Eni - Wikipedia
Eni - Wikipedia
Eni - Wikipedia
The name "ENI" was initially the acronym of "Ente Nazionale Idrocarburi" (National
Hydrocarbons Board). However, through the years after its foundation, it operated in many
fields including contracting, nuclear power, energy, mining, chemicals and plastics,
refining/extraction and distribution machinery, the hospitality industry and even the textile
industry and news.
With revenues of around €92.2 billion, Eni ranked 111th on both the Fortune Global 500 and
the Fortune Global 2000 in 2022, making it the third-largest Italian company on the Fortune
list (after Assicurazioni Generali and Enel) and second largest on the Forbes list (after Enel).
On the Fortune Global 500, Eni is the largest petroleum company in Italy, the second largest
based in the European Union (after TotalEnergies), and the 13th largest in the world.[4][5] In
2023, the company’s seat in Forbes Global 2000 was 81,[6] while in Fortune Global 500 was
61.[7]
History
1950s–1960s
Eni was originally an acronym for the company's full title Ente Nazionale Idrocarburi (National
Hydrocarbons Board).[13] After 1995, the meaning ceased to be relevant but the name was
maintained.[14] In 1952, the logo of the then nascent Eni was selected. The logo is a six-
legged dog, an imaginary animal symbolizing the sum of a car's four wheels and the two legs
of its driver.[15][16]
Starting in 1954, Eni acquired extensive exploration rights in North Africa, signing an
agreement with the Egyptian government led by Nasser while providing an active and equal
role for the crude producing countries through the establishment of joint ventures.[13][17] In
1957, Eni pushed for a similar agreement, known as the "Mattei formula",[18][19] to be signed
with Persian Shah Mohammad Reza Pahlavi and the National Iranian Oil Company.[20][21][22] In
1960, during the Cold War period, Eni signed an agreement with the Soviet Union for the
importation of Russian crude at low prices.[23][24]
On 27 October 1962, Enrico Mattei's airplane mysteriously exploded near Bascapè, on his way
to Milan from Catania.[25][26] His death was initially considered an accident, but later it was
confirmed to be a murder with the aim to protect and hide important economical and political
interests in Italy and especially abroad, as it is clearly stated in the records of the trial on the
assassination of the journalist Mauro De Mauro, who was investigating on the death of Enrico
Mattei.[27]
During the following years, Eni signed joint venture contracts with foreign companies to
supply crude from Egypt to Iran and from Libya to Tunisia.[28] In 1963, Eni acquired a majority
stake in Italgas.[29]
1970s–1980s
In October 1973, after the Yom Kippur War and the OPEC embargo[30][31] against the United
States and the Netherlands by OPEC members and Arab countries, a serious oil crisis
occurred,[32] causing Eni to consolidate its position in the international market by signing an
agreement with Sonatrach,[33] the Algerian state oil entity for natural gas supply.[34]
In 1974, Eni signed an agreement with the Libyan government, followed by additional
agreements with Egypt, Nigeria and Tunisia.[35][36][37][38]
During the mid-1970s, Eni planned a major infrastructure for transporting natural gas over
long distances, by building a pipeline network of thousands of miles throughout Europe and
the Mediterranean.[39][40][41]
1990s–2000s
In 1992, Eni became a joint stock company by Law Decree,[46][47][48][49][50] and was listed to
the Italian and New York Stock Exchange in 1995.[51][52][53]
From 1995 to 1998, Eni successfully put four share offers, as 70% of its capital assets were
sold to private shareholders.[54][55][56]
As the price of oil collapsed in 1998 as other major companies Eni got to turn into a race
through merges, international acquisitions, new explorations and the foundation of real
super-companies.[57][58][59]
2000s–2010s
Since 2000, Eni has been developing the Kashagan[60] oilfield a major offshore discovery,
