Eni

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For the father of three Anglo-Saxon kings, see Eni of East Anglia. For places in Iran, see Eni, Iran.
Eni S.p.A.
Type Società per azioni
Traded as BITENI, NYSEE
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 128.8 billion (2012)[1]
Operating income €18.064 billion (2012)[1]
Net income €7.788 billion (2012)[1]
Total assets €139.641 billion (2012)[1]
Total equity €62.713 billion (2012)[1]
Employees 77,838 (2013-04-09)[1]
Subsidiaries AGI
Eni Gas & Power
Polimeri Europa
Saipem
Snam
Syndial
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 Italy's 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 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[edit]

1950s–1960s[edit]

Eni was founded and established by law in 1953[4][5] from an existing company, Agip, created in 1926 with the aim to explore for oilfields, acquire and commercialize oil and derivatives. On March 1953 Enrico Mattei was nominated Eni’s Chairman.[6][7]

Eni originally was an acronym for the company's full title Ente Nazionale Idrocarburi.[8] Since 1995 the meaning ceased to be relevant but the name was maintained.[9]

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.[10][11]

Starting 1954 Eni holds extensive exploration rights in North Africa,[8] signing an agreement with the Egyptian government lead by Nasser[12] while providing an active and equal role for the crude producing countries through the establishment of joint ventures.[13]

In 1957 Eni pushed for a similar agreement, known as the “Mattei formula”,[14][15] to be signed with Persian Shah Reza Pahlavi and the National Iranian Company.[16][17][18]

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.[19][20]

On 27 October 1962 Enrico Mattei died on an aircraft accident involving his twin-jet while surrounding Bascapè,[21] on his way to Milan from Catania.[22]

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.[23]

In 1967 Eni acquired Italgas.[24]

1970s–1980s[edit]

In October 1973 after the Yom Kippur War and the embargo[25][26] against the United States and the Netherlands agreed by OPEC members Arab countries, a serious oil crisis occurred,[27] pushing Eni in need to consolidate its position in the international market by signing an agreement with Sonatrach,[28] the Algerian state oil entity for natural gas supply.[29]

In 1974 Eni signed an agreement with Libyan government, followed by further agreements with Egypt, Nigeria and Tunisia,[30][31][32][33] while developing two new major oil discoveries in the British North Sea got on 1972.[34]

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.[35][36][37]

After the inauguration of the Trans-Mediterranean Pipeline connecting Algeria to Sicily through Tunisia,[38] Eni signs a new agreement with Libya for the exploitation of Boùri,[39] the biggest oilfield in the centre of the Mediterranean,[40] and develops its international role within the oil industry.[41]

1990s[edit]

In 1992 Eni became a joint stock company by Law Decree,[42][43][44][45][46] being listed to the Italian and New York Stock Exchange in 1995.[47][48][49]

From 1995 to 1998 Eni put four share offers fully successfully, as 70% of its capital assets were sold to private shareholders.[50][51][52]

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.[53][54][55]

2000 to present[edit]

Since 2000 Eni has been developing the Kashagan[56] oilfield a major offshore discovery, along the Caspian Sea.[57][58]

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.[59][60][61]

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.[62][63][64]

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.[65]

In 2010 Eni achieves key production milestone in Iraqi Zubair oil field.[66][67][68]

After getting a licence in 2006 for the exploration of an offshore area in the north of Mozambique, known as Area 4,[69][70][71] Eni announced several major natural gas discoveries between 2011 and 2012 such as Mamba South,[72][73][74][75][76][77] Mamba North,[78][79] Mamba North East,[80][81][82][83] Coral 1.[84][85][86][87]

In February 2014, ENI discovered oil at its DRC offshore block.[88]

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.[89]

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.[90]

Operations[edit]

Eni Oil Bouri DP4 in Bouri Field is the biggest platform in the Mediterranean Sea

Exploration & production[edit]

As exploration and reserve replacement being major drivers for the company,[91] Eni boosts for production additions in its core oil field areas (North and Sub-Saharan Africa,[92][93][94][95] Venezuela,[96][97] Barents Sea,[98][99] Yamal Peninsula,[100][101] Kazakhstan,[102][103] Iraq[104] and the Far East[105][106]). Eni has about 130 exploration and production subsidiaries,[107] such as Eni Norge.[108]

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.[91][109]

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.[110][111][112]

Gas & Power[edit]

Natural gas[edit]

In 2012, sales of natural gas were 95.32 bcm, down 1.44 bcm compared to 2011.[113][114][115]

Eni's power generation sites are located in Ferrera Erbognone, Ravenna, Livorno, Taranto, Mantova, Brindisi, Ferrara and Bolgiano.[116][117] In 2012, Eni's power generation was 25.67 TWh.[118][119]
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.[120][121][122][123][124]

