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Eni

Eni S.p.A. (Italian pronunciation: [ˈɛːni]) is an Italian multinational oil and gas
Eni S.p.A.
company headquartered in Rome. Considered one of the global supermajors, 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.[3] 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 the People's Bank of
China.[4] The company is a component of theEuro Stoxx 50 stock market index.[5]

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, Type Listed società per
mining, chemicals and plastics, refining/extraction and distribution machinery, azioni
hospitality industry and even textile industry and news. Traded as BIT: ENI
NYSE: E
Eni constantly ranks among the top 100 on Fortune Global 500 list for largest FTSE MIB
companies by revenue. In 2016, the company holds the 65th place, a fall of 40 places Component
from the previous year's 25th rank.[6]
ISIN IT0003132476
In terms of share capitalisation (the market value of shares), Eni is ranked eighth in Industry Oil and gas
comparison with the principal companies operating in the same sector: Exxon, Shell, Founded February 10, 1953
Chevron, Total, BP, ConocoPhillips, Statoil, Anadarko, Apache and Marathon Oil.[7]
Headquarters Rome, Italy
In July 2017, the oil giant accepted responsibility for an oil spill affecting the Fylde Area served Worldwide
coast of Blackpool in the United Kingdom.[8] Key people Claudio Descalzi
(CEO)
Emma Marcegaglia
(IT)(Chairman)
Contents Products Petroleum
Natural gas
History
Petroleum products
1950s–1960s
Energy
1970s–1980s
1990s–2000s Revenue €70.980 billion
2000s–2010s (2017)[1]
2010 to present Operating €5.795 billion
income (2017)
Operations
Exploration and production Net income €3.430 billion
Gas and Power (2017)[2]
Natural gas
Total assets €80.416 billion
Power generation
(2017)
Refining and Marketing
Engineering and Construction Total equity €48.145 billion
(2017)
Subsidiaries
Number of 80,911 (2015)
Legal Problems employees
Sustainability Subsidiaries Eni Gas & Power,
Corporate Structure Saipem, Syndial,
Board of Directors Tecnomare,
See also Versalis

References Website www.eni.com


Bibliography
External links

History

1950s–1960s
Eni was founded and established by law in 1953[10][11] 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.[12][13]

Eni originally was an acronym for the company's full title Ente Nazionale
Idrocarburi.[14] After 1995, the meaning ceased to be relevant but the name was
maintained.[15]

In 1952 Eni chose its own logo, the six-legged dog, an imaginary animal
.[16][17]
symbolizing the sum of a car's four wheels and the two legs of its driver

Starting in 1954, Eni acquired extensive exploration rights in North Africa,[14] Palazzo ENI, Rome, built 1959-
signing an agreement with the Egyptian government led by Nasser[18] while 1962.[9] Photo by Paolo Monti, 1967.
providing an active and equal role for the crude producing countries through the
establishment of joint ventures.[19]

In 1957 Eni pushed for a similar agreement, known as the "Mattei formula",[20][21] to be signed with Persian Shah Mohammad Reza
Pahlavi and the National Iranian Company.[22][23][24]

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.[25][26]

On 27 October 1962, Enrico Mattei's airiplane misteriously exploded near Bascapè,[27] on his way to Milan from Catania.[28] His
death was initially considered an accident, but later it was confirmed to be a murder with the aim to protect and hide important
economical and political interests in Italy and especially abroad, as it is clearly stated in the records of the trial on the assassination of
[29]
the journalist Mauro De Mauro, who was investigating on the death of Enrico Mattei.