along the Caspian Sea.[61][62]
In 2005, the Blue Stream pipeline, projected to supply gas from southern Russia to Turkey,
was inaugurated as a joint venture between Eni and Gazprom.[63][64][65]
In 2007, Eni signed an agreement to conduct South Stream a feasibility study with Gazprom
to import Russian gas into Europe across the Black Sea.[66][67][68]
Activist asset manager Knight Vinke, who owns 1% of the outstanding shares of the
company, began pressuring Eni's management to operate a spin-off of Eni's gas activities. In
its opinion, this would solve the undervaluation of the company and release up to 50 billion
euros ($70bn) of hidden value.[69]
In 2010, Eni achieves key production milestone in Iraqi Zubair oil field.[70][71][72]
After getting a licence in 2006 for the exploration of an offshore area in the north of
Mozambique, known as Area 4,[73][74][75] Eni announced several major natural gas discoveries
between 2011 and 2012 such as Mamba South,[76][77][78][79][80][81] Mamba North,[82][83] Mamba
North East,[84][85][86][87] Coral 1.[88][89][90][91]
2010 to present
Since 2012, Eni has been selling off refining and marketing assets it owned in eastern Europe
to increase profitability. By 2013 Eni already reduced its refining capacity by 13 percent. In
May 2014 Eni agreed to sell their 32.5% share in Česká rafinerská a.s. (CRC), a refining
company in Czech Republic, to MOL Group of Hungary.[93]
In June 2014, the company signed an agreement with Sasol to acquire a 40% interest in a
permit to explore 82,000-km2 offshore of South Africa's east coast.[94]
In 2014, Eni launched a new plan to convert its conventional refineries into biorefineries: the
first plant was in Porto Marghera,[95] in 2019 the second one opened in Gela.[96]
In January 2015, Eni in collaboration with Vitol Energy signed a $7 billion contract with the
government of Ghana. This agreement was reached to produce oil and gas at Cape Three
Points in the Western Region of Ghana, in an attempt to enable Ghana to meet its power and
energy needs.
In August 2015, Eni announced the discovery of a huge gasfield off the coast of Egypt.[97]
In 2016, Eni launched Progetto Italia,[98] which aims to redevelop its industrial areas and to
create new renewable sources production plants: in 2018 the first photovoltaic plant was
inaugurated in Assemini,[99] the second opened in Porto Torres,[100] both in Sardinia.
In July 2017, the oil giant accepted responsibility for an oil spill affecting the Fylde coast of
Blackpool in the United Kingdom.[101]
In January 2018, Eni launched its new HPC4 supercomputer, one of the most powerful
computing systems which allows a more effective and fast exploration of oil and gas
reservoirs.[98] Since February 2020 Eni replaced the HPC4 supercomputer with the new model
HPC5, which has three times the computing ability compared to the previous one.[102]
In March 2018, Eni reached an agreement with MIT to fund fusion research projects run out
of the MIT Plasma Science and Fusion Center (PSFC)’s newly created Laboratory for
Innovation in Fusion Technologies (LIFT). The expected investment in these research projects
will amount to about $2 million over the following years.[103]
The Rovuma LNG project was approved in May 2019 by the government of Mozambique. The
project is a joint venture between ExxonMobil, Eni and CNPC. Eni will focus on the
construction and operation of the upstream facilities.[104][105]
In March 2021, Eni exited the Pakistani market and sold its assets to Prime International Oil &
Gas Company.[106][107] The deal include the assets sold, interests in eight development and
production leases and four exploration licences.[106][107] Prime International Oil & Gas
Company, a newly established joint venture (JV) between Eni Pakistan local employees and
Hub Power Company.[106][107]
In 2018 Eni became the first shareholder of the American company Commonwealth Fusion
Systems (CFS), a spin-out of the Massachusetts Institute of Technology (MIT) in Boston.[108]
