Eni - Regulatory Filings 2014 | FinancialReports.eu

6-K 1 sj0814en6k.htm HTML PUBLIC "-//IETF//DTD HTML//EN" sj0814en6k

Table of Contents

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

For the month of August 2014

Eni S.p.A. (Exact name of Registrant as specified in its charter)

Piazzale Enrico Mattei 1 - 00144 Rome, Italy (Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F x Form 40-F o

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)

Yes o No x

(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): )

TABLE OF CONTENTS TOC

Interim Consolidated Report as of June 30, 2014

Press Release dated August 6, 2014

Press Release dated August 13, 2014

Press Release dated August 20, 2014

Press Release dated August 27, 2014

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

Eni S.p.A.
Name: Antonio Cristodoro
Title:	Head of Corporate Secretary's Staff Office

Date: August 31, 2014

Table of Contents

Contents

Table of Contents

Contents

Table of Contents

Contents

Blank page

Table of Contents

4 7 14 18 21 23 25 25 42 45 50 63 64 66 72 79 129 130 132 164

Contents

Eni Interim Consolidated Report / Highlights

Results > In the first half of 2014 Eni reported net profit of euro 1.96 billion, up by 7.9% from the first half of the previous year. Adjusted results were up by 9% and 4.8% at the operating and net level at euro 6.22 billion and euro 2.06 billion, respectively. When excluding the exceptional loss made by Saipem in 2013, adjusted results were down by 3% and 8%, respectively.

- This result was driven by a sizeable improvement in the Gas & Power performance (up by approximately euro 1 billion) driven by the gas supply contracts renegotiation whereby the Company achieved to align about 60% of contracted volumes to market conditions and to downsize take-or-pay exposure, against the backdrop of continuing weak demand and strong competitive pressure.

- The Exploration & Production segment reported a decrease of 13.2% in adjusted operating profit due to lower production sold impacted mainly by geopolitical issues in Libya, higher depreciation charges taken in connection with the start-ups and ramp-ups of new fields by the second half of 2013 and the appreciation of the euro vs. the dollar (up 4.3%).

- Refining & Marketing and Versalis reported increasing operating losses, up by 42.6% and 25.5%, respectively, driven by weak fundamentals in their respective industries which were affected by slow recovery in the Euro-zone, excess capacity and increasing competitive pressure from product streams imported from Russia and Middle East, and higher prices of oil-based feedstock.

- Eni delivered robust cash flow 1 at euro 5.74 billion. Asset divestments contributed euro 3 billion of cash, relating to the divestment of the interest in Artic Russia, which operates gas assets in Siberia, to certain Gazprom subsidiaries (euro 2.2 billion) and the sale of an 8% interest in Galp Energia (euro 0.8 billion).

- The cash inflows were used to fund capital expenditure of euro 5.52 billion, mainly focused on the exploration and development of hydrocarbon reserves, payment of the balance dividend 2013 to Enis shareholders (euro 2 billion) and the repurchase of the Enis shares (euro 0.2 billion). As of June 30, 2014, net borrowings amounted to euro 14.60 billion, down by euro 0.36 billion from December 31, 2013.

- Leverage decreased to 0.24 at June 30, 2014 with respect to 0.25 at December 31, 2013.

Interim dividend > In light of the financial results achieved in the first half of 2014 and managements expectations for full-year results, the interim dividend proposal to the Board of Directors on September 17, 2014 will amount to euro 0.56 per share (euro 0.55 per share in 2013). The interim dividend is payable on September 25, 2014, with September 22, 2014 being the ex dividend date.

Rationalization of mid-downstream assets > As part of its strategy of rationalizing its mid-downstream portfolio, Eni signed preliminary agreements to sell its interest in the joint venture for marketing and transportation of gas in Germany, EnBw, as well as the retail networks in the Czech Republic, Slovakia and Romania and the related interest in a local refinery. These transactions are subject to the approval of the competent European antitrust authorities.

Liquids and gas production > In the first half of 2014 Eni reported liquids and gas production of 1.583 million boe/d. Compared to the first half of the previous year, on a homogeneous basis, excluding the effects of the assets disposal in Siberia and geopolitical factors, production level remained substantially unchanged. Ramp-ups in the United Kingdom and Algeria were offset by mature fields declines.

Exploration successes > Exploration successes mainly achieved in Congo, Egypt and Nigeria added 420 million boe of fresh resources to the Companys resource base. In addition, in July, Eni achieved a new important discovery offshore Gabon with a potential in place of 500 million boe.

New exploration acreage > Acquired new exploration acreage with high mineral potential in strategic basins of presence (Indonesia, Vietnam, Egypt, China and the United States) and in frontier areas

(1) Net cash provided by operating activities.

Contents

Eni Interim Consolidated Report / Highlights

(Greenland) for a total acreage of 19,000 square kilometers (net to Eni), targeting to rejuvenate Enis mineral right portfolio and to ensure new growth options.

Natural gas sales > In the first half of 2014 natural gas sales amounted to 45.85 bcm, down by 6.9% from the first half of the previous year, reflecting unusual winter weather conditions and continuing weakness in the power generation segment which was also affected by excess hydroelectric production.

Agreement in Venezuela > Defined with PDVSA a Memorandum of Understanding providing a framework for the commercial development of liquids associated with the super-giant Perla fields gas reserves.

Green chemistry and Bio-refining > In the first half of 2014 achieved the start-up of the Porto Torres green chemistry plant, in joint venture with Novamont, producing chemical products for industrial use from renewable raw materials. The target capacity of the plant is 70 ktonnes/year of bio-monomers and intermediates. At the Venice refinery, achieved the start-up of the new production line of Green Diesel, with target capacity of approximately 300 ktonnes/year.

Safety > In the first half of 2014 the employees injury frequency rate was affected by a slightly higher number of incidents reported in the Exploration & Production, Refining & Marketing and Engineering & Construction segments. Total number of injuries increased to 48, from 42 of the first half of 2013. In the first six months of 2014, the communication and training program "eni in safety" and the "zero fatalities" project went on, in order to face critical issues of injuries.

GHG emissions > GHG emissions decreased, reflecting lower operating performance, energy efficiency actions and projects on gas flaring reduction. In particular, flared hydrocarbon volumes decreased by 40% compared to the first half of 2013, following the start-ups of flaring down projects in Ogbaindiri and Akri (Nigeria) and MBoundi (Congo).

Use of water in production process > A further improvement registered in the use of re-injected water in production in the Exploration & Production segment, with a water re-injection rate increasing to 57%.

Expenditure for the territory > The overall expenditure for the territory in the first half of 2014 amounted to euro 35.7 million, including community investment of euro 24.5 million (over 93% of which was spent in the Exploration & Production segment). Investments regarded mainly Kazakhstan, Nigeria, Italy and Congo.

| Financial
highlights — i | i | i | First half |
| --- | --- | --- | --- |

2013 (euro million) 2013 2014

| 114,697 | Net sales
from operations | | 59,287 | 56,556 |
| --- | --- | --- | --- | --- |
| 8,888 | Operating profit | | 5,338 | 5,901 |
| 12,650 | Adjusted
operating profit | | 5,705 | 6,219 |
| 5,160 | Net profit (a) | | 1,818 | 1,961 |
| 4,433 | Adjusted
net profit (b) | | 1,961 | 2,055 |
| 11,026 | Net cash provided by operating activities | | 4,815 | 5,740 |
| 12,800 | Capital
expenditure | | 5,947 | 5,524 |
| 138,341 | Total assets at period end | | 137,887 | 140,076 |
| 61,049 | Shareholders'
equity including non-controlling interest at period end | | 61,717 | 61,261 |
| 14,963 | Net borrowings at period end | | 15,984 | 14,601 |
| 76,012 | Net
capital employed at period end | | 77,701 | 75,862 |
| 17.49 | Share price at period end | (euro) | 15.78 | 19.98 |
| 3,622.8 | Number of
shares outstanding at period end | (million) | 3,622.8 | 3,615.0 |
| 63.4 | Market capitalization (c) | (euro billion) | 57.2 | 72.2 |

| (a)
Profit attributable to Eni's shareholders. |
| --- |
| (b) For
a detailed explanation of adjusted (net and operating)
profits, that exclude inventory holding gain/loss and
special items, see paragraph "Reconciliation of
reported operating profit and reported net profit to
results on an adjusted basis". |
| (c)
Number of outstanding shares by reference price at period
end. |

Contents

Eni Interim Consolidated Report / Highlights

| Summary financial
data * — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

1.42	Net profit — - per share (a)	(euro)	0.50	0.54
3.77	- per
ADR (a) (b)	(USD)	1.31	1.48
	Adjusted net profit
1.22	- per
share (a)	(euro)	0.54	0.57
3.24	- per ADR (a) (b)	(USD)	1.42	1.56
5.9	Adjusted
Return On Average Capital Employed (ROACE)	(%)	7.0	6.8
0.3	Leverage		0.3	0.24
8.8	Coverage		8.8	12.0
1.5	Current ratio		1.5	1.6
73.7	Debt
coverage		30.1	39.3

| * See
"Glossary" for ratios explanation. |
| --- |
| (a)
Fully diluted. Ratio of net profit and average number of
shares outstanding in the period. Dollar amounts are
converted on the basis of the average EUR/USD exchange
rate quoted by ECB for the period presented. |
| (b) One
American Depositary Receipt (ADR) is equal to two Eni
ordinary shares. |

| Operating and
sustainability data — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 82,786 | Employees
at period end | (number) | 81,564 | 84,990 |
| --- | --- | --- | --- | --- |
| | of which: | | | |
| 13,596 | - women | | 13,313 | 13,847 |
| 55,781 | - outside Italy | | 54,761 | 58,100 |
| 19.3 | Female
managers | (%) | 18.9 | 19.4 |

| 0.40 | Employees injury frequency rate | (No. of accidents per
million hours worked) | 0.37 | 0.41 |
| --- | --- | --- | --- | --- |
| 0.32 | Contractors
injury frequency rate | | 0.29 | 0.27 |
| 0.98 | Fatality index | (fatal injuries per one
hundred millions of worked hours) | 0.95 | 1.04 |

| 1,901 | Oil spills
due to operations in the environment | (barrels) | 1,104 | 748 |
| --- | --- | --- | --- | --- |
| 47.30 | GHG emission | (mmtonnes CO 2 eq) | 23.70 | 21.46 |
| 197 | R&D
expenditures (a) | (euro million) | 88 | 85 |
| | Exploration & Production | | | |
| 1,619 | Production
of hydrocarbons | (kboe/d) | 1,624 | 1,583 |
| 833 | - Liquids | (kbbl/d) | 832 | 817 |
| 4,320 | -
Natural gas | (mmcf/d) | 4,350 | 4,208 |
| 555.3 | Production sold | (mmboe) | 276.1 | 267.7 |
| | Gas & Power | | | |
| 93.17 | Worldwide
gas sales (b) | (bcm) | 49.26 | 45.85 |
| 35.86 | - in Italy | | 19.03 | 18.45 |
| 57.31 | -
outside Italy | | 30.23 | 27.40 |
| | Refining & Marketing | | | |
| 27.38 | Refinery throughputs on own account | (mmtonnes) | 13.76 | 11.69 |
| 9.69 | Retail
sales of petroleum products in Europe | | 4.82 | 4.54 |
| 1,828 | Average throughput of service stations in Europe | (kliters) | 910 | 844 |
| | Versalis | | | |
| 5,817 | Production | (ktonnes) | 3,025 | 2,801 |
| 3,785 | Sales of petrochemical products | | 1,968 | 1,852 |
| 65.3 | Average
utilization rare | (%) | 67.7 | 74.0 |
| | Engineering & Construction | | | |
| 10,062 | Orders acquired | (euro million) | 6,704 | 13,132 |
| 17,065 | Order
backlog at period end | | 21,169 | 24,215 |

| (a) Net
of general and administrative costs. |
| --- |
| (b)
Includes Exploration & Production natural gas sales
amounting to 1.51 bcm (1.34 and 2.61 bcm in the first
half of 2013 and in the year 2013, respectively). |

Contents

Eni Interim Consolidated Report / Operating review

Exploration & Production

| Key
performance indicators — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 0.14 | Employees
injury frequency rate | (No. of accidents per million of worked hours) | 0.10 | 0.29 |
| --- | --- | --- | --- | --- |
| 0.26 | Contractors injury frequency rate | | 0.32 | 0.23 |
| 31,264 | Net sales
from operations (a) | (euro million) | 15,614 | 14,802 |
| 14,868 | Operating profit | | 7,435 | 6,221 |
| 14,643 | Adjusted
operating profit | | 7,407 | 6,431 |
| 5,950 | Adjusted net profit | | 3,110 | 2,464 |
| 10,475 | Capital
expenditure | | 4,893 | 4,688 |
| | Average realizations (b) | | | |
| 99.44 | - Liquids | ($/bbl) | 97.60 | 100.04 |
| 7.26 | - Natural gas | ($/mcf) | 7.27 | 7.19 |
| 71.87 | -
Hydrocarbons | ($/boe) | 70.33 | 71.87 |
| | Production of hydrocarbons (b) | | | |
| 833 | - Liquids | (kbbl/d) | 832 | 817 |
| 4,320 | - Natural gas | (mmcf/d) | 4,350 | 4,208 |
| 1,619 | -
Hydrocarbons | (kboe/d) | 1,624 | 1,583 |
| 12,352 | Employees at period end | (number) | 11,880 | 12,548 |
| 8,219 | of which: outside
Italy | | 7,877 | 8,296 |
| 1,728 | Oil spills due to operations (>1 bbl) | (bbl) | 968 | 526 |
| 5,493 | Oil spills
from sabotage (>1 bbl) | | 1,118 | 3,299 |
| 55 | Reinjected water | (%) | 45 | 57 |
| 25.71 | Direct GHG
emissions | (mmtonnes CO 2 eq) | 12.85 | 11.59 |
| 8.48 | of which: from flaring | | 4.67 | 2.96 |

| (a)
Before elimination of intragroup sales. |
| --- |
| (b)
Includes Enis share of equity-accounted entities. |

Mineral right portfolio and exploration activities As of June 30, 2014, Enis mineral right portfolio consisted of 958 exclusive or shared rights for exploration and development in 39 Countries on five continents for a total acreage of 287,581 square kilometers net to Eni (276,256 square kilometers net to Eni as of December 31, 2013). In the first half of 2014, changes in total net acreage mainly derived from: (i) new leases mainly in Indonesia, Vietnam, Egypt, China, Greenland and the United States, and for a total acreage of approximately 19,000 square kilometers; (ii) the total relinquishment of licenses mainly in Egypt, Poland and Togo, covering an acreage of approximately 8,000 square kilometers; (iii) partial relinquishment in Indonesia and Egypt for approximately 1,000 square kilometers. In addition, Eni has been granted three prospection permits in Algeria for a net acreage of approximately 23,000 square kilometers. In the first half of 2014, a total of 22 new exploratory wells were drilled (11.3 of which represented Enis share), as compared to 28 exploratory wells drilled in the first half of 2013 (15 of which represented Enis share).

Oil and gas production In the first half of 2014, Enis liquids and gas production was 1.583 million boe/d. On a homogeneous basis, excluding the effects of the divestment of Enis interest in certain gas assets in Siberia effective from the beginning of the year, as well as the negative impact of geopolitical factors, production was broadly in line compared to the first half of 2013. Production ramp-ups mainly in the United Kingdom and

Contents

Eni Interim Consolidated Report / Operating review

Algeria were offset by mature fields declines. The share of oil and natural gas produced outside Italy was 89%.

Liquids production (817 kbbl/d) decreased by 15 kbbl/d, or 1.8%, reflecting lower production volumes in Libya and Angola and the effect of the divestment of the Siberian assets. These negatives were partly offset by new field start-ups and ramp-ups mainly in the United Kingdom, Algeria and the United States.

Natural gas production (4,208 mmcf/d), when excluding the effect of the divestment of the Siberian assets, was in line with the same period of the previous year. Mature fields declines were offset by new field start-ups and ramp-ups.

Oil and gas production sold amounted to 267.7 mmboe. The 18.9 mmboe difference over production (286.6 mmboe) reflected mainly volumes of natural gas consumed in operations (15.8 mmboe).

Hydrocarbons production (a) (b)

First half

2013 (kboe/d) 2013 2014 Change % Ch.

186	Italy		181	180	(1	)	(0.6	)
155	Rest of Europe		154	193	39		25.3
556	North
Africa		576	546	(30	)	(5.2	)
332	Sub-Saharan Africa		317	322	5		1.6
100	Kazakhstan		104	96	(8	)	(7.7	)
144	Rest of Asia		145	100	(45	)	(31.0	)
116	America		115	119	4		3.5
30	Australia and Oceania		32	27	(5	)	(15.6	)
1,619			1,624	1,583	(41	)	(2.5	)
555.3	Production sold	(mmboe)	276.1	267.7	(8.4	)	(3.0	)

Liquids production (a)

First half

2013 (kbbl/d) 2013 2014 Change % Ch.

71	Italy	65	73	8		12.3
77	Rest of
Europe	77	95	18		23.4
252	North Africa	257	241	(16	)	(6.2	)
242	Sub-Saharan
Africa	239	229	(10	)	(4.2	)
61	Kazakhstan	64	56	(8	)	(12.5	)
49	Rest of
Asia	51	36	(15	)	(29.4	)
71	America	68	80	12		17.6
10	Australia
and Oceania	11	7	(4	)	(36.4	)
833		832	817	(15	)	(1.8	)

Natural gas production (a) (b)

First half

2013 (mmcf/d) 2013 2014 Change % Ch.

630	Italy	637	588	(49	)	(7.7	)
430	Rest of
Europe	423	540	117		27.7
1,674	North Africa	1,753	1,674	(79	)	(4.5	)
496	Sub-Saharan
Africa	433	510	77		17.8
214	Kazakhstan	216	219	3		1.4
521	Rest of
Asia	519	354	(165	)	(31.8	)
245	America	258	210	(48	)	(18.6	)
110	Australia
and Oceania	111	113	2		1.8
4,320		4,350	4,208	(142	)	(3.3	)

(a) Includes Enis share of equity-accounted entities. (b) Includes volumes of gas consumed in operation (479 and 415 mmcf/d in the first half 2014 and 2013, respectively and 451 mmcf/d in 2013).

Contents

Eni Interim Consolidated Report / Operating review

Main exploration and development projects

Italy

In the Val dAgri concession (Enis interest 60.77%), the development plan of oil reserves is ongoing as agreed with the regional administrative authority in 1998: (i) the construction of a new gas treatment line has progressed, aiming at improving the environmental performance of the treatment unit and achieving a production capacity of 104 kbbl/d; (ii) an environmental monitoring plan is ongoing which management believes to be a best practice to safeguard the environment. Eni has also implemented a plan to preserve biodiversity in Val d'Agri adopting the best standards on the marketplace; (iii) continuing improvement and maintenance activities have progressed to optimize environmental and production performance of the field. Other main development activities concerned: (i) the maintenance and production optimization at the Armida, Barbara, Cervia and Clara fields; (ii) the ongoing development activities of the Fauzia and Elettra fields in the Adriatic offshore.

Rest of Europe

Norway Exploration activities yielded positive results in the PL 532 license (Enis interest 30%) with the Drivis oil and gas discovery, in addition to the recent oil and gas discoveries of Skrugard, Havis and Skavl. The total recoverable resources of the license are estimated at over 600 million barrels at 100%. Development activities progressed at the Goliat field (Eni operator with a 65% interest) in the Barents Sea. Start-up is expected in 2015, with a production plateau of approximately 62 kboe/d net to Eni in 2016. During the first half of 2014 the implementation of oil spill contingency and response progressed by means of the development of techniques and methodologies to support the oil spill preparedness program. The performed activity in the drilling phases has been acknowledged by the Norwegian Authorities as the reference standard for oil response in the coastal areas. The project was launched by Eni and its partner in the program jointly with the Norwegian Clean Seas Association for Operating Companies (NOFO) and involved other oil companies operating in the oil and gas exploration in the Barents Sea as well as local and international research institutes. The achieved results were presented to the Norwegian Environmental Agency, the local administrations and all stakeholders. These results reaffirmed that the Goliat project is characterized by a well-advance emergency system for the oil spill management, in terms of organization, consolidation of the emergency apparatus, as well as equipment and technology advancement. Other ongoing activities aimed at maintaining and optimizing production at the Ekofisk field (Enis interest 12.39%) by means of drilling of infilling wells, upgrading of existing facilities and optimization of water injection.

United Kingdom Exploration activities yielded positive results with the Romeo North discovery, which has already been linked to the production platform of the Jade field (Enis interest 7%). During the first half of 2014 Eni acquired Block 22/19c (Eni operator with a 50% interest) in the North Sea. In April 2014 Eni acquired the operatorship of the Liverpool Bay assets with a 100% interest. Development programs include commitments on the education, health and environmental safety in the country. Development activities mainly concerned the West Franklin field (Enis interest 21.87%) with the construction and installation of production platforms and linkage to nearby treatment facilities. Start-up is expected at the end of 2014.

North Africa

Algeria Development activities and production optimization progressed at the MLE-CAFC fields (Eni operator with a 75% interest). Project includes an additional oil development phase with start-up expected in 2017 and a production plateau of approximately 33 kboe/d net to Eni. Production ramp-up progressed at the El Merk field (Enis interest 12.25%) with the drilling of 23 additional productive wells and the construction of the NGL train. Production peak of 18 kboe/d net to Eni is expected in the year.

Contents

Eni Interim Consolidated Report / Operating review

During the first half of 2014 Eni was granted three prospection permits in the Timimoun and Oued Mya areas, in onshore southern Algeria. The agreements expire in two years and cover a total acreage of 46,837 square kilometers. The program includes studies and drilling of exploration wells to assess the mineral potential.

Egypt Exploration activities yielded positive results with the ARM-14 oil well in the Abu Rudeis concession (Enis interest 100%) located in the Gulf of Suez. The discovery was linked to nearby production facilities. Development studies were started-up to put in production the new mineral potential in the concession. During the first half of 2014 Eni acquired the Shorouk exploration concession (Enis interest 100%) in the Mediterranean offshore. Development activities concerned: (i) drilling of infilling wells at the Belayim (Enis interest 100%), Hapy (Enis interest 50%), El Temsah (Eni operator with a 50% interest) and Port Fouad (Eni's interest 100%) fields to optimize the recovery of their mineral potential; (ii) sub-sea development project of the DEKA field (Eni operator with a 50% interest) with a start-up expected by the end of the year; and (iii) start-up of the sub-sea END Phase 3 project (Enis interest 50%).

Sub-Saharan Africa

Angola Exploration activities yielded positive results in the Block 0 (Enis interest 9.8%) with the appraisal of the Pinda Fm discovery. Development activities progressed at the West Hub project in the Block 15/06 (Eni operator with a 35% interest), with start-up expected at the end of 2014. In Block 0, activities progressed to reduce flaring gas at the Nemba field. In 2015 once the project will be completed flared gas is expected to decrease by approximately 85% from current level. The development activities concerned: (i) the Mafumeira field (Enis interest 9.8%), with start-up in 2016; (ii) the second phase of Kizomba satellites (Enis interest 20%). The project provides to put into production three additional discoveries that will be linked to the existing FPSO. Start-up is expected in 2015.

Congo Exploration activities yielded positive results in the block Marine XII (Eni operator with a 65% interest) with the Nené Marine 3 appraisal well, confirming the oil and gas mineral potential of the area. Activities on the MBoundi field (Eni operator with an 83% interest) moved forward with the start-up of gas injection and flaring down program and a reduction of approximately 60 mmcf/d of flared gas. The activities allow to optimize the recovery of mineral potential and to monetize associated gas. Gas is sold under long-term contracts to power plants in the area including the CEC Centrale Electrique du Congo (Enis interest 20%) with a 300 MW generation capacity. These facilities will also receive in the future gas from the offshore discoveries of the Marine XII permit. Project Integrée Hinda (PIH) progressed to support the population in MBoundi area. The social project provides to improve education, production capacity in agriculture, health and access to water. In the first half 2014 the progress of the project was over 60%. The program will involve more than 25,000 people. In addition, Eni and The Earth Institute of the Columbia University launched a program to design a monitoring system to assess the effectiveness of the project and to check its support to the development of the area. Development program progressed at the Litchendjili sanctioned project in the block Marine XII. The project provides for the installation of a production platform, the construction of transport facilities and onshore treatment plant. The start-up is expected by the end of 2015, with a production plateau of 12 kboe/d net to Eni. Production will also feed the CEC power station.

Mozambique Exploration activities yielded positive results with Agulha 2 appraisal gas well, the twelfth well successfully drilled in Area 4 (Eni operator with a 50% interest), confirming the mineral potential in the southern section of the Agulha discovery. Management estimates that Area 4 may contain up to 2,407 billion cubic meters of gas in place. Leveraging on Enis cooperation model, the construction of a gas fired power plant for domestic consumption is being planned with the support of the Mozambican government.

10 -

Contents

Eni Interim Consolidated Report / Operating review

A significant program of ecosystems evaluation and the analysis of biodiversity has started in the country. This program will be included in the development project of recent discoveries. In addition, Eni is working with the Mozambican authorities to identify education, health and access to energy projects to support local development.

Nigeria Exploration activities yielded positive results with the Abo 12 oil well in the OML 125 block (Eni operator with a 85% interest). The discovery will be linked to existing facilities this year. In the first half of 2014 the revamping phase II project progressed at the Ebocha flowstation in the OML 61 block (Eni operator with a 20% interest). The project provides for the treatment and re-injection of produced water with a start-up by the end of the year. In the OML 28 block (Enis interest 5%) within the integrated oil and natural gas project in the Gbaran-Ubie area, the drilling campaign progressed. The development plan provides for the supply of natural gas to the Bonny liquefaction plant, by means of the construction of a Central Processing Facility (CPF) with a treatment capacity of approximately 1 bcf/d of gas and 120 kbbl/d of liquids. The development activities progressed at the Forkados-Yokri field (Enis interest 5%). The project includes the drilling of 24 producing wells, the upgrading of existing flowstations and the construction of transport facilities. Start-up is expected in 2015. The development program progressed at the Bonga NW field in the OML 118 block (Enis interest 12.5%). The activities include the drilling and completion of producing and infilling wells, with start-up in 2014. Eni launched a website to report the sustainability activity performed in the Country. In particular, information and data related to oil spills, gas flared emissions and a summary on the environmental impact studies are available.

