2. ENI GROUP RESULTS
THE ENI SHARE

4. CONTENTS
LETTER TO SHAREHOLDERS
PERFORMANCE REVIEW
PROFILE OF THE YEAR
BUSINESS REVIEW
COMMITMENT TO SUSTAINABLE DEVELOPMENT
FINANCIAL REVIEW
GROUP RESULTS FOR THE YEAR
FINANCIAL INFORMATION
DIRECTORS AND OFFICERS
INVESTOR INFORMATION

5. 2 MISSION
We are a major integrated energy company, committed to growth in the activities of finding, producing,
transporting, transforming and marketing oil and gas. Eni men and women have a passion for challenges,
continuous improvement, excellence and particularly value people, the environment and integrity.
LETTER TO SHAREHOLDERS
Roberto Poli Paolo Scaroni
Chairman CEO
2008 was an excellent year for Eni, both operationally and financially. Over the next four years, we will invest €48.8 billion, slightly less than
Despite deteriorating market conditions over the last four months of in the 2008-2011 plan.
the year, we delivered on our targets, leveraging on the resilience of The projected free cash flow will allow us to maintain a dividend yield
our business portfolio to achieve sector-leading growth and distribute amongst the highest in the sector.
€5.7 billion to our shareholders.
In 2008 we acquired Distrigas, gaining a strategic position in Belgium, In Exploration & Production, we achieved an adjusted net profit of
a key country in the European gas market due to its geographic €8 billion, up 23.4% compared to 2007, driven by production growth
location and its high level of interconnectivity with the Centre-North and improved mix in a favourable oil price environment. This was
European transit gas networks. partially offset by the appreciation of the euro against the dollar and
Finally, in 2008 Eni was recognised as the world’s most sustainable higher operating costs and amortisation charges.
company in the oil and gas sector among the companies included in Oil and gas production totalled 1,797 kboe/day, up 3.5% from 2007
the Dow Jones Sustainability Index. with an average Brent oil price of 97 $/bl (33.7% higher than 2007). Our
Even in the current context of uncertain and volatile energy production growth was the highest in our peer group. Furthermore,
markets, we confirm our strategy of superior production growth and excluding the effect of higher prices on PSA contracts, we would have
leadership in the European gas market. We will continue to invest in increased production by 5.6%.
our long-term growth while maintaining a strong financial position We achieved an all sources reserve replacement ratio of 135%,
and rewarding our shareholders with a dividend yield among the resulting in a reserve life index of 10 years at December 31, 2008 (in
highest in our sector. line with 2007). Over the course of the year, our exploration activities
led to the discovery of more than 1 billion boe.
FINANCIAL PERFORMANCE On October 31, 2008, Eni and its partners in the North Caspian Sea PSA
Eni’s 2008 net profit was €8.8 billion. Adjusted net profit was €10.2 consortium signed the final agreement with the Kazakh authorities,
billion, an increase of 7.7% compared to 2007, as a result of the implementing the new contractual and governance framework of the
stronger operating performance, partly offset by a higher tax rate. Kashagan project. In the new operating model Eni, with a reduced
Return on average capital employed was 17.6%. stake of 16.81%, is confirmed as the operator of phase one of the
Record net cash generated from operating activities of €21.8 billion project (the Experimental Program) and will retain operatorship of
financed €18.9 billion of investments. Of this, €14.6 billion was the onshore operations of phase 2 of the development plan.
dedicated to organic growth projects, including exploration, and On November 21, 2008, Eni closed the acquisition of First Calgary
€4.3 billion to acquisitions. Our net debt to equity ratio at year end Petroleum Ltd, an oil and gas company with exploration and
was 38%. development activities in Algeria.
The results achieved in 2008 enable us to propose to the Annual In the E&P division our strategy of delivering production growth is
General Shareholders Meeting a dividend of €1.30 per share, of which focused on conventional activities and on high quality assets, located
€0.65 was paid as an interim dividend in September 2008. This is in largely in three low cost areas (Africa, OECD Countries and Central
line with our 2007 dividend. Asia/Russia), where we develop giant projects with scale benefits.
We target an average annual production increase of 3.5% in the 2009-
SUSTAINING GROWTH AND SHAREHOLDER RETURNS 2012 plan and expect to maintain robust production growth of 3%
Our strategic direction has not changed and growth continues to be a year in the following three years to 2015. In 2009, hydrocarbon
our main priority. We will achieve our short and long-term growth production will exceed 1.8 million boe/d, based on a $43 per barrel
targets through the development of our portfolio of quality projects Brent price scenario. In 2012, production will exceed 2.05 million
and by strengthening our leadership in the European gas market. boe/day based on a 55 $/bl price scenario.

6. ENI IN 2008 LETTER TO SHAREHOLDERS 3
In the next four years, more than 0.5 million boe/day of new production In Engineering & Construction, we reported an improved adjusted net
will come on stream, 85% of which is related to projects which will be profit of €784 million (19.1% higher than in 2007) thanks to a better
profitable even with an oil price scenario below $45 per barrel. operating performance driven by high efficiency and favourable
This growth strategy is based on organic development plans carried market conditions. Saipem is completing the expansion of its
out with a reserve replacement ratio of 130%. world-class fleet of construction and drilling vessels, consolidating
its leading position in the project management, engineering and
In Gas & Power, we consolidated our leading position in Europe and construction activities within the oilfield services industry.
generated 1.9 billion euro of free cash flow, confirming the stability
of the division’s cash generation. Gas sales reached 104 billion cubic In Petrochemicals we reported a loss at both operating and net
meters, an increase of 5.3% (up 5.27 bcm) compared to 2007, mainly profit levels (-€375 million and -€306 million respectively) due
reflecting the contribution of the acquisition of Distrigas. to the high costs of oil-based feedstock in the first three quarters
Adjusted net profit for the year decreased by 9.7% to €2.65 billion, of the year and a steep decline in demand in the last quarter.
largely due to a weaker operating performance. This was caused by Our target is to preserve profitability even in an unfavourable
stronger competitive pressure, particularly impacting the Italian scenario. We will improve efficiency, especially in our steam crackers,
market in the fourth quarter, and was partly offset by the increase in and selectively invest in areas where we have a competitive advantage
international sales. (styrenics and elastomers), also leveraging on our proprietary
In October 2008, following the authorization from the European technologies.
Commission, we closed the acquisition of the 57.243% majority The efficiency programme launched in 2006 delivered almost 1
stake in Distrigas SA from the French company Suez-Gaz de France. billion in cost reductions by the end of 2008. We target another €1
On December 30, 2008, Eni was granted authorization from the billion of cost reductions by 2012, bringing overall savings to around
Belgian market authorities to execute a mandatory tender offer on €2 billion by 2012, in real terms versus the 2005 baseline.
the minorities of Distrigas. Furthermore, on February 12th 2009, we announced the restructuring
Our strategy is to further strengthen our leadership in the European of our regulated businesses in Italy, with the sale of our gas distribution
gas market, where we hold a unique competitive position, thanks to and storage regulated activities to Snam Rete Gas. This deal will create
our large and diversified gas supply portfolio and our direct access one of the major European operators in the regulated gas business
to a vast infrastructure system and customer base. We will grow our and will enable us to extract significant synergies and unlock the
international gas sales by an average of 7% a year, reaching total gas value of these assets for our shareholders.
sales of 124 billion cubic meters by 2012 despite our reduced forecast
for gas demand growth in Europe. SUSTAINABLE DEVELOPMENT
We are very proud of having been selected as the leading oil and gas
In Refining & Marketing we reported an adjusted net profit of €510 company in the Dow Jones Sustainability Index.
million. This was 59.9% higher than in 2007 due to a better operating We will strive to improve the sustainability of our activities through
performance and higher profits of equity-accounted entities, partly our commitment to: research and innovation, the development
offset by increased income taxes. This result reflects higher margins of local communities, the protection of the environment and the
in both refining and marketing. endorsement of higher health and safety standards. In conducting
Marketing activities in Italy reported higher operating results due to a operations and in our relations with partners we uphold the
recovery in selling margins and an increased market share in retail as protection and promotion of Human Rights.
a result of effective marketing campaigns.
Our strategy in R&M focuses on the selective strengthening of Eni confirms its commitment to Research and Innovation. We will
our refining system, the improvement of quality standards in our focus on developing innovative technologies supporting our core
marketing activities, and the widespread increase in operating businesses, leveraging on the industrial application of our proprietary
efficiency. Overall, we target a €400 million EBIT increase by 2012, technologies, and on expanding our activities in renewables, also
excluding scenario effects. In refining, we will increase our conversion thanks to cooperation agreements with primary academic and
index to 65% and achieve a middle distillate yield of 45%, more than technology institutions.
double the yield in gasoline. Three new hydrocrackers will come on
stream in 2009 in the Sannazzaro, Taranto and Bayern Oil refineries. In People are our most important asset. In managing Human resources,
marketing, we target an Italian market share increase to 32% through we are committed to implementing programs to improve leadership
loyalty programmes and enhanced non-oil services. Abroad, we will skills, increase knowledge and promote international development.
focus on three countries: Germany, Switzerland and Austria, where In conclusion, 2008 was another good year for Eni. The industry
we enjoy significant advantages in terms of supply, logistics and brand is undoubtedly facing uncertain times, but we are well-placed to
awareness. continue to deliver value to our shareholders, both in the short and
the long term.
March 13, 2009
In representation of the Board of Directors
Chairman Chief Executive Officer