During the following years, Eni signed joint venture contracts with foreign companies to supply crude from Egypt to Iran and from
Libya to Tunisia.[30]

In 1963, Eni acquired a majority stake in Italgas.[31]

1970s–1980s
In October 1973 after the Yom Kippur War and the OPEC embargo[32][33] against the United States and the Netherlands by OPEC
[34] causing Eni to consolidate its position in the international market by
members and Arab countries, a serious his oil crisis occurred,
signing an agreement withSonatrach,[35] the Algerian state oil entity for natural gas supply
.[36]

In 1974 Eni signed an agreement with the Libyan government, followed by additional agreements with Egypt, Nigeria and
Tunisia.[37][38][39][40]
During the mid-1970s, Eni planned a major infrastructure for transporting natural gas over long distances, by building a pipeline
network of thousands of miles throughoutEurope and the Mediterranean.[41][42][43]

After the inauguration of the Trans-Mediterranean Pipeline connecting Algeria to Sicily through Tunisia,[44] Eni signs a new
agreement with Libya for the exploitation of Boùri,[45] the biggest oilfield in the centre of the Mediterranean,[46] and develops its
international role within the oil industry.[47]

1990s–2000s
In 1992 Eni became a joint stock company by Law Decree,[48][49][50][51][52] and was listed to the Italian and New York Stock
Exchange in 1995.[53][54][55]

From 1995 to 1998 Eni put four share offers fully successfully, as 70% of its capital assets were sold to private
shareholders.[56][57][58]

As the price of oil collapsed in 1998 as other major companies Eni got to turn into a race through merges, international acquisitions,
-companies.[59][60][61]
new explorations and the foundation of real super

2000s–2010s
Since 2000, Eni has been developing theKashagan[62] oilfield a major offshore discovery, along the Caspian Sea.[63][64]

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.[65][66][67]

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.[68][69][70]

Activist asset managerKnight 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.[71]

[72][73][74]
In 2010 Eni achieves key production milestone in Iraqi Zubair oil field.

After getting a licence in 2006 for the exploration of an offshore area in the north of Mozambique, known as Area 4,[75][76][77] Eni
announced several major natural gas discoveries between 2011 and 2012 such as Mamba South,[78][79][80][81][82][83] Mamba
North,[84][85] Mamba North East,[86][87][88][89] Coral 1.[90][91][92][93]

2010 to present
fshore block.[94]
In February 2014, ENI discovered oil at its DRC of

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 Česká rafinerská
.[95]
a.s. (CRC), a refining company in Czech Republic, to MOL Group of Hungary

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.[96]

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.

f the coast of Egypt.[97]


In August 2015 Eni announced the discovery of a huge gasfield of
In March 2018, Eni reached an agreement with MIT to fund fusion research projects run out of the MIT Plasma Science and Fusion
Center (PSFC)’s newly created Laboratory for Innovation in Fusion Technologies (LIFT). The expected investment in these research
[98]
projects will amount to about $2 million over the following years.

Operations

Exploration and production


As exploration and reserve replacement being major drivers for the
company,[99] Eni boosts for production additions in its core oil field areas
(North and Sub-Saharan Africa,[100][101][102][103] Venezuela,[104][105]
Barents Sea,[106][107] Yamal Peninsula,[108][109] Kazakhstan,[110][111]
Iraq[112] and the Far East).[113][114] Eni has about 130 exploration and
production subsidiaries,[115] such as Eni Norge.[116]

In 2012 Eni reported liquids and gas production for the full year of 1,701
Eni Oil Bouri DP4 in Bouri Field is the
kboe/d, this being calculated assuming a natural gas conversion factor to barrel biggest platform in theMediterranean Sea
equivalent, updated to 5,492 cubic feet of gas equal 1 barrel of oil from July 1,
2012.[99][117]

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
1 and 399 in 2010.[118][119][120]
development wells were drilled as well, as 407 in 201

Gas and Power

Natural gas
1.[121][122][123]
In 2012, sales of natural gas were 95.32 bcm, down 1.44 bcm compared to 201

Eni's power generation sites are located in Ferrera Erbognone, Ravenna, Livorno, Taranto, Mantova, Brindisi, Ferrara and
Bolgiano.[124][125] In 2012, Eni's power generation was 25.67 TWh.[126][127]
Overall Eni supplies 2,600 customers including lar
ge 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.[128][129][130][131][132]

