Exploration & Production Update - Congo Field Trip

1. Congo field trip
Brazzaville – October 6th, 2011
eni.com

2. agenda
eni update Paolo Scaroni
E&P update Claudio Descalzi
Focus on sub-Saharan Roberto Casula
operations
Financial update Alessandro Bernini
Closing remarks Paolo Scaroni
Q&A
2

3. Libya: recovery plan and growth potential
Recovery plan
 Consolidated relationship with
 Security assessment of context and facilities NTC
 Re-opening of eni’s Tripoli office  Existing contracts confirmed
 Initial interventions (eg logistics)
N d
No damage to eni f ili i
i facilities
 Oil start-up (12 months to full oil ramp up)
 Oil production re-start
achieved
hi d
 Repowering of gas facilities (1 week)
 First gas export before year-
 Commissioning of gas facilities and first gas
export through Greenstream endd
 Gas ramp up (+2/3 months)  Further gas potential from
large undeveloped reserves
l d l d
3

4. G&P: business and market update
Market update eni actions
 Recovery in European spot  Improved commercial offer
prices (+51% vs first 9 months  +4pp market share in Italy*
4 k t h i It l
2010)
 +14% European volumes*
 Increasing gas consumption
and LNG prices in Far East  Ongoing renegotiations
 Sonatrach: final stage
 Gazprom: progressing
 Weak Italian and European gas
demand (-5% and -5% YTD)
 Libya: working to resume
Greenstream imports
 Higher oil-linked prices (+41%
oil linked
vs first 9 months 2010)
* January-August 2011
4

5. eni’s key assets: developing value creation prospects
Snam Saipem Galp
 Exploring options to  Delivering outstanding  Continuing discussions
unlock value results with potential buyers
 Any disposal requires  Key synergies with  Portuguese context
government decree upstream operations remains difficult
 €150m annual impact  Excellent profitability  Potential valuation
from Robin Tax and cash generation upside from Brazilian
prospects capital increase
5

6. eni’s long history of growth in Africa...
Countries and year of entry
C t i d f t African production (1970-2010)
Af i d ti (1970 2010)
kboed
Tunisia CAGR
1961
Algeria
Al i
Libya Egypt
1981 13,854 2,0%
1959 1954
Mali
2006
Togo
2010 Nigeria
1962
7,924
Ghana Congo
1,002 6,5%
2009 1968
Gabon
1981/2008
RDC 6,179
2010
386
80
Angola
Presence since 1980
Mozambique
Exploration 2006 1970 1990 2010
Exploration and Production
South Africa %
2011 (MOU) 1.3% 4.9% 7.2%
eni
6

7. ...has led to our current leadership
Production in Africa Majors i Africa
j in f i
Algeria Tunisia
Libya
Egypt
kboe/d
Chad
Cameroon
Dem.
Rep.Congo
Nigeria
Eq. Guinea
Gabon Angola
Congo
Countries of 7 6 5 5 4 3 3
production
(2010)
More than doubled African production in 15 years
7

8. further growth potential in Africa
Major growth d i
M j h drivers i Africa
in Af i Production growth i Africa (kb /d)
P d i h in Af i (kboe/d)
Algeria & Tunisia
• MLE CAFC start up 1400
• Exploration for Libya
conventional and Development of 1.5bn >2%
unconventional resources
ti l boe of discovered
b fd d
reserves 1200
~2%
1000
800
600
West Africa 400
Mozambique
• Block 15/06 start-up
 Drilling ongoing
 High potential in the Rovuma
exploration in Gulf of Basin (10 tcf 200
Guinea (Ghana and potential)
Togo)
g )
 Pre-salt plays (Angola,
0
DRC, Congo, Gabon)
South Africa
2010 2014 2021
 Signed MOU
2011
Producing Fields New Production
Established presence
p New presence
p
8

9. the six legs of the eni model
1
Business & technology development
2
Oil & gas integration
3
Access to energy & infrastructure
4
To be local
5
Local development (agriculture, health, education)
(agriculture health
6
International partnership
9

