Eni

Infobox_Company
company_name = ENI S.p.A.
company_
company_type = Public (nyse|E, ISE|IT0003132476|ENI)
foundation = February 10, 1953
location = Rome, Italy
key_people = Roberto Poli - Chairman
Paolo Scaroni (CEO)
industry = Oil and Gas
products = | products = Fuels
Lubricants
Petrochemicals
Natural gas
Energy
num_employees = 76,000 (2007)
revenue = profit €92,0 billion (2007)

subsid = Saipem
Italgas
Snam Rete Gas
Syndial
Polimeri Europa
AGI
homepage = [http://www.eni.it/home/home_en.html www.eni.it]

Eni S.p.A. (nyse|E, ISE|IT0003132476|ENI) is an Italian multinational oil and gas company, with a presence in 70 countries, currently Italy's largest industrial company, with a market capitalization, as of July 24, 2008, of € 87.7 billion euros (US$138 billion). [cite web |url=http://www.borsaitaliana.it/bitApp/daticompleti.bit?target=azioni&isin=IT0003132476&lang=en |title=Complete Financial Data on the Security ENI - Borsa Italiana |accessdate=2008-07-25] As of July 2008, the Italian Government owns a 30% golden share in the company, 20% held through its Treasury and 10% held through Cassa depositi e prestiti.

History

The Start and the Early Post-War Years

The 1920/30's - Italy Launches an Oil and Gas Policy

Incorporation of Agip. Exploration begun in Italy and foreign ventures initiated (Romania, Albania, Iraq). Exploration proceeds inside Italy and the Agip distribution network is created.After World War 2, Enrico Mattei is appointed Special Administrator to close down Agip but subsequent the discovery of the Caviaga gas field in the Po Valley, the process to liquidate Agip is halted.

The 50s and 60s

Incorporation Of Eni and Expansion Of Activities In Italy and Abroad

Eni was founded on February 10, 1953 by the Italian government to promote and develop a national energy strategy based on the concentration of all the activities in the energy sector into one group. The name derives from the initials of the company's original full title Ente Nazionale Idrocarburi, but is no longer used as an acronym. The goal is for Eni to supply energy to Italy and consequently contribute to the country's industrial development.Agip breaks the monopoly of the major oil companies by introducing a new contractual formula with the producer countries. This formula, which is first applied in Egypt and Iran, enables the local State Authority to share in the profits of oil and gas development.Discovery of the first European offshore gas field under the Adriatic Sea near Ravenna and discovery of the "El Borma" field in Tunisia, one of the largest reservoirs in Africa.

The 70s/80s

Gas as a Solution to the Oil Crisis and the Algerian Gas Pipeline

Eni identifies natural gas as an energy source that can meet the crisis resulting from the first oil embargo.Agreements signed to import gas from the Soviet Union and the Netherlands. Using a new "gravity" platform Agip discovers and then brings into production the "Loango" field in offshore Congo. Agip drills to a record depth of 5,500 meters at the Malossa field (near Milan) and discovers a new reservoir. The first remote controlled platform is installed by Agip in the "Perla" field, offshore Sicily.

Snam inaugurates the Transmediterranean pipeline, transporting gas from the Hassi-R-Mel field in Algeria to the Po Valley. The more than 2,500 km-long gas pipeline starts in the Algerian desert, crosses Tunisia, the Sicilian Channel (at a water depth of over 650 metres) and proceeds through Sicily and up the length of the entire Italian peninsula.A new record in offshore drilling at sea-depths of over 800 metres is established with the discovery of a new field in the Otranto Channel. Onshore, a new record is achieved with the discovery of the "Villafortuna" reservoir at a depth of 6,000 metres near Novara in Northern Italy. The new SWACS system, using acoustic signals to operate underwater production valves, is put into operation.

The 90s

Eni becomes a joint stock company

From being a public corporation Eni is now transformed into a joint stock company, as most of Eni's Share capital is put on the market in four successive public issues.
Agip's international activities expand with new acquisitions in Algeria, China, Angola, the North Sea and Egypt, while new agreements are signed with Kazakhstan, Azerbaijan and for the nigerian and angolan deep water offshore.The "Aquila" deepwater field (Otranto Channel) is brought into production. Eni incorporates Agip, thus becoming directly an oil and gas producer.
Eni's daily oil and gas production reaches 1 million barrels of oil equivalent.