8. PERFORMANCE REVIEW
2008 was an excellent year for Eni,
both operationally and financially.
We delivered on our targets, leveraging
on the resilience of our business portfolio
to achieve sector leading growth.

9. PROFILE OF THE YEAR
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS 2006 2007 2008
(€ million, unless otherwise specified)
Net sales from operations 86,105 87,256 108,148
Operating profit 19,327 18,868 18,641
Adjusted operating profit 20,490 18,986 21,793
Net profit pertaining to Eni 9,217 10,011 8,825
Adjusted net profit attributable to Eni 10,412 9,470 10,201
Net cash provided by operating activities 17,001 15,517 21,801
Capital and exploration expenditures 7,833 10,593 14,562
Acquisitions 95 9,909 4,305
Cash dividends to Eni shareholders 4,610 4,583 4,910
Research and development costs 222 208 217
Total assets at year end 88,312 101,560 116,590
Debts and bonds at year end 11,699 19,830 20,865
Shareholders’ equity including minority interests at year end 41,199 42,867 48,510
Net borrowings at year end 6,767 16,327 18,376
Net capital employed at year end 47,966 59,194 66,886
Return On Average Capital Employed (ROACE)
- reported (%) 20.3 20.5 15.7
- adjusted (%) 22.7 19.3 17.6
Leverage 0.16 0.38 0.38
Our Gas & Power business being a utility-like business is able
ENI AT A GLANCE to generate steady earnings and cash flows, which have proven
to be very resilient through the commodity price cycles. The
BUSINESS PORTFOLIO impact of the current economic slowdown on gas sales is
Eni is a major integrated energy company, committed to growth mitigated by the Company’s strengthened leadership on the
in the activities of finding, producing, transporting, transforming European gas market on the back of the Distrigas acquisition
and marketing oil and gas. and the cash generation of the regulated businesses;
The Company is ideally positioned to cope with industry challenges Our Refining and Marketing business has a size that is
and the current economic downturn thanks to the resiliency of its comparatively smaller than our peer group. This represents
business portfolio. We have three major businesses: an advantage during an economic downturn. We will leverage
on our refining capabilities and focused presence in Italy and
Our Exploration & Production business is well placed to selected European markets to improve the profitability of the
withstand the low price environment due to its ability to business.
deliver profitable growth with industry leading costs. This
reflects the business’s competitive advantages in terms of high In addition, our strong presence in the engineering and oilfield
exposure to low cost, fast growing areas, giant projects and services business provides the Company with the necessary
conventional resources, as well as integration with our Gas & competence and expertise, coupled with access to engineering
Power operations. In the last couple of years, we have made a skills and technologies, to design and execute world scale
number of synergic acquisitions that have strengthened our projects, representing a key element supporting Eni growth and
competitive profile in our core areas; innovation plans.

10. ENI IN 2008 PROFILE OF THE YEAR 7
Kazakhstan - Kashagan field
The development plan of the
Kashagan field provides for the
construction of production plants
located on artificial islands that
will collect oil and natural gas
from other satellite islands.
Oil production will undergo
a further treatment stage onshore
and then be marketed. Natural
gas will mostly be re-injected into
the reservoir and used for power
generation. First oil is expected
late in 2012.
This business profile is excellent, underpinned by the Company’s acting as an earnings stabilizer through the commodity cycles,
diversity and operating and capital efficiency. The large cash- thus counterbalancing the higher volatility of the upstream
generative gas downstream business is unique among oil majors, business.
VOLUME SUMMARY 2006 2007 2008
Exploration & Production
Estimated net proved reserves of hydrocarbons (at period end) (mmboe) 6,436 6,370 6,600
- Liquids (mmbbl) 3,481 3,219 3,335
- Natural gas (bcf) 16,965 18,090 18,748
Average reserve life index (year) 10.0 10.0 10.0
Production of hydrocarbons (kboe/d) 1,770 1,736 1,797
- Liquids (kbbl/d) 1,079 1,020 1,026
- Natural gas (mmcf/d) 3,964 4,114 4,424
Gas & Power
Worldwide gas sales (bcm) 98.10 98.96 104.23
- of which E&P sales (a) (bcm) 4.69 5.39 6.00
LNG sales (bcm) 9.9 11.7 12.0
Customers in Italy (million) 6.54 6.61 6.63
Gas volumes transported in Italy (bcm) 87.99 83.28 85.64
Electricity sold (TWh) 31.03 33.19 29.93
Refining & Marketing
Refining throughputs on own account (mmtonnes) 38.04 37.15 35.84
Conversion index (%) 57 56 58
Balanced capacity of refineries (kbbl/d) 711 748 737
Retail sales of petroleum products in Europe (mmtonnes) 12.48 12.65 12.67
Service stations in Europe at period end (units) 6,294 6,441 5,956
Average throughput of service stations in Europe (kliters) 2,470 2,486 2,389
Engineering & Construction
Orders acquired (€ million) 11,172 11,845 13,860
Order backlog at period end (€ million) 13,191 15,390 19,105
Employees at period end (units) 73,572 75,862 78,880
(a) E&P sales include volumes marketed by the Exploration & Production division in Europe (4.07, 3.59, 3.36 bcm in 2006, 2007 and 2008 respectively) and in the Gulf of Mexico (0.62,
1.8 and 2.64 bcm in 2006, 2007 and 2008 respectively).

