaries. In December 2014, the company divested its 20% stake in South Stream Transport BV engaged in the economic feasibility, procurement and construction of the offshore section of the South Stream pipeline to Gazprom Neft. In August 2014, the company divested its stake in EnBW Eni Verwaltungsgesellschaft mbH, a joint venture, which controls the companies, Gasversorgung Süddeutschland GmbH and Terranets BW, to its partner Energie Baden-Württemberg. In 2014, the company completed the divestment of Galp Energia SGPS SA through the sale of approximately 8% of the share capital of the investee. Strategy The company’s strategy includes focusing on near-field exploration reducing expenditures; fast track development of discovered resources through the optimization of the time-to-market and strict control of project execution; monetization of interests in discoveries made; modular approach and phased project development to reduce the financial exposure and fasten production start-up; and increased efficiency through a range of actions aimed at reducing operating costs, pursued also through the renegotiations of supply contracts. Seasonality The company’s results of operations reflect the seasonality in demand for natural gas and certain refined products used in residential space heating, the demand for which is highest in the first quarter of the year (year ending December 2014), which includes the coldest months and lowest in the third quarter, which includes the warmest months. Research and Development In 2014, the company’s overall expenditure in research and development amounted to euro 186 million, which were almost entirely expensed as incurred. Intellectual Property In 2014, the company filed 84 patent applications, 49 of these coming from the company, 14 from Versalis, 20 from Saipem, and 1 from Syndial SpA. History Eni SpA was founded in 1953.
eni spa (ENI:Xetra)
Piazzale Enrico Mattei 1
Rome, RM 00144
Phone: 39 06 59821
Fax: 39 06 59 82 21 41www.eni.com
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