Eni - December 2019

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Angola - Fspo Olombendo

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World Leaders

in Sustainable Energy Provision PRODUCTION: Benjamin Southwold

Operating in 67 countries worldwide and employing more than 30,000 people, Eni is an Italian company with an international presence. One of the global oil and gas super-players, Eni’s foundations are built upon oil and gas exploration, production, refining and selling operations, electricity and chemistry. Sustainability is at the core of everything, both present and future, while a central focus on Africa is bringing exciting developments, Energy Focus discovers. www.emea-energy.net / 3

INDUSTRY FOCUS: ENERGY

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“Our roots are in Italy, but from the very beginning we have looked beyond our national borders.” This is Eni in a nutshell, and this wanderlust has seen it reach a position where it carries out oil and gas exploration, development and extraction in 43 countries, trades in oil, gas, liquid natural gas (LNG) and electricity in 28 countries and sells high-quality fuels and lubricants in 33 countries.

Exploration and production are major drivers for Eni, where its global footprint sees it active across Italy, Algeria and Egypt, through the United Kingdom, United States, Mexico and

Venezuela, to name but a few. The gas and power arm of Eni meanwhile is responsible for the development, both in Italy and abroad, of commercial retail, mid gas and power, and the generation of electricity.

Enipower generates electricity and thermal energy through power plants fuelled by natural gas, the fossil fuel with the lowest environmental impact, and its generation pool boasts one of the lowest emission factors in the Italian thermoelectric power sector.

As an international gas and LNG operator, Eni occupies leading positions in both the European and emerging markets. Its work in

// IT IS PRECISELY IN SUSTAINABILITY THAT ENI IS CURRENTLY AT THE TOP OF THE WORLD RANKINGS, AS IS CONFIRMED BY THE NUMEROUS AWARDS WON AT INTERNATIONAL LEVEL //

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this sector involves the buying and selling of liquefied natural gas, and LNG boasts a global portfolio based on long-term purchasing contracts with reliable suppliers, a network of relationships with end clients and traders all over the world.

MAKING CHANGE The Eni story stretches way back to its 1953 founding and establishment by law from an existing company, Agip, created in 1926 with the mandate to explore for oilfields and acquire and commercialise oil and derivatives.

“An absorbing journey through time,” is how Eni refers to its more than 65-year heritage, and it truly has been a voyage filled with twists and turns alongside moments that have shaped Italy and the world. The need to bring energy to Italy soon pushed Eni to branch out as far afield as Egypt, later joined by Russia, China and numerous others for the supply of crude oil.

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The past two decades have been primarily characterised by further internationalisation and, crucially, sustainability. The development was launched of the most important oil field discovered in the last thirty years, the Kazakh Kashagan Field, while in 2003 work began on the Blue Stream

// OUR AIM IS TO CHANGE THE ENERGY MIX OF OUR ACTIVITIES BY REPLACING ENERGY FROM FOSSIL FUELS WITH RENEWABLE SOLUTIONS THAT PROVIDE GREEN ENERGY //

gas pipeline, a joint venture between Eni and Gazprom to transport gas from southern Russia to Ankara.

“Maximum attention has been given to issues of quality, innovation and cooperation, in a word to ‘sustainability’,” Eni elucidates about its current and future guiding principles.

“It is precisely in sustainability that Eni is currently at the top of the world rankings, as is confirmed by the numerous awards won at international level, starting from the inclusion in the Dow Jones Sustainability World Index.”

Right from the outset Eni has looked to bring about positive change in the industry, as Eni’s founder Enrico Mattei, pointed out at its beginning.

“We launched a new formula,” he stated at the time. “We pay the fees the others pay and in addition give the producing country a 50% stake in the production and development of its resources.”

Today, reducing environmental impact is a key long-term commitment

for Eni, building toward a low-carbon future. “At Eni, we recognise the need to act to fight climate change,” the company stresses. “We want to lead the energy transition by supporting the goals of the Paris Agreement.

“Reducing climate-altering gas emissions, developing renewable sources and green business, and reaching a net zero carbon footprint for direct upstream emissions by 2030 are just a few of our long-term objectives.

“Eni is determined to be a force for good in contributing to the achievement of the UN’s Sustainable Development Goals and bringing about a just transition,” said Claudio Descalzi, Eni’s Chief Executive Officer, at the September publication of a new corporate mission statement. “Our global presence makes us acutely aware of the challenges the world faces today: our new mission sets out the values and principles which will drive us in helping tackle those challenges.”

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EVOLVERE ACQUISITION Eni gas e luce is the company, 100% controlled by Eni SpA, dedicated to the commercialisation of gas, electricity and energy solutions for families, apartment buildings and businesses. Active in four European countries with 1,600 employees and eight million clients in Italy, it is also one of the main operators in the free market of energy supply for domestic consumption.

In November came the announcement that Eni gas e luce had acquired 70% of Evolvere S.p.A., a leading Italian company in the field of distributed generation through an innovative business model that combines green and the sharing economy. The transaction is a strategic one for Eni gas e luce: it becomes the leader in the area of solar distributed generation in Italy, and it works perfectly in step with Eni’s mission to build value through the energy transition.

Evolvere is a leader in the distributed generation sector in Italy, with around 11,000 photovoltaic plants accounting for some 58MW of total installed power. The company’s

offer includes the sale, installation and maintenance of solar photovoltaic plants and batteries for residential customers and businesses up to 20KW. “In an energy market where final customers take on a more active role – being both producers and consumers – Evolvere’s acquisition lets Eni gas and luce become a leader in the market of distributed generation from renewable sources in Italy,” Eni gas e luce’s Chief Executive Officer Alberto Chiarini said of the deal.