11. 8 ENI IN 2008 PROFILE OF THE YEAR
STRATEGY enhancing product margins by promoting customer-oriented
In spite of the current downturn and volatile and uncertain energy business policies and reducing the cost-to-serve, also leveraging
markets, our strategic direction has remained unchanged. long-standing relationship with key suppliers and partners to
Eni’s priorities continue being the delivery of industry-leading obtain competitive contractual conditions.
growth and the creation of sustainable long-term shareholders’
value. We have retained a stable approach in managing our Preserve a solid financial structure
businesses, which is consistent with their long-term nature. Eni intends to preserve a solid capital structure targeting an
Our investment decisions have always been made assuming a optimal mix between net borrowings and shareholders’ equity,
conservative oil-price deck in the region of 50-60 US$ per barrel. while at the same time, continuing to invest to fuel profitable
This explains why our strategy is resilient even in the current growth and rewarding investors with superior dividend yields.
challenging environment. Eni has been assigned high credit ratings by Standard & Poor’s
(A-A) and Moody’s (Aa2) reflecting Eni’s ability to generate strong
Eni’s strategy is consistent with the above-mentioned priorities operating cash flows also in a low oil price environment, disciplined
and is based on the following pillars: approach to investments, capital efficiency and business strategy.
- Select the best capital and investment opportunities. As part of our financial framework, we retain a sufficient degree
- Pursue capital and operating efficiency. of financial flexibility to pursue investment opportunities in the
- Preserve a solid capital structure. marketplace.
- Manage risks.
- Leverage research and innovation. Manage risks
- Apply the highest principles of business conduct. Eni has developed internal policies and guidelines aiming at
- Promote the sustainability of the business model. effectively identifying, assessing and managing risks in order
to minimize their impact on the Company’s value. Our primary
Select the best capital and investment opportunities sources of risk are the nature and scope of our operations, the
The achievement of Eni’s growth targets is supported by a trading environment and the geographic diversity of the business.
disciplined and selective approach when making investment Firstly, we have adopted proven management systems to achieve
decisions. Once an investment opportunity has been identified, it the highest operating standards to preserve the environment and
is carefully assessed based on our medium and long-tem scenario protect health and safety of our workers, third parties and the
for the macroeconomic environment and commodity prices that communities involved by our activity, ensuring at the same time
has never deviated from what we see as long-term equilibrium compliance with all applicable laws and regulations.
prices. This scenario reflects our management’s view of the Our integrated HSE management system encompasses a full
fundamentals underlying the expected trends for oil and products cycle of planning, executing, controlling and evaluating HSE
prices. The company selects and executes capital projects performances of our operations so as to foster a continuing
able to generate attractive returns and deliver shareholders learning process to minimize risks. Secondly, we manage risks
value. The same approach applies when acquiring an asset or a deriving from the trading environment, including risks from the
corporation. Acquisitions undergo a rigorous appraisal process exposure to movements in commodity prices, interest rates and
to test whether a deal is accretive to shareholders’ value and the foreign currency exchange rates, in a way to achieve a tolerable
strategic rationale i.e. fits with our existing asset portfolio. In 2008 level of exposure to potential losses in earnings or assets value
we spent some €4.3 billion to capture upstream and downstream in accordance with our conservative financial policies. During
gas opportunities to strengthen our market leadership in Europe the credit crunch, we have adopted additional measures and
and our competitive position in upstream legacy areas. contingency plans to mitigate risks to the Group liquidity
and counterparty’s risks. Finally, due to the scale and reach of
Pursue capital and operating efficiency our Company, we are exposed to unfavorable socio-political
Eni is committed to pursuing high levels of operating and capital developments in many of our countries of operations. While we
efficiency. We attain this by applying industry best practices and acknowledge that certain risks are unavoidable, we are deeply
effective management systems to all of our operations, building convinced that establishing constructive relationships with host
on core competencies and continuously updating and improving countries’ institutions, representatives and communities is the
internal processes, as in the case of energy-efficiency initiatives best way to uphold profitable operations.
at our industrial plants and the achievement of standards of
operational excellence in our upstream business. We have stepped Leverage research and innovation
up efforts to streamline our organization by reducing decision- Meeting global energy needs requires us to develop new
making levels and centralizing responsibilities over business technologies designed to create sustainable competitive
supporting processes to reap economies of scale resulting in advantages. We have consistently invested significant amounts of
significant savings due to our procurement and ICT optimization resources in excess of €0.2 billion per year for many years to date
and rationalization. Integration across our businesses enables and we plan to step up our R&D efforts in the future by investing
Eni to both pursue joint opportunities in the marketplace and approximately 1 billion in the next four years.
achieve synergies from the vertical and physical integration of our We have successfully developed incremental innovations
facilities, so as to maximize value and returns from our assets. We supporting our businesses’ competitive positions, while at
improve our profitability by implementing cost control initiatives, the same time we have continued to make progress on our

12. ENI IN 2008 PROFILE OF THE YEAR 9
potentially break-trough technologies intended to monetize RESULTS AND TARGETS
massive worldwide availability of stranded gas, and high-sulphur In recent years, we have delivered strongly on our strategy,
content and non-conventional crude oils. creating value to our shareholders and growing our Company.
Over a long-term perspective, we believe that our commitment We have increased our oil and gas production at an average
in the fields of solar energy, reduction of GHG emissions and bio- rate of approximately 3% over the last five years to achieve 1.8
fuels could potentially result in huge rewards for the company. million barrels per day in 2008, outperforming the major oil
companies.
Apply the highest principles of business conduct Our gas sales have grown at a 6% rate in the same period topping
The company has long recognized and upheld high business the 100 billion cubic meters mark in 2008 and confirming Eni
standards in managing the Group’s activity on the belief that they as the market leader in Europe. Over the last five years, we have
are an essential prerequisite for success. These standards are set in returned more than €25 billion to our shareholders through
our Code of Ethics which is designed to provide all Eni employees dividends and repurchase of own shares.
with guidelines for appropriate business conduct. Of that, approximately 85% has been distributed to shareholders
Corporate governance, business integrity, honesty, accountability, via dividends. Unit dividends have been increased on average
internal control and respect for human rights are the standards by 12% per annum over the period, while total shareholders’
underpinning Eni’s global reputation and ability to create return amounted to 10.4% on average, better than the
shareholders’ value. worldwide stockmarket benchmark S&P500.
Promote the sustainability of the business model In the last five years, we have invested approximately €48
Sustainable development is at the heart of Eni’s priorities. We billion in capital and exploratory projects in order to fuel
wish to make a positive contribution to social and economic organic growth and a further €14 billion have been deployed
development wherever we operate, strengthen the value of to capture opportunities in the marketplace by closing a
our intangible assets and keep the trust of our stakeholders. To number of acquisitions that strengthened our competitive
attain all these things, we have integrated sustainability targets position in our core upstream areas and in the European gas
and actions into our management, planning and development market.
processes. Our capital structure is solid with a ratio of net borrowings
We are committed to empowering our people, preserving the to total equity at 0.38 thanks to our impressive cash flow
environment, running our operations in a safe and reliable manner, generation, totaling €82 billion; a further €4.45 billion has
respecting human rights, contributing to local development and been collected by divesting non strategic assets.
increasing expenditures in research and innovation. On the back Looking forward, over the next four years, we plan to invest
of our strong performance in every field of sustainability, we have €48.8 billion in our businesses to support continued organic
been selected as the leading oil and gas company in the Dow growth, also beyond 2012.
Jones Sustainability Index.

