Eni

Eni S.p.A.

Type	Società per azioni
Traded as	BIT: ENI, NYSE: E
Industry	Oil and gas
Founded	February 10, 1953 (1953-02-10)
Headquarters	Rome, Italy
Area served	Worldwide
Key people	Emma Marcegaglia (Chairman) Claudio Descalzi (CEO)
Products	Petroleum Natural gas Petroleum products Energy
Revenue	€109.84 billion (2014)[1]
Operating income	€8.08 billion (2014)[1]
Net income	€1.29 billion (2014)[1]
Total assets	€146.20 billion (2014)[1]
Total equity	€59.75 billion (2014)[1]
Number of employees	80,911 (2015)[1]
Subsidiaries	Agenzia Giornalistica Italia, Eni Gas & Power, Polimeri Europa,Saipem Snam, Syndial, Tecnomare
Website	www.eni.com

Eni S.p.A. is an Italian multinational oil and gas company headquartered in Rome. It has operations in 79 countries, and is currently world's 11th largest industrial company with a market capitalization of 68 billion euros (US$ 90 billion), as of August 14, 2013.^[2] The Italian government owns a 30.303% golden share in the company, 3.934% held through the state Treasury and 26.369% held through the Cassa Depositi e Prestiti. Another 2.012% of the shares are held by People's Bank of China.^[3] The company is a component of the Euro Stoxx 50 stock market index.^[4]

The name "ENI" was initially the acronym of "Ente Nazionale Idrocarburi" (national hydrocarbons authority). Through the years after its foundation however, it operated in a large number of fields including contracting, nuclear power, energy, mining, chemicals and plastics, refining/extraction and distribution machinery, hospitality industry and even textile industry and news.

History

1950s–1960s

Eni was founded and established by law in 1953^[5][6] from an existing company, Agip, which was created in 1926 with the aim to explore for oilfields, acquire and commercialize oil and derivatives. In March 1953, Enrico Mattei was nominated Eni’s Chairman.^[7][8]

Eni originally was an acronym for the company's full title Ente Nazionale Idrocarburi.^[9] Since 1995 the meaning ceased to be relevant but the name was maintained.^[10]

In 1952 Eni chooses its own logo, the six-legged dog, an imaginary animal symbolizing the sum of a car’s four wheels and the two legs of its driver.^[11][12]

Starting 1954 Eni holds extensive exploration rights in North Africa,^[9] signing an agreement with the Egyptian government led by Nasser^[13] while providing an active and equal role for the crude producing countries through the establishment of joint ventures.^[14]

In 1957 Eni pushed for a similar agreement, known as the "Mattei formula",^[15][16] to be signed with Persian Shah Reza Pahlavi and the National Iranian Company.^[17][18][19]

In 1960, during the Cold War period, Eni signed an agreement with the Soviet Union for the importation of Russian crude at very reasonable prices.^[20][21]

On 27 October 1962 Enrico Mattei died on an aircraft accident involving his twin-jet while surrounding Bascapè,^[22] on his way to Milan from Catania.^[23]

During the following years, Eni signed contracts in joint venture with foreign companies to supply crude from Egypt to Iran and from Libya to Tunisia.^[24]

In 1967 Eni acquired Italgas.^[25]

1970s–1980s

In October 1973 after the Yom Kippur War and the embargo^[26][27] against the United States and the Netherlands agreed by OPEC members Arab countries, a serious oil crisis occurred,^[28] pushing Eni in need to consolidate its position in the international market by signing an agreement with Sonatrach,^[29] the Algerian state oil entity for natural gas supply.^[30]

In 1974 Eni signed an agreement with Libyan government, followed by further agreements with Egypt, Nigeria and Tunisia,^{[31][32][33][34]} while developing two new major oil discoveries in the British North Sea got on 1972.^[35]

During the middle 70’s Eni planned a major infrastructure for transporting natural gas over long distances by building a pipeline network of thousands of miles throughout Europe and the Mediterranean.^[36][37][38]