Kazakhstan

New initiatives In June 2014 Eni signed a strategic agreement with Kazakh state-owned company KazMunayGas (KMG) for the exploitation of exploration and production rights in Isatay, an offshore area of high potential located in the north Caspian Sea. KMG and Eni each will held 50% of exploration and production rights. The agreement also involves the construction of a shipyard project in Kuryk.

Kashagan During the course of 2014, the consortium performed a risk assessment of the technical issues which forced the joint venture to shut down production of the Kashagan field (Enis interest 16.81%) in October 2013, shortly after the production start-up. The findings of the assessment confirmed the necessity to fully replace the pipelines for transporting acid gas, where the inconvenient occurred. The operator is expected to make a cost estimation of the upgrade in due time. The partners of the consortium are making their best effort to restart production as soon as possible in compliance with the maximum safety standards. The Phase 1 (Experimental Program) of the field development project targets an initial production capacity of 150 kbbl/d; by the time a second treatment offshore train and compression facilities for gas reinjection come online, production capacity is expected to increase up to 370 kbbl/d. The partners are planning to further increase available production capacity up to 450 kbbl/d by installing additional gas compression units for re-injecting gas in the reservoir. The partners submitted the scheme of this additional phase to the relevant Kazakh Authorities. During the first half of 2014 the integrated program for the management of biodiversity in the Ural Delta (Ural River Park Project - URPP) was completed. The program was launched by Eni under the sponsorship of the Environment and Water Resources Kazakh Authority and aimed to protect the environment and ecosystems in the Caspian area. In June 2014 the project received an official UNESCO designation to be included in the Man and Biosphere Program. An innovative environmental monitoring system was performed in the first half of 2014. The project designed by Eni provides for the application of a mobile underwater vehicle (AUV) able to realize an environmental monitoring and asset integrity at the production facility. Within the agreements reached with the local authorities, Eni continues its training program for Kazakh resources management positions.

11 -

Contents

Eni Interim Consolidated Report / Operating review

Karachaganak An expansion project of the Karachaganak field (Enis interest 29.25%) is currently being assessed by the consortium which is intended to develop gas and condensates reserves by means of the installation, in stages, of gas treatment plants and re-injection facilities to support liquids production plateau and increase gas marketable volumes. Studies of economical and technical feasibility are under discussion. Eni continues its involvement to support local communities by means of the construction of schools and educational facilities as well as health assistance for the villages located in the nearby area of Karachaganak.

Rest of Asia

Indonesia Development activities progressed at the operated Jangkrik (Enis interest 55%) offshore field. The project includes drilling of production wells linked to a Floating Production Unit for gas and condensate treatment as well as construction of a transportation facility to the Bontang liquefaction plant. Start-up is expected in 2017 with a production peak of 80 kboe/d (42 kboe/d net to Eni) in 2018. Development activities are underway at the Indonesia Deepwater Development project (Enis interest 20%), located in the East Kalimantan, to ensure gas supplies to the Bontang plant. The project initially provides for the linkage of the Bangka field to existing production facilities, with start-up expected in 2016. Then the project also provides for the integrated development of 2 Hubs: the first one including the Gendalo, Gandang, Maha fields and the second Hub of the Gehem field. Start up is expected in 2018. The ongoing exploration program in the West Papua area provides for the launch of biodiversity and ecosystems studies to reduce potential impacts on the environment. In the first half of 2014, leveraging on Enis cooperation model the activities implemented were: (i) a project to support farming communities in the district of Samboja in Kalimantan, in particular a training program; and (ii) supply of relief goods in the Manado and Jakarta areas particularly affected by flooding at the beginning of the year.

America

United States Development plan progressed at the Heidelberg field (Enis interest 12.5%) in the deep offshore of the Gulf of Mexico. The project provides for the drilling of 5 producing wells and the installation of a producing platform. Start-up is expected at the end of 2016 with a production of approximately 9 kboe/d net to Eni. Other development activities in the Gulf of Mexico mainly concerned: (i) development drilling activities at the operated Devils Tower (Enis interest 75%) and Pegasus (Enis interest 85%) fields as well as at the non-operated Europa (Enis interest 32%) and K2 (Enis interest 13.39%) fields; (ii) completion of drilling activities at the Lucius (Enis interest 8.5%) and Hadrian South (Enis interest 30%) fields with start-up expected by the end of the year. Drilling activities progressed at the Nikaitchuq (Eni operator with a 100% interest) and Oooguruk (Enis interest 30%) fields in Alaska. In June 2014, the Nikaitchuq field achieved production target of 25 kboe/d. This relevant result required the expertise and the application of Enis proprietary technologies in an area with extreme climate and environmental constraints, which helped to build one of the most advanced production facilities in the North Slope, with maximum environmental compatibility and high operating efficiency. The activity to put on stream the unconventional gas resources (shale gas) in the Alliance area (Enis interest 27.5%) located in Texas progressed with the production start-up of additional 10 wells.

Venezuela Drilling activities progressed at the giant Junin 5 field (Enis interest 40%) with 35 bbbl of certified heavy oil in place, located in the Orinoco oil belt. Early production start-up was achieved in 2013, targeting a production plateau of 75 kbbl/d. The subsequent, full-field development is expected to achieve a long-term plateau of 240 kbbl/d. The project provides for the construction of a refinery with a capacity of approximately 350 kbbl/d. Eni agreed to finance part of PDVSAs development costs for the early production phase and engineering activity of refinery plant up to $1.74 billion.

12 -

Contents

Eni Interim Consolidated Report / Operating review

Ongoing development activities moved forward at the giant gas Perla field located in the Cardon IV Block (Enis interest 50%), in the Gulf of Venezuela. PDVSA exercised its 35% back-in right. Eni will retain the 32.5% joint controlled interest in the company, once the transfer of the stake is closed. The early production start-up is expected in the first quarter of 2015 and includes the utilization of the existing discovery/appraisal wells, the drilling of 9 additional wells and the installation of production platforms linked by pipelines to the onshore treatment plant. Production ramp-up is expected in 2017 with a target of approximately 800 mmcf/d. The final phase of the development program includes the drilling of additional wells and the upgrading of treatment facilities to reach a production plateau of approximately 1,200 mmcf/d in 2020. In June 2014 Eni signed a Memorandum of Understanding with PDVSA for the commercial development of the condensates reserves associated with the Perla field. The agreement provides for the establishment of a joint company (Eni will have interest of 20%). Eni will fund the share of development costs of PDVSA by contributing up to $500 million. The agreements are subject to final contracts to be signed and to the approval of local authorities.

Capital expenditure Capital expenditure of the Exploration & Production Division (euro 4,688 million) concerned development of oil and gas reserves (euro 3,944 million) directed mainly outside Italy, in particular in Norway, the United States, Angola, Congo, Nigeria, Kazakhstan and Egypt. Development expenditures in Italy concerned the well drilling program and facility upgrading in Val dAgri as well as sidetrack and workover activities in mature fields. About 98% of exploration expenditures (euro 697 million) were directed outside Italy in particular to Nigeria, Mozambique, the United States, Angola, Liberia and Norway. In Italy, exploration activities were directed mainly to the Adriatic offshore, Val dAgri and Po Valley.

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

795	Italy	393	435	42		10.7
2,127	Rest of
Europe	1,139	786	(353	)	(31.0	)
1,024	North Africa	388	422	34		8.8
3,481	Sub-Saharan
Africa	1,606	1,680	74		4.6
665	Kazakhstan	324	242	(82	)	(25.3	)
1,001	Rest of
Asia	527	473	(54	)	(10.2	)
1,244	America	481	608	127		26.4
138	Australia
and Oceania	35	42	7		..
10,475		4,893	4,688	(205	)	(4.2	)

13 -

Contents

Eni Interim Consolidated Report / Operating review

Gas & Power

| Key
performance indicators — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 1.31 | | Employees
injury frequency rate | (No. of accidents per million of worked hours) | 1.06 | | 0.77 |
| --- | --- | --- | --- | --- | --- | --- |
| 1.80 | | Contractors injury frequency rate | | 1.50 | | 0.80 |
| 32,212 | | Net sales
from operations (a) | (euro million) | 17,415 | | 14,782 |
| (2,967 | ) | Operating profit | | (531 | ) | 653 |
| (638 | ) | Adjusted
operating profit | | (635 | ) | 311 |
| (818 | ) | Marketing | | (743 | ) | 232 |
| 180 | | International
transport | | 108 | | 79 |
| (253 | ) | Adjusted net profit | | (368 | ) | 197 |
| (28 | ) | EBITDA
pro-forma adjusted | | (318 | ) | 551 |
| (346 | ) | Marketing | | (489 | ) | 401 |
| 318 | | International
transport | | 171 | | 150 |
| 229 | | Capital expenditure | | 83 | | 75 |
| 93.17 | | Worldwide
gas sales (b) | (bcm) | 49.26 | | 45.85 |
| 35.86 | | - in Italy | | 19.03 | | 18.45 |
| 57.31 | | -
international | | 30.23 | | 27.40 |
| 35.05 | | Electricity sold | (TWh) | 17.85 | | 16.00 |
| 4,531 | | Employees
at period end | (number) | 4,592 | | 4,547 |
| 11.16 | | Direct GHG emissions | (mmtonnes CO 2 eq) | 5.55 | | 5.00 |

| (a)
Before elimination of intragroup sales. |
| --- |
| (b)
Include volumes marketed by the Exploration &
Production Division of 1.51 bcm (1.34 and 2.61 bcm in the
first half and full year of 2013). |

Marketing

Natural gas

Supply of natural gas In the first half of 2014, Enis consolidated subsidiaries supplied 41.73 bcm of natural gas, down by 2.52 bcm, or 5.7% from the first half of 2013. Gas volumes supplied outside Italy (38.61 bcm from consolidated companies), imported in Italy or sold outside Italy, represented approximately 92% of total supplies, with a decrease of 1.96 bcm, or 4.8% from the first half of 2013 mainly reflecting lower volumes purchased in all markets, in particular from the Netherlands (down 1.88 bcm) and Norway (down 0.51 bcm), with the exception of Russia (up 1.35 bcm). Supplies in Italy (3.12 bcm) decreased by 0.56 bcm from the first half of 2013.

14 -

Contents

Eni Interim Consolidated Report / Operating review

Supply of natural gas

First half

2013 (bcm) 2013 2014 Change % Ch.

7.15		Italy	3.68		3.12		(0.56	)	(15.2	)
29.59		Russia	15.02		16.37		1.35		9.0
9.31		Algeria (including LNG)	4.89		4.64		(0.25	)	(5.1	)
5.78		Libya	3.09		2.91		(0.18	)	(5.8	)
13.06		Netherlands	6.86		4.98		(1.88	)	(27.4	)
9.16		Norway	5.02		4.51		(0.51	)	(10.2	)
3.04		United Kingdom	1.44		1.23		(0.21	)	(14.6	)
0.48		Hungary	0.29		0.18		(0.11	)	(37.9	)
2.89		Qatar (LNG)	1.49		1.53		0.04		2.7
3.63		Other
supplies of natural gas	1.72		1.38		(0.34	)	(19.8	)
1.58		Other supplies of LNG	0.75		0.88		0.13		17.3
78.52		Outside Italy	40.57		38.61		(1.96	)	(4.8	)
85.67		TOTAL SUPPLIES OF ENI'S
CONSOLIDATED SUBSIDIARIES	44.25		41.73		(2.52	)	(5.7	)
(0.58	)	Offtake
from (input to) storage	0.80		0.40		(0.40	)	..
(0.31	)	Network losses, measurement differences and
other changes	(0.07	)	(0.15	)	(0.08	)	..
84.78		AVAILABLE FOR SALE BY ENI'S CONSOLIDATED
SUBSIDIARIES	44.98		41.98		(3.00	)	(6.7	)
5.78		Available for sale by Eni's
affiliates	2.94		2.36		(0.58	)	(19.7	)
2.61		E&P volumes	1.34		1.51		0.17		12.7
93.17		TOTAL AVAILABLE FOR SALE	49.26		45.85		(3.41	)	(6.9	)

Sales of natural gas

Gas sales by entity

First half

2013 (bcm) 2013 2014 Change % Ch.

83.60	Total sales of subsidiaries	44.35	41.44	(2.91	)	(6.6	)
35.76	Italy (including own consumption)	18.96	18.45	(0.51	)	(2.7	)
42.30	Rest of
Europe	22.50	20.84	(1.66	)	(7.4	)
5.54	Outside Europe	2.89	2.15	(0.74	)	(25.6	)
6.96	Total sales of Eni's affiliates (net to
Eni)	3.57	2.90	(0.67	)	(18.8	)
0.10	Italy	0.07		(0.07	)	..
5.05	Rest of
Europe	2.70	2.13	(0.57	)	(21.1	)
1.81	Outside Europe	0.80	0.77	(0.03	)	(3.8	)
2.61	E&P in Europe and in the Gulf of Mexico	1.34	1.51	0.17		12.7
93.17	WORLDWIDE GAS SALES	49.26	45.85	(3.41	)	(6.9	)

Sales of natural gas in the first half of 2014 amounted to 45.85 bcm, reporting a decrease of 3.41 bcm, or 6.9% from the first half of 2013, driven by a challenging trading environment due to weak demand and ongoing competitive pressure. Sales included Enis own consumption, Enis share of sales made by equity-accounted entities and Exploration & Production sales in Europe and in the Gulf of Mexico.

Sales volumes in the Italian market amounted to 18.45 bcm, down by 0.58 bcm, or 3% from the first half of 2013, due to unusual winter weather conditions as well as a tougher trading environment for electricity sales affected by excess hydroelectric production and lower demand, partially offset by higher spot sales. Sales to importers in Italy decreased by 0.65 bcm reflecting a lower availability of Libyan gas.

15 -

Contents

Eni Interim Consolidated Report / Operating review

Sales in Europe of 21.14 bcm decreased by 7% mainly driven by lower sales in Germany/Austria and France due to competitive pressure, partly offset by higher volumes marketed in the Iberian Peninsula and Turkey as a result of effective commercial initiatives. Sales in markets outside Europe reported a negative trend (down 0.77 bcm) reflecting lower LNG sales, in particular in the United States and Argentina. Direct sales of the Exploration & Production segment in Northern Europe and in the United States (1.51 bcm) increased by 0.17 bcm due to higher sales in the Northern Europe.

Gas sales by market

First half

2013 (bcm) 2013 2014 Change % Ch.

35.86	ITALY	19.03	18.45	(0.58	)	(3.0	)
4.58	Wholesalers	3.07	2.43	(0.64	)	(20.8	)
10.68	Italian gas exchange and spot markets	4.64	6.36	1.72		37.1
6.07	Industries	3.34	2.42	(0.92	)	(27.5	)
1.12	Medium-sized enterprises and services	0.57	0.93	0.36		63.2
2.11	Power
generation	1.02	0.79	(0.23	)	(22.5	)
5.37	Residential	3.54	2.77	(0.77	)	(21.8	)
5.93	Own
consumption	2.85	2.75	(0.10	)	(3.5	)
57.31	INTERNATIONAL SALES	30.23	27.40	(2.83	)	(9.4	)
47.35	Rest of Europe	25.20	22.97	(2.23	)	(8.8	)
4.67	Importers in Italy	2.48	1.83	(0.65	)	(26.2	)
42.68	European
markets	22.72	21.14	(1.58	)	(7.0	)
4.90	Iberian Peninsula	2.42	2.86	0.44		18.2
8.31	Germany/Austria	4.48	3.78	(0.70	)	(15.6	)
8.68	Benelux	4.79	4.51	(0.28	)	(5.8	)
1.84	Hungary	1.09	0.90	(0.19	)	(17.4	)
3.51	UK	1.86	1.53	(0.33	)	(17.7	)
6.73	Turkey	3.25	3.53	0.28		8.6
7.73	France	4.36	3.79	(0.57	)	(13.1	)
0.98	Other	0.47	0.24	(0.23	)	(48.9	)
7.35	Extra European markets	3.69	2.92	(0.77	)	(20.9	)
2.61	E&P in Europe and in the Gulf of Mexico	1.34	1.51	0.17		12.7
93.17	WORLDWIDE GAS SALES	49.26	45.85	(3.41	)	(6.9	)

Power

Availability of electricity In the first half of 2014, power generation was 9.64 TWh, down by 0.76 TWh, or 7.3% from the first half of 2013, mainly driven by a lower production at the Brindisi and Livorno plants due to a weak electricity demand. As of June 30, 2014, installed operational capacity was 4.8 GW (4.8 GW at December 31, 2013). Electricity trading declined by 1.09 TWh due to lower purchases related to the decline in demand.

Power sales In the first half of 2014, electricity sales of 16 TWh were directed to the free market (75%), the Italian power exchange (13%), industrial sites (9%) and others (3%). Compared to the first half of 2013, electricity sales were down by 1.85 TWh, or 10.4%, due to weaker electricity demand and excess production of hydroelectric energy. Lower volumes sold to wholesalers (down 1.27 TWh) and large clients (down 1.13 TWh) were partially offset by higher volumes traded on the Italian power exchange (up 0.65 TWh).

16 -

Contents

Eni Interim Consolidated Report / Operating review

First half

2013 2013 2014 Change % Ch.

| 4,295 | Purchases
of natural gas | (mmcm) | 2,119 | 1,987 | (132 | ) | (6.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 449 | Purchases of other fuels | (ktoe) | 235 | 177 | (58 | ) | (24.7 | ) |
| 21.38 | Power
generation | (TWh) | 10.40 | 9.64 | (0.76 | ) | (7.3 | ) |
| 9,907 | Steam | (ktonnes) | 5,236 | 4,689 | (547 | ) | (10.4 | ) |

Availability of electricity

First half

2013 (TWh) 2013 2014 Change % Ch.

| 21.38 | Power
generation | 10.40 | 9.64 | (0.76 | ) | (7.3 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 13.67 | Trading of electricity (a) | 7.45 | 6.36 | (1.09 | ) | (14.6 | ) |
| 35.05 | | 17.85 | 16.00 | (1.85 | ) | (10.4 | ) |
| 28.73 | Free market | 14.07 | 11.98 | (2.09 | ) | (14.9 | ) |
| 1.96 | Italian
Exchange for electricity | 1.44 | 2.05 | 0.61 | | 42.4 | |
| 3.31 | Industrial plants | 1.63 | 1.52 | (0.11 | ) | (6.7 | ) |
| 1.05 | Other (a) | 0.71 | 0.45 | (0.26 | ) | (36.6 | ) |
| 35.05 | Power sales | 17.85 | 16.00 | (1.85 | ) | (10.4 | ) |

(a) Includes positive and negative imbalances.

Capital expenditure In the first half of 2014, capital expenditure of euro 75 million mainly related to the flexibility and upgrading initiatives of the combined cycle power plants (euro 40 million) and gas marketing initiatives (euro 29 million).

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

206	Marketing	74	69	(5	)	(6.8	)
23	International
transport	9	6	(3	)	(33.3	)
229		83	75	(8	)	(9.6	)

17 -

Contents

Eni Interim Consolidated Report / Operating review

Refining & Marketing

| Key
performance indicators — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 0.31 | | Employees
injury frequency rate | (No. of accidents per million of worked hours) | 0.30 | | 0.86 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 1.68 | | Contractors injury frequency rate | | 0.75 | | 0.97 | |
| 57,238 | | Net sales
from operations (a) | (euro million) | 29,683 | | 28,686 | |
| (1,492 | ) | Operating profit | | (541 | ) | (623 | ) |
| (457 | ) | Adjusted
operating profit | | (310 | ) | (442 | ) |
| (232 | ) | Adjusted net profit | | (190 | ) | (324 | ) |
| 672 | | Capital
expenditure | | 229 | | 229 | |
| 27.38 | | Refinery throughputs on own account | (mmtonnes) | 13.76 | | 11.69 | |
| 62 | | Conversion
index | (%) | 64 | | 61 | |
| 787 | | Balanced capacity of refineries | (kbbl/d) | 767 | | 697 | |
| 9.69 | | Retail
sales of petroleum products in Europe | (mmtonnes) | 4.82 | | 4.54 | |
| 6,386 | | Service stations in Europe at period end | (units) | 6,337 | | 6,348 | |
| 1,828 | | Average
throughput per service station in Europe | (kliters) | 910 | | 844 | |
| 1.28 | | Retail efficiency index | (%) | 1.38 | | 1.23 | |
| 7,422 | | Employees
at period end | (number) | 7,513 | | 7,319 | |
| 5.18 | | Direct GHG emissions | (mmtonnes CO 2 eq) | 2.56 | | 2.59 | |
| 10.80 | | SO x emissions
(sulphur oxide) | (ktonnes SO 2 eq) | 4.87 | | 3.66 | |

(a) Before elimination of intragroup sales.

Refining In the first half of 2014, Enis refining throughputs were 11.69 mmtonnes, down by 2.07 mmtonnes, or 15.1% from the first half of 2013. Volumes processed in Italy (down 19.1%) registered a decline from the same period of 2013 due to the shutdown of the Venice Refinery for the conversion in Green Refinery, the standstill of the Gela site, as well as the standstill of the Residue Hydroconversion Unit (RHU) at Taranto site to be converted in Hydrocracking. Outside Italy, Enis refining throughputs increased by 0.12 mmtonnes (up 5.2%) in particular at CRC (Czech Republic) and PCK (Germany) sites due to planned standstills performed in 2013. Total throughputs at refineries in Italy (9.57 mmtonnes) declined by 2.19 mmtonnes, or 18.6% from the first half of 2013. Utilization rate of refinery plants declined to 65.5% from the first half of the previous year (71.9%) driven by negative market trends. Approximately 24.1% of volumes of processed crude were supplied by Enis Exploration & Production segment (up by 2 percentage points from 22.1% in the first half of 2013).

18 -

Contents

Eni Interim Consolidated Report / Operating review

Availability of refined products

First half

2013 (mmtonnes) 2013 2014 Change % Ch.

23.13		ITALY — Refinery throughputs	11.76		9.57		(2.19	)	(18.6	)
(0.57	)	Less input
on account of third parties	(0.31	)	(0.31	)
22.56		Refinery throughputs on own
account	11.45		9.26		(2.19	)	(19.1	)
(1.23	)	Consumption
and losses	(0.60	)	(0.56	)	0.04		6.7
21.33		Products available for sale	10.85		8.70		(2.15	)	(19.8	)
4.42		Purchases
of refined products and change in inventories	2.09		2.61		0.52		24.9
(1.85	)	Products transferred to operations outside Italy	(1.50	)			1.50		100.0
(0.55	)	Consumption
for power generation	(0.28	)	(0.30	)	(0.02	)	(8.3	)
23.35		Sales of products	11.16		11.01		(0.15	)	(1.4	)
		OUTSIDE ITALY
4.82		Refinery throughputs on own
account	2.31		2.43		0.12		5.2
(0.22	)	Consumption
and losses	(0.10	)	(0.10	)
4.60		Products available for sale	2.21		2.33		0.12		5.4
13.69		Purchases
of refined products and change in inventories	6.21		8.01		1.80		29.0
1.85		Products transferred from Italian operations	1.50				(1.50	)	(100.0	)
20.14		Sales of products	9.92		10.34		0.42		4.2
27.38		Refinery throughputs on own
account	13.76		11.69		(2.07	)	(15.0	)
5.93		of
which: refinery throughputs of equity crude on own
account	2.78		2.62		(0.16	)	(5.8	)
43.49		Total sales of refined
products	21.08		21.35		0.27		1.3
43.96		Crude oil sales	18.47		23.96		5.49		29.7
87.45		TOTAL SALES	39.55		45.31		5.76		14.6

Marketing of refined products In the first half of 2014, sales volumes of refined products (21.35 mmtonnes) were up by 0.27 mmtonnes, or 1.3% from the first half of 2013, mainly due to higher sales to oil companies in Italy.

Product sales in Italy and outside Italy by market

First half

2013 (mmtonnes) 2013 2014 Change % Ch.

6.64	Retail	3.36	3.05	(0.31	)	(9.2	)
8.37	Wholesale	3.94	3.47	(0.47	)	(11.9	)
1.32	Chemicals	0.63	0.48	(0.15	)	(23.2	)
7.01	Other
sales	3.24	4.01	0.77		23.6
23.34	Sales in Italy	11.17	11.01	(0.16	)	(1.4	)
3.05	Retail
rest of Europe	1.46	1.49	0.03		2.1
4.23	Wholesale rest of Europe	2.02	2.18	0.16		7.7
0.43	Wholesale
outside Italy	0.21	0.21
12.44	Other sales	6.22	6.46	0.24		3.9
20.15	Sales outside Italy	9.91	10.34	0.43		4.3
43.49	TOTAL SALES OF REFINED
PRODUCTS	21.08	21.35	0.27		1.3

Retail sales in Italy In the first half of 2014, retail sales in Italy amounted to 3.05 mmtonnes, down by approximately 310 ktonnes, or 9.2% from the first half of 2013, due to lower consumption of all products. Enis retail market share for the first half of 2014 was 26.3%, down by 2.3 percentage points from the corresponding period of 2013 (28.6%). At June 30, 2014, Enis retail network in Italy consisted of 4,724 service stations, 38 less than at December 31, 2013 (4,762 service stations), resulting from the closing of service stations with low

19 -

Contents

Eni Interim Consolidated Report / Operating review

throughput (43 units) partly offset by the positive contribution of acquisitions/releases of lease concessions (5 service stations). With reference to the promotional initiative "you&eni", the loyalty program for customers launched in February 2010 for a five year period, the cards that made at least one transaction in the period were approximately 1.7 million at June 30, 2014, of which approximately 902 thousand where represented by the new consumer payment cards. Volumes sold to customers cumulating points on their card were approximately 35% of total throughputs (net of "iperself" sales that do not allow to accumulate points). Average throughput (754 kliters) decreased by approximately 86 kliters from the first half of 2013 (839 kliters), with a higher decline than domestic fuel consumption (down 10.1%) due to increased competitive pressure.