10. oil & gas integration: a driver of growth in North Africa
Egypt
2010 production: 232 kboe/d
Gas imports (UFG): 2 bcm
eni present since 1954
First IOC in the country
Libya
2010 production: 273 kboe/d
Gas imports: 9.4 bcm
eni present since 1959
First IOC in the country
Algeria
2010 production: 77 kboe/d
Gas imports: 16.3 bcm
eni present since 1981
First IOC in the country
pipeline LNG plant
North Africa accounts for one third of eni total production
and 2.1 bn boe of reserves*
reserves
* as of December 31, 2010
10

11. access to energy: first mover in Subsaharan Africa
 First IOC to invest in power
generation in Africa using
associated gas
 Major electricity generation: 4
plants in Congo and Nigeria
 60% of Congolese electrical
g
production
 20% of Nigerian electrical
production
 Large involvement in
electrification projects
 MOUs for 4 new power projects
in Angola, Ghana, Togo and
Mozambique
* equity stake
11

12. to be local: a “double flag” approach
Local presence in Africa Local employees (3)
Number
No. Onshore
Countries (% of prod. (1))
55%
1,897
1,217
7 37%
6 14%
5 13%
2000 2010
5 14% Local managers (3)
Number
4 25% 186%
252
3 n.s.(2) 88
3 12%
2000 2010
(1)Based on 2010 production: net production from Annual Reportand elaboration on WoodMackenzie; (2) Only onshore production in
Algeria, Libya and Nigeria in partnership with other operators (e.g. in Algeria and Nigeria with eni); (3) Sub-saharan operations only 12

13. Congo field trip: E&P update
Claudio Descalzi, COO
eni.com

14. E&P strategic goals and drivers
 Rapid development of project pipeline
 Production optimization and near field exploration
to reduce decline
Organic growth
 Additional development phases of giants
& value creation
 Increasing exposure to far east and LNG
 S ne gic unconventional
Synergic ncon entional
 Fast time-to-market exploration
 Geological: focus on core areas and conventional
assets
Managing
uncertainties  Operational: increased operatorship
 Political: geographical diversification
 Financial: project phasing
14

15. sustainable growth
Organic production growth
~2%
>3%
 >3% CAGR 2010-14
 Low decline rate
 Strong project pipeline
 ~2% CAGR 2014-21
 Identified opportunities
 Exploration potential
Price scenario: 70$/bbl flat @2014, +2%/year
15

16. 2011-14: short-term project base for building long term growth
Main FID 4Yplan main start-ups
NORWAY RUSSIA
2011 Goliat Yaro Yakinskoye
Ekofisk South Samburgskoye
 ~75% of production UK Urengoskoye
already sanctioned US
West Franklin Ph.2
Jasmine KAZAKHSTAN
Nickaitchuq
IRAQ Karachaganak 4th train
Appaloosa
Zubair FF Kashagan EP
 Expected ALGERIA ITALY
CAFC/MLE Argo Cluster
 Perla (EP) El Merk TURKMENISTAN
EGYPT Burun ph.2
 15/06 East Hub Denise B
VENEZUELA
 Urengoskoye- Junin-5 NIGERIA INDONESIA
Perla Agbara ph.2 CBM
Achimov Abo ph.3
CONGO
Litchendjli
ANGOLA
2012 Block 15/06
AUSTRALIA
Kitan
 Zubair (FF) A-LNG
Kizomba Sat Ph.1
 Yaro
 A
Argo Cluster
Cl t
Activity complete Giant fields
630 kb /d of new production by 2014
kboe/d f d ti b
16

17. building long-term growth on recent successful exploration
Culzean (UK)
 High class G&C discovery still in appraisal phase
Barents Sea (Norway)
 Sk
Skrugard discovery
d di
GoM (USA)
 Greater Hadrian area
Near field exploration
Indonesia
 High potential in profitable gas market
Perla (Venezuela)
 Super Giant gas discovery
West Africa
 Block 15/06 in Angola
 Tano basin in Ghana
Australia
 JPDA area
17