After the inauguration of the Trans-Mediterranean Pipeline connecting Algeria to Sicily through Tunisia,^[39] Eni signs a new agreement with Libya for the exploitation of Boùri,^[40] the biggest oilfield in the centre of the Mediterranean,^[41] and develops its international role within the oil industry.^[42]

1990s-2000s

In 1992 Eni became a joint stock company by Law Decree,^{[43][44][45][46][47]} and was listed to the Italian and New York Stock Exchange in 1995.^[48][49][50]

From 1995 to 1998 Eni put four share offers fully successfully, as 70% of its capital assets were sold to private shareholders.^[51][52][53]

As the price of oil collapsed in 1998 as other major companies Eni got to turn into a race through merges, international acquisitions, new explorations and the foundation of real super-companies.^[54][55][56]

2000s-2010s

Since 2000, Eni has been developing the Kashagan^[57] oilfield a major offshore discovery, along the Caspian Sea.^[58][59]

In 2005 the Blue Stream pipeline projected to supply gas from southern Russia to Turkey was inaugurated as a joint venture between Eni and Gazprom.^[60][61][62]

In 2007 Eni signed an agreement to conduct South Stream a feasibility study with Gazprom to import Russian gas into Europe across the Black Sea.^[63][64][65]

Activist asset manager Knight Vinke, who owns 1% of the outstanding shares of the company, begun pressuring Eni's management to operate a spin-off of Eni's gas activities. In its opinion this would solve the undervaluation of the company and release up to 50 billion euros ($70bn) of hidden value.^[66]

In 2010 Eni achieves key production milestone in Iraqi Zubair oil field.^[67][68][69]

After getting a licence in 2006 for the exploration of an offshore area in the north of Mozambique, known as Area 4,^[70][71][72] Eni announced several major natural gas discoveries between 2011 and 2012 such as Mamba South,^{[73][74][75][76][77][78]} Mamba North,^[79][80] Mamba North East,^{[81][82][83][84]} Coral 1.^{[85][86][87][88]}

2010 to present

In February 2014, ENI discovered oil at its DRC offshore block.^[89]

Since 2012 Eni has been selling off refining and marketing assets it owned in eastern Europe in order to increase profitability. By 2013 Eni already reduced its refining capacity by 13 percent. In May 2014 Eni agreed to sell their 32.5% share in Ceska Rafinerska AS (CRC), a refining company in Czech Republic, to MOL Group of Hungary.^[90]

In June 2014 the company signed an agreement with Sasol to acquire a 40% interest in a permit to explore 82,000-km² offshore of South Africa's east coast.^[91]

In January 2015, Eni in collaboration with Vitol Energy signed a $7 billion contract with the government of Ghana. This agreement was reached in order to produce oil and gas at Cape Three Points in the Western Region of Ghana, in an attempt to enable Ghana meet its power and energy needs.

In August 2015 Eni announced the discovery of a huge gasfield off the coast of Egypt.^[92]

Critics

One on the main critics is that the the bills that the client has to pay are not related to how much the client use the service, so all the invoices that the client have to pay every two months are estimate by Eni on about 160 euros every two months even if the user doesn't use the Eni service at all.

Operations

Exploration & production

As exploration and reserve replacement being major drivers for the company,^[93] Eni boosts for production additions in its core oil field areas (North and Sub-Saharan Africa,^{[94][95][96][97]} Venezuela,^[98][99] Barents Sea,^[100][101] Yamal Peninsula,^[102][103] Kazakhstan,^[104][105] Iraq^[106] and the Far East).^[107][108] Eni has about 130 exploration and production subsidiaries,^[109] such as Eni Norge.^[110]

In 2012 Eni reported liquids and gas production for the full year of 1,701 kboe/d, this being calculated assuming a natural gas conversion factor to barrel equivalent, updated to 5,492 cubic feet of gas equal 1 barrel of oil from July 1, 2012.^[93][111]