CFS aims to build a fusion reactor based on tokamak technology, much more compact and
cheaper compared to other existing projects such as the international ITER.[109] On
September 5, 2021, CFS successfully built and tested a 1: 1 scale prototype of a magnet
based on HTS (High Temperature Superconductors) superconductors. The experiment
demonstrated for the first time that it is possible to create a fusion chamber where the
confinement of the plasma is ensured by this type of super magnets. This kind of fusion
chamber will allow the reactor to reach very high temperatures, above 100 million degrees,
necessary to make the controlled fusion of deuterium and tritium possible and thus to
produce sustainable energy.[110] In December 2021, ENI become the first energy company in
the world to highly invest in magnetic confinement nuclear fusion, through a $1.8 billion
partnership in CFS, alla Ng with Google and Bill Gates.[111]
In 2022, during the Russian invasion of Ukraine, the major oil and gas companies, including
Eni, reported sharp rises in interim revenues and profits. The rises are influenced by the
prices of raw materials such as oil and gas which have significantly increased, due to their
shortage.[112]
On 17 May 2022 Eni announced the procedures for the creation of an account with
Gazprombank in dual currency (euro and rubles),[113][114] in order to be able to proceed with
the payment of Russian gas supplies, following the unilateral amendment of the contracts
ordered by the Russian Federation.[115] The decision was taken in agreement with the Italian
government and does not violate the existing sanctions. The European Commissioner for
Economy Paolo Gentiloni and the competent Russian federal authorities have confirmed that
payments will continue to be made in euros and that the conversion operations will be carried
out by Russian clearing agents without the involvement of the Russian Central Bank.[116][117]
In June 2022, Eni signed a joint venture with QatarEnergy for the North Field East (NFE)
expansion which will be the worlds largest LNG project and begin production in 2025.[118][119]
Eni holds a 3.125% stake in the four LNG trains estimated to produce 8 million tonnes a year
each.[120]
In October 2023, QatarEnergy signed LNG supply deal with Italy's Eni for 27 years. Affiliates of
QatarEnergy and Eni signed a long-term sale and purchase agreement for up to 1 million tons
per year (mtpa) of liquefied natural gas (LNG) from Qatar's North Field expansion project.[121]
After 10 years of force majeure, Eni, Sonatrach and BP resumed exploration in their blocks in
the Ghadames Basin (A-B) and offshore Block C in August 2023, continuing their contract
obligations.[122][123]
In January 2024, Eni acquired Neptune Energy for $4.9 billion. The list of assets includes
Neptune’s involvement in the Geng North-1 gas field in Indonesia, as well as projects in
Western Europe, Australia and North Africa. Neptune’s business in Norway was purchased
directly by Vår Energi, a subsidiary of Eni. The assets in Germany were released before the
transaction, and will remain with Neptune, managed by the shareholders as a separate
group.[124]
Financial data
Financial data in € billions[125]
Year 2013 2014 2015 2016 2017[126] 2018[127] 2019[128] 2020[129] 202
Revenue 116.107 110.948 68.945 56.693 66.919 75.822 69.881 43.987 76.5
Net
4.972 0.850 −7.127 −1.044 3.374 4.126 148 −8.635 5.82
Income
Assets 138.088 146.207 134.792 124.545 114.928 118.373 123.440 109.648 137
Employees 30,970 29,403 29,053 33,536 32,934 31,701 32,053 31,495 32,6
Operations
In 2012, Eni reported liquids and gas production for the full year of 1,701 thousand barrel of
oil equivalent per day (kboe/d), this being calculated assuming a natural gas conversion
factor to barrel equivalent, updated to 5,492 cubic feet of gas equal 1 barrel of oil from 1 July
2012.[133][151]
During 2012, 60 new exploratory wells were drilled, as 56 were drilled in 2011 and 47 in 2010.