18. growth projects beyond 2014
Main FID Start-ups post 2014
NORWAY
RUSSIA
2012 Skrugard
Severo
Asgard SS Compr.
 Extension Val D’Agri Yevo
GLA Tor redevelopment
Achimov
Eldfisk II
2013 UK
KAZAKHSTAN
Culzean
 Jangkrik Mariner
ITALY Karachaganak ph.3
Ext VdA Kashagan ph.2
 Jau US Kashagan Sat.
 Junin-5 (FF) Heidelberg
Great Hadrian Area LIBYA
 Perla (FF) Gas Off h
G Offshore
PAKISTAN
Tight gas
 OPL 245 (FF)
 Culzean GHANA
VENEZUELA Sankofa NIGERIA
INDONESIA
 Skrugard Junin-5 FF Gye Nyame Bonga SW
Jangkrik
Perla FF Bonga North
 Libya gas offshore Brass LNG
Jangkrik NE
CONGO Jau
 Sankofa Tar Sands
OPL 245
Kutai Basin
CBM FF
Beyond 2013 ANGOLA
 Karachaganak ph.3 Kizomba Sat. ph.2
Block 15/06 3rd HUB
 Kashagan ph.2 & Sat. Mafumeira Sul
 Bonga SW & North
 Kutai Basin, Gendalo– Giant fields
Gehem
 Great Hadrian Area
 Severo & Yevo ~ 1200 kboe/d of new production by 2021
85% from giants
18

19. drivers for long-term growth: our key hubs
 Diversified growth
Yamal  Present in world’s most
Barents Sea
Peninsula promising producing areas
 Exposure to growing markets
(eg Far East)
Kazakhstan
 Leveraging synergies
Venezuela  Reserves 2P
 Equity -> 5 Bboe (~38%)
Sub-Saharan
S b S h
Africa Indonesia
 Production
d i
 Over 950 kboe/d at 2014*
 ~ 1,2 Mboe/d at 2021
* price scenario: 70$/bbl flat @2014, +2%/year
19

20. Yamal Peninsula: new gas giants
Yamal
province
Licences: Sambursky Yaro-Yakhinsky, Severo-Chalesky,
Sambursky, Yaro Yakhinsky Severo Chalesky
Yevo-Yakhinsky
Samburgskoye Production (kboe/d, equity)
200
 eni share 29.4%
150
 Contract type Concession
100
 Capex (100%) 3.8 B$
 Reserves (100%) 1 Bboe 50
 Peak production (100%) 148 kboe/d
0
 Start up 2012 2011 2013 2015 2017 2019 2021
Samburgskoye Yaro-Yakhinskoye
Urengoskoye Severo
20

21. Barents Sea: unlocking oil potential
Barents Sea
Production (kboe/d, equity)
Goliat
250
 eni share 65% (operated)
200
 Contract type Concession
150
 Capex (100%) 5 B$
100
 Reserves (100%) 175 Mboe
50
 Peak production (100%) 89 kboe/d
0
 Start up 2013 2011 2013 2015 2017 2019 2021
Norway Goliat Skrugard
21

22. Indonesia: growing exposure to favourable gas market
Jangkrik & Jangkrik NE Production (kboe/d, equity)
120
 eni share 55%
 Contract type PSA 80
 Capex (100%) 2.9 B$
40
 Reserves (100%) >400 Mboe
 Peak production (100%) 80 kboe/d
0
 Start up 2015 2011 2013 2015 2017 2019 2021
Others C MB Jangkrik Kutei Basin (Gendalo-Gehem)
22

23. Venezuela: super giants with long-term plateau
Junín-5
 eni share 40% (Petro-Junín Op.)
 Contract type Concession-like
 Capex (100%) 22.7 B$
 Reserves (100%) 2.4 Bboe
 Peak production (100%) 75 kboe/d (EP),
240 kboe/d (FF) Production (kboe/d, equity)
 Start up
S 2013 (EP), 2018 (FF)
(EP) 200
Perla 150
 eni share 32.5%
100
 Contract type Concession
 Capex (100%) 4.9
4 9 B$ 50
 Reserves (100%) 1.5 Bboe
0
 Peak production (100%) 54 kboe/d (EP) 2011 2013 2015 2017 2019 2021
162 kboe/d (FF)
 Start-up 2013 (EP), 2016 (FF) C orocoro Junin 5 Perla
23