During 2012 60 new exploratory wells were drilled, as 56 were drilled in 2011 and 47 in 2010. The overall commercial success rate was 40% (40.8% net to Eni) as compared to 42% in 2011 (38.6% net to Eni) and 41% in 2010 (39% net to Eni). In 2012 351 development wells were drilled as well, as 407 in 2011 and 399 in 2010.^{[112][113][114]}

Gas & Power

Natural gas

In 2012, sales of natural gas were 95.32 bcm, down 1.44 bcm compared to 2011.^{[115][116][117]}

Eni's power generation sites are located in Ferrera Erbognone, Ravenna, Livorno, Taranto, Mantova, Brindisi, Ferrara and Bolgiano.^[118][119] In 2012, Eni's power generation was 25.67 TWh.^[120][121]
Overall Eni supplies 2,600 customers including large companies, power generation companies, wholesalers and distributors of natural gas for automotive use. Residential users are 7.45 million and include households, professionals, small and medium size enterprises, and public bodies located all over Italy and 2.09 million customers in European Countries. International sales include Iberian Peninsula, Germany, Austria, Benelux, Hungary, UK/Northern Europe, Turkey, France markets.^{[122][123][124][125][126]}

Power generation

Eni's electricity generation sites in Italy, as of January 2010, are the following:^[127]

Natural gas power plants

• Brindisi - 1321 MW
• Ferrara - 61 MW
• Ferrera Erbognone - 1030 MW
• Livorno - 199 MW
• Mantua - 836 MW
• Ravenna - 972 MW
• Taranto - 300 MW

Photovoltaic power plants

• Nettuno - 30 MW

Refining & Marketing

Eni is the leader operator in refining and marketing of petroleum products in Italy.^[128][129]
Eni is engaged in retail and wholesales activities in Central-Eastern European countries also (Austria, France, Germany, Italy, Czech Republic, Romania, Slovakia, Slovenia, Switzerland, Hungary).^{[130][131][132][133]}
Retail sales operations are conducted under the Eni and Agip brands. The re-branding of Eni's service stations in Italy and in the rest of Europe to Eni brand is underway.^{[128][134][135]}

Engineering & Construction

Eni operates in engineering, construction and drilling both offshore and onshore for the oil&gas industry through the subsidiary Saipem.^[136]

In April 2012, Eni in collaboration with ZEiTECS announced the world's first offshore rigless/wireline retrievable ESP system for Eni Congo.^[137]

Subsidiaries

Eni's principal subsidiaries include:

• Eni Gas & Power^[138] (100% owned) - a natural gas and power company based in Belgium formed by merger of Distrigas and Nuon Belgium
• versalis (100% owned) - Versalis is a chemical company that manages the production and marketing of petrochemical products such as olefines, aromatics and intermediates (base chemicals), styrenes, elastomers and polyethylene, plus in recent years a focus on green chemistry, being also able to count on a range of proprietary technologies, advanced plant facilities and a broad-based distribution network.
• Saipem (43% owned) - Saipem is an oil and gas industry contractor. Saipem has contracted for engineering, oilfield services and construction both offshore and onshore through several pipelines, including Blue Stream, Greenstream, Nord Stream and South Stream. It is a subsidiary listed on the Italian Stock Exchange.
• Eni UK - carries out operations in the British section of the North Sea, in the Irish Sea and off the coast of the Shetland Islands. Has been present in UK since 1964. In 2006 Eni UK's average net production of hydrocarbons was more than 141,000 boe/d.^[139]
• Eni India is expected to start drilling at a deepwater block 2, near Andaman and Nicobar Islands in Q2 of 2011 as it has received 2-year extension for the completion of drilling program. The program was delayed due to various environmental issues and scarcity of oil rigs. ENI India had won this block in 2005 and partners with ONGC and GAIL India.^[140]

Controversies

The Central Energy Italian Gas Holding scandal in 2005 involved Eni and Gazprom^[141]