13. 10 ENI IN 2008 PROFILE OF THE YEAR
In spite of ongoing uncertainties in the energy markets, our growth with an annual growth rate of 3% a year in the following
investment program remains broadly unchanged with respect three years to 2015. In 2012 our production will exceed 2.05
to the previous industrial plan for the following reasons: million boe/day based on a 55 US$ per barrel price scenario.
(i) adoption of prudent price assumptions when making In our Gas & Power division, we will grow our international gas sales
investment decisions; by an average of 7% a year, enabling us to achieve total gas sales of
(ii) a high-quality portfolio with a low break-even price; 124 billion cubic meters by 2012, despite our reduced forecast for
(iii) expectations for a decrease in oilfield service rates and gas demand growth in Europe.
purchase costs of materials and support equipment as a The ability to generate robust cash flow from operations will
consequence of the current economic downturn; enable Eni to finance its capital expenditure plans and to sustain
(iv) high exposure to regulated activities in the Italian gas sector the distribution of dividends to shareholders, while maintaining a
which bear preset rates of return. Additionally, a significant solid balance sheet. Specifically, we expect that the projected free
portion equalling to approximately 50% of Eni’s capital plan cash flow will allow us to ensure our shareholders a dividend yield
has yet to be committed which ensures the Company a high amongst the highest in the sector.
degree of flexibility in terms of capacity to reschedule capital Finally, the efficiency program launched in 2006 delivered almost
expenditures should market conditions further deteriorate. €1 billion in cost reductions by the end of 2008. We target another
€1 billion of cost reductions by 2012, bringing overall savings to
We target an average annual production increase of 3.5% in the around €2 billion by 2012, in real terms versus the 2005 baseline.
2009-2012 period and expect to maintain robust production
KEY MEDIUM-TERM TARGETS ANNOUNCED TO INVESTORS
2008 2012
E&P
Daily production 1.8 million barrels/day >2.05 million barrels/day - c.a.g.r. 3.5% (Brent 55$/bl at 2012)
130% on average in the next four-year period (at our long-term
Reserve replacement ratio 135%
deck for Brent 57$/bl)
G&P
Worldwide gas sales 104 billion cubic meters 124 billion cubic meters; c.a.g.r. 7% in international sales
EBITDA (a)
€19 billion in 2008-2011 period €20 billion in 2009-2012 period
R&M
Refineries conversion index 57% 65%
Retail market share in Italy 30.6% 32%
EBIT €566 million +€400 million vs 2008, at a constant trading environment
Cash allocation
Capital expenditures €49.8 billion in 2008-2011 period €48.8 billion in 2009-2012 period
Dividend yield 7.6% Among the highest in the industry
Efficiency program ~€1.5 billion savings expected by 2011 ~€2 billion savings expected by 2012
(a) Cumulated.

14. ENI IN 2008 PROFILE OF THE YEAR 11
SHAREHOLDER INFORMATION 2006 2007 2008
Net profit pertaining to Eni:
- per share (a) (€) 2.49 2.73 2.43
- per ADR (b) (US$) 6.26 7.49 7.15
Adjusted net profit pertaining to Eni:
- per share (a) (€) 2.81 2.58 2.80
- per ADR (b) (US$) 7.07 7.07 8.24
Dividend
- per share (c) (€) 1.25 1.30 1.30
- per ADR (b) (US$) 3.14 3.56 3.82
Annual dividend per share growth (%) 13.6 4.0 0
Pay-out (%) 50 47 53
Dividend yield (d) (%) 5.0 5.3 7.6
Total shareholder return (TSR) (%) 14.8 3.2 (29.1)
Common stock purchases (gross) (€ million) 1,241 680 778
Number of shares outstanding:
- at year end (million of shares) 3,680.4 3,656.8 3,622.4
- average (fully diluted) (million of shares) 3,701.3 3,669.2 3,638.9
Market capitalization (e) (€ billion) 93.8 91.6 60.6
Market quotations for common stock on the Mercato Telematico
Azionario (MTA - “Telematico”)
High (€) 25.73 28.33 26.93
Low (€) 21.82 22.76 13.8
Average daily close (€) 23.83 25.10 21.43
Year-end close (€) 25.48 25.05 16.74
Market quotations for ADR on the New York Stock Exchange
High (US$) 67.69 78.29 84.14
Low (US$) 54.65 60.22 37.22
Average daily close (US$) 59.97 68.80 63.38
Year-end close (US$) 67.28 72.43 47.82
Average daily traded volumes (million of shares) 26.2 30.5 28.7
Value of traded volumes (€ million) 619.1 773.1 610.4
(a) Ratio of net profit to the average number of shares outstanding in the year, assuming dilution. Dollar amounts are converted on the basis of the average EUR/USD exchange rate
quoted by the ECB for the periods presented.
(b) One ADR (American Depositary Receipt) is equal to two Eni ordinary shares.
(c) Dividend per share pertaining to the year. This dividend is paid in two tranches. An interim dividend is paid in the same year, as approved by the Board; the balance to the full year
dividend is paid in the following calendar year (after approval by the Annual Shareholders’ Meeting).
(d) Ratio of dividend for the period to the average price of the Eni shares recorded on the Italian Stock Exchange in December.
(e) Number of outstanding shares by reference price at year end.

15. BUSINESS REVIEW
EXPLORATION & PRODUCTION
KEY PERFORMANCE INDICATORS 2006 2007 2008
Net sales from operations (a) (€ million) 27,173 27,278 33,318
Operating profit 15,580 13,788 16,415
Adjusted operating profit (b) 15,763 14,051 17,416
Exploration & Production 15,518 13,785 17,233
Storage Business 245 266 183
Adjusted net profit 7,279 6,491 8,008
Capital expenditures 5,203 6,625 9,545
of which:
exploration expenditures (c) 1,348 1,659 1,918
storage 40 145 264
Adjusted capital employed, net 18,590 24,643 31,302
Adjusted ROACE (%) 37.5 30.0 28.6
Average realizations
- Liquids ($/bbl) 60.09 67.70 84.05
- Natural gas ($/mmcf) 5.29 5.42 8.01
- Total hydrocarbons ($/boe) 48.87 53.17 68.13
Production (d)
- Liquids (kbbl/d) 1,079 1,020 1,026
- Natural gas (mmcf/d) 3,964 4,114 4,424
- Total hydrocarbons (kboe/d) 1,770 1,736 1,797
Estimated net proved reserves (d) (e)
- Liquids (mmbbl) 3,481 3,219 3,335
- Natural gas (bcf) 16,965 18,090 18,748
- Total hydrocarbons (mmboe) 6,436 6,370 6,600
Reserve life index (year) 10.0 10.0 10.0
Reserve replacement ratio of consolidated subsidiaries (SEC criteria) (%) 38 38 136
Reserve replacement ratio including equity-accounted entities (e) (%) 38 90 135
(a) Before elimination of intragroup sales.
(b) From 2008, adjusted operating profit is reported for the “Exploration & Production” and “Storage” businesses, within the Exploration & Production division. Prior period data have
been restated accordingly.
(c) Includes exploration bonuses.
(d) Includes Eni’s share of equity-accounted entities.
(e) Includes a 30% stake of the reserves of the three equity-accounted Russian companies purchased in 2007 as part of a bid procedure for assets of bankrupt Yukos and participated by
Eni with a 60% interest, considering that Gazprom exercises a call option to acquire a 51% interest in these companies so as to dilute Eni’s interest to 30%. Reserves of the 20% participated
OAO Gazprom Neft were also excluded considering the call option attributed to Gazprom.
2008 HIGHLIGHTS
Final Agreement for the development project of the Kashagan of Understanding signed on January 14, 2008. First oil is
oilfield expected late in 2012.
On October 31, 2008, all the international parties to the
North Caspian Sea Production Sharing Agreement (NCSPSA) Portfolio developments
consortium and the Kazakh authorities signed the final In the year we successfully executed a number of strategic
agreement implementing the new contractual and governance acquisitions and deals that strengthen our competitive
framework of the Kashagan project, based on the Memorandum position:

16. ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION 13
Libya - Wafa field.
The Western Libyan Gas Project is
the first major project to valorise the
natural gas produced in Libya trough
export to and marketing in Europe.
Production from Bahr Essalam
and Wafa fields is processed at the
onshore Mellitah plant.
- Completed the acquisition of entire share capital of the UK- 2008 Performance
based oil company Burren Energy Plc. Adjusted net profit for the full year was €8,008 million, an
- Finalized an agreement with the British company Tullow Oil Ltd increase of €1,517 million from 2007 (up 23.4%) due to a better
to purchase a 52% stake and the operatorship of fields in the operating performance driven by higher realizations in dollars
Hewett Unit and relevant facilities in the North Sea. and production growth, partially offset by rising operating costs
and higher amortization charges also associated with increased
- Acquired all the common shares of First Calgary Petroleum
exploration activities.
Ltd, a Canadian oil and gas company with exploration and
development activities in Algeria.
Return on average capital employed calculated on an adjusted
- Acquired control of the Indian company Hindustan Oil basis was 28.6% in 2008 (30% in 2007).
Exploration Limited (Eni 47.18%) pursuant to the acquisition of
Burren Energy Plc. Liquids and gas realizations for the full year increased on average
- Finalized a major agreement in Libya for the extension of Eni’s by 28.1% in dollar terms from 2007, driven by the strong market
mineral rights and the launch of gas and exploration projects. environment of the first nine months of the year.
- Defined a cooperation agreement with the Republic of Congo
for the extraction of unconventional oil, the construction of a Oil and natural gas production for the full year 2008 averaged the
new power generation plant and the production of bio-diesel. record level of 1,797 kboe/d, an increase of 61 kboe/d, or 3.5%,
from a year earlier. This improvement mainly benefited from the
- Signed a Memorandum of Understanding with Sonangol
assets acquired in the Gulf of Mexico, Congo and Turkmenistan, as
for the definition of an integrated model of cooperation and
well as continuing production ramp-up in Angola, Congo, Egypt,
development.
Pakistan and Venezuela. When excluding the impact of lower
- Signed new strategic agreements with Petroleos de Venezuela entitlements in PSAs, production was up 5.6%.
SA (PDVSA) for the definition of a plan to develop a field located
in the Orinoco oil belt and the exploration and development of Estimated net proved reserves at December 31, 2008 were
two offshore fields in the Caribbean Sea. 6.6 bboe, up 3.6% from 2007, determined based on a year-
- Signed a partnership agreement with Papua New Guinea for the end Brent price of $36.55 per barrel. Additions for the year,
exploration of oil and gas and identification of opportunities to including acquisitions and the divestment of a 1.71% stake in
develop the Country’s resources. the Kashagan project, enabled the Company to replace 136%
- Finalized a Memorandum of Understanding with Colombia’s of production.
state oil company Ecopetrol to evaluate joint exploration
opportunities. Development expenditures were €6,429 million (up 38.5% from
2007), in particular in the Gulf of Mexico, Kazakhstan, Italy, Nigeria,
- Renewed the Memorandum of Understanding with Brazilian oil
Egypt, Australia and Congo.
company Petrobras for the evaluation of joint initiatives in the
upstream and downstream sectors.
In 2008, exploration expenditures amounted to €1,918 million
- Signed a Memorandum of Understanding with state-owned (up 15.6% from 2007) to execute a very extensive campaign in
company Qatar Petroleum International to target joint well established areas of presence. A total of 111 new exploratory
investment opportunities in the exploration and production of wells were drilled (58.4 of which represented Eni’s share), in
oil and gas. addition to 21 exploratory wells in progress at year end (12 net to
- Awarded 32 exploration leases in the Gulf of Mexico close to Eni). The commercial success rate was 36.5% (43.4% net to Eni).
certain of Eni’s producing fields as well as 18 exploration leases
in Alaska. New exploratory acreage was added with an extension of
approximately 57,000 square kilometers (net to Eni, 99% operated).

17. 14 ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION
STRATEGIES
Eni’s Exploration & Production business boasts strong competitive Maintain strong production growth
positions in a number of strategic oil and gas basins in the world, Ensure medium to long-term business sustainability by
namely the Caspian Region, North and West Africa, the Gulf of focusing on reserve replacement
Mexico and Russia. A high-quality portfolio, integration with our Develop new projects to fuel future growth
Gas & Power business and long-standing relationships with key Develop the LNG business
host countries will enable Eni to deliver industry-leading growth Implement cost reduction initiatives
even in a low-price environment. Our excellent track record of
successfully bringing on stream projects on time and budget In order to carry out these strategies, over the next four years
and integrating acquired assets as well as operational excellence Eni intends to invest approximately €32.6 billion to fund organic
underpins our ambitious production and reserve replacement growth and exploration initiatives; €1.8 billion of wich will be
targets to 2012 and beyond. Consistently with these targets, our spent to build transport infrastructures and execute LNG projects
strategic guidelines for the Exploration & Production division through equity-accounted entities.
have remained basically unchanged in the years, as follows:
that have strengthened our competitive position in legacy areas.
MAINTAIN STRONG PRODUCTION GROWTH Our assets are well balanced between mature producing field
Eni’s strategy is to deliver strong production growth leveraging and fields are at the early stages of their producing cycles with
on a high-quality portfolio, geographically focused and resilient significant opportunities for growth. Development of new
with one of the lowest break-even prices in the industry, large reserves and management of mature fields require a significant
exposure to highly competitive giant projects where we are able to amount of capital expenditures. In 2008, Eni invested €6.4 billion
reap economies of scale and a unique approach to business when on development activities. In the next four years, the Company
dealing with our host countries partners. Over both the medium plans to invest approximately €26.9 billion evenly allocated among
and the long-term our growth will derive from our assets mainly projects to fuel growth over the medium-term and long-term
located in the three core regions of Africa, OECD countries and growth projects and projects designed to counteract mature field
Central Asia/Russia where we can benefit from low lifting costs and declines. More importantly, a large share of those planned capital
competitive time to market. These main areas will absorb more expenditures is either uncommitted or associated with sanctioned
then 90% of our capital expenditures over the next four years and projects for which construction contracts have yet to be awarded.
produce more than 90% of our output by 2012. This leaves us with the flexibility to reschedule construction and
Our global oil and gas operations are conducted in 39 countries, procurement activities so as to benefit from ongoing downward
including Italy, Egypt, Algeria, the United Kingdom, Norway, Angola, trends in rates of oilfield services and purchase costs of goods
Congo, Nigeria, the United States, Kazakhstan and Russia. In 2008 and equipment. Additional cost control measures will address
we successfully executed a number of acquisitions and agreements our ongoing operations. In the next four years, we expect that our
initiatives will deliver significant cost reductions in our upstream
operations in the range of €5 billion.
STRENGHTEN OUR PORTFOLIO
In 2008 we have continued capturing opportunities to
strengthen our portfolio by focusing on highly synergic assets
with significant upside potential, positioning the company to
deliver growth and value over the coming years. We invested
€2.5 billion (approximately €11 billion in the 2007-2008 period)
on the execution of selective acquisitions in our core areas. We
have acquired conventional assets characterized by fast “scale
up” of production that will add 250 kboe/d in 2012 and a break-
even price below $50 per barrel. On top of that, we have already
identified material upsides, resulting in significant additions to
our resource base and value creation.
United Kingdom We completed the acquisition of UK-based
oil company Burren Energy Plc, for a total cash consideration

18. ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION 15
amounting to approximately €2.4 billion (including Burren’s shares survey, over an extension of 1,790 square kilometers. Eni plans to
purchased in 2007 for €0.6 billion). In 2008 production from monetize the heavy oil by applying its EST (Eni Slurry Technology)
Burren assets averaged 25 kbbl/d. Acquired proved and probable proprietary technology intended to convert the heavy barrel
reserves are estimated to be approximately 214 mmboe at an into high-quality light products. The agreement also comprises
average purchase cost of $13.5 per boe. This acquisition increased the construction of a new 450 MW power generation plant (Eni’s
our position in Congo and allowed us to enter Turkmenistan, a share 20%) to be fired with the associated natural gas from the
new high potential area for the oil industry. Acquired assets also operated M’Boundi field and a partnership for the production
included a number of exploration licenses in Egypt and Yemen. of bio-diesel.
India Eni acquired control of Indian company Hindustan Oil Angola Eni signed a Memorandum of Understanding with
Exploration Limited (HOEC) following execution of a mandatory Sonangol for the definition of an integrated model of cooperation
tender offer on a 20% stake of the HOEC share capital. The and development. The agreement covers onshore development
mandatory offer was associated with Eni’s acquisition of a 27.18% activities and construction of facilities in Angola designed to
of HOEC as part of the Burren deal. Assets acquired, located monetize flaring gas as well as collaboration in the field of bio-
onshore in the Cambay Basin and offshore Chennai, include: (i) fuels.
producing assets that are expected to reach a production plateau
of 10 kboe/d in 2010; (i) a number of fields where appraisal and Venezuela Eni signed two strategic agreements with Petroleos
development activities are underway. de Venezuela SA (PDVSA): (i) one of these covers studies to
identify options for developing the Junin Block 5 located in the
United Kingdom Eni finalized an agreement with British company Orinoco oil belt. This block covering a gross acreage of 670 square
Tullow Oil to purchase a 52% stake and the operatorship of fields kilometers holds a resource potential estimated to be in excess of
in the Hewett Unit in the British section of the North Sea and 2.5 bbbl of heavy oil. Once relevant studies have been performed
relevant facilities including the associated Bacton terminal. Eni and a development plan defined, a joint venture between PDVSA
aims to upgrade certain depleted fields in the area so as to achieve and Eni will be established to execute the project. Eni intends to
a gas storage facility with a 177 bcf capacity to support seasonal contribute its experience and leading technology to the project
upswings in gas demand in the UK. For this purpose, Eni intends to in order to maximize the value of the heavy oil; (ii) the other
request a storage licence. foresees an initiative to explore two offshore areas, Blanquilla and
Tortuga in the Caribbean Sea, both with a 20% interest over an
Algeria Eni acquired First Calgary Petroleum Ltd, a Canadian area of 5,000 square kilometers. The prospective development of
oil and gas company with exploration and development these areas will take place through an integrated LNG project.
activities in Algeria. Cash consideration amounted to €605
million. Assets acquired include the operatorship of Block 405b Colombia Eni finalized two agreements with Colombia’s state oil
with a 75% interest with resources in excess of 1.3 billion boe, company Ecopetrol: (i) a cooperation agreement for exploration
approximately half is gas. Production start-up is expected in assets in the Gulf of Mexico. Under the terms of the agreement,
2011 with a projected production plateau of approximately 30 Ecopetrol will invest approximately $220 million to acquire a
kboe/d net to Eni by 2012. 20-25% interest in five exploration wells due to be drilled before
2012; (ii) a Memorandum of Understanding to evaluate joint
Libya Eni finalized a strategic oil deal with the Libyan national oil exploration opportunities in Colombia and other South American
company based on the framework agreement of October 2007. countries as well as in Eni’s exploration portfolio.
This deal effective from January 1, 2008, extends the duration of
Eni oil and gas properties until 2042 and 2047 respectively and lays Brazil Eni renewed the Memorandum of Understanding with
the foundations for a number of projects targeting development Brazilian oil company Petrobras for pursuing joint initiatives in
of the significant gas potential in the Country. This deal further the upstream and downstream sectors, including production
strengthens our competitive position in Libya and will enable and marketing of renewable fuels and possible options for the
us to develop our long-life fields over the long-term though the valorisation of the natural gas reserves discovered by Eni offshore
application of our advanced technologies for maximizing the Brazil.
recovery factor.
Papua New Guinea We signed a partnership agreement with Papua
We also signed a number of framework agreements with our New Guinea for the exploration of oil and gas and identification
local partners as part of the Eni co-operation model that aims at of opportunities to develop the Country’s resources. Eni is also
integrating sustainable activity in the territory with the traditional interested in opportunities in the fields of power generation and
business of hydrocarbon exploration and production. alternative and existing renewable energies.
Congo We defined a cooperation agreement with the Republic Qatar We signed a Memorandum of Understanding with state-
of Congo for the extraction of unconventional oil from the owned company Qatar Petroleum International to target joint
Tchikatanga and Tchikatanga-Makola oil sands deposits deemed investment opportunities in the exploration and production of
to contain significant amounts of resources based on a recent oil and gas.