Current Operations

Exploration & Production

Eni operates in the exploration and production of hydrocarbons in Italy, North Africa, West Africa, the North Sea, the Gulf of Mexico and Australia. It also operates in areas with great exploration and production potential such as the Caspian Sea, the Middle and Far East, India and Alaska.

Its crude oil production comes primarily from Libya, Egypt, Nigeria, the Congo, the North Sea, and Angola, with smaller amounts of crude oil production in Tunisia and in the United States. Eni's China production began in 1992, although it currently amounts to only 1 percent of Eni's total crude oil production.

In 2007, oil and natural gas production for the full year averaged 1.74 millions bboe per day, making Eni Europe's third largest refiner, after Royal Dutch Shell and Total S.A..

Estimated net proved reserves at December 31, 2007 were 6.37 billions boe determined based on a year-end Brent price of $96.02 per barrel. The amount of proved reserves comprised 30% of quantities of the three equity accounted Russian companies purchased as part of a bid procedure for assets of bankrupt Yukos and participated by Eni with a 60% interest, considering that it is probable that Gazprom will exercise a call option to acquire a 51% interest in these companies.

Eni carried out several hydrocarbon discoveries in recent years; the main discoveries were made in: Angola, Brazil, Congo, Egypt, Indonesia, Nigeria, Norway, Pakistan, the United Kingdom, the Gulf of Mexico and Alaska. In 2007, a total of 81 new exploratory wells were drilled (43.5 of which represented Eni's share). Moreover, the company acquired oil and gas assets in the Gulf of Mexico from Dominion Resources and in onshore Congo from Maurel & Prom with total expenditures amounting to €4.52 billion.

Gas & Power

Eni operates in the supply, transport, distribution and sale of natural gas. Gas sales reached 99 billion cubic meters in 2007.

Eni's electricity generation sites are located in Ferrera Erbognone, Ravenna, Livorno, Taranto, Mantova, Brindisi and Ferrara.

In June 2008 the company bought a 57% stake in Distrigas, a Belgian company that supplies natural gas to industries, resellers and electricity producers. [cite web |url=http://www.forbes.com/afxnewslimited/feeds/afx/2008/06/26/afx5155914.html |title= Publigas, Eni reach agreement on Distrigas sale |accessdate=2008-07-25]

Engineering & Construction

Eni operates in engineering, oilfield services and construction both offshore and onshore through Saipem, a subsidiary listed on the Italian Stock Exchange (Eni's interest is 43%).

ubsidiaries

aipem (43% owned)

Saipem is an oil and gas industry contractor.Saipem has contracted for designing and constructing several pipelines, including Blue Stream, Greenstream, Nord Stream and South Stream.

Italgas (100% owned)

[http://www.italgas.it Italgas] is a gas utility that supplies gas to industries and households in approximately 1500 municipalities.

nam Rete Gas (50% owned)

[http://www.snamretegas.it Snam Rete Gas] (ISE|IT0003153415|SRG) owns Italy's largest natural gas pipeline system and is the only LNG operator in Italy.

Polimeri Europa (100% owned)

[http://www.polimerieuropa.com Polimeri Europa] is a petrochemical company that manages the production and marketing of petrochemical products such as olefines, aromatics and intermediates (base chemicals) , styrenes, elastomers and polyethylene, being also able to count on a range of proprietary technologies, advanced plant facilities and a broad-based distribution network.

AGI (100% owned)

Agenzia Giornalistica Italia (Italian Journalist Agency) is one of the main Italian news agencies.

Notes

Bibliography

* (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
* (it) Nico Perrone, "Enrico Mattei", Bologna, Il mulino, 2001 ISBN 8-81507-913-0

External links

* [http://www.eni.it Eni corporate website (Italian/English)]
* [http://finance.yahoo.com/q?s=E Eni from Yahoo! finance]