In 2009, the European Commission filed formal antitrust charges against Eni. The commission believes that Eni has conspired to keep competitors from using its gas pipelines.^[142]

In 2009 again, according to the WikiLeaks cables, US ambassador Lanier told Washington that bribery allegations were made in Uganda by Eni which at the time was in competition for oil assets in the country against Tullow Oil. The bribes were taken by the newly appointed Ugandan prime minister, Amama Mbabazi. ^[143]

After corruption charges against the subsidiary Saipem, Eni's CFO Alessandro Bernini had to resign and the new CFO Massimo Mondazzi took over in December 2012.^[144]

Sustainability

Eni has been included into the Dow Jones Sustainability World Index since 2007.^{[145][146][147][148]}

In 2012 Eni is confirmed on the FTSE4Good Index for the sixth consecutive year.^{[149][150][151]}

In 2012 Eni is also included in the Carbon Performance Leadership Index^[152][153] and is the only FTSE MIB company to gain the triple E for Standard Ethics.^[154]

During 2012, Eni decreased CO2 emission that resulted from flaring by 10% as compared to 2011.^[155][156]

In 2013 Eni has been confirmed in the Dow Jones Sustainability Indices and, in the half-yearly review in March 2014, also in the FTSE4Good sustainability index.^[157][158]

In 2013 Eni continued its commitment to integrated reporting, preparing the Annual Report 2013 in accordance with the principles and contents of the Integrated reporting (<IR>) framework issued by the International Integrated Reporting Council (IIRC).^[159][160]

Among the UN Sustainable Development Solution Network (SDSN), in 2013 Eni led the Energy For All in Sub-Saharan Africa initiative through international collaborations aimed at devising solutions to fight against energy poverty, in particular in Sub-Saharan Africa.^[161][162]

In 2013 Eni’s commitment continued in ensuring access of local communities to energy, particularly in Sub-Saharan Africa.^[163]

In the first half of 2014 Eni achieved the start-up of the Porto Torres green chemistry plant and the Venice biorefinery.^[164][165]

See also

• List of petroleum companies

References

• "Gov't signs $7billion oil and gas agreement to produce 1100 megawatts power" (PDF). myjoyonline.com. Retrieved February 3, 2015. 
• "Gov’t signs $7billion oil and gas agreement to produce 1100 megawatts power". energymin.gov.gh. Retrieved February 3, 2015. 

Bibliography

External links

Wikimedia Commons has media related to Eni.

• Official website
• Eni from Yahoo! finance
• New Gas Routes to the European Union

Euro Stoxx 50 companies of the Euro Area (Last update October 2015) Air Liquide Airbus Group Allianz Anheuser-Busch InBev ASML Holding Assicurazioni Generali AXA Banco Bilbao Vizcaya Argentaria Banco Santander Central Hispano BASF Bayer BMW BNP Paribas Carrefour Compagnie de Saint-Gobain Daimler AG Deutsche Bank Deutsche Post Deutsche Telekom Enel Engie SA Eni E.ON Essilor International Fresenius SE Groupe Danone Iberdrola Inditex ING Group NV Intesa Sanpaolo L'Oréal LVMH Moët Hennessy Louis Vuitton Münchener Rückversicherungs-Gesellschaft Nokia Orange S.A. Philips Electronics SAFRAN Sanofi SAP SE Schneider Electric Siemens Société Générale SA Telefonica TOTAL S.A. Unibail-Rodamco UniCredit Unilever Vinci SA Vivendi Volkswagen Group

FTSE MIB companies of Italy A2A Ansaldo STS Atlantia Azimut Banca Monte dei Paschi di Siena Banca Popolare dell'Emilia Romagna Banca Popolare di Milano Banco Popolare Buzzi Unicem Campari CNH Industrial Enel Enel Green Power Eni Exor FCA Finmeccanica Generali Intesa Sanpaolo Italcementi Luxottica Mediaset Mediobanca Mediolanum Moncler Pirelli & C. Prysmian Saipem Salvatore Ferragamo Snam STMicroelectronics Telecom Italia Tenaris Terna Tod's UBI Banca UniCredit Unipol UnipolSai YNAP