19. 16 ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION
PRODUCTION: 2008 AND OUTLOOK assets acquired in the Gulf of Mexico, Congo and Turkmenistan
Oil and natural gas production for the full year 2008 averaged the (up 62 kboe/d), as well as continuing production ramp-up in
record level of 1,797 kboe/d, an increase of 61 kboe/d, or 3.5%, Angola, Congo, Egypt, Pakistan and Venezuela. These positives
from a year earlier. This improvement mainly benefited from the were partially offset by mature field declines as well as planned
DAILY PRODUCTION OF OIL AND NATURAL GAS (a) (b)
Change
Liquids Natural gas Hydrocarbons Liquids Natural gas Hydrocarbons Liquids Natural gas Hydrocarbons
(kbbl/d) (mmcf/d) (kboe/d) (kbbl/d) (mmcf/d) (kboe/d) (kbbl/d) (mmcf/d) (kboe/d) Ch. %
2006 2007 2008 2008 vs 2007
Italy 79 911.4 238 75 789.7 212 68 749.9 199 (13) (6.1)
North Africa 329 1,299.1 555 337 1,474.2 594 338 1,761.6 645 51 8.6
Egypt 85 813.4 227 97 811.2 238 98 818.4 240 2 0.8
Libya 144 452.1 222 142 629.6 252 147 907.6 306 54 21.4
Algeria 88 19.4 91 85 18.8 88 80 18.5 83 (5) (5.7)
Tunisia 12 14.2 15 13 14.6 16 13 17.1 16
West Africa 322 281.7 372 280 274.2 327 289 260.7 335 8 2.4
Nigeria 106 247.8 149 81 237.7 122 84 219.9 122
Angola 151 24.1 156 132 25.1 136 121 28.1 126 (10) (7.4)
Congo 65 9.8 67 67 11.4 69 84 12.7 87 18 26.1
North Sea 178 597.0 282 157 594.7 261 140 558.0 237 (24) (9.2)
Norway 98 245.2 140 90 271.1 137 83 264.8 129 (8) (5.8)
United Kingdom 80 351.8 142 67 323.6 124 57 293.2 108 (16) (12.9)
Caspian Area 64 227.6 103 70 237.9 112 81 244.7 123 11 9.8
Kazakhstan 64 227.6 103 70 237.9 112 69 244.7 111 (1) (0.9)
Turkmenistan 12 12 12 ..
Rest of the world 107 647.4 220 101 743.2 230 110 848.6 258 28 12.2
Australia 18 47.9 26 11 41.5 18 10 42.2 17 (1) (5.6)
China 6 9.4 8 6 11.0 8 6 10.9 8
Croatia 66.8 12 52.5 9 68.7 12 3 33.3
Ecuador 15 15 16 16 16 16
Indonesia 2 118.1 23 2 105.4 20 2 99.7 20
Iran 29 29 26 26 28 28 2 7.7
Pakistan 1 289.2 51 1 292.5 52 1 315.6 56 4 7.7
Russia 2 2 (2) ..
Trinidad & Tobago 51.7 9 58.9 10 54.6 9 (1) (10.0)
United States 21 64.3 32 37 181.4 69 42 256.9 87 18 26.1
Venezuela 15 15 5 5 5 ..
Total 1,079 3,964.2 1,770 1,020 4,113.9 1,736 1,026 4,423.5 1,797 61 3.5
(a) Includes production volumes of natural gas consumed in operations (281,296,286 mmcf/d in 2008, 2007, 2006 respectively).
(b) Includes Eni’s share of production of equity accounted-entities.

20. ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION 17
and unplanned facility downtime in the North Sea and hurricane-
related impacts in the Gulf of Mexico (down 11 kboe/d). Higher ENSURE MEDIUM TO LONG-TERM
oil prices resulted in lower volume entitlements in Eni’s PSAs and
similar contractual schemes, down approximately 37 kboe/d.
BUSINESS SUSTAINABILITY BY FOCUSING
ON RESERVE REPLACEMENT
When excluding the impact of lower entitlements in PSAs,
production was up 5.6%. The share of oil and natural gas produced Eni intends to pay special attention to reserve replacement in
outside Italy was 89% (88% in the full year 2007). order to ensure the medium to long-term sustainability of its
During the year, we achieved a number of field start-ups: (i) business. We will pursue this goal by:
offshore Angola, we started the Mondo and Saxi/Batuque fields in • Optimizing our portfolio of development properties by focusing
Block 15 (Eni’s interest 20%). Production peaked with 100 kbbl/d on core areas, seeking new strategic opportunities;
(18 net to Eni) at both fields; (ii) in Alaska, the Oooguruk oil field • Searching for new exploration opportunities targeting a
(Eni’s interest 30%) was started by linking it to onshore facilities sound balance between high risk/high reward initiatives and
located on an artificial island. Production is expected to peak at established/mature projects.
17 kboe/d in 2011; (iii) in the Bhit permit (Eni operator with a 40%
interest) a treatment unit was started and increased the plant We believe that our portfolio of exploration acreage and
capacity by 46 bcf leading to the start-up of the satellite Badhra development properties is well diversified and presents a sound
field; (iv) in Venezuela, the Corocoro field was started. Production risk profile. As of December 31, 2008, Eni’s mineral right portfolio
will peak at 66 kbbl/d (17 net to Eni) in 2010; (v) in Egypt, the Taurt consisted of 1,224 exclusive or shared rights for exploration and
field in the Ras el Bar concession (Eni’s interest 50%) achieved a development in 39 countries on five continents for a total net
peak production of approximately 38 kboe/d (13 net to Eni); (vi) acreage of 415,494 square kilometers (394,490 at December 31,
in Congo, the operated Awa Paloukou (Eni’s interest 90%) and 2007). Of these 39,244 square kilometers concerned production
Ikalou-Ikalou Sud (Eni’s interest 100%) fields were started, with and development (37,642 at December 31, 2007). In 2008 we
production peaking at 13 kboe/d net to Eni in 2009. acquired new exploration leases in Angola, Algeria, Alaska, Gabon,
Leveraging on the development of our asset portfolio, the Gulf of Mexico, Indonesia, Norway, and the United Kingdom,
geographically focused and resilient, we target an average annual with an extension of approximately 57,000 square kilometres (net
production increase of 3.5% in the 2009-2012 period and expect to Eni, 99% operated). Over the last four years, Eni has renewed
to maintain robust production growth of 3% a year in the following approximately 89% of its exploration acreage.
three years to 2015. In 2009 hydrocarbon production will exceed
1.8 million boe/d, based on a $43 per barrel Brent price scenario.
In 2012 production will exceed 2.05 million boe/day based on a
$55 per barrel price scenario. To achieve these targets, we will
leverage on:
• a robust pipeline of project start-ups, particularly in Kazakhstan,
Russia, Congo, Algeria, Nigeria, the Gulf of Mexico and Alaska.
New projects will add approximately 525 kboe/day by 2012
and 50% of the new production will come from projects that
have already been sanctioned;
• the maintenance of the current production plateau at our
competitive giant fields including, the Western Libyan Gas
project in Libya, Karachaganak in Kazakstan, Val d’Agri in Italy
and M’Boundi in Congo;
• monetization of stranded gas reserves trough LNG projects
mainly in Nigeria, Egypt, Angola and Libya, as well of our existing
opportunities in unconventional oils to support growth beyond
the plan horizon.
Actual production volumes will vary from year to year due to
the timing of individual project start-ups, operational outages,
reservoir performance, regulatory changes, asset sales, severe
weather events, price effects under production sharing contracts,
and other factors. Norway - Ekofisk field
In the Norwegian section of the North Sea, the main producing field is
Ekofisk (Eni’s interest 12.39%) which in 2008 produced 42 kboe/d net to Eni.
Production from Ekofisk and satellites is carried by pipeline to the
Teeside terminal in the United Kingdom for oil and to the Emden
terminal in Germany for gas.

