Our position paper on fight against energy poverty, local content, ecosystem protection, and much more. This is one of the three documents that constitute the Sustainability Reporting System adopted by eni in 2011, together with Annual report and Sustainability Performance

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.

3. CEO’s
message
Energy is a crucial issue of our use of their resources bringing
time. We are aware that the key energy to people, businesses
to operate, for a major energy and communities. We provide
company like eni, is in the ability investment, expertise and
to build a trustworthy relationship technologies to make energy
with the society, represented by reliable and sustainable, a real
our people and customers, the driving force for social and
hosting communities and the economic development.
Countries we work with. We make eni for development tells how we
a pact with them, undertaking to work to foster and enhance this
offer just as many opportunities commitment. It endorses eni’s
as we were offered. support to the United Nations
Being an integrated company able resolution proclaiming 2012 the
to operate to the best in every Year of Sustainable Energy for All.
condition helps us to understand
the needs of the diverse contexts
and meet their expectations,
looking for solutions to local
problems as part of a global
sustainable development.
We want to contribute to finding Paolo Scaroni
answers through our strategies, Chief Executive Officer
our operating models, and our and General Manager
dialogue capacity that has always
been a hallmark for eni, working
alongside institutions and
international organisations.
The best way for us to prove
our commitment is to support
Countries in making the best

4. II eni for development
III
Integration, excellence
and citizenship
for sustainable development
eni is an integrated company that goals for sustainable development
operates throughout the energy in operational contexts, and
sector, employing about 80,000 represent a competitive advantage
people in 79 Countries all over the on today’s energy market. eni’s
world. The secrets behind eni’s activities on the global market
success include a company culture often involve areas with a very
and business model that allow it low Human Development Index.
to operate in an integrated way, eni is committed to supporting
constantly striving for excellence, social and economic development
establishing long-term relationships in oil-producing Countries, to help
with oil-producing Countries. These mitigate inequalities, especially
factors make it possible to reach regarding the access to energy.
The operational context and scenario of Despite the relative abundance Opportunities for International
of global energy resources, Oil Companies (IOCs) are further
the energy industry are characterised over 80% of traditional oil and reduced by growing competition
by an increasing complexity due to the natural gas reserves are directly
controlled by major oil-producing
from domestic companies in
oil-consuming Countries, that
growing competition from National Oil Countries. These Countries tend aim at increasing the supply of
to need just technical services hydrocarbons to support local
Companies (NOCs) in oil-producing and – and to a greater extent as time economic development. Openings
oil-consuming Countries, in addition passes – in order to enhance the
technical and managerial skills of
for investment in traditional
oil-producing Countries are
to the uncertainties of future market local companies, thus becoming characterised by high costs and
autonomous in the research and risks, or alternatively very small
developments. production of hydrocarbons. margins.

5. HUMAN DEVELOPMENT
INDEX Development Index
The Human
<0.3 0.3-0.5 0.5-0.7 0.7-0.8 >0.8 n.a. The Human Development Index
(HDI) was introduced by the
economist Mahbub ul Haq in the
late 80’s, and used for the first
time in 1990 in the first Human
Development Report by the United
Nations Development Programme.
The HDI provides an overall
indication of development in a
territory, considering more than
just the economic dimension. The
HDI combines three dimensions:
health (in terms of life expectancy
at birth), education (measured
as the average expected and
actual years of schooling) and the
standard of living (calculated on
the basis of the income index).
Source UNDP
International Oil Companies should eni started out as an “oil with a joint participation in the
company without oil” in the development of the upstream
experiment with less-traditional approaches era of decolonisation. On these business. Essentially, a model
two weakness factors Enrico was created in which eni sat on
rather than the usual exploration-production Mattei, the founder, engaged his the same side of the table as the
logic, encouraging cooperation with intuition and vision, adopting oil-producing Countries rather than
a new relationship approach on the opposite side, creating a
oil-producing Countries and their with oil-producing Countries. greater wealth of resources for
The “Mattei Formula” envisaged these Countries than for eni itself.
communities. Strategic partnerships should the profit sharing through the eni quickly earned itself a
include joint projects for the economic and establishment of a joint venture reputation as a reliable partner,
with local energy companies for able to perform a technical
social development of the Country. eni’s the exploration and development cooperation for development.
of hydrocarbons, with the oil- Thanks to this approach eni was
history, business culture, and operating producing Countries’ share rising welcomed in many Countries,
models represent competitive advantages from 50% to 75%, an exchange becoming the first international
of technology and know-how, operator in Africa.
and opportunities to aim for.
One of eni’s distinctive features, eni’s business portfolio is more electricity, as well as engineering
structured and integrated than and construction, represents an
useful for developing collaboration other IOCs. important competitive advantage.
The integration of activities eni’s integrated approach enables
with oil-producing Countries, is having throughout the sector provides a greater relationship flexibility
operations and skills integrated in the a wealth of expertise, which with oil-producing Countries;
represents an important key to moreover, eni offers solutions
entire energy business sector. success. The reputation as a major that better fit their technological
operator in the transportation and and infrastructural needs
distribution of natural gas, and helping the local communities’
the generation and marketing of economic growth.