“Following the acquisition, Eni gas e luce is better positioned to create further value, making new business opportunities available to Evolvere, by involving its business partners and providing the company with the resources needed to seize the opportunities of a fast growing market.”

In Italy, the market of small photovoltaic plants is expected to grow exponentially in the next four years, with a yearly average of newly installed power set to hit 290 MW. This will draw from a potential pool of around nine million single-family or two-family houses, on top of the around 800,000 energy producers and consumers (prosumers) already active.

PHOTOVOLTAIC FUTURE The Bhit Photovoltaic Plant is Eni’s first solar project in Pakistan, achieved through its subsidiary Eni New Energy Pakistan. Built in close proximity to the Bhit Gas Plant and inaugurated last month, it aims to support upstream operations by providing green energy in an off-grid configuration, with a 10MW peak capacity expected to produce approximately 20GWh each year.

“The output energy will be used on site, reducing gas consumption and saving around 144,000 tonnes of CO2 equivalent emissions during plant life,” Eni explained. “The photovoltaic plant works in full synergy with the existing power generation system of Bhit gas treatment plant, optimising operational

// I AM VERY CONFIDENT IN ENI’S POSITION AS I LOOK TO THE NEAR FUTURE AS WELL AS TO THE MEDIUM AND LONGTERM TRANSITION //

Ghana - Sanzule's Onshore Receiving Facilities

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costs with the shut down one of the existing gas turbines.”

The Pakistan photovoltaic milestone bolstered the existing commitment on the part of Eni and ETAP to develop renewable energy projects in Tunisia. The 10MW photovoltaic plant at Tataouine further demonstrates Eni’s commitment to promoting sustainable growth in the country, and will provide the national grid with more than 20 GWh/year of electricity, saving a total of around 260,000 tons of CO2 over its 25 year lifetime.

Eni will also complete its construction of the Adam photovoltaic field in Tataouine this year, which will have a maximum installed capacity of 5 MW. “The project aims to establish a cutting-edge hybrid electricity production system with battery storage devices, in order to enable efficient integration with the existing turbines,” Eni said, adding that both projects would support upstream operations by providing off-grid green energy.

Eni has also taken the first steps towards changing the energy mix in Algeria, with a 10MW solar energy plant set to provide green energy to Algeria’s oil production centre and begin to decarbonise the country’s energy system. “The Bir Rebaa North (BRN) complex proves that renewable energy projects can provide efficient support to oil and gas operations, while at the same time helping to reduce greenhouse gas emissions,” Eni outlined.

“Initiatives such as this are an integral part of our strategy in the countries where we work; our aim is to change the energy mix of our activities by replacing energy from fossil fuels with renewable solutions that provide green energy.”

// WE ARE GROWING OUR BUSINESS IN NUMEROUS COUNTRIES ON THE AFRICAN CONTINENT //

AFRICA CONNECTION Africa has long held huge significance for Eni: it was the scene of some of its first key steps as it ventured into the Egyptian desert in 1954 and has provided such crucial moments as the discovery of Coral in Mozambique, Zohr, the largest gas field in the Mediterranean, and the Salissa Mwana project in Congo.

Today, Africa makes up more than half of Eni’s total crude oil and natural gas production, confirming Eni as the leading international producer in the continent, and it remains a top priority. “We are growing our business in numerous countries on the African continent,” Eni says, “always respecting local culture and human rights.

“In particular, we have recently signed an agreement with the United Nations that aims to meet the Sustainable Development Goals (SDGs) for Africa and universal access to energy by 2030.” The start of an exciting new partnership, Eni has signed an agreement with the United Nations Development Programme (UNDP) to promote renewables energies, energy efficiency and clean cooking initiatives, something entirely new in the energy sector.

Recent months have seen a slew of developments as it makes moves to consolidate and expand its position on the continent. Ghana’s Senior Minister Yaw Osafo-Maafo Claudio Descalzi last month opened the Okuafo Pa Agricultural Training Center in Dormaa East, Bono region.

The Okuafo Pa campus extends over an area of 40 hectares and includes experimental laboratories and farming areas. It will provide theoretical and practical vocational training to 800 students per year in the agricultural, agri-food and zootechnical fields, courses developed in collaboration with local universities.

“Professional training and skill acquisition is a precondition for social and economic development,” underlined Claudio Descalzi. “Eni

intends to play an active role in defining virtuous paths for sustainable growth in the countries in which it operates, and this project is a concrete example of what we can do if we pool our resources and those of our partners.”

Back where it all began in Egypt, new resources were discovered this year in the Abu Rudeis Sidri development lease, in the Gulf of Suez. This new and important result continues the positive track record of Eni’s ‘near field’ exploration of its historical concessions in Egypt, showing the value of using new concepts and technology in reevaluating areas where exploration was considered to have reached a high level of maturity.

The entire Sidri South discovery, originally estimated to contain about 200 million barrels of oil in place, will be reassessed following the results.

Also in October, Eni published its results for the third quarter and first nine months of 2019. “Eni has delivered robust results in the quarter, while also finalising the acquisition of Exxon’s assets in Norway and a 20% stake in the Ruwais refinery in the UAE, providing a further boost to growth and stability,” Claudio Descalzi remarked.

“It is important to highlight the continued progress from our complementary businesses of the future, from bio-refineries to renewables and the first waste to fuel pilot plants, which draw on in-house research,” he summarised. “I am very confident in Eni’s position as I look to the near future as well as to the medium and long-term transition.”

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