24. Kazakhstan: near-term growth and relevant long-term potential
Karachaganak
Kashagan
Kashagan EP Production (kboe/d, equity)
250
 eni share 16.81% (operated) 200
 Contract type PSA 150
 Reserves (100%) 3.6 Mboe 100
 Production capacity (100%) 370 kboe/d 50
0
2011 2013 2015 2017 2019 2021
Progress in line to achieve KCP by Dec. 2012
Karachaganak Kashagan EP
24

25. Sub-Saharan: legacy area with further growth prospects
Block 15/06 (East & West Hubs) Production (kboe/d, equity)
600
 eni share 35%
 Contract type PSA
400
 Capex (100%) 8.2 B$
 Reserves (100%) 425 Mboe
200
 Peak production (100%) 80 kboe/d (WH)
75 kboe/d (EH)
0
27 kboe/d (Mpungi) 2011 2013 2015 2017 2019 2021
 Start up 2013
Deepwater LNG Others
* Exploration potential excluded
25

26. high potential exploration portfolio
Barents Sea (Norway)
Large upside
GoM (USA)
Near field exploration
Pacific gas (Indonesia and Australia)
 High potential in profitable gas market
West Africa
 Transform margin play in
Ghana and Togo
West Africa
 Pre-salt play:
 Offshore Angola
East Africa Gas (Mozambique)
 Onshore Gabon, Congo, DRC
 High materiality tertiary plays of
 Targeting 3rd production hub in Angola 15/06
the Rovuma Basin
26

27. a growing unconventional portfolio
Shale & tight gas in North Africa Shale gas in East Europe
 Algeria - ongoing joint assessment  Poland – 3 expl. Permits – Drilling Ongoing
 Tunisia - ongoing exploration  Ukraine – MoU inclusive of unconventional
China shale gas
 Ongoing joint assessment
with CNPC/Petrochina
 MoU with Sinopec
Gas shale in USA
 Development and production from
Barnett shale
Indonesia CBM
 Appraisal & pilot project
 Synergies with Bontang LNG plant
Unconventional oil in Africa Sub-Saharan Pakistan unconventional
 Tar sands Congo: ongoing exploration & pilot  Well testing & dev.plan for tight gas
project feasibility  Joint assessment for shale gas potential
Total acreage ~ 5,500 km2
Over 1 bln boe of prospective resources
27

28. confirmed leadership in efficiency
Unit exploration costs Break even price by region OPEX*
$/boe
6 10
6 60 10
9
5 9
50
Avg. 45 $/boe
88
4
40
77
7.0
33 30
66
2 20 5.7
5.4
1.9 2.0 55
1.9
1 10
44
0 0 3
0
07-09 08-10 11-14E North West OECD Other
3
07-09 08-10 11-14E
Africa Africa
eni Benchmark group**
group
* RDS n.a.
** XOM, CVX, COP, BP, RDS, TOT, eni. Company data and Wood Mackenzie
28

29. diversified and profitable portfolio
Cash flow NPV 2P by areas
CF/boe (%)
120
20%
24%
110
32%
24%
100
90
2010 2014
Africa sub-Saharan North Africa
Brent avg
70 70
($/boe) Europe & America Asia & Pacific
Solid cash generation
29

30. good progress on strategic goals
NORWAY NORWAY
Ekofisk South Skrugard
ALASKA
Eldfisk II Russia
Nikaitchuq
Asgard SS Compression Samburgskoye
NORWAY
PL 226B
PL 608
UK
Culzean
UKRAINE KAZAKHSTAN
Karachaganak 4th train
GOM
Appaloosa ITALY
Capparuccia CHINA
GOM
Petrochina MoU
Hadrian North
Sinopec MoU
GHANA Libya
Sankofa 2 Abu Attifel
Gye Nyame 1 EGYPT INDONESIA
Denise B PAKISTAN Jangkrik NE
VENEZUELA Zamzama FEC
Perla 4X INDONESIA
NIGERIA CONGO Arguni block
OPL 2009 Libondo
OPL 245
ANGOLA AUSTRALIA
ANGOLA Block 35 NT/P 68 (Heron)
Garoupa 2
Mukuvo 1
Quiluma 4/4A
W11,
Business development Exploration successes FID Main Start up
30