6. IV eni for development
V
The approach includes the approach to technological skills The operational excellence and the integrated
development of energy Master and safety for all the Country’s
Plans and the management of available resources. approach aligned with a culture of cooperation
projects even in sectors not This allows new opportunities for with the producing Countries enable eni
strictly related to energy. investment to be undertaken
Another distinctive feature is in “difficult” contexts and to operate with the responsibility of an
eni’s ability to pursue excellence frontier areas, where safety and
in all of its operations, which is environmental protection are International Oil Company whilst having the
demonstrated by its trustworthy considered of critical importance. ability to invest in the Country’s future as a
National Oil Company. This is the “dual flag”
approach, which causes eni to assume the
citizenship of the territories in which it operates.
The roots of eni’s success are pursued with eni’s support. One realise the best outcome
Through the “dual flag” largely located in the way flag shows the six-legged dog, from the available resources,
the company conducts its the other is the host Country’s. with particular attention to
approach, eni shows its business. This approach is well eni has the skills, technology territories, population and
ability to take part in the represented by the image known and experience of an consequently enterprises. From
to everyone who meets eni international energy company. the dual nature of a local and
design and implementation of travelling the world: two flags It has the sensibility needed global company, eni has the
waving together both on plant to understand the context; the ability to dialogue with local,
sustainable development for and operational fields, as well credibility that comes from national and international
Countries. as in villages and towns where making long-term investments institutions on the major
large and small projects are in the Countries; the will to sustainable development issues.
eni has always encouraged Companies; on the contrary, The integrated approach, the operational
relationships with producing
Countries based on dialogue and
having developed a distinctive
approach in its relations with
excellence, and a fair citizenship represent
cooperation to promote local social oil-producing Countries, the core features of a business model that
and economic development. eni businesses, people and local
is not subject to the competitive communities, eni has a competitive is historically and strategically aimed at
environment based on new
balances between International
advantage, as proven by the recent
cooperation agreements with
sustainable development as a distinctive
Oil Companies and National Oil Angola and Congo. element for value creation.
eni operates in many developing continent characterised by these Countries, eni is actively
Countries. The activities and deep-rooted economic and social involved in the exploration
initiatives promoted locally as inequality. and utilisation of all available
part of cooperation agreements, Many Countries in which eni energy resources, as well as in
have a strong impact on the operates, especially in Sub- the construction of the related
economy and communities. In Saharan Africa, have huge infrastructures, thus also
particular, eni is the leading energy resources but very low faciliting the access to energy
international producer of human development indexes for a greater segment of the
hydrocarbons in Africa, a and limited access to energy. In population.

7. POVERTY LINE than 1.25 dollars a day
People living on less Energy is a prerequisite for
VIVERE CON MENO DI UN DOLLARO AL GIORNO
>60% 50-60% 40-50% 30-40% 20-30% 10-20% <10% n.a. development, and the unfair
access to energy in the
world is one of the greatest
global imbalances. Supplying
energy to populations who
currently have a scarce
access to it, gives eni the
ability to indirectly, but
efficiently, pursue the
Millennium Goals defined by
Source CIA World Fact Book 2008 the United Nations.
eni’s activities, regulated by exports and the development encouraging and consolidating multilateral and international
cooperation agreements drawn of local markets, creating the Company’s presence in organisations, governments,
up with oil-producing Countries opportunities for people and an oil-producing Country is other oil companies and private
to deal with and solve urgent local businesses, promoting associated with the long- organisations to define and
issues relevant to social and projects to improve local living term benefits the Company’s develop collective actions to
economic development in the conditions, from health to activities can supply in improve business efficiency
Country, aim to exploit all education, to the protection of terms of economic and social and transparency, with positive
available energy resources, the environment for present development of the Country. effects for both International
creating functional energy and future generations. eni is also committed at a Oil Companies and oil-
infrastructures for both One of the levers for global level to cooperating with producing Countries.
eni’s mission focuses on its passion for operating strategies.
challenges, continuous improvement Local and global development issues
and excellence as the Company’s guiding are wide-ranging and complex, therefore
principles, attributing a fundamental everyone needs to play a role. eni’s
role to the integrity of people and the contribution is a positive example of
environment. eni wishes to create long- how an international energy company
term value and be a trustworthy citizen can operate in today’s world, creating
of the world. This is why the Company benefits for both the production
is fully committed to sustainable activities, the Countries and the
development, with its distinctive communities where it operates.

8. Thematic studies show how the energy industry can foster economic and social
development, providing concrete examples of eni’s contribution.
Access to energy
deals with the production of electricity using associated gas recovery systems, and describes how eni’s
initiatives in Congo and Nigeria help fight energy poverty.
Natural gas as a driving force for development
describes how eni’s infrastructures in the local market aimed at export and transport have helped support
social and economic development in the oil-producing Country.
Towards renewable energy page 02
describes how eni’s integrated business model helps promote efficient gas-fired plants and renewables,
to guarantee an energy mix consistent with the goals of international bodies.
page 10
Safe management of all resources including difficult ones
illustrates how eni aims to exploit all the available energy resources in the Country, adopting the highest page 15
safety standards and using the best available technology to protect the environment, people and
communities.
page 19
Opportunities for local people and businesses
describes how eni creates opportunities in terms of working quality, use of materials and services in the page 26
oil-producing Country, in order to promote social and economic development. It also focuses on the “Chimica
Verde” project started in Italy.
page 31
Local development and the Millennium Goals
links the development projects for local communities, in particular those promoting the right to health and page 40
education, with the pursuit of the UN Millennium Development Goals.
The value enhancement of natural resources page 44
describes how eni mitigates the potential negative impacts of its activities, while safeguarding biodiversity and
ecosystems, and promotes the correct use of water resources in the Countries in which it operates. page 08
Transparency and the commitment to fight against corruption page 24
portrays eni’s initiatives in preventing corruption and promoting transparency
in relations with local institutions and communities.
page 38
Contributions from page 50
Raffaella Centurelli
International Energy Agency,
Giuseppe Soda
Bocconi School of Management,
Glenn Denning
The Earth Institute, Columbia University
help put the scope of the problems into context, perhaps sending the most important message:
having to operate in a difficult, extensive and complex context does not prevent a company from making a
contribution – however small – to sustainable development.
The document ends with: the Blueprint of eni’s business model, reporting principles and criteria, auditors’ report.