Power generation[edit]

Eni's electricity generation sites in Italy, as of January 2010, are the following:[125]

Natural gas power plants
Photovoltaic power plants

Refining & Marketing[edit]

Eni is the leader operator in refining and marketing of petroleum products in Italy.[126][127]
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).[128][129][130][131]
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.[126][132][133]

Engineering & Construction[edit]

Eni operates in engineering, construction and drilling both offshore and onshore for the oil&gas industry through the subsidiary Saipem.[134]

In April 2012, Eni in collaboration with ZEiTECS announced the world's first offshore rigless/wireline retrievable ESP system for Eni Congo.[135]

Subsidiaries[edit]

Eni's principal subsidiaries include:

  • Eni Gas & Power (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.[citation needed]
  • 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.[136]
  • 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.[137]

Peers[edit]

Eni is the largest company in Italy and the 20th in the world by revenue.[138] It can be compared to the other Oil and Gas companies in the world of operating and economics data.[139][140][141][142][143][144]

Peers - Hydrocarbons Production 2013 (kboe/d)

  • ExxonMobil 4175
  • BP 3230
  • Shell 3199
  • Chevron 2597
  • Total 2299
  • Eni 1619
  • Repsol 346

Peers - Proven Hydrocarbons Reserves 2013 (Mld boe)

  • ExxonMobil 25,2
  • BP 18,0
  • Shell 13,9
  • Total 11,5
  • Chevron 11,2
  • Eni 6,5
  • Repsol 1,5

Peers – Net Income 2013 (Mld $)

  • ExxonMobil 32,6
  • BP 23,5
  • Chevron 21,4
  • Shell 16,4
  • Total 11,2
  • Eni 6,9
  • Repsol 0,3

Controversies[edit]

The Central Energy Italian Gas Holding scandal in 2005 involved Eni and Gazprom[145]

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.[146]

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. [147]

After corruption charges around the subsidiary Saipem, Eni's CFO Alessandro Bernini had to resign and the new CFO Massimo Mondazzi took over in December 2012.[148]

Sustainability[edit]

Eni has been included into the Dow Jones Sustainability World Index since 2007.[149][150][151][152]

In 2012 Eni is confirmed on the FTSE4Good Index for the sixth consecutive year.[153][154][155]

In 2012 Eni is also included in the Carbon Performance Leadership Index[156][157] and is the only FTSE MIB company to gain the triple E for Standard Ethics.[158]

During 2012, Eni decreased CO2 emission that resulted from flaring by 10% as compared to 2011.[159][160]

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.[161][162]

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).[163][164]

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.[165][166]

In 2013 Eni’s commitment continued in ensuring access of local communities to energy, particularly in Sub-Saharan Africa.[167]

In the first half of 2014 Eni achieved the start-up of the Porto Torres green chemistry plant and the Venice biorefinery.[168][169]

Motorsports[edit]

Eni has been involved in motorsports for more than ten years. The AF Corse Team has achieved notable successes both in Italy and in Europe, winning more than 70 championships over the years. No other auto racing team has gained such success in the history of the Italy.

See also[edit]

References[edit]