Retail sales in the Rest of Europe Retail sales in the rest of Europe of approximately 1.49 mmtonnes were up by 2.1% (approximately 30 ktonnes) compared to the first half of 2013. Higher sales in Germany and Austria were offset by lower volumes in other European countries due to lower demand. At June 30, 2014, Enis retail network in the rest of Europe consisted of 1,624 units, unchanged from December 31, 2013. Average throughput (1,096 kliters) decreased by approximately 20 kliters from the first half of 2013 (1,117 kliters).

Wholesale and other sales Wholesale sales in Italy amounted to 3.47 mmtonnes, down by approximately 0.47 mmtonnes, or 11.9% from the first half of the previous year, mainly due to lower sales of gasoil and fuel oil for bunkering. Supplies of feedstock to the petrochemical industry (0.48 mmtonnes) declined by 23.2% related to lower feedstock supplies due to lower demand from industrial customers. Wholesale sales in the rest of Europe were 2.18 mmtonnes, up by 7.7% from the first half of 2013 mainly in Austria, France and Hungary. Other sales (6.46 mmtonnes) increased by 0.24 mmtonnes, or 3.9%, mainly due to higher sales volumes to oil companies.

Capital expenditure In the first half of 2014, capital expenditure in the Refining & Marketing Division amounted to euro 229 million and regarded mainly: (i) refining, supply and logistics in Italy and outside Italy (euro 181 million), with projects designed to improve the conversion rate and flexibility of refineries, in particular the Sannazzaro refinery, as well as expenditures on health, safety and environmental upgrades; (ii) upgrade and rebranding of the refined product retail network in Italy (euro 33 million) and in the rest of Europe (euro 15 million).

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

497	Refinery, supply and logistics	183	181	(2	(1.1
175	Marketing	46	48	2	4.3
672		229	229

20 -

Contents

Eni Interim Consolidated Report / Operating review

Versalis

| Key
performance indicators — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 0.76 | | Employees
injury frequency rate | (No. of accidents per million of worked hours) | 1.07 | | 0.43 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 0.30 | | Contractors injury frequency rate | | 0.34 | | 0.36 | |
| 5,859 | | Net sales
from operations (a) | (euro million) | 3,063 | | 2,804 | |
| 2,709 | | Intermediates | | 1,418 | | 1,235 | |
| 2,933 | | Polymers | | 1,531 | | 1,477 | |
| 217 | | Other sales | | 114 | | 92 | |
| (725 | ) | Operating
profit | | (278 | ) | (286 | ) |
| (386 | ) | Adjusted operating profit | | (145 | ) | (182 | ) |
| (338 | ) | Adjusted
net profit | | (136 | ) | (153 | ) |
| 314 | | Capital expenditure | | 111 | | 125 | |
| 5,817 | | Production | (ktonnes) | 3,025 | | 2,801 | |
| 3,785 | | Sales of petrochemical products | | 1,968 | | 1,852 | |
| 65.3 | | Average
plant utilization rate | (%) | 67.7 | | 74.0 | |
| 5,708 | | Employees at period end | (number) | 5,701 | | 5,573 | |
| 3.66 | | Direct GHG
emissions | (mmtonnes CO 2 eq) | 1.95 | | 1.65 | |
| 1.53 | | SO x emissions (sulphur oxide) | (ktonnes SO 2 eq) | 0.78 | | 0.69 | |

(a) Before elimination of intragroup sales.

Sales - production - prices In the first half of 2014, sales of petrochemical products (1,852 ktonnes) decreased by 116 ktonnes, or 5.9% from the first half of 2013, due to weakness in commodity consumption, notwithstanding slight recovery in demand of polymers in the second quarter of 2014. Declines in sales mainly related to olefins volumes marketed (in particular ethylene and butadiene, down by 53% and 44%, respectively) due to lower production availability as a result of the standstill of Porto Marghera plant, from the end of February, due to the negative scenario. Polymers sales were broadly unchanged from 2013. Overall, average sales prices trended down by 2.2% from the first half of 2013, with different tendency in the various businesses: elastomers prices declined by 14%, due to increasing competition from Asian producers, stable the prices of styrene polymers and polyethylene, intermediates registered a slight decrease (down 2.3%). Petrochemical production (2,801 ktonnes) decreased by 224 ktonnes, or 7.4% from the first half of 2013 mainly due to lower volumes of intermediates (down 12.2%) affected by the accidental standstill at the Brindisi plant as well as the above mentioned shutdown at Porto Marghera, and polyethylene (down 4.2%), due to the shutdown of the Priolo plant since September 2013. Elastomers production were down by 2.7%. Styrenics increased by 5%. Nominal production capacity declined from the first half of 2013 due to rationalization measures, with an average plant utilization rate of 74%, calculated on nominal capacity (compared to 67.7% of the first half of 2013).

21 -

Contents

Eni Interim Consolidated Report / Operating review

Product availability

First half

2013 (ktonnes) 2013 2014 Change % Ch.

3,462		Intermediates	1,808		1,588		(220	)	(12.2	)
2,355		Polymers	1,217		1,213		(4	)	(0.3	)
5,817		Production	3,025		2,801		(224	)	(7.4	)
(2,394	)	Consumption and losses	(1,224	)	(1,202	)	22		(1.8	)
362		Purchases
and change in inventories	167		253		86		51.5
3,785			1,968		1,852		(116	)	(5.9	)

Business trends

Intermediates In the first half of 2014, intermediates revenues (euro 1,235 million) were down by euro 183 million, or 12.9% from the first half of 2013 due to lower volumes sold (down 12%) mainly reflecting olefins sales (down 24%) as a result of lower product availability due to standstills of Brindisi and Porto Marghera plants. These negatives were partly offset by higher sales volumes of aromatics and derivatives (up 12% and 9%, respectively). Average prices decreased by 2.3%, in particular average prices of aromatics were down by 11.4% driven by steep decline in xylene prices (down 17.8%) due to weak demand, prices of derivatives were down by 2.4%, unchanged prices of olefins due to higher propylene prices partially offset by lower ethylene and butadiene prices. Intermediates production (1,588 ktonnes) decreased by the first half of 2013 (down by 220 ktonnes, or 12.2%) reflecting lower production of olefins and aromatics (down 16.3% and 15%, respectively) due to Porto Marghera and Brindisi standstills. Derivatives production reported an increase of 11%.

Polymers Polymers revenues (euro 1,477 million) were down by euro 54 million, or 3.5% from the first half of 2013. This reflects decline in average prices of elastomers (down 14%) due to continuing weak demand in the automotive industry and competitive pressure from Asian producers. Average prices of polyethylene and styrene remained barely unchanged. Elastomers sales were broadly in line with the first half of 2013, reflecting higher sales of thermoplastic rubbers (up 22.6%) and polyethylene due to higher sold volumes of HDPE (up 9%) and LLDPE (up 2%) following higher demand, as well as styrenics (up 0.6%) reflecting higher sales of expandable polystyrene (up 13%) due to the partial recovery in the construction and industrial packaging segments and ABS/SAN (up 9.4%). These positives were partly offset by lower sales of BR rubbers, NBR and lattices. Polymers production (1,213 ktonnes) was barely unchanged from the first half of 2013 (down by 4 ktonnes, or 0.3%) with different trends recorded in the various businesses. LLDPE production in polyethylene business were down by 14.6% due to the accidental standstill at Brindisi cracker as well as Priolo standstill from September 2013, partly offset by higher volumes of EVA (up 11.6%), HDPE (up 3.8%) and LDPE (up 1.5%). Elastomers productions decreased by 2.7% due to lower volumes produced of latex and SBR rubbers due to the definitive closing of Hythe plant in March. Styrene productions increased by 5%, due to higher volumes of ABS/San (up 18%), styrol (up 5%) and compact polystyrene (up 4%).

Capital expenditure In the first half of 2014 capital expenditure amounted to euro 125 million (euro 111 million in the first half of 2013) mainly regarded: (i) plant upgrades (euro 80 million); (ii) environmental protection, safety and environmental regulations (euro 15 million); (iii) upkeeping of plants (euro 11 million); (iv) maintenance and savings (euro 8 million).

22 -

Contents

Eni Interim Consolidated Report / Operating review

Engineering & Construction

| Key
performance indicators — i | i | i | First half |
| --- | --- | --- | --- |

2013 2013 2014

| 0.46 | | Employees
injury frequency rate | (No. of accidents per million of worked hours) | 0.42 | | 0.42 |
| --- | --- | --- | --- | --- | --- | --- |
| 0.10 | | Contractors injury frequency rate | | 0.08 | | 0.12 |
| 2.01 | | Fatality
index | (No. of fatalities per 100 million of worked
hours) | 1.92 | | 0.71 |
| 11,598 | | Net sales from operations (a) | (euro million) | 5,001 | | 5,966 |
| (98 | ) | Operating
profit | | (476 | ) | 291 |
| (99 | ) | Adjusted operating profit | | (474 | ) | 293 |
| (253 | ) | Adjusted
net profit | | (519 | ) | 215 |
| 902 | | Capital expenditure | | 490 | | 329 |
| 10,062 | | Orders
acquired | (euro million) | 6,704 | | 13,132 |
| 17,065 | | Order backlog | | 21,169 | | 24,215 |
| 47,209 | | Employees
at period end | (number) | 46,325 | | 49,475 |
| 89.1 | | Employees outside Italy | (%) | 89.3 | | 89.9 |
| 1.54 | | Direct GHG
emissions | (mmtonnes CO 2 eq) | 0.77 | | 0.63 |

(a) Before elimination of intragroup sales.

Activity of the period

In the first half of 2014 Saipem acquired new orders for euro 13,132 million, about 97% of which was represented by work to be carried out outside Italy, and 8% by work originated by Enis companies.

Main orders were acquired were in the Engineering & Construction business (euro 12,566 million) and mainly related to:

EPCI contract on behalf of Total concerning conversion of the two FPSO units, with an oil capacity of 115,000 bbl/day and a storage capacity of 1.7 mmboe. The two converted FPSO units will be utilized to support the development of Kaombo field, located in Block 32 offshore Angola;
Contract on behalf of South Stream Transport BV for the construction of the first line of the South Stream Offshore Pipeline, from Russia to Bulgaria. The pipeline construction will be laid by the pipe-laying vessel Saipem 7000. In addition, Saipem will carry out support activities for the second line of the pipeline;
Contracts on behalf of Saudi Aramco relating to the Integrated Gasification Combined Cycle project (Jazan) as part of the activities related to the construction of the largest power plant in the world to be located near the namesake city of Jizan. Furthermore, Saudi Aramco awarded to Saipem an EPC contract for the Loops 4 & 5 of the Shedgum-Yanbu Gas Pipeline;
A transportation and installation contract on behalf of BP for the Phase 2 of the Shah Deniz field development, offshore Azerbaijan. Moreover, Saipem was awarded by the Shah Deniz consortium a contract for the construction and commissioning of the expansion of the South Caucasus Pipeline between Azerbaijan and Georgia;
EPCI contract on behalf of Petrobras for the "Lula Norte, Lula Sul and Lula Extremo Sul Project" to be developed offshore the coasts of Rio de Janeiro and Sío Paulo. Three offshore pipelines will be installed in the Lula field in water depth up to 2,200 meters.
23 -

Contents

Eni Interim Consolidated Report / Operating review

As of June 30, 2014, order backlog was euro 24,215 million (euro 17,065 million at December 31, 2013). Projects to be carried out outside Italy represented 96% of the total backlog, while orders from Enis companies amounted to 4% of the total.

Orders acquired

First half

2013 (euro million) 2013 2014 Change % Ch.

10,062		6,704	13,132	6,428		95.9
5,581	Engineering
& Construction Offshore	4,038	8,238	4,200		..
2,193	Engineering & Construction Onshore	1,635	4,328	2,693		..
1,401	Offshore
drilling	913	142	(771	)	(84.4	)
887	Onshore drilling	118	424	306		..
	of
which:
1,514	- Eni	1,134	1,040	(94	)	(8.3	)
8,548	- Third
parties	5,570	12,092	6,522		..
	of which:
547	- Italy	378	406	28		7.4
9,515	- Outside Italy	6,326	12,726	6,400		..

Order backlog

Dec. 31, 2013 (euro million) June 30, 2013 June 30, 2014 Change % Ch.

17,065		21,169	24,215	3,046		14.4
8,320	Engineering
& Construction Offshore	10,552	13,374	2,822		26.7
4,114	Engineering & Construction Onshore	6,235	6,552	317		5.1
3,390	Offshore
drilling	3,543	2,976	(567	)	(16.0	)
1,241	Onshore drilling	839	1,313	474		56.5
	of
which:
2,261	- Eni	3,213	2,850	(363	)	(11.3	)
14,804	- Third
parties	17,956	21,365	3,409		19.0
	of which:
784	- Italy	1,838	928	(910	)	(49.5	)
16,281	- Outside Italy	19,331	23,287	3,956		20.5

Capital expenditure In the first half of 2014, capital expenditure amounted to euro 329 million, mainly related to: (i) the construction of a new pipe-layer, the progression of the construction of a new fabrication yard in Brazil and upkeep works, in the Engineering & Construction Offshore business; (ii) equipment and structures acquisition related to Canada base, in the Engineering & Construction Onshore business; (iii) upkeep and upgrading of the current asset base, in the Drilling Offshore business; (iv) new plants and the upgrading of asset base.

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

| 373 | Engineering
& Construction Offshore | 202 | 131 | (71 | ) | (35.1 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 116 | Engineering & Construction Onshore | 84 | 17 | (67 | ) | (79.8 | ) |
| 172 | Offshore
drilling | 124 | 104 | (20 | ) | (16.1 | ) |
| 210 | Onshore drilling | 62 | 68 | 6 | | 9.7 | |
| 31 | Other
expenditure | 18 | 9 | (9 | ) | (50.0 | ) |
| 902 | | 490 | 329 | (161 | ) | (32.9 | ) |

24 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Information of the comparative periods were restated following adoption of IFRS 10 and IFRS 11, which were enacted by the European Commission in December 2012 with regulation No. 1254. These new accounting standards were applied retrospectively by adjusting the opening balance as of January 1, 2013 and the 2013 profit and loss account. More details about the adoption of those accounting standards are provided in the explanatory notes 2 to the consolidated financial statements of this Interim Report as of June 30, 2014. Information of the comparative periods did not reflect the restatement of the 2012 results that was made by Enis subsidiary Saipem, which engages in the Engineering & Construction segment, as part of the Consob proceedings, which were disclosed in Eni Annual Report Operating and Financial Review Other information (p. 104). Hence, results of the comparative periods in this Interim Consolidated Report for the first half of 2014 are the same as disclosed in the Eni Interim Consolidated Report for the first half of 2013, published on August 2, 2013 (with the exception of the impacts of the adoption of the new international accounting standards as described above).

Profit and loss account

First half

2013 (euro million) 2013 2014 Change % Ch.

114,697		Net sales from operations	59,287		56,556		(2,731	)	(4.6
1,387		Other
income and revenues	375		192		(183	)	(48.8	)
(95,304	)	Operating expenses	(49,633	)	(46,062	)	3,571		7.2
(71	)	Other
operating income (expense)	(10	)	403		413		..
(11,821	)	Depreciation, depletion, amortization and
impairments	(4,681	)	(5,188	)	(507	)	(10.8	)
8,888		Operating profit	5,338		5,901		563		10.5
(1,009	)	Finance income (expense)	(610	)	(493	)	117		19.2
6,085		Net income
from investments	632		621		(11	)	(1.7	)
13,964		Profit before income taxes	5,360		6,029		669		12.5
(9,005	)	Income
taxes	(3,925	)	(4,111	)	(186	)	(4.7	)
64.5		Tax rate (%)	73.2		68.2		(5.0	)
4,959		Net profit	1,435		1,918		483		33.7
		attributable to:
(201	)	-
non-controlling interest	(383	)	(43	)	340		88.8
5,160		- Eni's shareholders	1,818		1,961		143		7.9

Net profit In the first half of 2014, net profit attributable to Enis shareholders amounted to euro 1,961 million, up by euro 143 million, or 7.9% from the first half of 2013; operating profit amounted to euro 5,901 million reporting an increase of 10.5%. It is worth mentioning that y-o-y comparability was affected by the exceptional loss of euro 680 million incurred by Saipem in the first half of 2013. In addition to these drivers, Enis results for the first half of 2014 were boosted by substantial improvement in the performance reported by the Gas & Power segment following the renegotiation of a large portion of the long-term gas supply contracts, with economic effects relating in part to gas volumes supplied in previous years. The other Enis business segments were negatively impacted by continued geopolitical risks and the appreciation of the euro against the dollar in the Exploration & Production segment, as well as weak refining and chemicals fundamentals. These were weighted down by the slow recovery in the Euro-zone, declining energy demand, excess capacity and increasing competitive pressure from product streams imported from Russia, Asia and the USA, as well as higher prices of crude oil. These headwinds were reflected in falling margins on the production and sale of fuels and commodity chemicals. The Group tax rate declined by 5 percentage points reflecting the fact that in the first half of 2013 the Company could not recognize any tax-loss carried forward at the loss-making Engineering & Construction segment and a lower share of taxable profit reported by the Exploration & Production segment, partly offset by a rise in the Exploration & Production tax rate due to a higher share of taxable profit reported in Countries with higher taxation.

25 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Adjusted net profit

First half

2013 (euro million) 2013 2014 Change % Ch.

5,160		Net profit attributable to Eni's shareholders	1,818		1,961
438		Exclusion of inventory holding (gains) losses	210		11
(1,165	)	Exclusion
of special items	(67	)	83
4,433		Adjusted net profit
attributable to Eni's shareholders (a)	1,961		2,055	94	4.8

(a) For a detailed explanation of adjusted operating profit and net profit see paragraph "Reconciliation of reported operating and net profit to results on an adjusted basis".

Adjusted net profit attributable to Enis shareholders amounted to euro 2,055 million, up by euro 94 million, or 4.8% from the same period of the previous year (when excluding the exceptional loss made by Saipem in the first half of 2013, adjusted net profit was down by 8%). This increase was driven by a better operating performance (up 9%, down 2.6% when excluding Saipems losses) and a reduction in the adjusted tax rate that was down by approximately 6 percentage points driven by the same factors that explained the reduction in the reported consolidated tax rate.

Adjusted net profit was calculated by excluding an inventory holding loss of euro 11 million and special items made up of net losses of euro 83 million, stated net of exchange rate differences and exchange rate derivative instruments reclassified in operating profit, as they mainly related to derivative transactions entered into to manage exposure to the exchange rate risk implicit in commodity pricing formulas, resulting in a net positive adjustment of euro 30 million.

Special items of operating profit amounted to euro 303 million and mainly related to:

| (i) | impairment losses in the
Exploration & Production segment (euro 187 million)
that mainly related to an oil & gas property whose
development activities Eni does not expect to finance in
the future; |
| --- | --- |
| (ii) | impairment losses relating
to the retail networks in the Czech Republic and Slovakia
which were aligned to the expected sale price, the effect
of which was partly offset by a write-up of Enis
interest in the refining joint venture which currently
supplies the divested networks (euro 51 million); finally
investments made for compliance and stay-in-business
purposes were impaired as they related to certain Cash
Generating Units which were completely written off in
previous reporting periods and continued to lack any
profitability prospects in the Refining & Marketing
segment (euro 96 million) and Versalis (euro 7 million in
the first half); |
| (iii) | the effects of fair-value
evaluation of certain commodity derivatives contracts
lacking the formal requisites to be accounted as hedges
under IFRS (gain of euro 281 million); |
| (iv) | environmental provisions and
provisions for redundancy incentives (euro 30 million); |
| (v) | exchange rate differences
and exchange rate derivative instruments reclassified as
operating items (loss of euro 30 million). |

Non-operating special items refer to net gains on the divestment of the residual interest in Galp (euro 96 million).

The breakdown of adjusted net profit by segment is shown in the table below:

First half

2013 (euro million) 2013 2014 Change % Ch.

| 5,950 | | Exploration
& Production | 3,110 | | 2,464 | | (646 | ) | (20.8 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (253 | ) | Gas & Power | (368 | ) | 197 | | 565 | | .. | |
| (232 | ) | Refining
& Marketing | (190 | ) | (324 | ) | (134 | ) | (70.5 | ) |
| (338 | ) | Versalis | (136 | ) | (153 | ) | (17 | ) | (12.5 | ) |
| (253 | ) | Engineering
& Construction | (519 | ) | 215 | | 734 | | .. | |
| (205 | ) | Other activities | (113 | ) | (91 | ) | 22 | | 19.5 | |
| (476 | ) | Corporate
and financial companies | (284 | ) | (222 | ) | 62 | | 21.8 | |
| 39 | | Impact of unrealized intragroup profit
elimination (a) | 78 | | 22 | | (56 | ) | | |
| 4,232 | | Adjusted net profit | 1,578 | | 2,108 | | 530 | | 33.6 | |
| | | attributable to: | | | | | | | | |
| (201 | ) | -
non-controlling interest | (383 | ) | 53 | | 436 | | .. | |
| 4,433 | | - Eni's shareholders | 1,961 | | 2,055 | | 94 | | 4.8 | |

(a) This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end of the period.

26 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Group results were achieved in a scenario featured by higher crude oil prices reflecting higher Brent benchmark price, up 1.3% from the first half of 2013. In the meantime, natural gas prices continued on a weak trend. Enis standard refining margin that gauges the profitability of Enis refineries considering the typical raw material slate and yields, reported a 45.3% decrease from the first half of 2013, in an extremely volatile trading environment, due to the structural weakness of the refining business adversely impacted by overcapacity, lower fuel demand and increasing competitive pressure from import streams of refined products from Russia, Middle East and the USA. The European gas market continued to be characterized by weak demand, competitive pressures and oversupply. Price competition among operators has been stiff taking into account minimum off-take obligations provided by gas purchase take-or-pay contracts and reduced sales opportunities. Spot prices in Europe reported a decrease of 18.7% from the first half of 2013. Electricity sales reported negative margins due to oversupply and increasing competition from more competitive sources (photovoltaic and coal-fired plants). Results were also affected by the appreciation of the euro against the dollar (up 4.3%).

First half

2013 2013 2014 % Ch.

108.66	Average price of Brent dated crude oil (a)	107.50	108.93	1.3
1.328	Average
EUR/USD exchange rate (b)	1.313	1.370	4.3
81.82	Average price in euro of Brent dated crude oil	81.87	79.51	(2.9	)
2.43	Standard
Eni Refining Margin (SERM) (c)	3.16	1.73	(45.3	)
10.64	Price of NBP gas (d)	10.76	8.75	(18.7	)
0.2	Euribor -
three-month euro rate (%)	0.2	0.3	50.0
0.3	Libor - three-month dollar rate (%)	0.3	0.2	(33.3	)

(a) In USD per barrel. Source: Platts Oilgram. (b) Source: ECB. (c) In USD per barrel FOB Mediterranean Brent dated crude oil. Source: Eni calculations. It gauges the profitability of Eni's refineries against the typical raw material slate and yields. (d) In USD per million BTU (British Thermal Unit). Source: Platts Oilgram.

Analysis of profit and loss account items

Net sales from operations

First half

2013 (euro million) 2013 2014 Change % Ch.

| 31,264 | | Exploration
& Production | 15,614 | | 14,802 | | (812 | ) | (5.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 32,212 | | Gas & Power | 17,415 | | 14,782 | | (2,633 | ) | (15.1 | ) |
| 57,238 | | Refining
& Marketing | 29,683 | | 28,686 | | (997 | ) | (3.4 | ) |
| 5,859 | | Versalis | 3,063 | | 2,804 | | (259 | ) | (8.5 | ) |
| 11,598 | | Engineering
& Construction | 5,001 | | 5,966 | | 965 | | 19.3 | |
| 80 | | Other activities | 48 | | 34 | | (14 | ) | (29.2 | ) |
| 1,453 | | Corporate
and financial companies | 680 | | 671 | | (9 | ) | (1.3 | ) |
| 18 | | Impact of unrealized intragroup profit
elimination | (27 | ) | (31 | ) | (4 | ) | | |
| (25,025 | ) | Consolidation
adjustment | (12,190 | ) | (11,158 | ) | 1,032 | | | |
| 114,697 | | | 59,287 | | 56,556 | | (2,731 | ) | (4.6 | ) |

Enis net sales from operations in the first half of 2014 (euro 56,556 million) decreased by euro 2,731 million, or 4.6% from the first half of 2013, driven by the appreciation of the euro against the dollar, lower prices of products and natural gas, lower production and sales volumes, partially offset by the Engineering & Construction segment due to the fact that the first half of 2013 was impacted by sharply lower levels of activities.

27 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Operating expenses

First half

2013 (euro million) 2013 2014 Change % Ch.