10. 2 eni for development
3
Access to
energy
eni is actively committed to fighting gas-fired plants. In some areas it is not
energy poverty, one of the biggest possible to use the associated gas in
obstacles to social and economic the local market or to exploit it and so
development in most of the Countries it would be flared, wasting a valuable
it operates in. energy resource.
Thanks to its integrated business Through these initiatives eni
model, built on operational excellence pursues multiple objectives from the
and designed to promote development consolidation of relations with
in the Countries, eni designs and oil-producing Countries to the optimal
implements production and distribution use of available energy resources, to the
programmes for electricity produced in reduction of greenhouse gas emissions.

11. The availability of energy is a prerequisite for development and the different
distribution of energy consumption worldwide represents both a barrier
to growth and a cause of inequality between nations. Supplying energy to
people who currently lack access allows eni to indirectly but effectively
pursue the UN Millennium Development Goals.
Energy consumption is heavily 110 thousand barrels of oil are eni hydrocarbons
concentrated in certain produced per day, respectively production
geographical areas: around 2 50% and 62% of the population in relation to
billion people consume over 50% has no access to electricity due energy access The chart shows eni
of the total annual world energy to the lack of power generation hydrocarbons production
production, and more than 1.4 plants and distribution (percentage of total production)
35%
billion people totally lack access infrastructures (source IEA). 29% divided per the percentage
to electricity (source IEA). This These Countries, like others in 30% of people with no access to
is a particularly serious problem Sub-Saharan Africa, represent the 25% electricity. 22% of eni’s production
in Africa, where eni operates in paradox of being major energy
22% 20% 23% comes from Countries where
20%
16 Countries and is the leading producers while suffering from 50-80% of the population has no
15%
International Oil Company energy poverty. access to electricity. 52% of its
in terms of hydrocarbons This situation is worsened by 10% production comes from Countries
5%
production, with approximately the fact that the gas associated 5% where no data is available on
a million barrels of oil per day. with oil production is often 1% access to electricity, but for which
eni is also the leading producer burnt, due to a lack of suitable the Human Development Index
50-80
30-50
5-30
<5
MEDIUM HDI
HIGH HDI
of electricity within cooperation infrastructures, with a significant (HDI) is medium or high.
programmes and development in negative impact on both the local
oil-producing Countries. and the global environment.
In Nigeria and in the Republic This practice is known as gas
L’ACCESSO ALL’ENERGIA ELETTRICA
of Congo, where about 172 and flaring.
population (%) with no access
to electricity
NEL MONDO
50-80% 30-50% 5-30% <5% n.a.
L’ACCESSO ALL’ENERGIA ELETTRICA
NEL MONDO
50-80% 30-50% 5-30% <5% n.a. Population with no access to
electricity
About 1.4 billion people, the 20% of the
world’s population, have no access to
electricity. 85% of them live in rural areas.
The regions with the lowest electrification
rates are South East Asia and
Sub-Saharan Africa.
Source IEA 2009

12. 4 eni for development
5
Gas flaring worldwide
billion m3
180
160 In 2010 about 134 billion cubic
metres of associated gas were
140 flared.
120
The recovery of the 15 billion
Russia cubic metres of gas flared in
100 Nigeria Nigeria would boost the local
Iran
Iraq natural gas market by 50%.
80
Algeria If the 37 billion cubic metres
Angola of gas flared in Africa were
60 Kazakhstan
Libya used to generate electricity in
40 Saudi Arabia high-efficiency plants, it would
Venezuela produce 200 TWh - about 40%
20 Next 10
Rest of world of the electricity demand for the
0 whole African continent.
2006 2007 2008 2009 2010
Source World Bank
eni is currently responsible for around 4.6% eni has reduced flaring by over maximum productivity. If used in
30% in the last three years, natural gas liquefaction plants,
of the gas flared, and is therefore committed and is investing in new energy the associated gas increases
infrastructures in order to bring export capacity and consolidates
to finding a solution to this problem through this figure up to 80% by 2014. the producer’s position on the
the recovery or reuse of the associated gas Thanks to this programme, when international market. If the gas is
fully implemented, around 5 billion used to supply the local market
(flaring down). That allows the most to be cubic metres of gas per year will be and produce electricity, the
recovered and made available for population of the oil-producing
made of natural resources and generates markets in oil-producing Countries. Country gains access to a stable
several benefits for the Countries involved. The associated gas, if reinjected and continuous supply of reliable
into the system, allows for a more and safe energy - a catalyst
efficient management of the for social and, consequently,
TH TION
D WI DUC resevoir, and grants the Country economic development.
CIATENS PRO
ASSO BO
HYDROCARBONS GASDROCAR
HY
PRODUCTION
GHG
IDED
AVO ISSIONS
EM
Exportation
Gas sent to LNG terminals by ship
HG HG
ED G ED G
VOIDSIONS
A IS VOIDSIONS
A IS
EM EM
Electricity
Gas sent to turbogas stations produced
Re-injected gas
POPULATION
REACHED
GHG
IDED
AVO ISSIONS
EM
Gas sent to the local market Gas distributed