Power generation
Eni's electricity generation sites in Italy, as of January 2010, are the following:[133]

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 and Marketing


Italy.[134][135]
Eni is the leader operator in refining and marketing of petroleum products in
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).[136][137][138][139]
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.[134][140][141]

Engineering and Construction


Eni operates in engineering, construction and drilling both offshore and onshore for the oil&gas industry through the subsidiary
Saipem.[142]

In April 2012, Eni in collaboration with ZEiTECS announced the world's first offshore rigless/wireline retrievable ESP system for
Eni Congo.[143]

Subsidiaries
Eni's principal subsidiaries include:

Eni Gas & Power[144] (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 asolefines, 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 (30,54% 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, includingBlue 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 fofthe 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.[145]
Eni India – is expected to start drilling at a deepwater block 2, nearAndaman and Nicobar Islandsin 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.[146]

Legal Problems
The Central Energy Italian Gas Holdingscandal in 2005 involved Eni andGazprom.[147]

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.[148]

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.[149]

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.[150]

Eni and Royal Dutch Shell will stand trial in Italy over allegations of corruption in the 2011 purchase of a big offshore oil field in
[151]
Nigeria known as OPL 245. Eni and Shell reportedly paid $1.3 billion in bribes.
Sustainability
Eni has been included into theDow Jones Sustainability World Index since 2007.[152][153][154][155]

In 2012 Eni is confirmed on theFTSE4Good Index for the sixth consecutive year.[156][157][158]

In 2012 Eni is also included in the Carbon Performance Leadership Index[159][160] and is the only FTSE MIB company to gain the
triple E for Standard Ethics.[161]

1.[162][163]
During 2012, Eni decreased CO2 emission that resulted from flaring by 10% as compared to 201

In 2013 Eni has been confirmed in the Dow Jones Sustainability Indices and, in the half-yearly review in March 2014, also in the
FTSE4 good sustainability index.[164][165]

In 2013 Eni continued its commitment to integrated reporting, preparing the Annual Report 2013 in accordance with the principles
[166][167]
and contents of the integrated reporting (IR) framework issued by the International Integrated Reporting Council (IIRC).

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.[168][169]

gy, particularly in Sub-Saharan Africa.[170]


In 2013 Eni's commitment continued in ensuring access of local communities to ener

In the first half of 2014 Eni achieved the start-up of the Porto oTrres green chemistry plant and theVenice biorefinery.[171][172]

Corporate Structure

Board of Directors
The Board of Directors is comprised as follows as of February 2017:
Emma Marcegaglia, former president of General Confederation of Italian Industry(Chairwoman of the Board)
Claudio Descalzi, current CEO of Eni
Andrea Gemma, law professor at Roma Tre University
Pietro Guindani, former CEO and CFO of Vodafone Italy
Karina Litvack, former Director of Ethics and Corporate Governance forF&C Asset Management
Alessandro Lorenzi, former Vice President of Planning and Control at Ferrero SpA, former CFO of Coin Group, former CCO for
Lavazza
Diva Moriani, current CEO of KME Vorstand
Fabrizio Pagani, current Secretary of Technology for Ministry of Economy and Finance (Italy), former OECD senior advisor and
head of G8/G20 office
Alessandro Profumo, former CEO of Unicredit

See also
List of petroleum companies

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Bibliography
(in English) Marcello Boldrini, Mattei, Rome, Colombo, 1969
(in Italian) Marcello Colitti, Energia e sviluppo in Italia, Bari, De Donato, 1979
(in English) Paul H. Frankel, Oil and Power Policy, New York - Washington, Praeger, 1966
(in English) Pier Paolo Pasolini, Petrolio, various
(in Italian) Nico Perrone, Enrico Mattei, Bologna, Il mulino, 2001ISBN 88-15-07913-0

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

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