90,003	Purchases, services and other	47,047		43,346	(3,701	)	(7.9	)
539	of
which: - other special items	(21	)	75
5,301	Payroll and related costs	2,586		2,716	130		5.0
270	of
which: - provision for redundancy incentives and other	19		30
95,304		49,633		46,062	(3,571	)	(7.2	)

In the first half of 2014 operating expenses (euro 46,062 million) reported a decrease of euro 3,571 million, or 7.2% from the first half of 2013. Purchases, services and other costs (euro 43,346 million) declined by euro 3,701 million, or 7.9%, reflecting lower supply costs of raw materials in euro terms and the benefit of renegotiation of certain long-term gas supply contracts, with economic effects relating in part to volumes procured in previous reporting periods. Purchases, services and other costs included special items of euro 75 million mainly related to environmental provisions. Payroll and related costs (euro 2,716 million) registered an increase of euro 130 million, or 5% from the first half of 2013, due to a higher average number of employees outside Italy.

Depreciation, depletion, amortization and impairments

First half

2013 (euro million) 2013 2014 Change % Ch.

| 7,810 — 413 | | Exploration & Production — Gas &
Power | 3,811 — 198 | | 4,074 — 164 | | 263 — (34 | ) | 6.9 — (17.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 345 | | Refining & Marketing | 169 | | 140 | | (29 | ) | (17.2 | ) |
| 95 | | Versalis | 42 | | 49 | | 7 | | 16.7 | |
| 721 | | Engineering & Construction | 356 | | 362 | | 6 | | 1.7 | |
| 1 | | Other
activities | | | | | | | | |
| 61 | | Corporate and financial companies | 30 | | 33 | | 3 | | 10.0 | |
| (25 | ) | Impact of
unrealized intragroup profit elimination | (13 | ) | (12 | ) | 1 | | | |
| 9,421 | | Total depreciation, depletion
and amortization | 4,593 | | 4,810 | | 217 | | 4.7 | |
| 2,400 | | Impairments | 88 | | 378 | | 290 | | .. | |
| 11,821 | | | 4,681 | | 5,188 | | 507 | | 10.8 | |

Depreciation, depletion and amortization (euro 4,810 million) increased by euro 217 million, or 4.7% from the first half of 2013, mainly in the Exploration & Production Division following the start-ups and ramp-ups of new fields in the second half of 2013.

Impairment charges amounting to euro 378 million in the first half of 2014 are described in the discussion on special charges above.

The breakdown of impairment charges by segment is shown in the table below:

First half

2013 (euro million) 2013 2014 Change

| 19 | Exploration
& Production | 39 | 187 | 148 |
| --- | --- | --- | --- | --- |
| 1,685 | Gas & Power | | 1 | 1 |
| 633 | Refining
& Marketing | 41 | 178 | 137 |
| 44 | Versalis | 6 | 7 | 1 |
| 19 | Other
activities | 2 | 5 | 3 |
| 2,400 | | 88 | 378 | 290 |

28 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Operating profit The breakdown of the reported operating profit by segment is provided below:

First half

2013 (euro million) 2013 2014 Change % Ch.

14,868		Exploration & Production	7,435		6,221		(1,214	)	(16.3	)
(2,967	)	Gas &
Power	(531	)	653		1,184		..
(1,492	)	Refining & Marketing	(541	)	(623	)	(82	)	(15.2	)
(725	)	Versalis	(278	)	(286	)	(8	)	(2.9	)
(98	)	Engineering & Construction	(476	)	291		767		..
(337	)	Other
activities	(193	)	(145	)	48		24.9
(399	)	Corporate and financial companies	(154	)	(143	)	11		7.1
38		Impact of
unrealized intragroup profit elimination	76		(67	)	(143	)
8,888		Operating profit	5,338		5,901		563		10.5

Adjusted operating profit The breakdown of the adjusted operating profit by segment is provided below:

First half

2013 (euro million) 2013 2014 Change % Ch.

8,888		Operating profit	5,338		5,901		563		10.5
716		Exclusion of inventory holding (gains) losses	336		15
3,046		Exclusion
of special items	31		303
12,650		Adjusted operating profit	5,705		6,219		514		9.0
		Breakdown
by division:
14,643		Exploration & Production	7,407		6,431		(976	)	(13.2	)
(638	)	Gas &
Power	(635	)	311		946		..
(457	)	Refining & Marketing	(310	)	(442	)	(132	)	(42.6	)
(386	)	Versalis	(145	)	(182	)	(37	)	(25.5	)
(99	)	Engineering & Construction	(474	)	293		767		..
(210	)	Other
activities	(107	)	(88	)	19		17.8
(332	)	Corporate and financial companies	(158	)	(139	)	19		12.0
129		Impact of
unrealized intragroup profit elimination and other
consolidation adjustment	127		35		(92	)
12,650			5,705		6,219		514		9.0

Enis adjusted operating profit , calculated by excluding an inventory holding loss of euro 15 million and special items made up of special net losses of euro 303 million, amounted to euro 6,219 million, with an increase of euro 514 million, or 9% from the first half of 2013, reflecting a better operating performance recorded by the following segments:

The Gas & Power reported an adjusted operating profit of euro 311 million, which was significantly better than the operating loss of euro 635 million registered in the same period of the previous year (up euro 946 million). This was driven by the renegotiations of a large portion of long-term supply contracts, with economic effects relating in part to gas volumes supplied in previous years. This profit was partly offset by continuing margin and volume weakness for gas and electricity reflecting poor demand and strong competitive pressure;
The Engineering & Construction , where Eni operates through its subsidiary Saipem, reverted to adjusted operating profit of euro 293 million from a loss of euro 474 million reported in the first half of the previous year. The euro 767 million increase owed to a gradual return to profitability of core operations in 2014 and the fact that the y-o-y comparability was affected by the exceptional loss made at certain large contract which impacted the result of the first half of 2013.

These positives were partially offset by the lower operating profit reported by:

The Exploration & Production (down by euro 976 million, or 13.2%) driven by lower production sold, largely impacted by geopolitical issues in Libya, higher depreciation charges following the start-ups and
29 -

Contents

Eni Interim Consolidated Report / Financial review and other information

ramp-ups of new fields in the second half of 2013, as well as the appreciation of the euro vs. the dollar (up 4.3%). These negatives were partly offset by higher hydrocarbons realizations in dollar terms (up 2.2% on average), driven by higher Brent prices that absorbed the weakness of gas prices;

The Refining & Marketing reported higher adjusted operating losses (from a loss of euro 310 million reported in the first half of 2013 to a loss of euro 442 million in the first half of 2014), driven by a continued deterioration in refining margins on the back of weak demand for refined products, mainly in the Mediterranean area.

Finance income (expense)

First half

2013 (euro million) 2013 2014 Change

| (827 | ) | Finance income (expense)
related to net borrowings | (402 | ) | (417 | ) | (15 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (923 | ) | - Finance
expense on short and long-term debt | (458 | ) | (460 | ) | (2 | ) |
| 43 | | - Net interest due to banks | 24 | | 13 | | (11 | ) |
| 4 | | - Net
income from financial activities held for trading | | | 16 | | 16 | |
| 49 | | - Net income from receivables and securities for
non-financing operating activities | 32 | | 14 | | (18 | ) |
| (92 | ) | Income (expense) on derivative financial
instruments | (19 | ) | (33 | ) | (14 | ) |
| (91 | ) | - Derivatives on exchange rate | (18 | ) | (54 | ) | (36 | ) |
| 40 | | -
Derivatives on interest rate | 30 | | 31 | | 1 | |
| (41 | ) | - Derivatives on securities | (31 | ) | (10 | ) | 21 | |
| 37 | | Exchange differences, net | (89 | ) | 14 | | 103 | |
| (297 | ) | Other finance income
(expense) | (179 | ) | (134 | ) | 45 | |
| 61 | | - Net
income from receivables and securities for financing
operating activities | 25 | | 34 | | 9 | |
| (240 | ) | - Finance expense due to the passage of time
(accretion discount) | (132 | ) | (138 | ) | (6 | ) |
| (118 | ) | - Other | (72 | ) | (30 | ) | 42 | |
| (1,179 | ) | | (689 | ) | (570 | ) | 119 | |
| 170 | | Finance expense capitalized | 79 | | 77 | | (2 | ) |
| (1,009 | ) | | (610 | ) | (493 | ) | 117 | |

Net finance expense of euro 493 million decreased by euro 117 million from the first half of 2013, reflecting positive exchange rate differences of euro 103 million partially offset by losses on exchange rate derivative (down euro 36 million) which did not meet the formal criteria to be designated as hedges under IFRS. Other gains regarded the effects of the valuation at fair value of securities held for trading (euro 16 million) following the establishment of a strategic reserve of liquidity in the second half of 2013 as well as lower fair value of the options that are embedded in the convertible bonds relating to Snams and Galps shares for euro 21 million due to the closer maturity and evidence that the current market price of the Galp share makes the option out-of-money, while Snam market price is slightly above the strike price.

Net income from investments The table below sets forth the breakdown of net income from investments by segment:

First half 2014 (euro million) Exploration & Production Gas & Power Refining & Marketing Engineering & Construction Other segments Group

| Share of gains (losses) from equity-accounted
investments | 57 | 35 | 6 | 15 | (2 | 111 |
| --- | --- | --- | --- | --- | --- | --- |
| Dividends | 86 | | 34 | | 54 | 174 |
| Gains on disposal | | | | 3 | 96 | 99 |
| Other
income (expense), net | 1 | 12 | 31 | | 193 | 237 |
| | 144 | 47 | 71 | 18 | 341 | 621 |

Net income from investments amounted to euro 621 million and related to: (i) dividends received from entities accounted for at cost (euro 174 million), in particular the Nigeria LNG Ltd; (ii) Enis share of profit of equity-accounted investments (euro 111 million), mainly in the Exploration & Production, Gas & Power and

30 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Engineering & Construction segments; (iii) net gains on the divestment of the residual interest in Galp of euro 96 million, of which euro 77 million related to reversal of the equity evaluation reserve. Other income amounted to euro 237 million and mainly related to the fair value revaluation of Snams shares (euro 96 million) and Galps shares (euro 97 million) underlying the convertible bonds as of June 30, 2014. The table below sets forth a breakdown of net income/loss from investments for the first half of 2014:

First half

2013 (euro million) 2013 2014 Change

| 222 | Share of gains (losses) from equity-accounted
investments | 161 | | 111 | (50 | ) |
| --- | --- | --- | --- | --- | --- | --- |
| 400 | Dividends | 306 | | 174 | (132 | ) |
| 3,598 | Gains on disposal | 174 | | 99 | (75 | ) |
| 1,865 | Other
income (expense), net | (9 | ) | 237 | 246 | |
| 6,085 | | 632 | | 621 | (11 | ) |

The dividends reduction (down euro 132 million from the first half of 2013) reported in particular in the Exploration & Production segment and lower performance of equity-accounted entities (down euro 50 million) in the Gas & Power and Exploration & Production segments were offset by gains accrued on the fair value revaluation of the interests in Snam and Galp underlying convertible bonds (up euro 225 million).

Income taxes

First half

2013 (euro million) 2013 2014 Change

(3,885	Profit before income taxes — Italy	(1,156	)	300	1,456
17,849	Outside
Italy	6,516		5,729	(787	)
13,964		5,360		6,029	669
	Income taxes
306	Italy	(160	)	214	374
8,699	Outside
Italy	4,085		3,897	(188	)
9,005		3,925		4,111	186
	Tax rate (%)
..	Italy	..		71.3	..
48.7	Outside
Italy	62.7		68.0	5.3
64.5		73.2		68.2	(5.0	)

Income taxes in the first half of 2014 were euro 4,111 million, up by euro 186 million compared to the same period of the previous year, mainly in the Gas & Power segment, which in 2013 reported net operating loss, partially offset by lower income taxes currently payable which were incurred by subsidiaries in the Exploration & Production segment operating outside Italy due to a declining taxable profit. The reported tax rate was 68.2%, with a decrease of 5 percentage points, reflecting the lower share of taxable profit reported by subsidiaries in the Exploration & Production segment operating outside Italy and due to the fact that in the 2013 the Company could not recognize any tax-loss carry forward at the loss-making Engineering & Construction segment, partly offset by a rise in the Exploration & Production tax rate due to a higher share of taxable profit reported in countries with higher taxation. Adjusted tax rate, calculated as ratio of income taxes to net profit before taxes on an adjusted basis, was 65.8% and it was lower than in the first half of 2013 (72%) due to the same drivers.

31 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Results by segment 1

Exploration & Production

First half

2013 (euro million) 2013 2014 Change % Ch.

14,868		Operating profit		7,435		6,221		(1,214	)	(16.3	)
(225	)	Exclusion
of special items:		(28	)	210
19		- asset impairments		39		187
(283	)	- net
gains on disposal of assets		(65	)	2
7		- risk provisions				(5	)
52		-
provisions for redundancy incentives		10		20
(2	)	- commodity derivatives				2
(2	)	-
exchange rate differences and derivatives		(9	)	7
(16	)	- other		(3	)	(3	)
14,643		Adjusted operating profit		7,407		6,431		(976	)	(13.2	)
(264	)	Net financial income (expense) (a)		(125	)	(134	)	(9	)
367		Net income
(expense) from investments (a)		283		146		(137	)
(8,796	)	Income taxes (a)		(4,455	)	(3,979	)	476
59.7		Tax
rate (%)		58.9		61.8		2.9
5,950		Adjusted net profit		3,110		2,464		(646	)	(20.8	)
		Results
also include:
7,829		- amortization and depreciation		3,850		4,261		411		10.7
		of
which:
1,736		exploration expenditures		891		816		(75	)	(8.4	)
1,362		-
amortization of exploratory drilling expenditures and
other		730		649		(81	)	(11.1	)
374		- amortization of geological and geophysical
exploration expenses		161		167		6		3.7
		Average hydrocarbons realizations
99.44		Liquids (b)	($/bbl)	97.60		100.04		2.44		2.5
7.26		Natural
gas	($/mcf)	7.27		7.19		(0.08	)	(1.1	)
71.87		Hydrocarbons	($/boe)	70.33		71.87		1.54		2.2

(a) Excluding special items. (b) Includes condensates.

In the first half of 2014, the Exploration & Production segment reported an adjusted operating profit of euro 6,431 million, down by euro 976 million, or 13.2% from the same period of 2013. This decrease was driven by lower sold production, affected by geopolitical issues in Libya, higher depreciation charges following the start-ups and ramp-ups of new fields by the second half of 2013, as well as foreign currency translation differences reflecting the appreciation of the euro vs. the dollar. These negatives were partly offset by hydrocarbons realizations in dollar terms (up 2.2%) reflecting the marker Brent trend which absorbed the weakness of gas prices.

Special charges excluded from adjusted operating profit amounted to euro 210 million, mainly related to impairment losses (euro 187 million) including an oil & gas property whose development activities Eni does not expect to finance in the future; provisions for redundancy incentives (euro 20 million) and exchange rate differences and exchange rate derivative instruments reclassified as operating items (loss of euro 7 million).

Adjusted net profit decreased by euro 646 million to euro 2,464 million (down 20.8%) from the first half of 2013, due to a lower operating performance.

(1) For a detailed explanation of adjusted operating profit and net profit see the paragraph "Reconciliation of reported operating profit and reported net profit to results on an adjusted basis".

32 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Gas & Power

First half

2013 (euro million) 2013 2014 Change % Ch.

(2,967	)	Operating profit	(531	)	653		1,184		..
191		Exclusion
of inventory holding (gains) losses	(33	)	(107	)
2,138		Exclusion of special items:	(71	)	(235	)
1,685		- asset
impairments			1
1		- net gains on disposals of assets
292		- risk
provisions	(102	)
(1	)	- environmental provisions
10		-
provisions for redundancy incentives	1		1
314		- commodity derivatives	54		(283	)
(186	)	-
exchange rate differences and derivatives	(39	)	11
23		- other	15		35
(638	)	Adjusted operating profit	(635	)	311		946		..
(818	)	Marketing	(743	)	232		975		..
180		International
transport	108		79		(29	)	(26.9	)
14		Net finance income (expense) (a)	12		4		(8	)
70		Net income
(expense) from investments (a)	57		35		(22	)
301		Income taxes (a)	198		(153	)	(351	)
..		Tax
rate (%)	..		43.7
(253	)	Adjusted net profit	(368	)	197		565		..

(a) Excluding special items.

In the first half of 2014, the Gas & Power segment reported an adjusted operating profit of euro 311 million, representing a significant improvement compared to the euro 636 loss registered in the first half of 2013. This result was driven by the renegotiations of a large portion of the long-term supply portfolio that were finalized between the fourth quarter of 2013 and June 30, 2014 as well as renegotiations of a number of gas supply contracts, the economic effects of which were retroactive to previous years. This positive trend was partly offset by continuing headwinds in the gas market as spot selling prices in Italy declined, dragged down by structural weak demand and oversupplies, and also triggered price revisions at certain long-term buyers. Furthermore, prices in the residential market were affected by a reduction in regulated tariffs set by the Italian Authority for Electricity and Gas, which replaced the previous oil-linked indexation mechanism of the raw material with prices quoted at spot markets, and finally margins on electricity production and sale were sharply lower, reflecting an ongoing downturn in the thermoelectric sector. The International transport activity reduced its operating profit (down 26.9%).

The special items excluded from adjusted operating profit amounted to euro 235 million, mainly related to the gains on re-measurement at fair value of certain non hedging commodity derivatives of euro 283 lacking the formal requisites to be accounted as hedges under IFRS and to the effects of the alignment to the net realization value of the deferred cost related to the pre-paid volumes of gas due to the incurrence of the take-or-pay clause (euro 31 million).

The Gas & Power segment reported an adjusted net profit of euro 197 million, representing an increase of euro 565 million compared to the first half of 2013.

Other performance indicators Follows a breakdown of the pro-forma adjusted EBITDA by business:

First half

2013 (euro million) 2013 2014 Change % Ch.

(28	)	Pro-forma EBITDA adjusted	(318	)	551	869		..
(346	)	Marketing	(489	)	401	890		..
318		International transport	171		150	(21	)	(12.3	)

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization charges) on an adjusted basis is calculated by adding amortization and depreciation charges to adjusted operating profit, which is also

33 -

Contents

Eni Interim Consolidated Report / Financial review and other information

modified to take into account the impact associated with certain derivatives instruments as detailed below. This performance indicator includes the adjusted EBITDA of Enis wholly-owned subsidiaries and Enis share of adjusted EBITDA generated by certain associates which are accounted for under the equity method for IFRS purposes. Management believes that the EBITDA pro-forma adjusted is an important alternative measure to assess the performance of Enis Gas & Power segment, taking into account evidence that this division is comparable to European utilities in the gas and power generation sector. This measure is provided in order to assist investors and financial analysts in assessing the divisional performance of Eni Gas & Power, as compared to its European peers, as EBITDA is widely used as the main performance indicator for utilities. The EBITDA pro-forma adjusted is a non-GAAP measure under IFRS.

Refining & Marketing

First half

2013 (euro million) 2013 2014 Change % Ch.

(1,492	)	Operating profit	(541	)	(623	)	(82	)	(15.2	)
221		Exclusion
of inventory holding (gains) losses	195		(63	)
814		Exclusion of special items:	36		244
633		- asset
impairments	41		178
(9	)	- net gains on disposals of assets	(2	)
93		-
environmental provisions	16		41
91		- provisions for redundancy incentives	4		4
5		-
commodity derivatives	(2	)	(1	)
(2	)	- exchange rate differences and derivatives	(19	)	11
3		- other	(2	)	11
(457	)	Adjusted operating profit	(310	)	(442	)	(132	)	(42.6	)
(6	)	Net
finance income (expense) (a)	(3	)	(5	)	(2	)
56		Net income (expenses) from investments (a)	39		40		1
175		Income
taxes (a)	84		83		(1	)
(232	)	Adjusted net profit	(190	)	(324	)	(134	)	(70.5	)

(a) Excluding special items.

In the first half of 2014, the Refining & Marketing segment reported an adjusted operating loss of euro 442 million, down by euro 132 million, or 42.6% from the first half of 2013. The decline was impacted by a continuing deterioration in the refining scenario driven by excess capacity, weak demand for oil products, in particular in the Mediterranean area and increasing competitive pressure from product streams imported from Russia, Middle East and the USA. Against these ongoing trends, Enis margin (Standard Eni Refining Margin) that gauges the profitability of Enis refineries considering the typical raw material slate and yields, reported a 45.3% decrease from the first half of 2013. This trend was partly counteracted by efficiency initiatives, in particular aimed at reducing energy and operating costs, and optimizing of assets by reducing throughputs of less competitive plants. Marketing results registered a decline compared to the same period of the previous year, due to lower consumption and increasing competitive pressure.

Special charges excluded from adjusted operating loss amounted to euro 244 million, mainly related to impairment losses of the retail networks in the Czech Republic and Slovakia which were aligned to the expected sale price, the effect of which was partly offset by a write-up of the Enis interest in the refining joint venture that currently supplies the divested networks (euro 51 million), impairment of investments made for compliance and stay-in-business purposes were completely written-off as they related certain Cash Generating Units which were impaired in previous reporting periods and continued to lack any profitability prospects (euro 96 million), environmental provisions (euro 41 million) and provisions for redundancy incentives (euro 4 million).

Adjusted net loss was euro 324 million, down by euro 134 million from the first half of 2013 (adjusted net loss of euro 190 million), mainly due to higher operating losses.

34 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Versalis

First half

2013 (euro million) 2013 2014 Change % Ch.

(725	)	Operating profit	(278	)	(286	)	(8	)	(2.9	)
213		Exclusion
of inventory holding (gains) losses	123		83
126		Exclusion of special items:	10		21
44		- asset
impairments	6		7
4		- risk provisions	4
61		-
environmental provisions	2		7
23		- provisions for redundancy incentives	1		3
(1	)	-
commodity derivatives	1		1
(5	)	- exchange rate differences and derivatives	(4	)	1
		- other			2
(386	)	Adjusted operating profit	(145	)	(182	)	(37	)	(25.5	)
(2	)	Net
finance income (expense) (a)	(1	)	(2	)	(1	)
		Net income (expenses) from investments (a)	(1	)	(2	)	(1	)
50		Income
taxes (a)	11		33		22
(338	)	Adjusted net profit	(136	)	(153	)	(17	)	(12.5	)

(a) Excluding special items.

In the first half of 2014, Versalis reported an adjusted operating loss , with an increase of euro 37 million, or 25.5% compared to the first half of the previous year, driven by increased oil-based feedstock costs, continued weakness in commodity demand reflecting slow economic growth and increasing competition from Asian producers which left product margins at depressed levels.

Special charges excluded from adjusted operating loss of euro 21 million, related mainly to environmental provisions (euro 7 million), impairment of marginal business lines due to lack of profitability perspectives (euro 7 million), as well as to provisions for redundancy incentives (euro 3 million).

Adjusted net loss of euro 153 million increased by euro 17 million, or 12.5% compared to the same period of the previous year.

Engineering & Construction

First half

2013 (euro million) 2013 2014 Change % Ch.

(98	)	Operating profit	(476	)	291		767
(1	)	Exclusion of special items:	2		2
107		- net
gains on disposal of assets	1		1
2		- provisions for redundancy incentives			1
(1	)	-
commodity derivatives	1
(109	)	- others
(99	)	Adjusted operating profit	(474	)	293		767
(5	)	Net finance income (expense) (a)	(2	)	(3	)	(1	)
2		Net income
(expenses) from investments (a)	9		15		6
(151	)	Income taxes (a)	(52	)	(90	)	(38	)
..		Tax
rate (%)	..		29.5
(253	)	Adjusted net profit	(519	)	215		734	..

(a) Excluding special items.

In the first half of 2014, the Engineering & Construction segment reported an adjusted operating profit of euro 293 million, with an improvement of euro 767 million from the first half of 2013. The y-o-y comparison was boosted by the magnitude of the operating loss incurred by Saipem in the same period of 2013 due to exceptional loss.

The adjusted net loss amounted to euro 215 million, up by euro 734 million from the first half of 2013.

35 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Other activities

First half

2013 (euro million) 2013 2014 Change % Ch.

(337	)	Operating profit	(193	)	(145	)	48	24.9
127		Exclusion
of special items:	86		57
19		- asset impairments	2		5
(3	)	- net
gains on disposals of assets
31		- risk provisions	23		3
52		-
environmental provisions	36		26
20		- provisions for redundancy incentives	1
8		- other	24		23
(210	)	Adjusted operating profit	(107	)	(88	)	19	17.8
4		Net
financial income (expense) (a)	(6	)	(3	)	3
1		Net income (expense) from investments (a)
		Income
taxes (a) (b)
(205	)	Adjusted net profit	(113	)	(91	)	22	19.5

(a) Excluding special items. (b) Deferred tax assets relating to Syndial losses are recognized by the parent company Eni SpA based on intercompany agreements which regulate the Italian consolidated accounts for tax purposes.

Corporate and financial companies

First half

2013 (euro million) 2013 2014 Change % Ch.

(399	)	Operating profit	(154	)	(143	)	11
67		Exclusion of special items:	(4	)	4
		- risk
provisions			3
72		- provisions for redundancy incentives	2		1
(5	)	- other	(6	)
(332	)	Adjusted operating profit	(158	)	(139	)	19	12.0
(560	)	Net
financial income (expense) (a)	(366	)	(392	)	(26	)
290		Net income (expense) from investments (a)	43		247		204
126		Income
taxes (a)	197		62		(135	)
(476	)	Adjusted net profit	(284	)	(222	)	62	21.8

(a) Excluding special items.

36 -

Contents

Eni Interim Consolidated Report / Financial review and other information

NON-GAAP measure Reconciliation of reported operating profit and reported net profit to results on an adjusted basis

Management evaluates Group and business performance on the basis of adjusted operating profit and adjusted net profit, which are arrived at by excluding inventory holding gains or losses, special items and, in determining the business segments adjusted results, finance charges on finance debt and interest income. The adjusted operating profit of each business segment reports gains and losses on derivative financial instruments entered into in order to manage exposure to movements in foreign currency exchange rates which impact industrial margins and the translation of commercial payables and receivables. Accordingly currency translation effects recorded through profit and loss are also reported within business segments adjusted operating profit. The taxation effect of the items excluded from adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them. The Italian statutory tax rate is applied to finance charges and income. Adjusted operating profit and adjusted net profit are non-GAAP financial measures under either IFRS or US GAAP. Management includes them in order to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Enis trading performance on the basis of their forecasting models.