13. eni was the first International Oil Company Thanks to the expertise acquired stations have shown excellent
in various segments of the energy results in 2010 (with a primary
in Africa to invest in power generation using sector and to the advanced energy consumption to electricity
technologies available, eni produced ratio equal to 0.167 toe/
associated gas, becoming the leading producer of invests in the construction of kWheq) and low greenhouse gas
electricity among the other energy companies. power stations having the best emissions (407g CO2 eq/kWheq
energy performance. eni power in 2010).
eni has implemented major electricity In Nigeria only 47% of the projects are a formidable driving
population, about 155 million force for social and economic
generation projects in Nigeria and Congo. These inhabitants, have access to development in both Countries,
electricity; in Congo, this figure two of the poorest in terms of
projects meet, respectively, about 20% and 60% drops to 27% of the population, per capita income in the world,
of the electricity production in Countries with about 4 million inhabitants ranked by the International
(source IEA). Monetary Fund, respectively,
high levels of energy poverty. eni electricity generation 142nd and 183rd place.
Percentage of eni associated gas
used in Nigeria
100%
In the late 1990’s, eni
90%
implemented the Zero Gas Flaring
80% project in the Niger Delta, with the
70%
aim of preventing associated gas
from hydrocarbons production
60% being burnt off into the
50% atmosphere. By the year 2000
eni was already using 50% of the
40%
gas produced. In 2010 this figure
30% reached 78%. By 2014, with the
implementation of further projects
20%
for the reduction of gas flaring,
10% eni expects to be able to use 95%
0% of the associated gas.
2000 2010 2014
In 2005, eni built a 480 MW Africa to be registered as a technology in thermal power activities. The Memorandum
combined cycle power plant in Kyoto Protocol’s CDM (Clean generation. The technology and of Understanding envisages
Kwale Okpai (Nigeria). The plant Development Mechanism) fuel utilised permit in fact the electrification projects for the
uses the associated gas from activity in 2006. greatest efficiency in fossil fuel- distribution of electricity to over
production activities, which The Okpai Plant utilises fired power generation plants, 50 communities. 40% of the
would otherwise be flared. combined cycle technology to reducing pollutant emissions per work has so far been completed.
The plant supplies electricity minimise heat emissions. The kilowatt-hour. In order to make 16 electrification projects were
to Power Holding Company of sustainability of electricity and the contribution to energy access implemented in the Rivers,
Nigeria, which distributes it steam production is guaranteed more effective in the Country, Bayelsa and Delta states in 2010,
to the end users. This was the by the combination of natural eni signed a Memorandum of for a total investment of over a
second flaring down project gas and cogeneration combined Understanding with the local million euro in access to energy
worldwide and the first in cycle technology, the latest communities affected by its initiatives.

14. 6 eni for development
7
Based on its experience in with the assistance of eni and low voltage transmission
Nigeria, in 2007 eni signed a technicians. network. The aim of this
cooperation agreement with Utilising associated gas means partnership is to increase
the Republic of Congo. The over $ 50 million a year savings the availability of energy for
agreement envisages the in oil imports for the Country. the capital and to also supply
construction of power stations The electricity produced is electricity to many smaller cities
that utilise the associated gas. distributed to the Pointe-Noire currently without access.
As part of the agreement an area, supplying approximately
integrated project for the 700,000 people. Compared to
exploitation of associated the Congo average per capita
gas produced in the onshore consumption of 137 KWh per
M’Boundi oilfield was initiated. year, in the Pointe-Noire area
The gas is collected and piped consumption rose to 350 KWh Based on its positive experiences
through a 55 km pipeline to in 2009 and to 462 KWh in in Nigeria and Congo, eni drew up
Djeno, where it is used to fuel 2010. eni also plays a key
two power stations: the Centrale advisory role to the Country agreements with other Countries
Electrique de Djeno with a for the construction and
current power output of 50 MW, management of electricity such as Mozambique, Ghana, Togo
and the new Centrale Electrique transmission infrastructures. and Angola, characterised by low
du Congo, with a current power eni entered into a partnership
output of 300 MW (planned for with local institutions, energy access rates, to replicate
a future output of 450 MW). public companies and an
80% of the Centrale Electrique Italian electricity company, this model of associated gas use.
du Congo is controlled by the promoting collaboration for the
Republic of Congo and 20% development and modernisation
by eni. The plant is operated of the Congolese high, medium
On January 28th, 2011, at the LEAD companies in fighting
launch of the LEAD Platform – energy poverty by developing
a Global Compact programme synergies between companies
eni actively participates in for companies that excel in from different sectors and
international working groups, the field of sustainability
– in Davos, Paolo Scaroni
international organisations.
The first Collective Action
promoting research activities and announced that eni would proposal was presented at
promote a Collective Action the Global Compact Week in
collective actions to guarantee against energy poverty. In Copenhagen. eni also takes
energy access. the presence of UN Secretary
General Ban Ki Moon, Paolo
part in a World Business Council
for Sustainable Development
Scaroni described the objective initiative on energy access,
of the Collective Action: involve launched on April 6th, 2011.