31. Congo field trip: Sub Saharan Africa
Sub-Saharan
Roberto Casula, EVP Sub-Saharan Africa
,
eni.com

32. eni E&P in Sub-Saharan Africa
 Population 850 million
 GDP growth rate 2011: 5.5%
 Proved reserves YE 2010
 oil 68 bln bbls
Togo
2010 Nigeria  gas 230 tcf
Ghana 1962
2009 Congo
1968
 Production 2010
Gabon
DRC
1981/2008 2010
 oil 5.8 Mbbl/d;
Angola
 gas ~5 bcf/d
5
1980 Mozambique
2006
 Overall electrification rate < 30%
eni in Sub-Saharan Africa
Presence since  400kboe/d of production (20% of
total eni production);
Exploration Exploration and production
 €8bln development capex 2011-2014
32

33. production growth
Production growth 2009 - 2021
(kboe/d)
 4Y plan CAGR
CAGR
 Congo +3% 2%
 Nigeria +2.2%
6%
 Angola +13.4% 11%
 Long term g
g growth 397
357
 OPL 245
 Bonga area
 Brass LNG
 Abo Ph. 3
 Litchendjili
 Tar sands
2009 2010 2011 2014 2021
 Kizomba Sat Ph.2
Brent
 Exploration potential ($/bbl) 61.5 79.5 70 70 70
33

34. growth drivers
• Operated development projects and
Deepwater
exploration to fuel future growth
Gas utilization
• LNG  Gas value maximization trough
• Power plant domestic consumption and export
• Heavy oil upgrading
 High quality assets in major
Exploration
exploration prolific plays
 Double flag approach to help hosting
Cooperation model
countries development
34

35. deepwater projects
KIZOMBA SAT.1 WEST HUB EAST HUB
WI
WI
WI
DW production
WI
GI
WI
DC
GI
Cabaça N
DC
DC
DC
DC
(
(kboe/d)
/ )
WI
Cabaça SE
DC
WI
 Not operated  Operated  Operated
200
 Plateau 90 kboe/d  Plateau 65 kboe/d  Plateau 60 kboe/d
BONGA SW ABO Area OPL 245
150
100
 Not operated  Operated  Operated
 Plateau 155 kboe/d  Plateau 25 kboe/d  Plateau 85 kboe/d
50
MOZAMBIQUE Block 35 GHANA
1000m
1500m
ra
2000m
Acc
2500m
0
SALTPOND OFFSHORE KETA TOGO 300
0m
d i
FIELD ACCRA
GHANA
ora
SOPCL
m
20 m Tap
50 m
T ak
3500
SALTPOND Keta Basin
Oranto
100m EBONY
200m JUBILEE Saltpond Basin
Area 1 500m Interoil
FIELD
OCTP
2010 2014
ECTP MoU
ECTP MoU
Sahara En
DWT TAKORADI 4000m
4000
WCTP
Tullow Kosmos
Tano Basin Gasop
DWT/CTP CTPD
Hess Vanco
SDT
Area 4
 Operated
 Operated  Operated
 Two discoveries
Development Exploration
Note: all data at 100%
35

36. deepwater projects: Block 15/06
Mpungi-1 Cabaca North-1
(2010) (2009)
Nzanza-1 -1
-
(2009) Nzanza North Xikomba
N3
Mondo NW
1000
W5 Cinguvu-1 Cabaça 1
Cabaca SE-1
m
(2010)
1
W6 (2010)
Mondo W
W7
W-HUB
W10 W11 Cabaça S
W12 BAVUCA MONDO
M1-N
N’Goma-W
Sangos-1
N’Goma-1 -1
(
N’
(2008))
1 (2008)
M1-S
E-HUB
BATUQUE
RECO RECO
West Hub East Hub
 Development of Sangos, Ngoma, Cinguvu fields  Development of Cabaça North and Cabaça
South-East
(1,250-1,450 m WD)
 One leased FPSO: 100 kbbls/d
 16 wells (10 producers, 6 injectors)
 21 subsea wells
 Cluster manifolds for each drilling centre
 2 well clusters on Cabaça North
 Turret-moored stand alone FPSO: 100 kbbls/d
 2 well clusters on Cabaça SE
 Recycling of associated gas in WAG wells in
Sangos
36