The following is a description of items that are excluded from the calculation of adjusted results.

Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting.

Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, asset impairments or write ups and gains or losses on divestments even though they occurred in past periods or are likely to occur in future ones; or (iii) exchange rate differences and derivatives relating to industrial activities and commercial payables and receivables, particularly exchange rate derivatives to manage commodity pricing formulas which are quoted in a currency other than the functional currency. Those items are reclassified in operating profit with a corresponding adjustment to net finance charges, notwithstanding the handling of foreign currency exchange risks is made centrally by netting off naturally-occurring opposite positions and then dealing with any residual risk exposure in the exchange rate market. As provided for in Decision No. 15519 of July 27, 2006 of the Italian market regulator (Consob), non recurring material income or charges are to be clearly reported in the managements discussion and financial tables. Also, special items include gains and losses on re-measurement at fair value of certain non hedging commodity derivatives, including the ineffective portion of cash flow hedges and certain derivatives financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production Division. Furthermore, special items include gains and losses on re-measurement at fair value of certain non hedging commodity derivatives, including the ineffective portion of cash flow hedges and certain derivative financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production Division.

Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. Therefore, the adjusted net profit of business segments includes finance charges or income deriving from certain segment-operated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate Corporate and financial companies.

For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below.

37 -

Contents

Eni Interim Consolidated Report / Financial review and other information

First half 2014 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	6,221		653		(623	)	(286	)	291		(143	)	(145	)	(67	)	5,901
Exclusion
of inventory holding (gains) losses			(107	)	(63	)	83								102		15
Exclusion of special items:
-
environmental charges					41		7						26				74
- asset impairments	187		1		178		7						5				378
- net
gains on disposal of assets	2								1								3
- risk provisions	(5	)									3		3				1
-
provisions for redundancy incentives	20		1		4		3		1		1						30
- commodity derivatives	2		(283	)	(1	)	1										(281	)
- exchange
rate differences and derivatives	7		11		11		1										30
- other	(3	)	35		11		2						23				68
Special items of operating profit	210		(235	)	244		21		2		4		57				303
Adjusted operating profit	6,431		311		(442	)	(182	)	293		(139	)	(88	)	35		6,219
Net
finance (expense) income (a)	(134	)	4		(5	)	(2	)	(3	)	(392	)	(3	)			(535	)
Net income (expense) from investments (a)	146		35		40		(2	)	15		247						481
Income
taxes (a)	(3,979	)	(153	)	83		33		(90	)	62				(13	)	(4,057	)
Tax rate (%)	61.8		43.7		..				29.5								65.8
Adjusted net profit	2,464		197		(324	)	(153	)	215		(222	)	(91	)	22		2,108
of which attributable to:
-
non-controlling interest																	53
- Eni's shareholders																	2,055
Reported net profit attributable to Eni's
shareholders																	1,961
Exclusion of inventory holding (gains) losses																	11
Exclusion
of special items																	83
Adjusted net profit
attributable to Eni's shareholders																	2,055

(a) Excluding special items.

38 -

Contents

Eni Interim Consolidated Report / Financial review and other information

First half 2013 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	7,435		(531	)	(541	)	(278	)	(476	)	(154	)	(193	)	76		5,338
Exclusion
of inventory holding (gains) losses			(33	)	195		123								51		336
Exclusion of special items:
-
environmental charges					16		2						36				54
- asset impairments	39				41		6						2				88
- net
gains on disposal of assets	(65	)			(2	)			1								(66	)
- risk provisions			(102	)			4						23				(75	)
-
provisions for redundancy incentives	10		1		4		1				2		1				19
- commodity derivatives			54		(2	)	1		1								54
- exchange
rate differences and derivatives	(9	)	(39	)	(19	)	(4	)									(71	)
- other	(3	)	15		(2	)					(6	)	24				28
Special items of operating profit	(28	)	(71	)	36		10		2		(4	)	86				31
Adjusted operating profit	7,407		(635	)	(310	)	(145	)	(474	)	(158	)	(107	)	127		5,705
Net
finance (expense) income (a)	(125	)	12		(3	)	(1	)	(2	)	(366	)	(6	)			(491	)
Net income (expense) from investments (a)	283		57		39		(1	)	9		43						430
Income
taxes (a)	(4,455	)	198		84		11		(52	)	197				(49	)	(4,066	)
Tax rate (%)	58.9		..		..				..								72.0
Adjusted net profit	3,110		(368	)	(190	)	(136	)	(519	)	(284	)	(113	)	78		1,578
of which attributable to:
-
non-controlling interest																	(383	)
- Eni's shareholders																	1,961
Reported net profit attributable to Eni's
shareholders																	1,818
Exclusion of inventory holding (gains) losses																	210
Exclusion
of special items																	(67	)
Adjusted net profit
attributable to Eni's shareholders																	1,961

(a) Excluding special items.

39 -

Contents

Eni Interim Consolidated Report / Financial review and other information

2013 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	14,868		(2,967	)	(1,492	)	(725	)	(98	)	(399	)	(337	)	38		8,888
Exclusion
of inventory holding (gains) losses			191		221		213								91		716
Exclusion of special items
-
environmental charges			(1	)	93		61						52				205
- asset impairments	19		1,685		633		44						19				2,400
- net
gains on disposal of assets	(283	)	1		(9	)			107				(3	)			(187	)
- risk provisions	7		292				4						31				334
-
provisions for redundancy incentives	52		10		91		23		2		72		20				270
- commodity derivatives	(2	)	314		5		(1	)	(1	)							315
- exchange
rate differences and derivatives	(2	)	(186	)	(2	)	(5	)									(195	)
- other	(16	)	23		3				(109	)	(5	)	8				(96	)
Special items of operating profit	(225	)	2,138		814		126		(1	)	67		127				2,841
Adjusted operating profit	14,643		(638	)	(457	)	(386	)	(99	)	(332	)	(210	)	129		12,445
Net
finance (expense) income (a)	(264	)	14		(6	)	(2	)	(5	)	(560	)	4				(819	)
Net income from investments (a)	367		70		56				2		290		1				786
Income
taxes (a)	(8,796	)	301		175		50		(151	)	126				(90	)	(8,385	)
Tax rate (%)	59.7		..		..				..								66.5
Adjusted net profit	5,950		(253	)	(232	)	(338	)	(253	)	(476	)	(205	)	39		4,232
of which attributable to:
-
non-controlling interest																	(201	)
- Eni's shareholders																	4,433
Reported net profit attributable to Eni's
shareholders																	5,160
Exclusion of inventory holding (gains) losses																	438
Exclusion
of special items																	(1,165	)
Adjusted net profit
attributable to Eni's shareholders																	4,433

(a) Excluding special items.

40 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Breakdown of special items

First half

2013 (euro million) 2013 2014

3,046 — 205		Special items of operating profit — - environmental charges	31 — 54		303 — 74
2,400		-
assets impairments	88		378
(187	)	- net gains on disposal of assets	(66	)	3
334		- risk
provisions	(75	)	1
270		- provisions for redundancy incentives	19		30
315		-
commodity derivatives	54		(281	)
(195	)	- exchange rate differences and derivatives	(71	)	30
(96	)	- other	28		68
190		Net finance (income) expense	119		(42	)
		of which:
195		-
exchange rate differences and derivatives	71		(30	)
(5,299	)	Net income from investments	(202	)	(140	)
		of which:
(3,599	)	gains on
disposal of assets	(174	)	(96	)
(3,359	)	of
which: divestment of the 28.57% of Enis interest in
Eni East Africa
(98	)	Galp	(95	)	(96	)
(75	)	Snam	(75	)
(1,682	)	gains on
investment revaluation
(1,682	)	of
which: Artic Russia
11		impairments/revaluation			(29	)
898		Income taxes	(15	)	58
		of which:
954		-
impairment of deferred tax assets of Italian subsidiaries
		- deferred tax adjustment in a Production
Sharing Agreement
490		-
deferred tax adjustment on PSAs			45
64		- re-allocation of tax impact on intercompany
dividends and other special items	41		42
(610	)	- taxes
on special items	(56	)	(17	)
		- other net tax refund			(12	)
		Total special items of net profit	(67	)	179
		Attributable to:
		- non-controlling
interest	96
(1,165	)	- Eni's shareholders	(67	)	83

Breakdown of impairments

First half

2013 (euro million) 2013 2014 Change

| 2,290 | | Asset
impairment | 136 | | 330 | | 194 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 333 | | Goodwill impairment | | | 51 | | 51 |
| (223 | ) | Revaluations | (48 | ) | (3 | ) | 45 |
| 2,400 | | Impairments | 88 | | 378 | | 290 |

41 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Summarized Group Balance Sheet

The summarized group balance sheet aggregates the amount of assets and liabilities derived from the statutory balance sheet in accordance with functional criteria which consider the enterprise conventionally divided into the three fundamental areas focusing on resource investments, operations and financing. Management believes that this summarized group balance sheet is useful information in assisting investors to assess Enis capital structure and to analyze its sources of funds and investments in fixed assets and working capital. Management uses the summarized group balance sheet to calculate key ratios such as return on capital employed (ROACE) and the proportion of net borrowings to shareholders equity (leverage) intended to evaluate whether Enis financing structure is sound and well-balanced.

Summarized Group Balance Sheet (a)

(euro million) Dec. 31, 2013 June 30, 2014 Change

Fixed assets — Property, plant and equipment	63,763		65,913		2,150
Inventories
- Compulsory stock	2,573		2,457		(116	)
Intangible assets	3,876		3,707		(169	)
Equity-accounted
investments and other investments	6,180		5,524		(656	)
Receivables and securities held for operating
purposes	1,339		1,556		217
Net
payables related to capital expenditure	(1,255	)	(1,263	)	(8	)
	76,476		77,894		1,418
Net working capital
Inventories	7,939		8,257		318
Trade
receivables	21,212		19,706		(1,506	)
Trade payables	(15,584	)	(13,540	)	2,044
Tax
payables and provisions for net deferred tax liabilities	(3,062	)	(3,678	)	(616	)
Provisions	(13,120	)	(14,465	)	(1,345	)
Other
current assets and liabilities	1,274		2,548		1,274
	(1,341	)	(1,172	)	169
Provisions for employee post-retirement
benefits	(1,279	)	(1,302	)	(23	)
Assets held for sale
including related liabilities	2,156		442		(1,714	)
CAPITAL EMPLOYED, NET	76,012		75,862		(150	)
Eni shareholders' equity	58,210		58,502		292
Non-controlling
interest	2,839		2,759		(80	)
Shareholders equity	61,049		61,261		212
Net borrowings	14,963		14,601		(362	)
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	76,012		75,862		(150	)

(a) For a reconciliation to the statutory statement of cash flow see the paragraph "Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flows to Statutory Schemes".

Fixed assets Fixed assets amounted to euro 77,894 million, up by euro 1,418 million from December 31, 2013 reflecting capital expenditure incurred in the period (euro 5,524 million) and estimate revisions of decommissioning costs in the Exploration & Production segment also reflecting a favorable interest rate environment (up euro 1,064 million), which were partly offset by depreciation, depletion, amortization and impairment charges of the period (euro 5,188 million).

Net working capital Net working capital (negative, euro 1,172 million) reported an increase of euro 169 million due to: (i) the increase in "Other current assets, net" (up euro 1,274 million) relating to higher receivables accrued vs. joint venture partners in the Exploration & Production segment, which were partly offset by reduced deferred costs related to pre-paid gas volumes provided by take-or-pay obligations due to volume make-up in the quarter as a result of contract renegotiations; (ii) a higher balance of trade receivables and trade payables (up euro 538 million) was recorded mainly in the Engineering & Construction segment, with its subsidiary Saipem; (iii) higher inventories (up euro 318 million) due to higher work in progress in the Engineering & Construction segment. These increases were partly offset by higher risk provisions (up

42 -

Contents

Eni Interim Consolidated Report / Financial review and other information

euro 1,345 million) due to the above mentioned revision of decommissioning costs in the Exploration & Production segment and higher tax payables and provisions for deferred taxes.

Net assets held for sale including related liabilities Net assets held for sale including related liabilities (euro 442 million) referred to retail networks in Czech Republic, Slovakia and Romania and the associated refining capacity, as well as non-strategic interests in the Gas & Power segment.

Leverage and net borrowings

Leverage is a measure used by management to assess the Companys level of indebtedness. It is calculated as a ratio of net borrowings which is calculated by excluding cash and cash equivalents and certain very liquid assets from financial debt to shareholders equity, including non-controlling interest. Management periodically reviews leverage in order to assess the soundness and efficiency of the Group balance sheet in terms of optimal mix between net borrowings and net equity, and to carry out a benchmarking analysis with industry standards.

(euro million) Dec. 31, 2013 June 30, 2014 Change

| Total debt: — Short-term
debt | 25,560 — 4,685 | | 26,262 — 6,295 | | 702 — 1,610 | |
| --- | --- | --- | --- | --- | --- | --- |
| Long-term debt | 20,875 | | 19,967 | | (908 | ) |
| Cash and
cash equivalents | (5,431 | ) | (6,518 | ) | (1,087 | ) |
| Securities held for trading and other securities
held for non-operating purposes | (5,037 | ) | (5,028 | ) | 9 | |
| Financing
receivables for non-operating purposes | (129 | ) | (115 | ) | 14 | |
| Net borrowings | 14,963 | | 14,601 | | (362 | ) |
| Shareholders' equity including
non-controlling interest | 61,049 | | 61,261 | | 212 | |
| Leverage | 0.25 | | 0.24 | | (0.01 | ) |

Net borrowings as of June 30, 2014, amounted to euro 14,601 million, down by euro 362 million from December 31, 2013.

Total debt amounted to euro 26,262 million, of which euro 6,295 million were short-term (including the portion of long-term debt due within 12 months equal to euro 3,057 million) and euro 19,967 million were long-term.

The ratio of net borrowings to shareholders equity including non-controlling interest leverage was 0.24 at June 30, 2014 (0.25 at December 31, 2013).

43 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Comprehensive income

(euro million) First half

2013 2014

Net profit	1,435		1,918
Other
items of comprehensive income:
Foreign
currency translation differences	157		423
Fair
value evaluation of Enis interest in Galp and Snam	(100	)	(77	)
Change in the
fair value of cash flow hedging derivatives	3		250
Change
in the fair value of available-for-sale securities	(2	)	5
Share of
"Other comprehensive income" on
equity-accounted entities	2		(1	)
Taxation			(77	)
	60		523
Total comprehensive income	1,495		2,441
Attributable to:
-
non-controlling interest	(394	)	(34	)
- Eni's shareholders	1,889		2,475

Changes in shareholders equity

(euro million)

| Shareholders equity at
December 31, 2013 — Total
comprehensive income | 2,441 | |
| --- | --- | --- |
| Dividends distributed to Enis shareholders | (1,986 | ) |
| Dividends
distributed by consolidated subsidiaries | (48 | ) |
| Purchase of Enis treasury share | (202 | ) |
| Other
changes | 7 | |
| Total changes | | 212 |
| Shareholders equity at June 30, 2014 | | 61,261 |
| Attributable to: | | |
| -
non-controlling interest | | 2,759 |
| - Eni's shareholders | | 58,502 |

Shareholders equity including non-controlling interest was euro 61,261 million, representing an increase of euro 212 million from December 31, 2013. This was due to comprehensive income for the year (euro 2,441 million) as a result of net profit (euro 1,918 million), positive foreign currency translation differences (euro 423 million), and positive changes in the cash flow hedge reserve (euro 250 million), net of the reversal of the fair value reserve of the Galp interest due to its disposal. This addition to equity was almost completely offset by dividend payments to Enis shareholders and other changes for euro 2,229 million (balance dividend for the full year 2013 to Enis shareholders of euro 1,986 million, dividends paid to non-controlling interest, as well as the repurchase of Enis share).

44 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Summarized Group Cash Flow Statement

Enis summarized group cash flow statement derives from the statutory statement of cash flows. It enables investors to understand the connection existing between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from the summarized cash flow statement) that occurred in the reporting period. The measure which links the two statements is represented by the free cash flow which is calculated as difference between the cash flow generated from operations and the net cash used in investing activities. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related to financing activities), shareholders equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of changes in consolidation and of exchange rate differences; and (ii) change in net borrowings for the period by adding/deducting cash flows relating to shareholders equity and the effect of changes in consolidation and of exchange rate differences. The free cash flow is a non-GAAP measure of financial performance.

Summarized Group Cash Flow Statement (a)

First half

2013 (euro million) 2013 2014 Change

4,959		Net profit	1,435		1,918		483
		Adjustments to reconcile net profit to net
cash provided by operating activities:
9,723		-
depreciation, depletion and amortization and other non-monetary
items	4,703		4,938		235
(3,770	)	- net gains on disposal of assets	(168	)	(20	)	148
9,174		-
dividends, interest, taxes and other changes	3,934		4,213		279
456		Changes in working capital related to operations	(54	)	(1,689	)	(1,635	)
(9,516	)	Dividends
received, taxes paid, interest (paid) received during the
period	(5,035	)	(3,620	)	1,415
11,026		Net cash provided by
operating activities	4,815		5,740		925
(12,800	)	Capital
expenditure	(5,947	)	(5,524	)	423
(317	)	Investments and purchase of consolidated
subsidiaries and businesses	(176	)	(193	)	(17	)
6,360		Disposals	2,465		3,014		549
(243	)	Other cash flow related to capital expenditure,
investments and disposals	23		(91	)	(114	)
4,026		Free cash flow	1,180		2,946		1,766
(3,981	)	Borrowings (repayment) of debt related to
financing activities (b)	954		36		(918	)
1,715		Changes in
short and long-term financial debt	208		348		140
(4,225	)	Dividends paid and changes in non-controlling
interests and reserves	(2,191	)	(2,235	)	(44	)
(40	)	Effect of
changes in consolidation and exchange differences	(13	)	(8	)	5
(2,505	)	NET CASH FLOW FOR THE PERIOD	138		1,087		949

Changes in net borrowings

First half

2013 (euro million) 2013 2014 Change

4,026 — (21	)	Free cash flow — Net borrowings of acquired companies	1,180 — (6	)	2,946 — (19	)	1,766 — (13
(23	)	Net
borrowings of divested companies
349		Exchange differences on net borrowings and other
changes	102		(330	)	(432	)
(4,225	)	Dividends
paid and changes in non-controlling interest and reserves	(2,191	)	(2,235	)	(44	)
106		CHANGE IN NET BORROWINGS	(915	)	362		1,277

(a) For a reconciliation to the statutory statement of cash flow see the paragraph "Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flow to Statutory Schemes". (b) Net cash used in investing activities included investments and divestments (on net basis) in held-for-trading financial assets and other investments/divestments in certain short-term financial assets. Due to their nature and the circumstance that they are very liquid, these financial assets are netted against finance debt in determining net borrowings. Cash flows of such investments were as follows:

First half

2013 (euro million) 2013 2014 Change

| (5,029 | ) | Financing investments: — -
securities | | | (3 | ) | (3 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (105 | ) | - financing receivables | (142 | ) | (89 | ) | 53 | |
| (5,134 | ) | | (142 | ) | (92 | ) | 50 | |
| | | Disposal of financing
investments: | | | | | | |
| 28 | | -
securities | 22 | | 27 | | 5 | |
| 1,125 | | - financing receivables | 1,074 | | 101 | | (973 | ) |
| 1,153 | | | 1,096 | | 128 | | (968 | ) |
| (3,981 | ) | Cash flows of financial
investments not related to operations | 954 | | 36 | | (918 | ) |

45 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Net cash provided by operating activities was euro 5,740 million. Proceeds from disposals amounted to euro 3,014 million and mainly related to the divestment of Enis share in Artic Russia (euro 2,160 million) and an 8% interest in Galp Energia (euro 824 million). These cash inflows funded cash outlays relating to capital expenditure totaling euro 5,524 million and dividend payments and other changes amounting to euro 2,235 million referring to the balance dividend paid to Enis shareholders for the fiscal year 2013 (euro 1,986 million) and the repurchase of Enis share for euro 202 million, repaying down euro 362 million in the Groups net debt since December 31, 2013. Net cash provided by operating activities was negatively influenced by a lower volume of trade receivables due beyond the end of the reporting period, being transferred to financing institutions compared to the previous reporting period (down euro 675 million). The robust cash flow, mainly delivered in the second quarter of 2014, was recorded by the Exploration & Production and Gas & Power segments.

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

10,475		Exploration & Production:	4,893	4,688	(205	)	(4.2	)
109		-
acquisition of proved and unproved properties
1,669		- exploration	944	697
8,580		-
development	3,907	3,944
117		- other expenditure	42	47
229		Gas &
Power:	83	75	(8	)	(9.6	)
206		- marketing	74	69
23		-
international transport	9	6
672		Refining & Marketing:	229	229
497		-
refining, supply and logistics	163	181
175		- marketing	66	48
314		Versalis	111	125	14		12.6
902		Engineering & Construction	490	329	(161	)	(32.9	)
21		Other
activities	5	7	2		40.0
190		Corporate and financial companies	107	46	(61	)	(57.0	)
(3	)	Impact of
unrealized intragroup profit elimination	29	25	(4	)
12,800		Capital expenditure	5,947	5,524	(423	)	(7.1	)

In the first half of 2014, capital expenditure amounted to euro 5,524 million (compared to euro 5,947 million in the first half of 2013) relating mainly to: - development activities deployed mainly in Norway, the United States, Angola, Italy, Congo, Nigeria, Kazakhstan and Egypt and exploratory activities of which 98% was spent outside Italy, primarily in Nigeria, Mozambique, the United States, Angola, Liberia and Norway; - upgrading of the fleet used in the Engineering & Construction segment (euro 329 million); - refining, supply and logistics in Italy and outside Italy (euro 181 million) with projects designed to improve the conversion rate and flexibility of refineries, as well as the upgrade of the refined product retail network (euro 48 million); - initiatives to improve flexibility of the combined cycle power plants (euro 40 million).

46 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flows to Statutory Schemes

Summarized Group Balance Sheet

(euro million) Dec. 31, 2013 June 30, 2014

Items of Summarized Group Balance Sheet (where not expressly indicated, the item derives directly from the statutory scheme) Notes to the condensed consolidated interim financial statements Partial amounts from statutory scheme Amounts of the summarized Group scheme Partial amounts from statutory scheme Amounts of the summarized Group scheme

| Fixed assets — Property,
plant and equipment | | | 63,763 | | 65,913 | |
| --- | --- | --- | --- | --- | --- | --- |
| Inventories - Compulsory stock | | | 2,573 | | 2,457 | |
| Intangible
assets | | | 3,876 | | 3,707 | |
| Equity-accounted investments and other
investments | | | 6,180 | | 5,524 | |
| Receivables
and securities held for operating activities | (see note 10 and note 19) | | 1,339 | | 1,556 | |
| Net payables related to capital expenditure,
made up of: | | | (1,255 | ) | (1,263 | ) |
| -
receivables related to capital expenditure/disposals | (see note 10) | 88 | | 86 | | |
| - receivables related to capital
expenditure/disposals | (see note 21) | 702 | | 659 | | |
| - payables
related to capital expenditure | (see note 23) | (2,045 | ) | (2,008 | ) | |
| Total fixed assets | | | 76,476 | | 77,894 | |
| Net
working capital | | | | | | |
| Inventories | | | 7,939 | | 8,257 | |
| Trade
receivables | (see note 10) | | 21,212 | | 19,706 | |
| Trade payables | (see note 23) | | (15,584 | ) | (13,540 | ) |
| Tax
payables and provisions for net deferred tax liabilities,
made up of: | | | (3,062 | ) | (3,678 | ) |
| - income tax payables | | (755 | ) | (845 | ) | |
| - other
tax payables | | (2,291 | ) | (2,477 | ) | |
| - deferred tax liabilities | | (6,750 | ) | (7,138 | ) | |
| - other
tax liabilities | (see note 31) | (22 | ) | (20 | ) | |
| - payables for Italian consolidated accounts | (see note 17) | (12 | ) | (12 | ) | |
| -
receivables for Italian consolidated accounts | (see note 7) | 8 | | 4 | | |
| - current tax assets | | 802 | | 730 | | |
| - other
current tax assets | | 835 | | 897 | | |
| - deferred tax assets | | 4,658 | | 4,579 | | |
| - other
tax assets | (see note 21) | 465 | | 604 | | |
| Provisions | | | (13,120 | ) | (14,465 | ) |
| Other
current assets and liabilities: | | | 1,274 | | 2,548 | |
| - securities held for operating purposes | (see note 9) | 202 | | 236 | | |
| -
receivables for operating purposes | (see note 10) | 403 | | 411 | | |
| - other receivables | (see note 10) | 6,569 | | 7,343 | | |
| - other
(current) assets | | 1,325 | | 3,351 | | |
| - other receivables and other assets | (see note 21) | 2,509 | | 1,732 | | |
| -
advances, other payables | (see note 23) | (6,060 | ) | (5,671 | ) | |
| - other (current) liabilities | | (1,437 | ) | (2,760 | ) | |
| - other
payables and other liabilities | (see note 31) | (2,237 | ) | (2,094 | ) | |
| Total net working capital | | | (1,341 | ) | (1,172 | ) |
| Provisions for employee post-retirement
benefits | | | (1,279 | ) | (1,302 | ) |
| Assets held for sale
including related liabilities | | | 2,156 | | 442 | |
| made up
of: | | | | | | |
| - assets held for sale | | 2,296 | | 663 | | |
| -
liabilities related to assets held for sale | | (140 | ) | (221 | ) | |
| CAPITAL EMPLOYED, NET | | | 76,012 | | 75,862 | |
| Shareholders' equity including
non-controlling interest | | | 61,049 | | 61,261 | |
| Net borrowings | | | | | | |
| Total
debt, made up of: | | | 25,560 | | 26,262 | |
| - long term debt | | 20,875 | | 19,967 | | |
| - current
portion of long-term debt | | 2,132 | | 3,057 | | |
| - short-term financial liabilities | | 2,553 | | 3,238 | | |
| less: | | | | | | |
| Cash and cash equivalents | | | (5,431 | ) | (6,518 | ) |
| Securities
held for non-operating purposes | (see note 9) | | (5,037 | ) | (5,028 | ) |
| Financing receivables for non-operating purposes | (see note 10) | | (129 | ) | (115 | ) |
| Total net borrowings (a) | | | 14,963 | | 14,601 | |
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY | | | 76,012 | | 75,862 | |

(a) For details on net borrowings see also note No. 26 to the condensed consolidated interim financial statements.