16. 8 eni for development
9
A candlelit dinner
is romantic, a candlelit surgical
operation is not
“A candlelit dinner in a smart who live in New York consume, How can energy contribute to
dining room seems to be in one year, the same quantity achieve the existing Millennium
romantic. A candlelit surgical of energy – 40TWh – as the Goals?
operation in a poor rural village about 800 million people in Sub- As we said earlier, access to
is not.” Saharan Africa. energy is not explicitly among
Today 1.4 billion people - more the MDGs, but it is a prerequisite
Raffaella Centurelli than 20% of the global population What is the connection for many of the UN existing
International Energy Agency - has no access to electricity, between access to energy and goals. Access to energy surely
whereas more than 2.7 billion development? contributes to the first MDG:
people use traditional biomasses Access to modern forms of eliminate extreme poverty and
to cook, breathing substances energy is a prerequisite for social hunger. It supports economic
that are very harmful to their and economic development. development, giving more
health: every year the number It is crucial to supply drinking efficient and safer means to
of premature deaths from water and deliver basic hygienic guarantee basic needs and
respiratory disease related with services. It brings benefits in undertake productive activities.
these practices is higher than the terms of development, giving Energy allows electric pumps
number of deaths from malaria people the possibility to rely to bring water up from wells,
and tuberculosis. According to on lighting, air-conditioning, providing drinking water and
our estimates, if governments do cooking, automation of daily making agriculture more
not take any strong actions, the operations, transport, and productive. Access to modern,
problem will persist and get worse telecommunication services. clean cooking methods would
in the long term. In 2030 people In spite of the evident guarantee the progress of the
without electricity will be a little relation between energy and goals related to infant mortality
less than today – 1.2 billion, but development, unfortunately the and pregnant women’s health
the number of users of traditional Millennium Development Goals (MDGs 4, 5, 6): according to the
biomasses will increase to 2.8 (MDG) make no explicit reference World Heath Organisation the
billion, recording more premature to energy and contain neither polluting substances emitted by
deaths than HIV. quantity objectives nor specific traditional stoves are responsible
indicators to allow Governments today for the premature death of
In which areas of the world is the and the international community more than 1.45 million people.
problem especially serious? to monitor the progress towards In Regions where the use of
More than 85% of the people universal access to modern biomasses prevails, women and
without modern forms of energy. Recently, however, children are generally in charge
electricity live in the rural areas of positive steps forward have of collecting fuel, an activity
Sub-Saharan Africa and South- been taken: the Advisory Group that demands time and fatigue.
East Asia. The bigger problem is on Energy and Climate Change Providing cooking instruments,
in Sub-Saharan Africa, where only at the UN asked for a goal to communication technologies
31% of the population has access be adopted on this issue by and, even more simply, lighting
to electricity, being the lowest 2030 and the United Nations and electricity, will contribute to
percentage in the world. Just has declared 2012 the “Year of MDGs 2 and 3, donating time to
think that the 20 million people sustainable energy for all”. women and children, supporting

17. schooling and allowing women to to electricity a total increment additional investment to achieve on fiscal budgets. Today, these
develop their potential. Finally, of electricity production of universal energy access. Countries face difficult choices
universal access to modern approximately 950 TWh by 2030 with reference to resource
energy will contribute to MDG is needed. To generate this extra What do you think is the biggest allocation. Among the various
7: guarantee environmental energy we need to increment challenge facing the issue of development needs, climate
sustainability. Abandoning the the productive capacity by 250 energy and poverty? change is often considered as a
unsustainable use of firewood GW, both through generation The need for relatively high long term problem versus more
would relieve pressure on with the electrical mains and investments is neither the only urgent priorities and problems.
the environment, avoiding through “off grid” solutions. nor the biggest barrier. The We have estimated that universal
deforestation and soil erosion. These decentralised solutions recognition of the urgency of access to electricity would have a
Cleaner energy would decrease play a central role for rural areas this issue by the international modest impact on energy-related
greenhouse gas emissions, and will represent the majority community and national CO2 emissions and on energy
reducing climate change. of investments in the period of Governments, together with a demand. Emissions would only
consideration. long-term political commitment, increase by 0.8% in 2030 - that
The IEA has published a study are the real “condition sine qua is, 2% of the current emissions
where they estimate the costs Do you think these investments non”. Giving the priority to the of the OECD Countries. And oil
necessary to face the issue of will actually be made? issue of energy access as a key demand would grow less than 1%
universal access to modern forms Investments to guarantee factor for development is a first if compared with the demand level
of energy by 2030. What are the universal access to modern step. We will need the commitment expected in 2030. This proves that
main results? energy services by 2030 seem of the international community, energy access and climate change
Bringing electricity to 1.2 billion very high and so far they have the definition of national goals are two challenges that can be
people by 2030 means a total been lower than the real needs. supported by specific plans, fought and solved together.
investment of 700 billion dollars However, it is necessary to see monitoring and an appropriate
between 2010 and 2030, i.e. things under the correct light. The financial, technological and What are your next steps?
33 billion dollars every year. To investments that are necessary institutional framework. In our opinion it is crucial to
guarantee universal access to for the next twenty years would identify the best way to find and
clean modern forms of cooking for be 36 billion dollars a year, an What is the link between energy manage the necessary funds to
2.8 billion people an investment amount that only accounts for access and another big challenge: provide energy access to those
of 2.6 billion dollars a year is 0.05% of the annual global GDP. In climate change? living in poverty conditions. We
needed: therefore, 36 billion 2009 an amount ten times higher Climate change is a global problem are working on a special edition
dollars a year would be needed was spent on subsidies for fossil and therefore requires global of the World Energy Outlook
to achieve both results by 2030. fuels and the costs to guarantee solutions. Poor Countries are 2011 that will present a new
The majority of investments for energy access in the ten biggest certainly not among the major architecture to finance universal
electrification must take place gas and oil exporting Countries of causes of climate change, but access to modern energy forms.
in Sub-Saharan Africa and in the Sub-Saharan Africa is 0.4% of the their populations are suffering We will present our conclusions
developing regions of Asia. cumulative oil and gas revenues the most severe effects of it. during a summit that will be held
of Governments up to 2030 (WEO Moreover, in developing Countries by the Norwegian Government
What are the requisites in your 2008). We have calculated that that import oil, volatility and price in October 2011 in Oslo. We hope
scenario of universal access to the addition of 0.3 cents of a increases have amplified the to make the issue of energy and
modern energy services? dollar to the current rates of the problem of energy access and poverty the first item on the
To guarantee universal access OECD Countries could finance the imposed an additional burden international agenda.

