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Exploration & Production

At the end of 2011 Enis operations in Nigeria were carried out in a developed and
non-developed area covering 40,625 square kilometres (with Enis share amounting to
8,491 square kilometres), concentrated in both the onshore and offshore areas of the
Niger Delta, with a total of 46 mining leases. Enis operations in Nigeria are regulated
by Production Sharing Agreements and concession contracts and, in the case of two
leases, by service contracts where Eni is the contractor on behalf of Nigerian stateowned companies. In 2011 Enis share of hydrocarbon production amounted to
160,000 barrels of oil equivalent per day (boe/day), including 96,000 barrels/day of
crude and condensates.
In the production/development phase Eni is the operator in four oil mining leases
(OML) 60, 61, 62 and 63 (20% Eni) in both the onshore and offshore areas of OML
125 (85% Eni) and OML 120-121 (40% Eni), while it is also involved in OML 118
(12.5% Eni) and in the OML 119 and 116 service contracts.
As part of SPDC JV, the main oil joint venture in the country, Eni operates in 28
onshore blocks (5% Eni) and 5 conventional offshore blocks (12.86% Eni).
In the exploration phase Eni is the operator of Oil Prospecting Leases (OPL) 244
(60% Eni), OML 134 (formerly OPL 211, 85% Eni) in the offshore area and OPL 282
(90% Eni) and OPL 135 (48% Eni) in the onshore area. The company is also involved
in OML 135 (formerly OPL 219, 12.5% Eni).
During the year a number of operations were carried out with the aim of optimising
the portfolio of assets in production in the country, as part of a strategy of selective
growth of investments. These operations refer to: (i) the purchase of a 49% stake in
Block OPL 2009 from GEC Petroleum Development Company (GDPC) and the
allocation by the government of 50% of Block OPL 245 to Eni, together with the
relative licences and the role of operator; (ii) the disposal of the companys 5% stake
in Blocks OML 26 and OML 42; (iii) the finalisation of an agreement to dispose of
40% of Blocks OML 120 and 121, subject to approval by the competent authorities.

BLOCKS OML 60, 61, 62 and 63

Production. In 2011 the OML 60, 61, 62 and 63 licences provided 42% of Enis
production in the country, equal to approximately 66,000 boe/day. Production of
liquids and gas is supported by the Obiafu-Obrikom LNG plant, which has a treatment
capacity of approximately 28 million cubic metres/day of gas, and the Brass oil
loading terminal, with a storage capacity of approximately 3.5 million barrels of oil.

A significant part of the gas reserves from the four licences is destined for the N-LNG
liquefaction plant at Bonny Island (see below). Part of the gas production is used to
fuel the Kwale-Okpai combined-cycle thermoelectric power station, which has the
capacity to generate 480 megawatts of electricity.
In 2011, the amount of gas supplied to the power station amounted to approximately 2
million cubic metres/day, equal to around 11,000 boe/day (with Enis share amounting
to approximately 2,000 boe/day). The project is part of the programme set up by the
Nigerian government and Eni to reduce emissions of carbon dioxide into the
atmosphere, and it is recognised as a Clean Development Mechanism (CDM) project
for the purposes of implementing the Kyoto Protocol.
Development. The two main initiatives aimed at guaranteeing a supply of gas to the
Bonny LNG plant and flaring down in the area continued during the year. As part of
the initiative to supply gas to the Bonny LNG plant, the capacity of the
Obiafu/Obrikom plant for the compression and export of gas was increased in order to
ensure that Eni can supply 4.8 million cubic metres of feed gas for a period of twenty
years to fuel the plants sixth train.
The Tuomo gas field is being developed with the same aim, with start-up expected in
early 2012.
During the period 2010-2011, the flaring down projects at the Kwale and
Obiafu/Obrikom production units and at the Ebocha oil centre were completed. The
programme is continuing with the upgrading of the flowstream for the Idu deposit
and of the Ogbainbiri treatment plant, with work expected to be completed in 2012.

Block OML 118

Production. In 2011, Enis share of production from the Bonga deposit amounted to
approximately 14,000 barrels/day of oil. The production is supported by a Floating
Production Storage and Offloading (FPSO) unit with a treatment capacity of 225,000
barrels/day and a storage capacity of 2 million barrels of oil. The associated gas is
collected by a gathering platform situated in the EA field, from where it is sent to the
Bonny liquefaction plant.

Block OML 119

Production. The production came from the Okono/Okpoho deposits, and in 2011
Enis share amounted to approximately 7,000 barrels/day of oil from an FPSO with a
treatment capacity of 80,000 barrels/day and a storage capacity of 1 million barrels.
During the year work continued on completing the Phase 2A project to drill two
underwater production wells connected to the FPSO already present in the area for

developing additional resources equal to 23 million barrels of oil, with start-up

expected in 2012.

Block OML 125

Production. Production came from the Abo deposit, and in 2011 Enis share
amounted to 21,000 barrels/day of oil. Production is supported by an FPSO unit with a
treatment capacity of 45,000 barrels/day and a storage capacity of 800,000 barrels.

Block OPL 245

This area contains the highest potential non-developed mining deposits in the
countrys deep offshore area.
Operations only concern the pre-development and exploration phase. Discovered
reserves are estimated to amount to approximately 500 million boe. Project operations
are based on the accelerated development of the Zabazaba and Etan deposits, with
start-up in early production expected in 2014. The preliminary development plan is for
the installation of an FPSO with a capacity of 120,000 boe/day, the drilling of 28
production wells and the construction of connection facilities to the Bonny
liquefaction plant.
Exploration operations are planned to carry out an appraisal of the discoveries that are
already present in the block.
SPDC Joint Venture (NASE)
In 2011, production from SPDC JV represented approximately 30% of Enis
production in the country and was equal to around 47,000 boe/day.
The Forcados/Yokri liquids and gas deposit is being developed, as part of the
associated gas gathering integrated project to ensure the supply of gas to the domestic
market through the existing Escravos-Lagos gas pipeline. Start-up is expected in
2013.
In Block OML 28, work continued on the drilling campaign as part of the natural gas
and oil integrated project in the Gbaran-Ubie area. The development plan is for the
supply of natural gas to the Bonny liquefaction plant by means of the construction of a
central processing facility (CPF) with a treatment capacity of approximately 28
million cubic metres/day of gas and 120,000 barrels/day of liquids.
Exploration operations produced positive results at the Opugbene 2 appraisal well,
where gas and condensates were found in Block OML 36.