47 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Summarized Group Cash Flow Statement

(euro million) First half 2013 First half 2014

Items of Summarized Cash Flow Statement and confluence/reclassification of items in the statutory scheme Partial amounts from statutory scheme Amounts of the summarized Group scheme Partial amounts from statutory scheme Amounts of the summarized Group scheme

Net profit
Adjustments
to reconcile net profit to net cash provided by operating
activities:
Depreciation, depletion and amortization and
other non-monetary items:		4,703		4,938
-
depreciation, depletion and amortization	4,593		4,810
- Impairment of tangible and intangible assets,
net	88		378
- share of
profit (loss) of equity-accounted investments	(161	)	(111	)
- other net changes	167		(143	)
- net
changes in the provisions for employee benefits	16		4
Net gains on disposal of assets		(168	)	(20	)
Dividends,
interest, income taxes and other changes:		3,934		4,213
- dividend income	(306	)	(174	)
- interest
income	(59	)	(75	)
- interest expense	374		351
- income
taxes	3,925		4,111
Changes in working capital related to operations:		(54	)	(1,689	)
-
inventory	684		(282	)
- trade receivables	(385	)	1,574
- trade
payables	(1,889	)	(2,041	)
- provisions for contingencies	(292	)	28
- other
assets and liabilities	1,828		(968	)
Dividends received, taxes paid, interest (paid)
received during the period:		(5,035	)	(3,620	)
- dividend
received	409		344
- interest received	57		26
- interest
paid	(694	)	(325	)
- income taxes paid, net of tax receivables
received	(4,807	)	(3,665	)
Net cash provided by operating activities		4,815		5,740
Capital expenditure:		(5,947	)	(5,524	)
- tangible
assets	(4,902	)	(4,752	)
- intangible assets	(1,045	)	(772	)
Investments
and purchase of consolidated subsidiaries and businesses:		(176	)	(193	)
- investments	(148	)	(157	)
-
consolidated subsidiaries and businesses	(28	)	(36	)
Disposals:		2,465		3,014
- tangible
assets	186		7
- intangible assets	4
- changes
in consolidated subsidiaries and businesses
- investments	2,275		3,007
Other cash
flow related to capital expenditure, investments and
disposals:		23		(91	)
- securities	(18	)	(48	)
-
financing receivables	(482	)	(519	)
- change in payables and receivables relating to
investments and capitalized depreciation	139		158
reclassification: purchase of securities and financing receivables for
non-operating purposes	142		92
- disposal of securities	27		40
- disposal
of financing receivables	1,260		308
- change in payables and receivables	51		6
reclassification: disposal of securities and financing receivables held for
non-operating purposes	(1,096	)	(128	)
Free cash flow		1,180		2,946

48 -

Contents

Eni Interim Consolidated Report / Financial review and other information

continued Summarized Group Cash Flow Statement

(euro million) First half 2013 First half 2014

| Free cash flow — Borrowings (repayment) of debt related to
financing activities | | 954 | | 36 | |
| --- | --- | --- | --- | --- | --- |
| reclassification: purchase of securities and financing receivables held for
non-operating purposes | (142 | ) | (92 | ) | |
| reclassification: disposal of
securities and financing receivables held for
non-operating purposes | 1,096 | | 128 | | |
| Changes in
short and long-term finance debt: | | 208 | | 348 | |
| - proceeds from long-term finance debt | 2,594 | | 2,477 | | |
| - payments
of long-term finance debt | (3,314 | ) | (2,793 | ) | |
| - increase (decrease) in short-term finance debt | 928 | | 664 | | |
| Dividends
paid and changes in non-controlling interest and reserves: | | (2,191 | ) | (2,235 | ) |
| - net capital contributions/payments by/to
non-controlling interest | | | 1 | | |
| - treasury
shares sold | | | (202 | ) | |
| - dividends paid by Eni to shareholders | (1,956 | ) | (1,986 | ) | |
| -
dividends paid to non-controlling interest | (210 | ) | (48 | ) | |
| - acquisition of additional interest in
consolidated subsidiaries | (25 | ) | | | |
| - treasury
shares sold by consolidated subsidiaries | | | | | |
| Effect of exchange differences on cash and cash
equivalents | | (13 | ) | (10 | ) |
| Effect of
changes in consolidation area (inclusion/exclusion of
significant/insignificant subsidiaries) | | | | 2 | |
| NET CASH FLOW FOR THE PERIOD | | 138 | | 1,087 | |

49 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Risk factors and uncertainties

Competition

There is strong competition worldwide, both within the oil industry and with other industries, to supply energy to the industrial, commercial and residential energy markets.

Eni faces strong competition in each of its business segments.

In the current uncertain financial and economic environment, Eni expects that prices of energy commodities, in particular oil and gas, will be very volatile, with average prices and margins influenced by changes in the global supply and demand for energy as well as in the market dynamics. This is likely to increase competition in all of Enis businesses, which may impact costs and margins.

| - | In the Exploration &
Production segment Eni faces competition from both
international and state-owned oil companies for obtaining
exploration and development rights, and developing and
applying new technologies to maximize hydrocarbon
recovery. Furthermore, Eni may face a competitive
disadvantage because of its relatively smaller size
compared to other international oil companies,
particularly when bidding for large scale or capital
intensive projects, and may be exposed to industry-wide
cost increases to a greater extent compared to its larger
competitors given its potentially smaller market power
with respect to suppliers. If, as a result of those
competitive pressures, Eni fails to obtain new
exploration and development acreage, to apply and develop
new technologies, and to control cost, its growth
prospects and future results of operations and cash flows
may be adversely affected. |
| --- | --- |
| - | In the Gas & Power
segment, Eni faces strong competition from gas and energy
players to sell gas and electricity to the industrial
segment and the retail market both in the Italian market
and markets across Europe. Competition has been fuelled
by ongoing weak trends in demand due to the downturn and
macroeconomic uncertainties, oversupplied markets and
inter-fuel competition due to the rising use of coal in
firing power plants and a dramatic growth in renewable
sources of energy (photovoltaic and solar) which have
materially impacted the use of gas in the production of
electricity and hence sales of gas to the thermoelectric
industry. These market imbalances owe to the fact that a
few years ago, based on certain long-term projections
about gas demand growth, European operators committed to
purchase large amounts of gas under long-term supply
contracts with take-or-pay clauses from the main
producing Countries bordering Europe (namely Russia and
Algeria) and built large upgrades at existing pipelines
and new infrastructures along several European routes to
expand gas import capacity to the Continent. Due to the
economic and financial crisis and inter-fuel competition,
those projected increases in gas demand failed to
materialize resulting in a situation of oversupply and
pricing pressure. The "shale gas revolution" in
the USA was another fundamental trend that aggravated the
oversupply situation in Europe. The discovery and
development of large deposits of shale gas in the USA has
progressively reduced to zero the Countrys
dependence on LNG imports. As a result of this, upstream
producers were forced to redirect large LNG supplies to
markets elsewhere in the world, including Europe. Large
gas availability on the marketplace in Europe fuelled by
take-or-pay contracts and |

50 -

Contents

Eni Interim Consolidated Report / Financial review and other information

| | worldwide LNG streams has
driven the development of very liquid continental hubs to
trade spot gas. Shortly spot prices at continental hubs
have become the main benchmarks to which selling prices
are indexed in supplies to large industrial customers and
thermoelectric utilities. The profitability of gas
operators was negatively impacted by falling sales prices
at those hubs, where prices have been pressured by
intense competition among gas operators in the face of
weak demand, oversupplies and the constraint to dispose
of minimum annual volumes of gas to be purchased under
long-tem supply contracts. These negative trends were
exacerbated by the fact that spot prices have ceased to
track the oil prices to which Enis long-term supply
contracts are linked, resulting in a decoupling between
trends in prices and in costs. Due to those fundamental
shifts in market dynamics and a current demand downturn,
the Companys Gas & Power segment incurred
operating losses in the latest three years. The outlook
for our gas marketing business will remain weak for the
foreseeable future as management believes that the
ongoing negative trends of poor demand, continuing
competition and oversupplies have become structural
headwinds. These developments may adversely affect the
Companys future results of operations and cash
flows in its gas business, also taking into account the
Companys contractual obligations to off-take
minimum annual volumes of gas in accordance to its
long-term gas supply contracts with take or-pay clauses
and until the Company manages to re-negotiate new pricing
terms of all long-term gas supply contracts which better
tracks market prices than the original oil-linked
indexation. Successful contract renegotiations in the
first half of 2014 resulted in the Gas & Power
segment returning to profitability (adjusted operating
profit of euro 311 million) due to the economic benefits
of those renegotiations, certain of which relating to gas
volumes procured in the previous thermal year. See the
sector-specific risk section below. |
| --- | --- |
| - | Eni is also facing
competition from large, well-established European
utilities and other international oil and gas companies
in growing its market share and acquiring or retaining
clients. A number of large clients, particularly
electricity producers and large industrial buyers have
entered the wholesale market of gas by directly
purchasing gas from producers or sourcing it at the
European spot markets adding further pressures on the
economics of gas operators, including Eni. Management
believes that this trend will continue in the future. At
the same time, a number of national gas producers
belonging to Countries with large gas reserves have
started to sell natural gas directly to final clients,
entering in direct competition with players like Eni
which resell gas purchased from producing Countries to
final customers. These developments may increase the
level of competition and reduce Enis expected
operating profit and cash flows in the gas business.
Finally, gas prices in the residential market have
historically been established by independent,
governmental authorities in Italy and elsewhere in
Europe. The indexation mechanisms used by those
authorities have generally tracked a basket of petroleum
products, mirroring the oil-indexed purchase prices of
gas resellers like Eni, thus enabling resellers to pass a
large part of cost increases of the raw material on to
final customers in the retail market. In recent years,
the Italian authority has introduced a number of
adjustments to the oil-linked formula to take into
account the public goal of containing the impact of
energy inflation on households and other public services
(hospitals, schools, etc.). Finally, following enactment
in Italy of a new regulatory regime which went effective
on October 1, 2013, management expects that the
Companys selling margins in the residential segment
are likely to come under pressure due to the
implementation of a less favorable indexation mechanism.
Such new mechanism establishes that the cost of the raw
material must be indexed to market benchmarks recorded at
spot markets, as such replacing the previous oil-linked
mechanism which mirrored a basket of long-term supply
contracts. The Company expects that similar measures will
be introduced by other market regulators in European
Countries where Eni engages in selling gas to residential
clients (see sector-specific risk factors below).
Management believes these developments will negatively
impact future results of operations and cash flow. |

51 -

Contents

Eni Interim Consolidated Report / Financial review and other information

| - | In its Gas & Power
segment, Eni is vertically integrated in the production
of electricity via its gas-fired power plants which
currently use the combined-cycle technology. In the
electricity business, Eni competes with other producers
and traders from Italy or outside of Italy who sell
electricity in the Italian market. Going forward, the
Company expects continuing competition due to the
projections of weak economic growth in Italy and Europe
over the foreseeable future, also causing outside players
to place excess production on the Italian market. The
economics of the gas-fired electricity business have
dramatically changed over the latest few years due to
ongoing competitive trends. As a matter of fact, spot
prices of electricity in the wholesale market across
Europe have decreased due to excess supplies driven by
the growing production of electricity from renewable
sources, which also benefit of governmental subsides, and
a recovery in the production of coal-fired electricity
generation which has been helped by a substantial
reduction in the price of this fuel on the back of a
massive oversupply of coal which occurred on a global
scale. As a result of falling electricity prices, margins
on the production of gas-fired electricity went into
negative territory. We believe that the profitability
outlook in this business will remain weak in the
foreseeable future. |
| --- | --- |
| - | In the retail marketing of
refined products both in Italy and abroad, Eni competes
with oil companies and non-oil operators (such as
supermarket chains and other commercial operators) to
obtain concessions to establish and operate service
stations. Enis service stations compete primarily
on the basis of pricing, services and availability of
non-petroleum products. In Italy, the latest
administrative measure in this field have targeted to
enhance the level of competition in the retail market of
fuels, for example by easing the commercial ties between
independent and other non-oil operators of service
stations and oil companies, enlarging options to build
and operate fully-automated service stations, and opening
up the merchandising of various kinds of goods and
services at service stations. These developments have
boosted the level of competition in the marketplace
adding further pressure on selling prices and reducing
opportunities of increasing the market share in Italy. We
expect that competitive pressures will continue in the
foreseeable future due to anticipated weak trends in the
domestic demand for fuels, oversupplies of refined
products due to existing excess refining capacity in
Europe and growing competition of products streams coming
from Russia, the Middle East, East Asia and the United
States. Finally, Enis margins on refined products
have been affected by production cost disadvantages due
to unfavorable geographic location and lack of scale of
Enis refineries, and narrowing price differentials
between the Brent benchmark and heavy crude qualities.
This latter trend has reflected ongoing reduced supplies
of heavy crudes in the Mediterranean area, reversing the
pattern observed historically whereby heavy crude
qualities were trade at a discount vs. the Brent
benchmark due to their relatively smaller yield of
valuable products. This negative trend has particularly
hit Enis profitability of complex cycles which
depends upon the availability of cheaper crude qualities
than the Brent crude in order to remunerate the higher
operating costs of complex plants. This segment reported
losses at the operating level in each of the latest three
years and in the first half of 2014 driven by the
structural headwinds in the industry described above.
Based on those trends we believe that the profitability
outlook in our Refining & Marketing segment will
remain negative over the foreseeable future. |
| - | In the Chemical segment, Eni
faces strong competition from well-established
international players and state-owned petrochemical
companies, particularly in the most commoditized market
segments such as the production of basic petrochemicals
products and plastics. Many of those competitors based in
the Far East and the Middle East are able to benefit from
cost advantages due to larger scale, looser environmental
regulations, availability of cheaper feedstock, more
favorable location and proximity to end-markets. Excess
capacity and sluggish economic growth may exacerbate
competitive pressures. Furthermore, Eni expects that
petrochemicals producers based in the US will regain
market share in the future, leveraging on a competitive
cost structure due to the increasing availability of
cheap feedstock deriving from the production of domestic |

52 -

Contents

Eni Interim Consolidated Report / Financial review and other information

| | shale gas. The Company
expects continuing margin pressures in the foreseeable
future as a result of those trends. This segment reported
operating losses in each of the latest three years and in
the first half of 2014, driven by the structural
headwinds in the industry described above. |
| --- | --- |
| - | Competition in the oil field
services, construction and engineering industries is
primarily based on technical expertise, quality and
number of services and availability of technologically
advanced facilities (for example, vessels for offshore
construction). Lower oil prices could result in lower
margins and lower demand for oil services. The
Companys failure or inability to respond
effectively to competition could adversely impact the
Companys growth prospects, future results of
operations and cash flows. In 2013 a soft demand
environment, intense competition among oilfield service
providers coupled with Company-specific issues at certain
projects drove a substantial reversal in the
profitability at Enis Engineering &
Construction business segment which reported an operating
loss for the full year 2013. Management believes that
2014 will be a transitional year with profitability
expected to recover, the extent of which will be
determined by the effective execution of operational and
commercial activities on low-margin contracts still
present in the current portfolio and by how quickly bids
currently under consideration are awarded. In the first
half of 2014, Engineering & Construction segment
reported a euro 767 million recovery (adjusted operating
profit of euro 293 million, from adjusted operating loss
of euro 474 million reported in the first half of the
previous year). |

The specific risks of the exploration and production of hydrocarbons

Safety, security, environmental and other operational risk

For this risks, see our disclosure in Annual Report 2013.

Changes in crude oil and natural gas prices may adversely affect Enis results of operations

The exploration and production of oil and gas is a commodity business with a history of price volatility. The single largest variable that affects the Companys results of operations and financial condition is crude oil prices. Lower crude oil prices have an adverse impact on Enis results of operations and cash flows. Eni generally does not hedge exposure of the future expected cash flows of the Group reserves to movements in crude oil price. As a consequence, Enis profitability depends heavily on crude oil and natural gas prices. Crude oil and natural gas prices are subject to international supply and demand and other factors that are beyond Enis control, including among other things:

| (i) | the control on production
exerted by the Organization of the Petroleum Exporting
Countries ("OPEC") member Countries which
control a significant portion of the worlds supply
of oil and can exercise substantial influence on price
levels; |
| --- | --- |
| (ii) | global geopolitical and
economic developments, including sanctions imposed on
certain oil-producing Countries on the basis of
resolutions of the United Nations or bilateral sanctions
or disruptions due to local instability. We believe that
crude oil prices were supported in 2013 by a number of
interruptions in the output flows that occurred in
Countries like Libya, Nigeria and Syria due to local
issues driven by political and social instability; |
| (iii) | global and regional dynamics
of demand and supply of oil and gas. We believe that
global oil demand will grow at a moderate pace in the
foreseeable future due to sluggish economic activity in
Europe and other macroeconomic uncertainties, and more
efficient use of fuels and energy in OECD Countries; |
| (iv) | prices and availability of
alternative sources of energy. Eni believes that gas
demand in Europe has been significantly impacted by a
shift to the use of coal in firing power plants due to
cost |

53 -

Contents

Eni Interim Consolidated Report / Financial review and other information

| | advantages compared to gas,
as well as the rising contribution of renewable energies
in satisfying energy requirements. Eni expects those
trends to continue in the future; |
| --- | --- |
| (v) | governmental and
intergovernmental regulations, including the
implementation of national or international laws or
regulations intended to limit greenhouse gas emissions,
which could impact the prices of hydrocarbons; and |
| (vi) | success in developing and
applying new technology. |

All these factors can affect the global balance between demand and supply for oil and prices of oil. We estimate that movements in oil prices impact approximately 50% of our current production. Further portion of 35% of our current production which derives from Production Sharing Contracts is practically unaffected by crude oil price movements which instead impact the Companys volume entitlements (see our disclosure below). Finally, we estimate that the exposure to changes in crude oil prices of approximately 5-10% of our production is offset by equivalent and contrarian movements of the procurement costs of gas in our long-term supply contracts which index the cost of gas to crude oil prices, reflecting our decision late in 2013 to fully exploit the benefits of the natural hedging occurring between our Exploration & Production and Gas & Power segments. In previous reporting periods we entered into commodity derivatives to protect margins on gas sales in our Gas & Power business from exposure to crude oil changes and late in 2013 we discontinued this policy with a view to exploit the natural hedge provided by our equity production of crude oil. This development has impacted our results of operations in the interim period 2014 and will affect the Group consolidated results going forward. Lower oil and gas prices over prolonged periods may also adversely affect Enis results of operations and cash flows by:

| (i) | reducing rates of return of
development projects either planned or being implemented,
leading the Company to reschedule, postpone or cancel
development projects, or accept a lower rate of return on
such projects; |
| --- | --- |
| (ii) | reducing the Groups
liquidity, entailing lower resources to fund expansion
projects, further dampening the Companys ability to
grow future production and revenues; and |
| (iii) | triggering a review of
future recoverability of the Companys carrying
amounts of oil and gas properties, which could lead to
the recognition of significant impairment charges. |

In the first half of 2014, the price of the Brent marker averaged $109 a barrel, with an increase of 1.3% compared to the first half of 2013, reflecting escalating geopolitical tensions in the Middle East and other risky areas, against a modest increase of demand and development of non-OPEC supply. We believe that such geopolitical risks will support crude oil prices in the short-to-medium term; looking forward we expect that the crude oil long-term price will settle at around 95 a barrel (real term 2018). Gas prices have remained on a weak trend in Europe and the USA pressured by weak demand.

The Company, like other players in the industry, assesses its oil&gas projects based on long-term scenarios for oil prices, which reflect managements best assumptions about the underlying fundamentals of global demand and supply. This approach supports the achievement of the expected returns on capital projects through the swings of the oil&gas cycle. For the 2014-2017 period Eni assumed a long-term price of $95 a barrel (real terms 2018). In this context the Company approved a capital expenditure plan amounting to euro 54 billion, 82% relating to exploration and development of oil and gas reserves, with a decrease of 5% in comparison with previous plan due to a higher degree of capital selection through a different schedule of project phases. This capex plan is going to be revised to reflect managements further spending optimization foreseen in the 2014 outlook update.

Volatile oil prices represent an uncertainty factor in view of achieving the Companys operating targets of production growth and reserve replacement due to the relevant amount of Production Sharing

54 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Agreements in Enis portfolio. Under such contracts, the Company is entitled to receive a portion of the production, the sale of which should cover expenditures incurred and earn the Company a share of profit. Accordingly, the higher are the reference prices for crude oil used to determine production and reserve entitlements, the lower is the number of barrels to cover the same dollar amounts hence the amounts of booked production and reserves; and vice versa. The Company currently estimates that production entitlements in its PSAs decreases on average by approximately 1,000 bbl/d for a $1 increase in oil prices. The impact of price effects on the Companys production was immaterial in 2013. This sensitivity analysis relates to the existing Eni portfolio and might vary in the future.

Political considerations

A substantial portion of Enis oil and gas reserves and gas supplies are located in Countries which are politically, socially and economically less stable than OECD Countries. Therefore Eni is exposed to risks of material disruptions to its operations in those less stable Countries. As of December 31, 2013, approximately 78% of Enis proved hydrocarbon reserves were located in such Countries and 62% of Enis supplies of natural gas came from outside OECD Countries. Adverse political, social and economic developments, such as internal conflicts, revolutions, establishment of non-democratic regimes, protests, strikes and other forms of civil disorder, contraction of economic activity and financial difficulties of the local governments with repercussions on solvency of state institutions, inflation level, exchange rates and similar events in any of those less stable Countries may negatively affect Enis ability to continue operating in an economic way, either temporarily or permanently, and Enis ability to access oil and gas reserves. In particular, Eni faces risks in connection with the following issues:

| (i) | lack of well-established and
reliable legal systems and uncertainties surrounding
enforcement of contractual rights; |
| --- | --- |
| (ii) | unfavorable developments in
laws, regulations and contractual arrangements leading,
for example, to expropriations, nationalizations or
forced divestitures of assets and unilateral cancellation
or modification of contractual terms. Eni is facing
increasing competition from state-owned oil companies who
are partnering Eni in a number of oil and gas projects
and properties in the host Countries where Eni conducts
its upstream operations. These state-owned oil companies
can change contractual terms and other conditions of oil
and gas projects in order to obtain a larger profit share
from a given project, thereby reducing Enis profit
share. Furthermore, as of the balance sheet date
receivables for euro 575 million relating to cost
recovery under certain petroleum contracts in a non-OECD
Country were the subject of an arbitration proceeding; |
| (iii) | restrictions on exploration,
production, imports and exports; |
| (iv) | tax or royalty increases
(including retroactive claims); and |
| (v) | civil and social unrest,
internal conflicts and other forms of political
instability such as sabotages, strikes, acts of violence
and incidents. These risks could result in disruptions in
the economic activity, loss of output, plant closures,
project delays, the loss of our personnel or assets,
cause us to evacuate our personnel from certain
Countries, cause us to increase spending on security
worldwide, disrupt financial and commercial markets,
including the supply of and pricing for oil and natural
gas, and generate greater political and economic
instability in some of the geographic areas in which we
operate. Areas where we operate that have significant
risk include, but are not limited to: the Middle East,
Libya, Egypt, Algeria, Nigeria, Angola, Indonesia,
Kazakhstan, Nigeria, Russia, and Venezuela. In addition,
any possible reprisals as a consequence of military or
other action, such as acts of terrorism in |

55 -

Contents

Eni Interim Consolidated Report / Financial review and other information

the United States or elsewhere, could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.

In the first half of 2014 our expected production levels in Libya were negatively impacted by frequent acts of local conflict, social unrest, protests, strikes, which forced us to disrupt or reduce our producing activities, negatively affecting our results of operations and cash flow. Also our activities in Nigeria have been impacted in recent years by continuing episodes of theft, acts of sabotage and other similar disruptions which have jeopardized the Companys ability to conduct operations in full security, particularly in the onshore area of the Niger Delta. Looking forward, we expect that those risks will continue to affect our operations in those Countries and we do not plan for any meaningful recovery in our production plateau in both Countries over the next couple of years; our production plans are currently assuming flat production levels for the full years 2014 and 2015 compared to 2013 levels. For more information about the status of our operations in Libya see the paragraph below. While the occurrence of those events is unpredictable, it is likely that the occurrence of such events could cause Eni to incur material production losses or facility disruptions, by this way adversely impacting Enis results of operations and cash flow.