18. 10 eni for development
11
Natural gas as
a driving force for
development
eni has long sought to use the for the Country’s growth.
opportunities presented by natural gas With its initiatives in the natural gas
both as a driving force for the social and sector, eni has already contributed to
economic development of the Countries the development of important Countries,
it operates in, as well as an economical especially in North Africa. The company is
energy solution with low emissions also committed to the research on a new
for the future. frontier of unconventional or “difficult”
eni develops infrastructure for the gas, when produced in a safe and
production and transport of gas both for environmentally friendly way, to support
export, as well as for local consumption, energy availability and independence in
providing an essential source of energy new operating Countries.

19. eni’s history, from the first well discovered With 97 billion cubic metres of Country’s energy security.
natural gas sold in 2010, eni is The natural gas produced in
in Italy in 1944 to the building of major the largest operator in Europe, 2010 made up 44% of eni’s
where it owns or holds the total hydrocarbons production.
gas transport infrastructures in transport rights of the most A large part of the natural gas
Russia, Holland, Algeria and Libya, has extensive and integrated network production took place in Africa,
of gas pipelines with multiple the continent contributed 47% of
been defined by a preference for the inlet and storage points. The the total production. Local gas
volume of gas transported in consumption is growing in Africa
development of natural gas. Italy in 2010 was 83 billion cubic compared to export volumes,
metres, satisfying 80% of national accounting for approximately 42%
demand and contributing to the of production in 2010.
In order to gain access and contribute to eni gas production
the development of natural gas markets in 350,000 Kboe
the Countries where it operates, eni relies
300,000
on its own business model based on an
AFRICA
integrated approach, distinguishing skills, 250,000
experience acquired in operating, sales and
200,000
ASIA
mid-downstream techniques and the dual
AMERICA
flag approach. These characteristics allow the 150,000
company to plan and implement integrated
OTHER AREAS
EUROPE
100,000
energy development plans together with the
producing Country. 50,000
0
2008 2009 2010
The implemented energy combined cycle electricity
development plans include generation plants, offering the
activities such as: construction of best performance in terms of eni use of gas
long-distance gas transport and efficiency and emission factors.
produced in Africa in 2010
distribution pipelines; design and Egypt and Tunisia are significant 42%
construction of liquefaction and examples of how the support Local Market
regasification plants, that employ provided by the creation of
the best available technologies a local natural gas market
for safety and environmental can aid economic and social 49%
protection; construction of development. Export
9%
Self Consumption

20. 12 eni for development
13
Egypt is a Country where eni boasts a historic presence: eni began
operating there in 1955 and today is the largest International Oil Company
active in the Country, with a production of about 600,000 barrels per day,
230,000 of these are eni’s share.
Extracted hydrocarbons come has an indirect shareholding several Egyptian electric power companies in shared projects
from five large fields, in which in the LNG plant at Damietta, stations, providing an energy in the Mediterranean basin
eni has the operatorship. 60% with an annual capacity of 5.1 saving of over 20% (in terms and in eni’s activities in Gabon
of the production, equal to 8.2 million tons of liquefied natural of natural gas non-consumed) and Iraq.
billion cubic metres per year, is gas equivalent to approximately and important environmental The agreement will enable eni
represented by natural gas. 7.6 billion cubic metres of gas benefits. The improved to acquire transport rights
eni has promoted and developed per year, the largest single train efficiency of the power stations to the Arab Gas Pipeline, the
natural gas production to in the world. will also reduce greenhouse gas infrastructure that allows the
satisfy the growing demand In addition, as a part of the emissions, helping protect the African Country to export gas to
within the Country and has collaboration agreement environment and combat global Jordan, Syria and Lebanon. The
contributed financially and with the Egyptian Natural climate change. aim is to create in Egypt a gas
in operational terms to the Gas Holding Company Another example of how centre of strategic importance
construction of infrastructure (EGAS) and the Egyptian eni operates to enhance for the entire Mediterranean
for the export and liquefaction Electricity Holding Company Egypt’s development is the basin, extending the Arab Gas
of natural gas (LNG), allowing (EEHC), eni contributes to collaboration agreement signed Pipeline to connect it with other
the Country to generate the application of advanced with the Country, that will show transport systems managed
significant revenues. Indeed eni production technologies to the involvement of two state by eni.
Natural gas has been the
main driver of economic
Gas consumption and GDP in
development in Egypt which, Egypt
since the 1950s, has risen GDP Per capita gas consumption
sharply in world rankings both Billion m3
Billion of 2000 USD using PPPs
0.6 400
in terms of per capita GDP
(despite having a population 0.5
350
of 77 million) and human 300
development, and is no longer 0.4
250
considered a developing 0.3 200
Country.
150
0.2
100
0.1
50
0 0
1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007