21. 18 ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION
In 2008 we added approximately 2.4 bboe to our resource Brent price of $36.55 per barrel. The year end amounts comprised
base mainly due to assets acquired in the year and successful 30% of proved reserves of the three equity-accounted Russian
exploration from existing prospects. Eni’s resource base now companies purchased in 2007 as part of a bid procedure for assets
stands at 29 bboe and will secure 44 years of production at of bankrupt Russian company Yukos and participated by Eni with
current rates. We intend to grow our resources leveraging on the a 60% interest, considering that Gazprom exercises a call option
quality of our proved and probable/possible reserves, continuing to acquire a 51% interest in these companies. The all sources
technology enhancements designed to maximize the recovery reserve replacement ratio was 135% with an average reserve life
rates of hydrocarbons and our high potential prospects, located index of 10 years (10 years at December 31, 2007). Eni’s reserve
in areas where we have synergic operations. More than 95% of our replacement ratio calculated according to SEC criteria was 136%,
proved and probable reserves would generate positive cash flow including only reserve additions of consolidated subsidiaries. In
even at $30 per barrel. the medium-term, we intend to replace 130% of our production
at our long-term price deck of $57 per barrel.
Estimated net proved reserves at December 31, 2008 were
6.6 bboe, up 3.6% from 2007, determined based on a year-end
ESTIMATED NET PROVED RESERVES PRO-FORMA
Consolidated subsidiaries
Total Equity
consolidated accounted
Italy North Africa West Africa North Sea Caspian Area (b) Rest of world subsidiaries entities Total
2006
Liquids (mmbl) 215 982 786 386 893 195 3,457 24 3,481
Natural Gas (bcf) 3,391 5,946 1,927 1,697 1,874 2,062 16,897 68 16,965
Hydrocarbons (mmboe) 805 2,018 1,122 682 1,219 554 6,400 36 6,436
(a)
2007
Liquids (mmbl) 215 878 725 345 753 211 3,127 92 3,219
Natural Gas (bcf) 3,057 5,751 2,122 1,558 1,770 2,291 16,549 1,541 18,090
Hydrocarbons (mmboe) 747 1,879 1,095 617 1,061 611 6,010 360 6,370
(a)
2008
Liquids (mmbl) 186 823 783 276 939 236 3,243 92 3,335
Natural Gas (bcf) 2,844 6,311 2,084 1,336 2,437 2,202 17,214 1,534 18,748
Hydrocarbons (mmboe) 681 1,922 1,146 510 1,363 620 6,242 358 6,600
The conversion rate of natural gas from cubic feet to boe is 1,000 cubic feet = 0,1742 barrels of oil.
(a) Includes a 30% stake of the reserves of the three equity-accounted Russian companies purchased in 2007 as part of a bid procedure for assets of bankrupt Yukos and participated by
Eni with a 60% interest, considering that Gazprom exercisea a call option to acquire a 51% interest in these companies so as to dilute Eni’s interest to 30%. Reserves of the 20% participated
OAO Gazprom Neft were also excluded considering the call option attributed to Gazprom. Eni’s estimated proved reserves at December 31, 2008 would be 6,908 mmboe including the
proved reserves of three Russian gas companies on the basis of Eni’s current 60% interest.
(b) Eni’s proved reserves of the Kashagan field were determined based on Eni working interest of 16.81% as of December 31, 2008 and 18.52% in previous years.
over the same period. Positive contributions came from both
EXPLORATION legacy countries, such as West and North Africa as well as the
Exploration activities will be the pillar of our sustainable growth North Sea and new frontier areas such as the deep waters of the
in order to fuel new production and to secure access to new Gulf of Mexico and Brazil as well as unconventional resources in
opportunities. In light of this, management will devote a great Congo and Venezuela.
deal of focus and effort to exploration. In 2008, Eni exploration In the next four years, management plans to invest a cumulative
expenditures amounted to €1,918 million (up 15.6% from €4.1 billion in exploratory projects. The cornerstones of Eni’s
2007) to execute a very extensive campaign in well established exploration strategy are:
areas of presence. A total of 111 new exploratory wells were • to concentrate resources in core areas: approximately 80% of
drilled (58.4 of which represented Eni’s share), in addition to planned expenditures will be directed to 10 countries;
21 exploratory wells in progress at year end (12 net to Eni). The • to conduct activities in recently acquired areas with high risk/
overall commercial success rate was 36.5% (43.4% net to Eni). high reward opportunities;
The main discoveries were made in: Angola, Australia, Congo, • to optimize our exploration portfolio;
Croatia, Egypt, the Gulf of Mexico, Italy, Libya, Nigeria, Norway, • to selectively assess opportunities to enhance the
Pakistan, the United Kingdom and Tunisia. Between 2004 and competitiveness of Eni’s full-cycle production costs.
2008, exploration reserves were approximately 4.3 bboe (1.1 Management intends to concentrate investments in well
bboe mmboe in 2008), higher than our cumulative production established areas of presence where availability of production

22. ENI IN 2008 BUSINESS REVIEW / EXPLORATION & PRODUCTION 19
facilities, existing competencies and long-term relationships synergies. On the other hand, Eni expects to selectively pursue
with host countries will enable Eni to readily put in production high risk/high reward opportunities arising from expansion in
discovered resources, reducing the time to market and capturing areas with high mineral potential.
DEVELOP NEW PROJECTS TO FUEL OIL & GAS MAJOR PROJECTS
FUTURE GROWTH Blacktip Block WA-33-L - Australia (Eni 100% Op.)
Eni has a strong pipeline of development projects that will fuel the Development of the offshore Blacktip gas and liquids field
medium and the long-term growth of its oil and gas production. targets to recover 150 mmboe of gross reserves. The project’s
Adding to the Company’s asset base is our large exposure to the scope includes construction of an onshore treatment plant with
most competitive giant projects which provide significant scope a capacity of 42 bcf/y that will be linked through pipelines to
to capture economies of scale. We are present in 37 giant fields offshore production facilities. Gas volumes will be delivered to
where we can leverage on high equity entitlement, operatorship the local utility company Darwin Power & Water under a 25-year
in 18 of them and synergic location in our core areas. In the next supply agreement. Start-up is expected in 2009, peaking at 14
four years, new project start-ups will add approximately 525 kboe/d in 2010.
kboe/d by 2012 with approximately 50% of that amount coming
from already sanctioned projects. In 2009 we plan to start 11 new Landana-Tombua Block 14 – Angola (Eni 20%)
projects. The Landana and Tombua deepwater oil fields contain gross
Eni expects an evolution in the type of oil and gas resources recoverable reserves of 320 mmbbl. The development project’s
from which it will be producing and in the physical conditions scope includes installation of a Compliant Piled Tower (CPT) and
in which it will be operating. Many new developments will be linkage of a number of producing wells to existing facilities at
located in more challenging environments, continuing to require the nearby Benguela/Belize fields. Early production is flowing in
innovations in technology. A description of our main development the northern area of Landana. Production is expected to peak at
projects is provided below. 100 kbbl/d in 2010 upon completion of the drilling programme.