Risks associated with continuing political instability in North Africa and the Middle East

As of end of 2013, approximately 30% of the Companys proved oil and gas reserves were located in North Africa and the Middle East. Since 2011, several North African and Middle Eastern oil producing Countries have been experiencing an extreme level of political instability that has resulted in changes in governments, unrest and violence and consequential economic disruptions. The instability of the socio-political framework in those Countries still represents an area of concern involving risks and uncertainties for the foreseeable future; particularly the current internal situation in Libya continues to represent an issue for Enis management. Following the internal conflict of 2011 and fall of regime, the fragmentation of the political framework and social tensions which followed, turned into disorders, strikes, protests and a resurgence of the internal conflict, jeopardized Enis ability to carry out its industrial activity in safety, forcing sometimes the Company to interrupt its operations as precautionary measure, as happened in the year 2013. In the interim period of 2014, Enis facilities in Libya produced on average 212 kboe/d, registering a decrease of 14% compared to the first half of 2013 due to the above mentioned political factors. It is worth mentioning that Eni is currently engaged in the recovery of the production plateau at its producing assets in the Country (assuming that plateau at the level of 273 kboe/d produced in 2010), after the events of 2011 that forced the Company to shutdown almost all its producing facilities including gas exports for a period of about 8 months. The political instability in Egypt hindered the countrys access to the financial market, and resulted in continuous difficulties for the local oil&gas companies to fulfill the trade payables due to Eni for the Companys gas supplies. Based on discussions currently ongoing and established relationships with the local partners, Enis management believes that the trade payables due amounting to euro 1.2 billion as of June 30, 2014 will be collected sometime in the future. Eni has not experienced any disruptions at its producing activities in the Country to date.

56 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Risks in the Companys Gas & Power business

Risks associated with the trading environment and competition in the industry

The Company expects the structural headwinds in the gas market due to a prolonged demand downturn, strong competitive pressures and oversupplies to continue to adversely impact results of operations and liquidity for the foreseeable future. Gas demand has been severely hit by the economic slowdown in Europe and, more importantly, a steep fall of gas consumption in the thermoelectric sector. The latter trend was affected by an ongoing expansion of renewable sources of electricity which have benefited of governmental subsides across Europe, whilst coal has displaced gas on a large scale in firing power plants due to cost advantages and lowering rates for obtaining emission allowances in Europe due to the downturn. Coal prices have seen a dramatic fall in recent years due to a massive glut of coal on a global scale. In the face of weak demand, supplies on the European marketplace have continued to increase due to a number of factors. First of all, before the beginning of the downturn, gas wholesaler operators in Europe grossly overestimated the projected growth rates in demand and committed to purchase large amounts of gas under long-term supply contracts with producing Countries also bearing the volume risk as a result of the take-or-pay clause of those contracts. They also build large pipeline upgrade to import gas to Europe. Secondly, several LNG projects came on stream, which improved the liquidity of spot markets. Finally, the fact that the US has reduced their dependence on LNG imports due to large increases in the domestic production of shale gas. This latter development has further contributed to increasing global LNG supplies. Those trends have driven the expansion of very liquid European hubs where spot prices have become the prevailing benchmark of sale contracts, particularly in the industrial and thermoelectric segments. Spot prices have been on a downtrend over the last few years reflecting oversupplies and weak demand. This development has continued in the first half of 2014. This trend has hit the profitability of European gas marketing operators, including Eni. Particularly, our results of operations have been adversely impacted by a faster than anticipated alignment between continental benchmarks and spot prices at Italian hubs leading to sharply lower price realizations in the Italian wholesale market. This development has continued in the first half of 2014. In addition, these trends in sales prices have been reflected only partially in the procurement costs of gas supplies, as European gas operators procure their gas supplies under long-term contracts with producing Countries whereby in some of them the cost of gas is still indexed to the price of crude oil and other derivatives which have diverged from trends in gas spot prices. Therefore wholesale margins on gas were squeezed due to this decoupling which has occurred between spot prices and the oil-linked costs of purchased gas. Adding to the pressure, reduced sales opportunities due to weak demand forced operators to compete even more aggressively on pricing to limit the financial risks associated with the take-or-pay clause provided by the long-term supply contracts. On their part, large clients adopted opportunistic supply patterns, in order to take advantage of the large availability of spot gas. Finally governmental administrations in several European Countries have started to review the indexation mechanism of supply tariffs in the retail sector in order to make residential customers benefit from the ongoing trend in gas spot markets. In Italy, administrative bodies have already enacted effective on October 1, 2013 a new indexation mechanism of the cost of the raw material in pricing formulas of the safeguarded retail market whereby the cost of gas in currently indexed to spot prices thus replacing the previous oil-linked indexation. This development has reduce our margins in the residential sector in the first half of 2014. We forecast that market conditions will remain unfavorable in the gas sector in Italy and Europe for the foreseeable future due to the structural headwinds described above, volatile commodity prices and lack of visibility. We anticipate a number of risk factors to the profitability outlook of the Companys gas marketing business over the next two to three years. Those include weak demand growth due to a projected slow recovery in the Euro zone and macroeconomic uncertainties, declining thermoelectric consumption due to inter-fuel competition, continuing oversupplies and strong competition. Eni believes that those trends will negatively impact the gas marketing business future results of operations and cash

57 -

Contents

Eni Interim Consolidated Report / Financial review and other information

flows by reducing gas selling prices and margins, also considering Enis obligations under its take-or-pay supply contracts (see below).

The Company is seeking to improve its cost competitiveness by renegotiating more favorable contractual terms with our long-term suppliers. If we fail to achieve this our profitability could be adversely affected

Management expects the fundamentals in the gas sector to remain weak in the next two/three years assuming a slow recovery in demand due to macroeconomic headwinds, ongoing oversupplies and strong competition, as the oil-linked cost of gas supplies is projected to remain sustained. Those trends represent risk factors to the Companys gas marketing business, with expected negative impacts on future results of operations and cash flow also considering the take-or-pay obligations (see below). Against this scenario, management has been engaged in the renegotiations of our long-term supply contracts to align its cost structure to prices prevailing in the marketplace in order to preserve the profitability of its gas operations and to reduce the annual minim take of its contracts dictated by the take-or-pay clause in order to be more flexible in the current weak demand environment. The Companys long-term supply contracts provide clauses whereby the parties are entitled to renegotiate contractual conditions from time to time to reflect in a changed market environment. In the first half of 2014 management achieved to renegotiate certain long-term contracts with noticeable economic benefits, some of which related to volumes of gas procured in the previous thermal year. In the first half of 2014, these actions allowed Enis Gas Marketing activity to report an adjusted operating profit of euro 232 million, with a sizeable improvement compared to the loss of euro 743 million reported in first half of 2013. Following the renegotiations finalized at the end of 2013 and in the first half of 2014, about 60% of Enis supply portfolio has been indexed to spot prices quoted at hubs, reducing proportionally the commodity risk deriving from the different mix of indexation of selling prices and procurement costs. Other renegotiations are currently underway. The outcome of those renegotiations is uncertain about both the amount of the economic benefits which will be eventually achieved and the timing of recognition in profit. Furthermore in case counterparties fail to arrange revised contractual terms, ongoing supply contracts provide a chance to each of them to recur to an arbitration proceeding for a definition of the commercial transaction, thus increasing the level of uncertainty surrounding those renegotiations. Considering also ongoing price renegotiations with Eni long-term buyers, results of Gas Marketing activities are subject to an increasing rate of volatility and unpredictability.

The Company expects that current imbalances between demand and supply in the European gas market will persist for sometime

In the first half of 2014, gas demand net of the impact of weather conditions registered a decrease of 5% across Italy and Europe, due to a continuing downturn in the thermoelectric production also driven by an excess of hydroelectric production. The actual demand reflecting mild winter weather in Italy was down by 14%. Management does not believe that beyond these factors there will be a further deterioration in the fundamentals, which however remain at depressed level. Against these ongoing trends, management confirms the levels of gas demand assumed in our four-year plan 2014-2017, which forecasts flat demand across Italy and Europe with target volumes in 2017 amounting to 70 and 490 bcm, respectively, compared to the previous assumptions made in the industrial plan 2013-2016 of a growth rate of 2-2.3%. It is worth mentioning that the projected levels of European gas demand in 2017 are significantly lower than the pre-crisis levels registered in 2008 as a result of weak fundamentals. The projected moderate dynamics in demand might not be sufficient to balance the current situation of oversupply in the marketplace over the next two to three years according to managements estimates. Gas supplies have

58 -

Contents

Eni Interim Consolidated Report / Financial review and other information

been built up in recent years as new, large investments to upgrade import pipelines to Europe have come online from Russia and Algeria and gas wholesalers have contracted important volumes of supplies under long-tem arrangement in past years, forecasting certain trends in demand which actually failed to materialize. Furthermore, in the near future management expects the start-ups of new infrastructures in various European entry points which will add large amounts of new import capacity over the next few years. Those include a new line of the North Stream pipeline connecting Russia to Germany through the Baltic Sea as well as new LNG facilities. In Italy, the gas offered will increase moderately in the future as a new LNG plant is expected to start operations at Livorno with a 4 bcm treatment capacity and effects are in place of Law Decree No. 130/2010 about storage capacity which is expected to increase by 4 bcm by 2015. Those increases in capacity will be partially tempered by a declining availability of LNG on a worldwide scale which has been absorbed by growing energy requirements from East Asian economies. In addition Europes internal production is maturing. However, in the long term management expects the start-up of an array of global LNG projects which are expected to materially add to global LNG supplies as well as it is likely that the United States will support the development of gas export from the domestic production. Overall we foresee a well supplied global gas market. Those trends represent risks to the Companys future results of operations and cash flows in its gas business.

Current, negative trends in gas demand and supply may impair the Companys ability to fulfill its minimum off take obligations in connection with its take-or-pay, long-term gas supply contracts

In order to secure long-term access to gas availability, particularly with a view of supplying the Italian gas market and anticipating certain trends in gas demand which actually failed to materialize, Eni has signed a number of long-term gas supply contracts with national operators of key producing Countries that supply the European gas markets. These contracts have been ensuring approximately 80 bcm of gas availability since 2010 (including the Distrigas portfolio of supplies and excluding Enis other subsidiaries and affiliates) with a residual life of approximately 14 years and a pricing mechanism of some of those contracts that still indexes the cost of gas to the price of crude oil and its products (gasoil, fuel oil, etc.). These contracts include take-or-pay clauses whereby the Company is required to off-take minimum, preset volumes of gas in each year of the contractual term or, in case of failure, to pay the whole price, or a fraction of that price, up to the minimum contractual quantity. The take-or-pay clause entitles the Company to off-take pre-paid volumes of gas in later years. Amounts of cash pre-payments and time schedules for offtaking pre-paid gas vary from contract to contract. Generally, cash pre-payments are calculated on the basis of the energy prices current in the year when the Company is scheduled to purchase the gas, with the balance due in the year when the gas is actually purchased. Amounts of pre-payments range from 10 to 100% of the full price.

The right to off-take pre-paid gas expires within a ten-year term in some contracts or remains in place until contract expiration in other arrangements. In addition, the right to off-take the pre-paid gas can be exercised in future years provided that the Company has fulfilled its minimum take obligation in a given year and within the limit of the maximum annual quantity. In this case, Eni will pay the residual price calculating it as the percentage that complements 100%, based on the arithmetical average of monthly base prices current in the year of the off-take. Similar considerations apply to ship-or-pay contractual obligations.

Management believes that the current market outlook which features weak gas demand growth and large gas availability, as well as strong competitive pressures in the marketplace and the possible changes in the sector specific regulation represent a risk factor to the Companys ability to fulfill its minimum take obligations associated with its long-term supply contracts, considering also the Companys plans for its

59 -

Contents

Eni Interim Consolidated Report / Financial review and other information

sales volumes which are anticipated to remain flat or to decrease slightly in 2014 and in the subsequent years.

Against this scenario, management has been engaged in the renegotiation of the long-term supply contracts and in other portfolio optimization initiatives, with the objective to reduce the take-or-pay exposure and the related financial risk.

Thanks to the outcome of the renegotiations which were defined in the first half of 2014 and the accomplished actions, Eni was able to lift a part of its pre-paid volumes, reducing the deferred cost stated in the balance sheet from euro 1.9 billion as of December 31, 2013 to euro 1.5 billion as of June 30, 2014.

Looking forward, based on managements outlook for gas demand and offer in Europe, projections for sales volumes and unit margins in future years and the probable outcome of the ongoing gas renegotiations, the Company believes that the pre-paid volumes of gas due to the incurrence of the take-or-pay clause will be lifted in the long-term in accordance to current contractual terms thus recovering the cash advances paid to suppliers.

Risks related to changes in the price of oil, natural gas, refined products and chemicals

Operating results in Enis Exploration & Production, Refining & Marketing and Chemical segments are affected by changes in the price of crude oil and by the impacts of movements in crude oil prices on margins of refined and petrochemical products. Overall, lower oil prices have a net adverse impact on Enis results of operations. The effect of lower oil prices on Enis average realizations for produced oil is generally immediate. Furthermore, Enis average realizations for produced oil differ from the price of Brent crude marker primarily due to the circumstance that Enis production list, which also includes heavy crude qualities, has a lower American Petroleum Institute ("API") gravity compared with Brent crude (when processed the latter allows for higher yields of valuable products compared to heavy crude qualities, hence higher market price).

The favorable impact of higher oil prices on Enis results of operations may be offset in part by opposite trends in margins for Enis downstream businesses

The impact of changes in crude oil prices on Enis downstream businesses, including the Refining & Marketing and the Chemicals businesses, depends upon the speed at which the prices of gas and products adjust to reflect movements in oil prices.

Enis results of operations are affected by changes in European refining margins

Results of operations of Enis Refining & Marketing segment are substantially affected by changes in European refining margins which reflect changes in relative prices of crude oil and refined products. The prices of refined products depend on global and regional supply/demand balances, inventory levels, refinery operations, import/export balances and weather. Furthermore, Enis realized margins are also affected by relative price movements of heavy or sour crude qualities versus light or sweet crude qualities, taking into account the ability of Enis refineries to process complex crudes that represents a cost advantage when market prices of heavy crudes are relatively cheaper than the marker Brent price. In the latest years, Enis refining margins were largely unprofitable as the high cost of oil was only partially transferred to final prices of fuels pressured by weak demand, high worldwide and regional inventory levels, excess refining capacity particularly in the Mediterranean area and increasing competitive pressure form product streams imported form Russia, Asia and the USA. In the first half of

60 -

Contents

Eni Interim Consolidated Report / Financial review and other information

2014, the Refining & Marketing segment continued to incur operating losses at euro 442 million (down by 42.6% compared to the first half of 2013) in a context of extreme margin volatility. Management does not expect any significant recovery in industry fundamentals over the short to medium term. The sector as a whole will continue to suffer from weak demand and excess capacity, while the cost of oil feedstock may continue rising and price differentials may remain compressed. In this context, management expects that the Companys refining margins will remain at unprofitable levels in the second half of 2014 and possibly beyond.

Enis results of operations are affected by changes in petrochemical margins

Enis margins on petrochemical products are affected by trends in demand for petrochemical products and movements in crude oil prices to which purchase costs of petroleum-based feedstock are indexed. Given the commoditized nature of Eni petrochemical products, it is difficult for the Company to transfer higher purchase costs for oil-based feedstock to selling prices to customers. In the latest years, Enis petrochemicals business reported operating losses due to unprofitable margins on basic petrochemicals products, mainly the margin on cracker, reflecting high oil-based feedstock costs as demand for petrochemicals commodities plunged due to the economic downturn. In the first half of 2014, Enis chemical business continued to report operating losses of euro 182 million, down by 25.5% from the first half of 2013) due to high cost of oil-based feedstock affecting petrochemical margins, stagnant demand and competitive pressure from Asian competitors.

Short to medium-term prospects remain uncertain due to a slow economic recovery across Italy and in Europe, increased commodity risk due to rising trend in oil prices and competitive dynamics.

To cope with the structural challenges of the Companys chemical business, management decided to implement a strategic shift targeting to restore the economic equilibrium of the Chemicals Division over the medium term. This new strategy features a gradual reduction of the exposure to loss-making, commoditized businesses while growing the Companys presence in niche productions, particularly elastomers and styrene, which showed a good resilience during the downturn, international expansion into South-East Asias growing markets as well as starting innovative productions in the field of bio-chemistry. Part of this strategy is the start of the "green chemistry" project at the Porto Torres plant in the first half of 2014 which envisages restructuring a loss-making oil-based commodity plant into a modern facility to produce chemical feedstock and intermediates based on renewable raw materials, which are destined to large industrial application (such as the tyre industry) with interesting growth opportunities. The project is in joint venture with Novamont. Another relevant element is the restructuring of the Porto Marghera site to produce bio-chemicals from vegetable oils, in partnership with Elevance Renewable Sciences Inc.

In this scenario, the recovery of profitability in the Chemicals Divisions will depend greatly on the effectiveness of diversification and "turn around", as well as continuing improvement of efficiency.

Risks related to legal proceedings and compliance with anti-corruption legislation

Eni is the defendant in a number of civil actions and administrative proceedings arising in the ordinary course of business. In addition to existing provisions accrued as of December 31, 2013 to account for ongoing proceedings, it is possible that in future years Eni may incur significant losses in addition to the amounts already accrued in connection with pending legal proceedings due to: (i) uncertainty regarding the final outcome of each proceeding; (ii) the occurrence of new developments that management could not take into consideration when evaluating the likely outcome of each proceeding in order to accrue the

61 -

Contents

Eni Interim Consolidated Report / Financial review and other information

risk provisions as of the date of the latest financial statements; (iii) the emergence of new evidence and information; and (iv) underestimation of probable future losses due to the circumstance that they are often inherently difficult to estimate.

Certain legal proceedings where Eni or its subsidiaries are parties involve the alleged breach of anti-corruptions laws and regulations and ethical misconduct. Ethical misconduct and non-compliance with applicable laws and regulations, including non-compliance with anti-bribery and anticorruption laws, by Eni, its partners, agents or others that act on the Groups behalf, could expose Eni and its employees to criminal and civil penalties and could be damaging to Enis reputation and shareholder value.

62 -

Contents

Eni Interim Consolidated Report / Financial review and other information

Outlook

The 2014 outlook is linked in part to a moderate strengthening of the global economic recovery. A number of uncertainties remain surrounding this outlook due to weak growth prospects in the Euro-zone and risks from emerging economies. Crude oil prices are forecast on a solid trend driven by geopolitical factors and the resulting technical issues in a number of important producing Countries but also impacted by the backdrop of well-supplied global markets. Management expects that the trading environment will remain challenging for the Companys businesses. We expect continuing weak conditions in the European industries of gas distribution, refining and fuels and chemical products marketing where we do not anticipate any meaningful improvement in demand, while competition, excess supplies and overcapacity will continue to weigh on the sales margins of energy commodities. In light of this, management reaffirms its commitment to restoring profitability and preserving cash generation at the Companys mid and downstream businesses by leveraging cost cuts and continuing renegotiation of long-term gas supply contracts, capacity restructuring and reconversion along with product and marketing innovation. Management expects the following production and sales trends for Enis businesses:

- Production of liquids and natural gas : production is expected to remain substantially in line with 2013, excluding the impact of the divestment of Enis interest in the Artic Russia gas assets; - Gas sales : natural gas sales are expected to be slightly lower than 2013, excluding the impact of the expected divestment of Enis interest in a commercial joint venture in Germany. Management is planning to strengthen marketing efforts and innovation to withstand competitive pressures in both in the large customers segment and in the retail segment. This is set against the backdrop of the ongoing downturn in demand and oversupplies, particularly in Italy; - Refining throughputs on Enis account : volumes are expected to be lower than those processed in 2013 due to capacity reductions and plants optimization process designed to mitigate the impact of a negative trading environment. This has only partially been offset by higher output at the new EST technology conversion plant at the Sannazzaro Refinery; - Retail sales of refined products in Italy and the Rest of Europe : retail sales are expected to be lower than in 2013 due to an ongoing demand downturn in Italy, increasing competitive pressure and the expected impact of network reorganization in Italy and in Europe; - Engineering & Construction : 2014 will be a transitional year with profitability expected to recover, although the extent of this recovery will be determined by the effective execution of operational and commercial activities on low-margin contracts still present in the current portfolio and by how quickly bids currently under consideration are awarded.

In 2014, management expects to make further spending optimizations that will results in lower capital expenditure from 2013 (euro 12.80 billion in capital expenditure and euro 0.32 billion in financial investments in 2013). Assuming a Brent price of $108 a barrel and an average euro/dollar exchange rate of 1.35 for the full year 2014 (1.31 euro/dollar exchange rate expected at December 31, 2014), the ratio of net borrowings to total equity leverage is projected to be almost in line with the level achieved at the end of 2013, due to cash flows from operations and portfolio transactions.

63 -

Contents

Eni Interim Consolidated Report / Other information

Transaction with related parties

In the ordinary course of its business Eni and its controlled entities enter into transactions with related parties regarding essentially the exchange of goods, provision of services and financing with joint ventures, associates and non-consolidated subsidiaries as well as the exchange of goods and provision of services with entities directly and indirectly owned or controlled by the Italian Government. Transactions with related parties were conducted in the interest of Eni companies and on an arms length basis.

Under current applicable laws and regulations, Eni adopted internal procedures guaranteeing transparency and substantial and formal fairness of all transactions with related parties, performed by Eni or its subsidiaries. Twice a year each member of the Board of Directors and Board of Statutory Auditors shall declare any transaction he or she entered with Eni SpA or its subsidiaries, and in any case he or she shall timely inform the CEO (or the Chairman, in the case of interests on the part of the CEO) of each transaction that the company plans to carry out and in which those member may have an interest; the CEO (or Chairman) shall inform other Directors and the Board of Statutory Auditors.

Note 35 to the Condensed Consolidated Interim Financial Statements illustrates amounts related to commercial, financial and other transactions entered into with related parties and describes relevant operations as well as the economic and financial impacts on the balance sheet, the profit and loss and the statement of cash flows. Companies subject to Enis management and coordination as per Article 2497 of the Italian Civil Code indicate the effect, motives and reasons and interests to be discussed when relevant management decisions are made that are influenced by their controlling entity in the paragraph: "Relations with controlling entity and with companies subject to its management and coordination".

In case of atypical or unusual transactions 1 the company shall disclose a description of said transaction, the effects it produces on its economic and financial position and, in case of transactions within the group and with related parties also the interest of the company at the time of the finalization of said transaction.

Continuing listing standards provided by Article No. 36 of Italian exchanges regulation (adopted with Consob Decision No. 16191/2007 as amended) about issuers that control subsidiaries incorporated or regulated in accordance with laws of extra-EU Countries

Certain provisions have been enacted regulating continuing Italian listing standards of issuers controlling subsidiaries that are incorporated or regulated in accordance with laws of extra-EU Countries, also having a material impact on the Consolidated Financial Statements of the parent company.

Regarding the aforementioned provisions, the Company discloses that:

| - | as of June 30, 2014, the
provisions of Article No. 36 of Italian exchanges
regulation in accordance with Italian continuing listing
standards apply to Enis subsidiaries Burren Energy
(Bermuda) Ltd, Eni Congo SA, Eni Norge AS, Eni Petroleum
Co Inc, NAOC-Nigerian Agip Oil Co Ltd, Nigerian Agip
Exploration Ltd, Burren Energy (Congo) Ltd, Eni Finance
USA Inc, Eni Trading & Shipping Inc and Eni Canada
Holding Ltd; |
| --- | --- |
| - | the Company has already
adopted adequate procedures to ensure full compliance
with the regulation. |

(1) According to Consob communication No. DEM/6064293 of July 28, 2006, "atypical or unusual transactions are those transactions that can give rise to doubts about the completeness and adequacy of financial information, conflicts of interest, protection of equity and non controlling interests due to the importance/relevance of involved counterparties, object of the transaction, mode of determination of transfer prices and timing of events (nearing the closing of accounting periods).

64 -

Contents

Eni Interim Consolidated Report / Other information

Branches

In accordance with Article No. 2428 of the Italian Civil Code, it is hereby stated that Eni has the following branches: San Donato Milanese (MI) - Via Emilia, 1; San Donato Milanese (MI) - Piazza Vanoni, 1.

Subsequent events

Subsequent business developments are described in the operating review of each of Enis business segments.

65 -

Contents

Eni Interim Consolidated Report / Glossary

The glossary of oil and gas terms is available on Enis web page at the address eni.com. Below is a selection of the most frequently used terms.