The overall commercial success rate was 40% (40.8% net to Eni) as compared to 42% in 2011
(38.6% net to Eni) and 41% in 2010 (39% net to Eni). In 2012, 351 development wells were
drilled as well, as 407 in 2011 and 399 in 2010.[152][153][154]
In 2019 Eni reported hydrocarbon production for the full year of 1,871 kboe/d.[155]
In 2021 Eni reported hydrocarbon production for the full year of 1,682 kboe/d.[156]
In 2022 Eni reported hydrocarbon production for the full year of 1,610 kboe/d.[1]
In 2023 Eni reported hydrocarbon production for the full year of 1,66 kboe/d.[1]
Natural gas
In 2012, sales of natural gas were 95.32 bcm, down 1.44 bcm compared to 2011.[157][158][159]
Power generation
Eni's electricity generation sites in Italy, as of July 2018, are the following:[170]
Bolgiano – 95 MW
Brindisi – 1715 MW
Ferrara – 586 MW
Ferrera Erbognone – 1785 MW
Mantua – 1387 MW
Ravenna – 618 MW
In April 2012, Eni in collaboration with ZEiTECS announced the world's first offshore
rigless/wireline retrievable ESP system for Eni Congo.[181]
Subsidiaries
Eni's principal subsidiaries include:[182][1]
In 2009, the European Commission filed formal antitrust charges against Eni. The
commission believes that Eni has conspired to keep competitors from using its gas
pipelines.[187]
In 2009 again, according to leaked diplomatic cables, US ambassador Lanier told Washington
that bribery allegations were made in Uganda by Eni which at the time was in competition for
oil assets in the country against Tullow Oil. The bribes were taken by the newly appointed
Ugandan prime minister, Amama Mbabazi.[188]
After corruption charges against the subsidiary Saipem, Eni's CFO Alessandro Bernini had to
resign and the new CFO Massimo Mondazzi took over in December 2012.[189]
Eni and Royal Dutch Shell stood trial in Italy over allegations of corruption in the 2011
purchase of a big offshore oil field in Nigeria known as OPL 245. Eni and Shell reportedly paid
$1.3 billion in bribes.[190][191][192] On March 17, 2021, the Italian court of Milan fully acquitted
Eni, its chief executive officer Claudio Descalzi and Royal Dutch Shell in the corruption trial for
the Nigerian oil field OPL245.[193][194]Nigerian government stated that it is "disappointed" by
the Milan court's ruling and "will continue to hold those responsible for the OPL 245 fraud
accountable."[195] On July 19, 2022, the Attorney General waived the appeal before the Second
Section of the Court of Appeal of Milan, making the acquittal sentences pronounced in March
2021 final.[196]
Sustainability
In 2012, Eni was included in the Carbon Performance Leadership Index, which scores
companies based on their commitment to transparency and environmental leadership.[197] In
the first half of 2014 Eni achieved the start-up of the Porto Torres green chemistry plant and
the Venice biorefinery, with the aim to increase its production of bio and green energy.[198][199]
According to the 2017 Carbon Majors Report, which stores GHG emissions data on the
largest company-related sources of all time, Eni accounted for 0.59% of global industrial
greenhouse gas emissions from 1988 to 2015.[200] In 2019, Eni was among the Top 10
companies by sustainability score in the World Business Council for Sustainable
Development (WBCSD) rank.[201][202] From 2020 to 2022, Eni is the first oil company with the
most ambitious absolute emissions reduction target according to the report Absolute Impact
2022 by Carbon Tracker Initiative[203] in accordance with the goals of the Paris agreement to
significantly lower GHG emissions and increase the production of renewable energy. In 2021,
Eni renewables business reached an installed capacity from renewable sources of 1,188
MW.[204] In the same year, Eni achieved a reduction of its net Carbon Footprint Upstream by
26% compared to 2018.[205] In September 2021, Eni joined together with the International
Renewable Energy Agency (IRENA) in a three year partnership to promote renewable
energy.[206][207]
Corporate structure
Board of directors
The board of directors is comprised as follows as of May 2023:[208]
See also
References
Citations
Further reading
External links
Retrieved from
"https://en.wikipedia.org/w/index.php?
title=Eni&oldid=1219349974"