21. Tunisia is another North African underwater pipeline belonging Gaz has increased the availability an overall length of 11,624 km:
Country, in which eni’s long- to the TransMediterranean of natural gas in the Country. 2,066 for transport and 9,558 for
term presence has contributed Pipeline Company (TMPC), In 2009 the network reached distribution.
to a process of progressive which connects Tunisia with
development (STEG data). 2010 Sicily. The main purpose of
was the fiftieth anniversary of this pipeline is to transport
the SITEP company, which is gas from Algeria to Italy. The
The availability of Algerian gas in Tunisia
now completely nationalised transport system is made up reached 44% of the Country’s total gas
but was once held by eni. of two lines, each about 370
SITEP manages a field on the kilometres in length (the first consumption in 2009. This gas, together
border between Tunisia and has been operating since 1983
Algeria, El Borma, which still and the second since 1994). In
with the gas produced locally, fuels fourteen
produces oil and gas, and is 2009 the transport system was electric power stations. Today almost 94% of
one of the longest living fields expanded by the construction
in the world. Thanks to the of two new compression Tunisia’s electrical power is generated using
agreements made between stations (there are now five in
eni and Tunisia in 1977, and total) and the expansion of the
natural gas.
subsequently in 1991, a major existing stations.
gas transport system was The construction of the TTPC
built, managed by the Trans system made a substantial
Tunisian Pipeline Company contribution to the industrial In Tunisia more than 550 industrial the supply of natural gas. There
(TTPC). The gas pipelines development of Tunisia, which companies operating in different are also approximately 500,000
cross Tunisia, from the border has a limited quantity of both sectors (25% in textiles, 24% in “low pressure” gas customers in
with Algeria (Oued Saf-Saf) offshore and onshore natural gas. food, 16% in the manufacture of the service sector, including 321
up to the Mediterranean Infrastructure built alongside building materials, 10% in chemical hotels that support the Country’s
coast (Cap Bon), where the the TTPC pipelines by the Société industries and 25% in other tourism industry and 314 service
TTPC system connects to the Tunisienne de l’Electricité et du sectors) were created thanks to companies.
Gas consumption and GDP in
Tunisia
GDP Per capita gas consumption
Billion m3
Billion of 2000 USD using PPPs
0.5 100
0.45 90
0.4 80
0.35 70
0.3 60
0.25 50
0.2 40
0.15 30
0.1 20
0.05 10
0 0
1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007

22. 14 eni for development
15
The expected growth in natural gas demand makes traditional to a reduction of natural gas
prices and provide many parts of
production insufficient in the medium- and long-term. Therefore, the world with direct or indirect
access to energy. The first effects
it will be necessary to invest in research into unconventional or of this phenomenon have been
“difficult” resources, always ensuring high safety and environmental initially noticed in the United
States, where the extraction of
standards. unconventional natural gas was
pioneered and today represents
On a global scale, most of the This has increasingly shifted control of hydrocarbons reserves the largest base of supply. In the
natural gas produced up to now reserves and production towards between the International Oil United States shale gas has had a
has been easy to extract with National Oil Companies. Companies, which have the dramatic effect on the dynamics
no particular technological The tendency to start production required technologies, and the of gas prices, contributing to
barriers to overcome in terms of of unconventional or “difficult” National Oil Companies. halving them in less than three
discovering and developing fields. resources will rebalance the The increased supply will lead years.
eni considers the development of
unconventional gas as an opportunity to Natural gas is a sustainable driver
open new markets or reinforce its presence for development also thanks to its
in markets where it already operates, competitive pricing and low environmental
as well as a driver for local social and impact in terms of emissions.
economic development.
Europe’s CO 2 emissions production capacity using
reduction targets could be wind power generation (net of
As a result, in 2010 eni reached an in Eastern Europe and currently achieved by converting any incentives on the energy
agreement to become the operator importing approximately 70% of its coal-fired power stations into produced). The use of gas for
of three licences in the Baltic gas needs, research activities on natural gas power stations. electrical power also means
Basin in Poland, an area with high shale gas represent an opportunity With an overall investment for lower emissions of SO 2,
potential for shale gas. For Poland, to an energy independent future for of about one third of what it NO x and particulate than other
being one of the largest economies the Country. would cost to achieve this fossil fuels.

23. Towards renewable
energy
Placing an emphasis on its integrated low greenhouse gas emission fuel
approach and proven track record and generates an easily-modulated
for innovation, eni is also aiming energy supply. Natural gas and solar
for growth in the renewable energy power are ideal allies in guaranteeing
generation sector. Even though the energy mix of the future
renewable sources are not yet everywhere.
competitive compared to conventional In order to develop the solar power
energy sources, they represent an of the future, which will be the true
important factor for the future of turning point in the energy production,
energy generation. eni is looking into advanced research
eni believes that natural gas is the alongside qualified partners, with the
best available energy source during goal of finding innovative products to
this transitional phase towards improve efficiency, method of use
renewable energy sources: it is a and costs.

24. 16 eni for development
17
Electricity from renewable sources often has no competitive
production costs compared to fossil fuels, especially to natural
gas, one of the most abundant and cost-effective resources
available today and in the foreseeable future.
Today technologies for the for the distribution network. Electricity production cost
exploitation of renewable The production of electricity
10-20 €/kWh cost range for residential
resources are not able to satisfy from renewable sources is, use (OECD, 2009)
the primary energy demand, however, a very important 4-20 €/kWh cost range for industrial
(OECD, 2009)
not only because they are factor for the future of energy,
expensive, but also because because it will contribute to Photovoltaic
solar
they do not permit a significant effectively fighting climate
production of electricity and, most change through an energy mix Thermodynamic
solar
of the times, do not guarantee with lower greenhouse gas
sufficient production stability emissions. Biomass
Wind
Natural gas and renewable sources are the
Nuclear
ideal allies to guarantee the energy mix
Coal
of the future. Both are sustainable from
the environmental viewpoint and are a Gas
good combination in terms of production 0 10 20
€/kWh
30 40
costs, given the high competitiveness of eni data processing on CERA, NRC-National Academy of Engineering USA,
electricity production from natural gas. NEA-IEA, EIA, IRP, EPIA, CBO
One of the limits of renewable power variations. In turn, such a eni’s integrated approach is one of the
sources is its intermittent capacity depends on the technical
generation, which contrasts characteristics of the system and bases for the development of energy
with the needs of the electrical in general corresponds to 20-25%
distribution network of of rotative power in the network.
production from renewable sources, and in
continuously maintaining a To balance the intermittence of particular solar energy.
dynamic balance between renewable sources, an easily
power level and user demands. modulated resource is necessary. one of the International Oil eni’s capacity of operating
Connecting intermittent power This resource should be able to Companies with the highest efficiently using innovative
generators to the network means rapidly complement production, production share of natural technological solutions along
introducing sources of power when production from renewable gas (amounting to 44% of its the entire energy supply chain
disturbance which, over time, sources drops and to reduce or hydrocarbons production). is a point of strength also for
force the network control system stop production, when renewable The leadership among the corporate growth in the field
to continually compensate. sources reach production peaks. International Oil Companies in the of electricity generation from
As a result, although combined Natural gas can play this role and production of natural gas in Africa renewable sources.
in the best way possible, the can do it with low CO2 emission and the relevant production of The dual flag culture will favour
weight of renewable sources in levels. electricity are an excellent starting the study of the best energy mix
the energy mix is limited by the eni has achieved the leadership in point to guarantee a balanced for the producing or consuming
reaction capacity of the network natural gas sales in Europe (18% energy mix that includes not only Country, having eni as a reliable
control system to unscheduled of the market), and represents gas, but also renewable sources. partner also for future energies.