  1. ^ a b c d e f "eni spa (ENI:BrsaItaliana)". Eni. Retrieved 14 November 2013. 
  2. ^ "Summary for Eni SpA". Retrieved 2013-08-14. 
  3. ^ [1]
  4. ^ eni spa
  5. ^ ENI SPA NYSE
  6. ^ eni history
  7. ^ FEMM
  8. ^ a b Encyclopædia Britannica
  9. ^ What does Eni stand for?
  10. ^ History of the trademark
  11. ^ What is the significance of the "six-legged dog" in the Eni symbol?
  12. ^ 1954-Moving around the world. All you need is a formula.
  13. ^ Society of Petroleum Engineers
  14. ^ Encyclopædia Britannica Enrico Mattei
  15. ^ 1957-The Mattei formula, another winning move
  16. ^ Eni in Egypt
  17. ^ OIL AGREEMENTS IN IRAN
  18. ^ Eni, background information
  19. ^ CEO Paolo Scaroni discusses Eni-Russia relations: past, present and future
  20. ^ Enrico Mattei takes on the seven sisters cartel
  21. ^ 1962-A light goes of over the sky of Bascapè
  22. ^ The mystery of Enrico Mattei
  23. ^ A brief history of Major Oil Companies in the Gulf Region
  24. ^ Società Italiana per il Gas pA
  25. ^ Milestones: 1969-1976, OPEC Oil Embargo 1973-1974
  26. ^ OPEC states declare oil embargo
  27. ^ 1973-74 Oil Crisis
  28. ^ Alegerian gas to Europe:the transmed pipeline and early Spanish gas import projects
  29. ^ Gas as a Solution to the Oil Crisis and the Algerian Gas Pipeline
  30. ^ National Oil Corporation-Eni gas company
  31. ^ The Race for Energy: from 1972 to 1998
  32. ^ Pipelines or pipe dreams? Lessons from the history of Arab transit pipelines
  33. ^ Eni in Libya
  34. ^ The North Sea: Britain/s Fight For High-Energy Growth
  35. ^ 166 GSM 03 - Energy and environment in the Mediterranean
  36. ^ Trans-Mediterranean Pipeline
  37. ^ Pipelines in the Middle East and North Africa
  38. ^ Trans-Mediterranean Natural Gas Pipeline, Algeria
  39. ^ ENI (Agip) Bouri
  40. ^ Libya gas export project sets records
  41. ^ 1978 - Houston, we have a contract
  42. ^ Share Capital Evolution
  43. ^ Eni, Company Description
  44. ^ 1992 – A private affair, at the service of everyone
  45. ^ Eni signs agreements on industrial relations and green economy
  46. ^ Ente Nazionale Idrocarburi (ENI) S.P.A.
  47. ^ Eni SpA
  48. ^ 1995 – The stock exchange listing!
  49. ^ European oil Who will run Eni?
  50. ^ The History of Privatization
  51. ^ ITALY'S STATE OWNED ENI STRUGGLES TOWARD PRIVATIZATION
  52. ^ Association of European Businesses- Eni SpA
  53. ^ The Top 10 Oil & Gas Companies
  54. ^ The Race for Energy: from 1998 to 2009
  55. ^ Mergers and restructuring in the world oil industry
  56. ^ About Kashagan
  57. ^ 2001 Conquering Kashagan
  58. ^ Kashagan Offshore Oilfield Project, Kazakhstan
  59. ^ Blue Stream
  60. ^ Blue Stream Pipeline
  61. ^ Eni, Blue Stream project
  62. ^ Eni and Gazprom signed the agreement for the South Stream Project
  63. ^ South Stream Gas Pipeline Project
  64. ^ South Stream Pipeline
  65. ^ "Letter to Eni CEO". Knight Vinke Asset Management. Retrieved 23 January 2010. 
  66. ^ Eni achieves key production milestone in the Zubair field, in Iraq
  67. ^ Eni Signing Begins Spate of Iraqi Oil Agreements
  68. ^ JPT,Company News Mergers and Acquisitions
  69. ^ Eni in Mozambique
  70. ^ Mozambique: Galp Energia and Eni to drill offshore Mozambique in September
  71. ^ Italian group ENI finds more natural gas in Mozambique
  72. ^ The Eni Presence
  73. ^ Mamba Proved East Africa Potential is Real
  74. ^ Eni increases the Mamba South gas discovery in Mozambique by 50%
  75. ^ Mamba South/North
  76. ^ Eni discovers gas at Mamba South offshore Mozambique
  77. ^ Italy's ENI claims giant gas discovery in Mozambique
  78. ^ Eni: new giant gas discovery in the offshore Mozambique
  79. ^ $50 billion estimated to develop giant Mamba gas field
  80. ^ Eni Discovers Gas at Mamba North East 2 in Mozambique
  81. ^ Eni adds Paleocene pay, 10+ tcf off Mozambique
  82. ^ Eni announces Mozambique gas discovery
  83. ^ Mozambique: Eni makes new natural gas discovery in the region
  84. ^ Eni: important new discovery in Mozambique
  85. ^ ENI STRIKES ‘GIANT’ NATURAL GAS FIELD AT CORAL PROSPECT
  86. ^ Eni announces major new gas discovery offshore Mozambique
  87. ^ Eni Makes a Major Gas Discovery
  88. ^ Eni finds oil and gas offshore DR Congo, Africa: Oil Review Africa, 2014 
  89. ^ OGJ Editors (May 7, 2014). "Eni sheds eastern European refining assets". Oil and Gas Journal. Retrieved 20 May 2014. "A series of capacity reductions in its Italian refining business over the last 3 years contributed a 13% reduction in the company’s global refining capacity in 2013, according to Eni." 