Petroleum industry Petroleum Primary energy Benchmarks Argus Sour Bonny Light Brent Dubai Indonesian Isthmus-34 Light Japan Cocktail OPEC Reference Basket Tapis Urals Western Canadian Select West Texas Intermediate Data Natural gas Consumption Production Reserves Imports Exports Price Petroleum Consumption Production Reserves Imports Exports Price (of gasoline and diesel) Exploration Core sampling Geophysics Integrated asset modelling Petroleum engineering Reservoir simulation Seismic to simulation Petroleum geology Petrophysics Reflection seismology (Seismic inversion) Seismic source Drilling Blowout Completion (Squeeze job) Differential sticking Directional drilling (Geosteering) Drilling engineering Drilling fluid (invasion) Drill stem test Lost circulation Measurement Tracers Underbalanced drilling Well logging Production Petroleum fiscal regime Concessions Production sharing agreements Artificial lift Pumpjack Submersible pump (ESP) Gas lift Downstream Enhanced oil recovery (EOR) Steam injection Gas reinjection Midstream Petroleum product Pipeline transport Refining Upstream Water injection Well intervention XT History 1967 Oil Embargo 1973 oil crisis 1979 energy crisis 1980s oil glut 1990 oil price shock 2000s energy crisis 2010s oil glut Founders History of petroleum Nationalization OPEC Seven Sisters Standard Oil Oil market timelines Provinces and fields List of natural gas fields List of oil fields East Midlands Oil Province East Texas Gulf of Mexico Niger Delta North Sea Persian Gulf Prudhoe Bay Oil Field Russia Venezuela Western Canadian Sedimentary Basin Other topics Acronyms Peak oil mitigation timing People Petrocurrency Petrodollar recycling Shale gas Swing producer Unconventional oil heavy crude oil sands oil shale   Companies and organisations Major petroleum companies Supermajors BP Chevron ConocoPhillips ExxonMobil Royal Dutch Shell Total National oil companies ADNOC (UAE) CNOOC (China) CNPC (China) Ecopetrol (Colombia) Gazprom (Russia) Iraq National Oil Company Indian Oil Corporation Kuwait Petroleum Corporation Lotos (Poland) Nigerian National Petroleum Corporation NIOC (Iran) NISOC (Iran) OGDCL (Pakistan) ONGC (India) PDVSA (Venezuela) PKN Orlen (Poland) Pemex (Mexico) Pertamina (Indonesia) Petrobras (Brazil) PetroChina Petronas (Malaysia) Petrovietnam PTT (Thailand) Qatar Petroleum Rosneft (Russia) Saudi Aramco (Saudi Arabia) Sinopec (China) SOCAR (Azerbaijan) Sonangol (Angola) Sonatrach (Algeria) Statoil (Norway) YPF (Argentina) Energy trading Glencore Gunvor Mercuria Naftiran Intertrade Trafigura Vitol Other Anadarko Apache BG Group Cenovus Energy Cepsa Devon Eni Galp Energia Hess Husky Energy Imperial Oil Lukoil Marathon Oil Nippon Oil Occidental OMV Port Harcourt Refining Company Reliance Industries Repsol Suncor Energy Surgutneftegas TNK-BP Tullow Oil Tüpraş Major services companies AMEC Baker Hughes Cameron CGG CH2M HILL Chicago Bridge & Iron Company China Oilfield Services Enbridge Ensco GE Oil & Gas Halliburton Naftiran Intertrade National Oilwell Varco Petrofac Saipem Schlumberger Snam Technip TransCanada Transocean Weatherford Wood Group Other International Association of Oil & Gas Producers International Energy Agency International Petroleum Exchange OPEC Society of Petroleum Engineers World Petroleum Council Category  Commons