37. deepwater projects: OPL 245
OPL245
 Eni share 50% (op.)  Development of Zabazaba and Etan fields
 Contract type PSA (1,700-2,000 m WD)
 Capex (100%) under evaluation  Zabazaba*: 13 producers, 5 injectors
 Reserves (100%)* 550 Mboe  Etan*: 5 producers, 5 injectors
 Peak production (100%) 110 kbbls/d  Cluster manifolds for each drilling centre
 Start-up* within 4YP  Spread moored FPSO (120kbbls/d) with calm buoy
 FID* within 4YP  Gas export sealine (130 km) to OGGS
* Preliminary data
37

38. growth drivers
 Operated development projects and
Deepwater
exploration to fuel future growth
Gas utilization
 LNG • Gas value maximization trough
 Power plant domestic consumption and export
 Heavy oil upgrading
 High quality assets in major
Exploration
exploration prolific plays
 Double flag approach to help hosting
Cooperation model
countries development
38

39. integrated gas cycle management
Gas production in SSA
(kboe/d)
NIGERIA
NIGERIA
Okpai
Eleme >120
RSG
Petrolchemical
P t l h i l
NLNG Brass
CONGO 79
Gas to MAG
CONGO Tar sands
CEC LPG
CED
ALNG
Gas project
ANGOLA
IPP
LNG operational/in execution 2010 2014
LNG pre FID/proposed
Other usage
g
IPP operational
IPP proposed Gas projects: an economic, social and
environmental opportunity
39

40. gas utilization: LNG projects
Operational/in execution Pre-FID/proposed
Nigerian LNG - eni share: 10.4% Brass LNG - eni share: 17% Op.
 Status 6 trains in operation  Status 2 trains – pre FID
 LNG capacity 22 MTPA  LNG capacity 10 MTPA
 Startup 1999  Startup 2016
 G supply*
Gas l * 3,482
3 482 mscf/d
f/d  G supply*
Gas l * 1,700
1 700 mscf/d
f/d
 Liquids 130 kboe/d  Liquids 70 kboe/d
Angola LNG - eni share: 13 6%
A l i h 13.6% Angola G
A l Gas Project - eni 20% t
P j t i tec. partner
t
N
 Status 1 train in execution  Status 1 train “proposed”
Oxy
Ocean Int. Democratic Republic
C of
0/A S Congo
K/A Congo
-IMI CABGOCFina
Chevron
 LNG capacity 5.2 MTPA  LNG capacity 5.2 MTPA
CABGOC
14 0/B
15
Esso
1 Soyo
 Startup Feb.
Feb 2012 ANGOLA
 Startup TBD
31 2/05
Sonangol
BP
16 3/05A
32
Sonangol
 Gas supply* 925 mscf/d  Gas supply* from Garoupa field
TFE 17 4/05
Sonangol
Total
18
33 BP
5
 Liquids 60 kboe/d  Liquids TBD
34
Esso Sonangol P&P
Sonangol P&P 19
Luanda
6
* Figures are nominal 100%
40

41. gas utilization: power plant projects
Nigeria – Okpai IPP - eni operator 20% Nigeria – RSG IPP - Supply 100% Naoc JV
 Status operational  Status operational
 Plant capacity 480 MW  Plant capacity 150 MW
 Startup May 2005  Startup Dec 2006
 G supply
Gas l 70 mscf/d
f/d  G supply
Gas l 30 mscf/d
f/d
 Final users 10 million  Final users 1 million
Congo CED - eni operator Congo CEC - eni operator
 Status operational  Status operational
 Plant capacity 2x25 MW  Plant capacity 2x150 MW
 Startup Dec 2002  Startup Mar 2010
 Gas supply 25 mscf/d  Gas supply 70 mscf/d
 Fi l users
Final 0.5 illi
0 5 million  Fi l users
Final 2 million
illi
Angola IPP - eni operator 50%
eni in the power sector of SSA
b lic
pu
Re Of o ola
Co
ng ng
N
A
 Status “proposed “
Oxy
Democratic Republic
 Installed capacity 1,000 MW
Ocean Int.
of
C
0/A Congo
S
K/A-IMI CABGOC Fina
Chevron Congo
 Plant capacity 450 MW
0/B
14
CABGOC
15
Esso
1
 Future capacity 450 MW
 Startup TBD
15/06
31 Eni
2/05
Sonan gol
ANGOLA
BP
Potential users ~18 million
3/05A