  90. ^ "Italy's Eni acquires 40pc interest in Sasol's gas offshore permit". South Africa News.Net. Retrieved 11 June 2014. 
  91. ^ a b Exploration & Production
  92. ^ Eni Makes Big Oil Find in Africa Amid New Sub-Saharan Success
  93. ^ Eni Makes Significant Oil & Gas Discovery Offshore Congo
  94. ^ Eni: First important oil discovery in OTCP Block offshore Ghana
  95. ^ Eni Discovers Significant Hydrocarbon Offshore Congo
  96. ^ Eni announces first production from Junin-5 oil field in Venezuela
  97. ^ Oil Production Kicks Off At Junin-5 In Venezuela
  98. ^ Eni awarded new exploration licenses in the Barents Sea
  99. ^ Eni gets exploration licenses in Barents Sea, offshore Norway
  100. ^ Eni SpA ADR E Q4 2011 Earnings Call Transcript
  101. ^ Eni's CEO Hosts 2012-2015 Strategy Presentation Call
  102. ^ Kazakhstan: Eni sees Kashagan to produce 75,000 barrels a day in first month
  103. ^ Eni Releases 2013-2016 Strategic Plan
  104. ^ Iraq
  105. ^ Eni: awarded East Sepinggan block in Indonesia
  106. ^ Eni sees 4%/year output rise through 2016
  107. ^ http://www.eni.com/en_IT/sustainability/business-ethics/organizational-transparency/organizational-transparency.shtml
  108. ^ http://www.eninorge.com/en/
  109. ^ Oil and gas production
  110. ^ Drilling
  111. ^ Exploration and Development
  112. ^ Annual report 2012
  113. ^ Gas & Power
  114. ^ Previous Year's Results
  115. ^ History and development of the Company
  116. ^ Sannazzaro Refinery, Italy
  117. ^ Eni SpA
  118. ^ Power Generation
  119. ^ Power Annual Report
  120. ^ Sales of natural gas
  121. ^ Eni
  122. ^ Eni Enters Belgium Under Own Brand
  123. ^ Eni to retail gas in France Under Own Brand
  124. ^ Eni Acquires Belgian Gas Company
  125. ^ "Gas & Power". Eni. 2011-11-29. Retrieved 2012-06-08. 
  126. ^ a b Refining & Marketing
  127. ^ The Italian Gas Market: Challenges and Opportunities
  128. ^ Marketing of refined products
  129. ^ 10 October 2012 - Eni will sell gas on the French retail market under its own brand
  130. ^ Eni enters the retail natural gas market in France
  131. ^ 19 October 2012 - Eni will operate on the Belgian retail market under its own brand
  132. ^ Eni announces results for the third quarter and the nine months of 2012
  133. ^ Petrol World
  134. ^ "Engineering & Construction". Eni. Retrieved 2012-06-08. 
  135. ^ "Eni and ZEiTECS Install Eni Congo’s First Rigless Retrievable ESP System". BrightWire. 
  136. ^ "Eni starts production at the Blane oil field offshore UK". Milan: Eni. 2007-09-12. Retrieved 2010-04-19. 
  137. ^ "ENI India to start drilling in Q2 of 2011". Kolkata: The Economic Times. 2010-10-26. Retrieved 2010-10-26. 
  138. ^ Eni Investment Case
  139. ^ 2013 Financial and Operating Review ExxonMobil
  140. ^ BP Annual Report and Form 20-F 2013
  141. ^ Shell's 2013 Annual Report
  142. ^ Supplement to the Chevron Annual Report 2013
  143. ^ Total factbook 2013
  144. ^ Repsol consolidated financial statements
  145. ^ The Putin and Pals Project. Kommersant. Dec. 24, 2005
  146. ^ EU hits Italian energy group ENI with antitrust charges
  147. ^ "Uganda names bribes-claim minister new PM". Reuters. 2011-05-24. 
  148. ^ Bond Market Debut for New Eni CFO Mondazzi CFO Insight Magazine, January 2013
  149. ^ 13 September 2012, Eni confirmed in the Dow Jones Sustainability World Index
  150. ^ Sustainability Index, Annual review 2012
  151. ^ Eni SpA : Eni confirmed in Dow Jones Sustainability World Index
  152. ^ Eni confirmed in Dow Jones Sustainability World Index
  153. ^ 17 September 2012 – Eni confirmed in the FTSE4Good Index
  154. ^ Country classificationin FTSE Global benchmarks
  155. ^ Eni SpA : Eni confirmed in the FTSE4Good Index
  156. ^ 12 September 2012 – Eni enters Cdp's Carbon Performance Leadership Index (CPLI)
  157. ^ CDP climate performance scores
  158. ^ STOCK EXCHANGE: STANDARD ETHICS, ENI IS THE ONLY COMPANY IN THE FTSE MIB WITH A TRIPLE E
  159. ^ Climate Change
  160. ^ Fact Book 2012
  161. ^ Eni - Sustainability Indices
  162. ^ Eni - Sustainability
  163. ^ Eni Annual Report 2013
  164. ^ Eni’s business model
  165. ^ Eni Partnerships for Sustainable Energy
  166. ^ Eni for 2013
  167. ^ UN Sustainable Development Solution Network
  168. ^ Green Refinery Project
  169. ^ Matrìca: Porto Torres inaugurates new green chemistry complex

Bibliography[edit]

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

External links[edit]