25. In this transition towards higher
competitiveness of the renewable source
system, the strength of eni’s business model
finds its application in several small-sized
projects that were carried out in different
Countries. The goal was to provide electricity
to isolated areas that are difficult to reach
with the electrical network and to increase
efficiency of business, thus contributing to
the economic and social development of local
communities.
In such a scenario eni uses the modules to electrify regulation
knowledge of Enipower to produce stations along a gas pipeline
and market photovoltaic panels in the Algerian desert,
(with a maximum productive offshore platforms in Egypt,
capacity in Italy of 30 MWp/year) telecommunication systems in
and install turn-key photovoltaic Nigeria, water pumping systems in
systems. Nigeria and Congo, electrification
Some projects carried out by of remote villages in Nigeria and
eni include: use of photovoltaic Mongolia.
eni believes that among renewable energies
solar energy has the greatest potential to In 2010, with a five-year plan, The collaboration between
the partnership gave life to the eni and MIT is based on a
integrate traditional sources. For this reason it “Solar Frontiers Center” (SFC) with multidisciplinary approach to
is investing more than 106 million euro in the headquarters at the MIT in Boston, research that creates significant
a centre entirely dedicated technological and cultural
next four years. The most significant initiative to research and development synergies. In particular, the
activities on solar energy with meeting between researchers
is a partnership with the Massachusetts common spaces and labs. from MIT and from the “Research
Institute of Technology (MIT) to investigate eni-MIT Solar Frontiers Center centre for non-conventional
is proof of eni’s commitment energies – Istituto Eni Donegani”
technologies for large-scale exploitation of to the development of stimulates the exchange of
pioneering initiatives in the different experiences and
solar energy. field of renewable energies, knowledge through the pursuit of
and in particular solar energy. common goals.

26. 18 eni for development
19
The collaboration with MIT has originated some records, such as
the realisation of the first solar cell printed on paper, the ultra
flexible solar cell, as well as the development of solar cells that
imitate the photosynthesis process.
Ultra flexible solar cells are paper, as if it were a printed hydrogen - through fission. Such
composed of a thin layer of document. The innovative a device imitates the natural
photoactive material coated technique used to make the photosynthesis process of plants
with a transparent plastic sheet device is the same technique but with a substantial difference:
and can be folded without used to produce cells on flexible the artificial leaf photosynthesis
breakage or performance drops. plastic substrates. A “paper process will be far more efficient
This permits irregular surfaces cell” can be the latest low-cost than the natural process.
to be covered without the solution for applications in which The alliance with the MIT also
need for bulky metal supports longevity is not necessarily develops through the MIT Energy
and structures, reducing the the key aspect, where instead Initiative (MITEI), with eni as a
coverage weight to cover, for the important aspect is fast Founding Member: the goal is
example, tensile structures, installation speed and easy to study solutions to transform
greenhouses, noise barriers transportation. the existing energy system and
along roads, boats and a The goal of the study on artificial meet future challenges through
series of indoor applications in photosynthesis is to make the analysis of every aspect
buildings. low-cost efficient devices to of energy supply, demand,
In solar cells on paper, the reduce the water molecule to environmental protection and
photoactive device is made on its components - oxygen and safety.
Expected development
of photovoltaic solar
energy in the world
GW
3,500
3,000 The total electricity production on greenhouse gas reduction
from photovoltaic panels in 2010 policies, production costs and
2,500
equalled the energy demand of technology developments.
2,000 ten Countries in Central Africa According to the forecasted
(Angola, Benin, Botswana, scenarios, in 2020 photovoltaic
1,500
Cameroon, Congo, Ivory Coast, panels are expected to cover
1,000 Eritrea, Ethiopia, Gabon and almost 4% of the total energy
Ghana). demand and rise to 11.3% (21.2%
500
In the future the share of according to the most optimistic
0 produced electricity will depend forecast) by 2050.
2000 2010 2020 2030 2040 2050
Source EPIA 2010

27. Safe management
of all resources
including difficult
ones
The world’s growing energy demand to guarantee high safety and
and the need to balance the energy environmental standards.
reserve portfolio are determining a eni’s ability in operating, based on
thrust towards the exploitation of enhancing technological innovation,
non-conventional resources or of organisation and knowledge, allows
conventional resources in difficult areas. challenging business goals to be
eni intends to make the most of the achieved in full compliance with
new business opportunities in non- the requirements of the producing
conventional sectors and in difficult Countries and guaranteeing high safety
areas, adopting the best technologies and environmental standards.