16
32
 Gas supply 70 mscf/d
Sonangol
TFE
17 4/05
Sonan gol
Gas supply ~265 mscf/d
Total

33
BP
18
AMBRIZ
 Final users 5 million
5
34
Share of power in the region
p g 7%
Esso Sonangol P&P

Sonangol P&P
19
6
Luanda
41

42. growth drivers
 Operated development projects and
Deepwater
exploration to fuel future growth
Gas utilization
• LNG  Gas value maximization trough
• Power plant domestic consumption and export
• Heavy oil upgrading
• High quality assets in major
Exploration
exploration prolific plays
 Double flag approach to help hosting
Cooperation model
countries development
42

43. exploration overview
Sub-saharan plays
 Pre-salt
 Deepwater Santos Basin Brazil-like
Togo themes
Nigeria  Coastal basin and shallow water
Ghana
 Transform margin
 Cretaceous plays deepwater
p y p
Gabon
G b
Congo
DRC
 Tertiary play
 East Africa margin and West Africa
Angola
Mozambique Exploration KPI
 Acreage 62,182 km2
 Estimated resources 10 bln boe
Main exploration plays  3D Seismic (09-11) 8,800 km2
Pre-salt Trasform margin Tertiary  2011-14 capex $1.2 bln
43

44. pre-salt and transform margin
Angola Bl. 35 (eni W.I.: 30%) Ghana/Togo
1000m
1500m
ra
2000m
Acc
2500m
SALTPOND OFFSHORE KETA TOGO 300
0m
i
rad
FIELD ACCRA
GHANA SOPCL
20
m
Tap
o
m
50 0m
350
Tak
SALTPOND Keta Basin
Oranto
100m EBONY
200m JUBILEE Saltpond Basin
Interoil
500m FIELD
OCTP ECTP MoU
ECTP MoU
Sahara En
DWT TAKORADI 4000m
WCTP
Tullow Kosmos
Tano Basin Gasop
DWT/CTP CTPD
Hess Vanco
SDT
 B
Brazil-like pre-salt play
il lik lt l  Gh
Ghana
 3 successful wells in Tano Basin
 New frontier area
 Cretaceous play in undrilled Keta Basin
 Kwanza deep offshore: 2,000-2,500m
of water
 Togo
 Resources potential: >2.5 bln bbl  2,000 km2 3D seismic acquisition on
block 2 completed
44

45. emerging East African Tertiary plays - Mozambique
Block Area 4 (eni W.I.: 70%)
 Rovuma Basin
 Deep offshore: 1,500 3,000
1 500-3 000 m
 Area: 12,956 km2
 Resource potential: 10-20 Tcf GOIP
 7 gas discoveries out of 9 wells drilled in the basin
g
 The largest discoveries are very close to Area 4
Area 4 prospect – 3D seismic
Barq.-1 Direct Hydrocarbon Indicator
Windj.-1 Mamba North-1
North-
 Several high potential gas prospect already defined on
3D seismic
 Secured rig to drill 2 firm wells on 2011 (drilling activity
Lagosta-1
ongoing), and two wells in 2012 Mamba South-1
South-
 Development scenarios foresee LNG export to the Far
East markets Area 1 Area 4 10 km
45

46. growth drivers
 Operated development projects and
Deepwater
exploration to fuel future growth
Gas utilization
• LNG  Gas value maximization trough
• Power plant domestic consumption and export
• Heavy oil upgrading
 High quality assets in major
Exploration
exploration prolific plays
• Double flag approach to help hosting
Cooperation model
countries development
46

47. the six legs of the eni model
1
Business & technology development
2
Oil & gas integration
3
Access to energy & infrastructure
4
To be local
5
Local development (agriculture, health, education)
(agriculture health
6
International partnership
47

48. M’Boundi, the energy hub of Congo Brazzaville
RC LPG plant Brazzaville
M’Boundi Tar sands
RIT
Loudima Mi d li
L di Mindouli Tsielampo
T i l
M’Boundi Zingali
Loufika
MAG
Litchendjili Kouakouala
y
Refinery RIT
Coraf
Pointe
Mongo Kamba
g
Noire 1/2 N’Goyo
Oil centre
Cote
Water injection Mateve
Gas compression/ pumps
gas injection Water
Power distribution injection CEC
jack-up (2x150MW)
Djeno oil
CED (2x25MW)
Feed to RC LPG plant (
p (future)
) terminal
Tar sands (future)
48

49. social investment model projects
Angola Congo
2008 MOU SONANGOL AND ENI INTEGRATED PROJECT HINDA
 Cooperation areas:  Objective:
 food & biodiesel  promote sustainable local development
 infrastructures  mitigating the social risks
 education  providing indirect support to the
 social projects operating processes
 Main areas of intervention:
MEDICAL PROJECTS  health and education;
 Vaccination campaigns  development of microeconomics;
 Supply of medical equipments  agriculture and environment;
 Fighting the malnourishment  infrastructure
Duration: 4 years (2011-2015)
Nigeria Gabon
SOCIAL PROJECTS EDUCATIONAL PROJECTS
 Green River pr.: support of local communities  Educational support to university
system
EDUCATIONAL PROJECTS
 Adaptive skill acquisition programs
ENVIRONMENTAL PROJECTS
ENVIRONMENTAL PROJECTS  Water main rehabilitation
 Realization of infrastructures
 Projects of protection of coasts from flooding MEDICAL PROJECTS
 Rehabilitation and construction of
MEDICAL PROJECTS
hospitals
 Roll-back malaria program
 Social and medical campaigns for HIV/AIDS
49

50. strong and increasing cash flow
SSA cash flow
$/boe
• Strong cash flow, significantly
35
100 $/boe enhanced by new start-ups
30 28.9
 Focus on conventional and large size
26.5
70 $/boe projects to exploit economies of scale
25
and operational synergies
p y g
20  Monetization of low cost stranded gas
resources
15
10
5 IRR of new projects:
~28%
0
Average breakeven:
07-09 08-10 11-14 36 $/boe
Brent avg 77 79 70
($/
($/boe)
)
50

51. Congo field trip: financial update
Alessandro Bernini, CFO
,
eni.com

52. growing cash flow to finance capex…
2011-14 cash flow* 2011-14
2011 14 capex
Bln €
*@ 70$/bbl
52

53. … focused on high return e&p projects
Eni capex
Bln €
2011-2014 E&P development Other
Oh
capex plan 33.7 19.6
E&P development capex
2% Onshore PSA
Shallow offshore Service contract
23%
38% Deepwater Concession
35%
Unconventional 47%
18%
37%
53

54. ...and to further strengthen our balance sheet
Net debt at June 30, 2011
Snam Rete Gas  Lowest risk profile of eni’s 2011
portfolio
 Self financing  €1.7bn of
€ 10.7 billion
divestments closed
 Net debt to equity
Saipem below YE2010
 Major vessels almost
completed
€ 3.4 billion
 Strong cash flow Going forward
 Net debt to eq it
equity
<40% within the
eni
plan period
 Mainly PSA exposure  Cash neutrality at
€ 12 billion
40$/boe by 2014
Total € 26.1 billion
54

55. low risk and high quality financial debt
Debt by instrument Debt by maturity
Commercial >5 yrs
paper 10%
3-5 yrs
Bonds
51%
2-3 yrs
Banks
39%
 Extension of debt maturity: >80% long term
 €1.3 bln retail bond issued successfully this week
 Over 50% of long term debt at fixed interest rates
g
 €300m of refinancing in 2011 (no bonds due) Data @ June 2011
55

56. Congo field trip: closing remarks
Paolo Scaroni, CEO
,
eni.com

57. a strong growth profile
Past and future leadership in Africa
as a d u u e eade s p ca
E&P: sustainable long-term growth
Solid balance sheet to fuel growth
57

58. a strong growth profile
Past and future leadership in Africa
as a d u u e eade s p ca
E&P: sustainable long-term growth
Solid balance sheet to fuel growth
58