Financial terms

Dividend Yield Measures the return on a share based on dividends for the year. Calculated as the ratio of dividends per share of the year and the average reference price of shares in the last month of the year. Generally, companies tend to keep a constant dividend yield, as shareholders compare this indicator with the yield of other shares or other financial instruments (e.g. bonds).
Leverage Is a measure of a companys debt, calculated as the ratio between net financial debt and shareholders equity, including non-controlling interests.
ROACE Return On Average Capital Employed Is the return on average capital invested, calculated as the ratio between net income before non-controlling interests, plus net financial charges on net financial debt, less the related tax effect and net average capital employed.
Coverage Financial discipline ratio, calculated as the ratio between operating profit and net finance charges.
Current ratio Measures the capability of the company to repay short-term debt, calculated as the ratio between current assets and current liabilities.
Debt coverage Rating companies use the debt coverage ratio to evaluate debt sustainability. It is calculated as the ratio between net cash provided by operating activities and net borrowings, less cash and cash-equivalents, Securities held for non-operating purposes and financing receivables for non operating purposes.
Profit per boe Measures the return per oil and natural gas barrel produced. It is calculated as the ratio between Results of operations from E&P activities (as defined by FASB Extractive Activities - Oil & Gas Topic 932) and production sold.
Opex per boe Measures efficiency in the oil&gas development activities, calculated as the ratio between operating costs (as defined by FASB Extractive Activities - Oil & Gas Topic 932) and production sold.
Cash flow per boe Represents cash flow per each boe of hydrocarbon produced, less non-monetary items. Calculated as the ratio between Results of operations from E&P activities, net of depreciation, depletion, amortization and impairment and exploration expenses (as defined by FASB Extractive Activities - Oil & Gas Topic 932) and volumes of oil and gas produced.
Finding & Development cost per boe Represents Finding & Development cost per boe of new proved or possible reserves. It is calculated as the overall amount of exploration and development expenditure, the consideration for the acquisition of possible and probable reserves as well as additions of proved reserves deriving from improved recovery, extensions, discoveries and revisions of previous estimates (as defined by FASB Extractive Activities - Oil & Gas Topic 932).
66 -

Contents

Eni Interim Consolidated Report / Glossary

Oil and natural gas activities

Average reserve life index Ratio between the amount of reserves at the end of the year and total production for the year.
Barrel Volume unit corresponding to 159 liters. A barrel of oil corresponds to about 0.137 metric tons.
Boe (Barrel of Oil Equivalent) Is used as a standard unit measure for oil and natural gas. From July 1, 2012, Eni has updated the conversion rate of gas to 5,492 cubic feet of gas equals 1 barrel of oil (it was 5,550 cubic feet of gas per barrel in previous reporting periods).
Carbon Capture and Storage (CCS) Technique of CO 2 capture and storage through an integrated process that involves: (i) capture of CO 2 associated with large combustion plants, power generation plants, industrial point sources, as well as natural gas fields; (ii) transport to the storage sites, generally via pipeline; and (iii) sequestration in geological sites on land or under the sea floor.
Concession contracts Contracts currently applied mainly in Western Countries regulating relationships between States and oil companies with regards to hydrocarbon exploration and production. The company holding the mining concession has an exclusive on mining activities and for this reason it acquires a right on hydrocarbons extracted, against the payment of royalties to the State on production and taxes on oil revenues.
Condensates These are light hydrocarbons produced along with gas, that condense to a liquid state at normal temperature and pressure for surface production facilities.
Contingent resources Amounts of oil and gas estimated at a given date that are potentially recoverable by means of development projects that are not considered commercially recoverable due to one or more contingency.
Conversion Refinery process allowing the transformation of heavy fractions into lighter fractions. Conversion processes are cracking, visbreaking, coking, the gasification of refinery residues, etc. The ration of overall treatment capacity of these plants and that of primary crude fractioning plants is the conversion rate of a refinery. Flexible refineries have higher rates and higher profitability.
Deep waters Waters deeper than 200 meters.
Development Drilling and other post-exploration activities aimed at the production of oil and gas.
Elastomers (or Rubber) Polymers, either natural or synthetic, which, unlike plastic, when stress is applied, return, to a certain degree, to their original shape, once the stress ceases to be applied. The main synthetic elastomers are polybutadiene (BR), styrene-butadiene rubber (SBR), ethylenepropylene rubber (EPR), thermoplastic rubber (TPR) and nitrylic rubber (NBR).
Emissions of NMVOC (Non Methane Volatile Organic Compounds) Total direct emissions of hydrocarbons, hydrocarbons substitutes (e.g. mercaptans) and oxygenated hydrocarbons (e.g. MTBE) that evaporate at normal temperature. They include LPG and exclude methane. Main sources are fugitive emissions from storage tanks and pipelines in industrial plants and deposits, distribution networks, flaring (often incomplete), venting, etc.
Emissions of NO x (Nitrogen Oxides) Total direct emissions of nitrogen oxides deriving from combustion processes in air. They include NO x emissions from flaring activities, sulphur recovery processes, FCC regeneration, etc. They include NO and NO 2 emissions and exclude N 2 O emissions.
Emissions of SO x (Sufur Oxides) Total direct emissions of sulfur oxides including SO 2 and SO 3 emissions. Main sources are combustion plants, diesel engines (including maritime engines), gas flaring (if the gas contains H 2 S), sulphur recovery processes, FCC regeneration, etc.
67 -

Contents

Eni Interim Consolidated Report / Glossary

Enhanced recovery Techniques used to increase or stretch over time the production of wells.
EPC (Engineering, Procurement, Construction) A contract typical of onshore construction of large plants in which the contractor supplies engineering, procurement and construction of the plant. The contract is defined "turnkey" when the plant is supplied for start-up.
EPCI (Engineering, Procurement, Commissioning, Installation) A contract typical of offshore construction of complex projects (such as the installation of production platforms or FPSO systems) in which the global or main contractor, usually a company or a consortium of companies, supplies engineering, procurement, construction of plant and infrastructure, transport to the site and all preparatory activities for the start-up of plants.
Exploration Oil and natural gas exploration that includes land surveys, geological and geophysical studies, seismic data gathering and analysis, and well drilling.
FPSO vessel Floating, Production, Storage and Offloading system made-up of a large capacity oil tanker including a large hydrocarbon treatment plant. This system, moored at the bow in order to maintain a geostationary position, is in fact a temporary fixed platform linking the underwater wellheads to the treatment, storage and offloading systems onboard by means of risers from the seabed.
Green House Gases (GHG) Gases in the atmosphere, transparent to solar radiation, can consistently trap infrared radiation emitted by the earths surface, atmosphere and clouds. The six relevant greenhouse gases covered by the Kyoto Protocol are carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF 6 ). GHGs absorb and emit radiation at specific wavelengths within the range of infrared radiation determining the so called greenhouse phenomenon and the related increase of earths average temperature.
Infilling wells Infilling wells are wells drilled in a producing area in order to improve the recovery of hydrocarbons from the field and to maintain and/or increase production levels.
LNG Liquefied Natural Gas obtained through the cooling of natural gas to minus 160 °C at normal pressure. The gas is liquefied to allow transportation from the place of extraction to the sites at which it is transformed and consumed. One ton of LNG corresponds to 1,400 cubic meters of gas.
LPG Liquefied Petroleum Gas, a mix of light petroleum fractions, gaseous at normal pressure and easily liquefied at room temperature through limited compression.
Mineral Potential (Potentially recoverable hydrocarbon volumes) Estimated recoverable volumes which cannot be defined as reserves due to a number of reasons, such as the temporary lack of viable markets, a possible commercial recovery dependent on the development of new technologies, or for their location in accumulations yet to be developed or where evaluation of known accumulations is still at an early stage.
Mineral Storage Volumes of natural gas required for allowing optimal operation of natural gas fields in Italy for technical and economic reasons.
Modulation Storage Volumes of natural gas required for meeting hourly, daily and seasonal swings of demand.
Natural gas liquids Liquid or liquefied hydrocarbons recovered from natural gas through separation equipment or natural gas treatment plants. Propane, normal-butane and isobutane, isopentane and pentane plus, that used to be defined natural gasoline, are natural gas liquids.
Network Code A code containing norms and regulations for access to, management and operation of natural gas pipelines.
68 -

Contents

Eni Interim Consolidated Report / Glossary

Offshore/onshore The term offshore indicates a portion of open sea and, by induction, the activities carried out in such area, while onshore refers to land operations.
Oil spills Discharge of oil or oil products from refining or oil waste occurring in the normal course of operations (when accidental) or deriving from actions intended to hinder operations of business units or from sabotage by organized groups (when due to sabotage or terrorism).
Olefins (or Alkenes) Hydrocarbons that are particularly active chemically, used for this reason as raw materials in the synthesis of intermediate products and of polymers.
Over/underlifting Agreements stipulated between partners regulate the right of each to its share in the production of a set period of time. Amounts different from the agreed ones determine temporary over/underlifting situations.
Possible reserves Possible reserves are those additional reserves that are less certain to be recovered than probable reserves.
Probable reserves Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.
Production Sharing Agreement Contract in use in non OECD Countries, regulating relationships between States and oil companies with regard to the exploration and production of hydrocarbons. The mining concession is assigned to the national oil company jointly with the foreign oil company who has exclusive right to perform exploration, development and production activities and can enter agreements with other local or international entities. In this type of contract the national oil company assigns to the international contractor the task of performing exploration and production with the contractors equipment and financial resources. Exploration risks are borne by the contractor and production is divided into two portions: "Cost Oil" is used to recover costs borne by the contractor, "Profit Oil" is divided between contractor and national company according to variable schemes and represents the profit deriving from exploration and production. Further terms and conditions may vary from one Country to the other.
Proved reserves Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from know reservoirs, and under existing economic conditions. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.
Reserves Quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project. Reserves can be: (i) developed reserves quantities of oil and gas anticipated to be through installed extraction equipment and infrastructure operational at the time of the reserves estimate; (ii) undeveloped reserves: oil and gas expected to be recovered from new wells, facilities and operating methods.
Reserve replacement ratio Measure of the reserves produced replaced by proved reserves. Indicates the companys ability to add new reserves through exploration and purchase of property. A rate higher than 100% indicates that more reserves were added than produced in the period. The ratio should be averaged on a three-year period in order to reduce the distortion deriving from the purchase of proved property, the revision of previous estimates, enhanced recovery, improvement in recovery rates and changes in the value of reserves in PSAs due to changes in international oil prices. Management also
69 -

Contents

Eni Interim Consolidated Report / Glossary

calculates this ratio by excluding the effect of the purchase of proved property in order to better assess the underlying performance of the Companys operations.

Ship-or-pay Clause included in natural gas transportation contracts according to which the customer for which the transportation is carried out is bound to pay for the transportation of the gas also in case the gas is not transported.
Strategic Storage Volumes of natural gas required for covering lack or reduction of supplies from extra-European sources or crises in the natural gas system.
Swap In the gas sector, the term is referred to a buy/sell contract between some counterparties and is generally aimed to the optimization of transport costs and respective commitments in purchasing and supplying.
Take-or-pay Clause included in natural gas purchase contracts according to which the purchaser is bound to pay the contractual price or a fraction of such price for a minimum quantity of the gas set in the contract also in case it is not collected by the customer. The customer has the option of collecting the gas paid and not delivered at a price equal to the residual fraction of the price set in the contract in subsequent contract years.
Upstream/downstream The term upstream refers to all hydrocarbon exploration and production activities. The term downstream includes all activities inherent to the oil sector that are downstream of exploration and production activities.
Wholesale sales Domestic sales of refined products to wholesalers/distributors (mainly gasoil), public administrations and end consumers, such as industrial plants, power stations (fuel oil), airlines (jet fuel), transport companies, big buildings and households. They do not include distribution through the service station network, marine bunkering, sales to oil and petrochemical companies, importers and international organizations.
Workover Intervention on a well for performing significant maintenance and substitution of basic equipment for the collection and transport to the surface of liquids contained in a field.
70 -

Contents

Eni Interim Consolidated Report / Financial statements

Balance sheet

January 1, 2013 (a) December 31, 2013 (a) June 30, 2014

Total amount (euro million) Note Total amount of which with related parties Total amount of which with related parties

		ASSETS
		Current
assets
7,936		Cash and cash equivalents		5,431		6,518
		Financial
assets held for trading	(5)	5,004		5,020
237		Financial assets available for sale	(6)	235		244
28,618		Trade and
other receivables	(7)	28,890	1,869	28,246	1,794
8,578		Inventories	(8)	7,939		8,257
771		Current
tax assets		802		730
1,239		Other current tax assets		835		897
1,617		Other
current assets	(9)	1,325	15	3,351	34
48,996				50,461		53,263
		Non-current
assets
64,798		Property, plant and equipment	(10)	63,763		65,913
2,541		Inventory
- compulsory stock		2,573		2,457
4,487		Intangible assets	(11)	3,876		3,707
3,453		Equity-accounted
investments	(12)	3,153		3,112
5,085		Other investments	(12)	3,027		2,412
913		Other
financial assets	(13)	858	320	975	228
5,005		Deferred tax assets	(14)	4,658		4,579
4,398		Other
non-current receivables	(15)	3,676	42	2,995	42
90,680				85,584		86,150
516		Assets
held for sale	(24)	2,296		663
140,192		TOTAL ASSETS		138,341		140,076
		LIABILITIES
AND SHAREHOLDERS' EQUITY
		Current liabilities
2,032		Short-term
debt	(16)	2,553	264	3,238	249
3,015		Current portion of long-term debt	(20)	2,132		3,057
23,666		Trade and
other payables	(17)	23,701	2,160	21,231	1,732
1,633		Income taxes payable	(18)	755		845
2,188		Other
taxes payable		2,291		2,477
1,418		Other current liabilities	(19)	1,437	17	2,760	25
33,952				32,869		33,608
		Non-current liabilities
19,145		Long-term
debt	(20)	20,875		19,967
13,567		Provisions for contingencies	(21)	13,120		14,465
1,407		Provisions
for employee benefits		1,279		1,302
6,745		Deferred tax liabilities	(22)	6,750		7,138
2,598		Other
non-current liabilities	(23)	2,259		2,114	20
43,462				44,283		44,986
361		Liabilities
directly associated with assets held for sale	(24)	140		221
77,775		TOTAL LIABILITIES		77,292		78,815
		SHAREHOLDERS'
EQUITY	(25)
3,357		Non-controlling interest		2,839		2,759
		Eni
shareholders' equity
4,005		Share capital		4,005		4,005
(16	)	Reserve
related to cash flow hedging derivatives net of tax
effect		(154	)	19
49,438		Other reserves		51,393		52,920
(201	)	Treasury
shares		(201	)	(403	)
(1,956	)	Interim dividend		(1,993	)
7,790		Net profit		5,160		1,961
59,060		Total Eni shareholders' equity		58,210		58,502
62,417		TOTAL
SHAREHOLDERS' EQUITY		61,049		61,261
140,192		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		138,341		140,076

(a) See note 2 - "Changes in accounting policies" for information on the restatement of comparative amounts as a result of the adoption of new IFRS 10 and 11.

72 -

Contents

Eni Interim Consolidated Report / Financial statements

Profit and loss account

First half 2013 (a) First half 2014

(euro million) Note Total amount of which with related parties Total amount of which with related parties

REVENUES — Net sales from operations	(28)	59,287		1,880		56,556		1,375
Other
income and revenues		375		9		192		28
		59,662				56,748
OPERATING
EXPENSES	(29)
Purchases, services and other		47,047		3,749		43,346		3,564
Payroll
and related costs		2,586		7		2,716		19
OTHER OPERATING (EXPENSE) INCOME		(10	)	10		403		150
DEPRECIATION,
DEPLETION, AMORTIZATION AND IMPAIRMENTS		4,681				5,188
OPERATING PROFIT		5,338				5,901
FINANCE
INCOME (EXPENSE)	(30)
Finance income		3,214		11		3,361		19
Finance
expense		(3,805	)	(55	)	(3,837	)	(18	)
Finance income from financial instruments held
for trading, net						16
Finance
expense from derivative financial instruments, net		(19	)			(33	)
		(610	)			(493	)
INCOME
(EXPENSE) FROM INVESTMENTS	(31)
Share of profit (loss) of equity-accounted
investments		161				111
Other gain
(loss) from investments		471				510
		632				621
PROFIT
BEFORE INCOME TAXES		5,360				6,029
Income taxes	(32)	(3,925	)			(4,111	)
Net
profit for the period		1,435				1,918
Attributable to
Eni		1,818				1,961
Non-controlling interest		(383	)			(43	)
		1,435				1,918
Earnings per share attributable to Eni (euro per share)	(33)
Basic		0.50				0.54
Diluted		0.50				0.54

(a) See note 2 - "Changes in accounting policies" for information on the restatement of comparative amounts as a result of the adoption of new IFRS 10 and 11.

73 -

Contents

Eni Interim Consolidated Report / Financial statements

Statement of comprehensive income

(euro million) Note First half 2013 (a) First half 2014

Net profit for the period		1,435		1,918
Other
items of comprehensive income
Other comprehensive
income to be reclassified to profit or loss in subsequent
periods
Foreign
currency translation differences		157		423
Change in the fair
value of investments	(25)	(100	)	(77	)
Change
in the fair value of other available-for-sale financial
instruments	(25)	(2	)	5
Change in the fair
value of cash flow hedging derivatives	(25)	3		250
Share
of "Other comprehensive income" on
equity-accounted entities	(25)	2		(1	)
Tax effect	(25)			(77	)
Total
other items of comprehensive income		60		523
Total comprehensive income		1,495		2,441
Attributable
to
Eni		1,889		2,475
Non-controlling
interest		(394	)	(34	)
		1,495		2,441

(a) See note 2 - "Changes in accounting policies" for information on the restatement of comparative amounts as a result of the adoption of new IFRS 10 and 11.

74 -

Contents

Eni Interim Consolidated Report / Financial statements

Statement of changes in shareholders equity

Eni shareholders equity

(euro million) Note Share capital Legal reserve of Eni SpA Reserve for treasury shares Reserve related to the fair value of cash flow hedging derivatives net of the tax effect Reserve related to the fair value of other available-for-sale financial instruments net of the tax effect Reserve for defined benefit plans net of tax effect Other reserves Cumulative currency translation differences Treasury shares Retained earnings Interim dividend Net profit for the period Total Non- controlling interest Total shareholders equity

Balance at December 31, 2012		4,005	959	6,201	(16	)	144		)	292		942		(201	)	40,988		(1,956	)	7,790		59,060		3,498		62,558
Changes in
accounting principles (IFRS 10 and 11)																								(141	)	(141	)
Balance at January 1, 2013		4,005	959	6,201	(16	)	144	(88	)	292		942		(201	)	40,988		(1,956	)	7,790		59,060		3,357		62,417
Net
profit for the first half of 2013																				1,818		1,818		(383	)	1,435
Other items of comprehensive income
Other
comprehensive income to be reclassified to profit or loss
in subsequent periods
Foreign currency translation differences												153				15						168		(11	)	157
Change in
the fair value of investments net of tax effect							(98	)														(98	)			(98	)
Change in the fair value of other
available-for-sale financial instruments net of tax
effect							(2	)														(2	)			(2	)
Change in
the fair value of cash flow hedge derivatives net of tax
effect					1																	1				1
Share of "Other comprehensive income" on equity-accounted entities										2												2				2
					1		(100	)		2		153				15						71		(11	)	60
Comprehensive income for the period					1		(100	)		2		153				15				1,818		1,889		(394	)	1,495
Transactions
with shareholders
Dividend distribution of Eni SpA (euro 0.54 per
share in settlement of 2012 interim dividend of euro 0.54
per share)																(829	)	1,956		(3,083	)	(1,956	)			(1,956	)
Dividend
distribution to other companies																								(213	)	(213	)
Allocation of 2012 net profit																4,707				(4,707	)
Acquisition
of non-controlling interest relating to Tigáz Zrt										5												5		(31	)	(26	)
										5						3,878		1,956		(7,790	)	(1,951	)	(244	)	(2,195	)
Other
changes in shareholders equity
Elimination of intercompany profit between
companies with different Group interest																(23	)					(23	)	23
Other
changes																2						2		(2	)
																(21	)					(21	)	21
Balance
at June 30, 2013		4,005	959	6,201	(15	)	44	(88	)	299		1,095		(201	)	44,860				1,818		58,977		2,740		61,717
Net profit for the second half of 2013																				3,342		3,342		182		3,524
Other
items of comprehensive income
Items not to be reclassified to profit or
loss in subsequent periods
Revaluations
of defined benefit plans net of tax effect								18														18		7		25
Share of "Other comprehensive income" on equity-accounted entities in relation to revaluations
of defined benefit plans net of tax effect								(1	)													(1	)	(2	)	(3	)
								17														17		5		22
Other comprehensive income to be
reclassified to profit or loss in subsequent periods
Foreign
currency translation differences								(1	)			(1,793	)			(186	)					(1,980	)	(48	)	(2,028	)
Change in the fair value of investments net of
tax effect							36															36				36
Change in
the fair value of other available-for-sale financial
instruments net of tax effect							1															1				1
Change in the fair value of cash flow hedge
derivatives net of tax effect					(139	)																(139	)	1		(138	)
Share of
"Other comprehensive income" on equity-accounted entities										(2	)											(2	)			(2	)
					(139	)	37	(1	)	(2	)	(1,793	)			(186	)					(2,084	)	(47	)	(2,131	)
Comprehensive
income for the period					(139	)	37	16		(2	)	(1,793	)			(186	)			3,342		1,275		140		1,415
Transactions with shareholders
Interim
dividend distribution of Eni SpA (euro 0.55 per share)																		(1,993	)			(1,993	)			(1,993	)
Dividend distribution to other companies																								(37	)	(37	)
Acquisition
of non-controlling interest relating to Tigáz Zrt										(1	)											(1	)	(1	)	(2	)
Payments by minority shareholders																								1		1
Treasury
shares sold following the exercise of stock options by
Saipem managers																								1		1
										(1	)							(1,993	)			(1,994	)	(36	)	(2,030	)
Other
changes in shareholders equity
Elimination of intercompany profit between
companies with different Group interest																(9	)					(9	)	9
Stock
option expired																(13	)					(13	)			(13	)
Other changes																(26	)					(26	)	(14	)	(40	)
																(48	)					(48	)	(5	)	(53	)
Balance at December 31, 2013	(25)	4,005	959	6,201	(154	)	81	(72	)	296		(698	)	(201	)	44,626		(1,993	)	5,160		58,210		2,839		61,049

75 -

Contents

Eni Interim Consolidated Report / Financial statements

continued Statement of changes in shareholders equity

Eni shareholders equity

Balance at December 31, 2013	(25)	4,005	959	6,201	(154	81		)	296	(698	)	(201	)	44,626	(1,993	5,160		58,210		2,839		61,049
Net profit for the first half of 2014																1,961		1,961		(43	)	1,918
Other items of comprehensive income
Other comprehensive income to be
reclassified to profit or loss in subsequent periods
Foreign currency translation differences										395				18				413		10		423
Change in the fair value of investments net of
tax effect	(25)					(76	)											(76	)			(76	)
Change in the fair value of other
available-for-sale financial instruments net of tax
effect	(25)					4												4				4
Change in the fair value of cash flow hedge
derivatives net of tax effect	(25)				173													173				173
Share of "Other comprehensive income" on equity-accounted entities	(25)																			(1	)	(1	)
					173	(72	)			395				18				514		9		523
Comprehensive income for the period					173	(72	)			395				18		1,961		2,475		(34	)	2,441
Transactions with shareholders
Dividend distribution of Eni SpA (euro 0.55 per
share in settlement of 2013 interim dividend of euro 0.55
per share)															1,993	(3,979	)	(1,986	)			(1,986	)
Dividend distribution to other companies																				(48	)	(48	)
Allocation of 2013 net profit														1,181		(1,181	)
Purchase of treasury shares												(202	)					(202	)			(202	)
Payments by minority shareholders																				1		1
												(202	)	1,181	1,993	(5,160	)	(2,188	)	(47	)	(2,235	)
Other changes in shareholders equity
Other changes														5				5		1		6
														5				5		1		6
Balance at June 30, 2014	(25)	4,005	959	6,201	19	9	(72	)	296	(303	)	(403	)	45,830		1,961		58,502		2,759		61,261

76 -

Contents

Eni Interim Consolidated Report / Financial statements

Statement of cash flows

(euro million) Note First half 2013 (a) First half 2014

| Net profit
of the period | | | | | |
| --- | --- | --- | --- | --- | --- |
| Adjustments to reconcile net profit to net
cash provided by operating activities | | | | | |
| Depreciation
and amortization | (29) | 4,593 | | 4,810 | |
| Impairments of tangible and intangible assets,
net | (29) | 88 | | 378 | |
| Share of
(profit) loss of equity-accounted investments | (31) | (161 | ) | (111 | ) |
| Gain on disposal of assets, net | | (168 | ) | (20 | ) |
| Dividend
income | (31) | (306 | ) | (174 | ) |
| Interest income | | (59 | ) | (75 | ) |
| Interest
expense | | 374 | | 351 | |
| Income taxes | (32) | 3,925 | | 4,111 | |
| Other
changes | | 167 | | (143 | ) |
| Changes in working capital: | | | | | |
| -
inventories | 684 | | (282 | ) | |
| - trade receivables | (385 | ) | 1,574 | | |
| - trade
payables | (1,889 | ) | (2,041 | ) | |
| - provisions for contingencies | (292 | ) | 28 | | |
| - other
assets and liabilities | 1,828 | | (968 | ) | |
| Cash flow from changes in working capital | | (54 | ) | (1,689 | ) |
| Change in
the provisions for employee benefits | | 16 | | 4 | |
| Dividends received | | 409 | | 344 | |
| Interest
received | | 57 | | 26 | |
| Interest paid | | (694 | ) | (325 | ) |
| Income
taxes paid, net of tax receivables received | | (4,807 | ) | (3,665 | ) |
| Net cash provided by operating activities | | 4,815 | | 5,740 | |
| - of
which with related parties | (35) | (1,319 | ) | (1,781 | ) |
| Investing activities: | | | | | |
| -
tangible assets | (10) | (4,902 | ) | (4,752 | ) |
| - intangible assets | (11) | (1,045 | ) | (772 | ) |
| -
consolidated subsidiaries and businesses | (26) | (28 | ) | (36 | ) |
| - investments | (12) | (148 | ) | (157 | ) |
| -
securities | | (18 | ) | (48 | ) |
| - financing receivables | | (482 | ) | (519 | ) |
| -
change in payables and receivables in relation to
investing activities and capitalized depreciation | | 139 | | 158 | |
| Cash flow from investing activities | | (6,484 | ) | (6,126 | ) |
| Disposals: | | | | | |
| - tangible assets | | 186 | | 7 | |
| -
intangible assets | | 4 | | | |
| - investments | | 2,275 | | 3,007 | |
| -
securities | | 27 | | 40 | |
| - financing receivables | | 1,260 | | 308 | |
| -
change in payables and receivables in relation to
disposals | | 51 | | 6 | |
| Cash flow from disposals | | 3,803 | | 3,368 | |
| Net
cash used in investing activities | | (2,681 | ) | (2,758 | ) |
| - of which with related parties | (35) | 623 | | (484 | ) |

(a) See note 2 - "Changes in accounting policies" for information on the restatement of comparative amounts as a result of the adoption of new IFRS 10 and 11.

77 -

Contents

Eni Interim Consolidated Report / Financial statements

continued Statement of cash flows

(euro million) Note First half 2013 (a) First half 2014

| Proceeds
from long-term debt | (20) | 2,594 | | 2,477 | |
| --- | --- | --- | --- | --- | --- |
| Repayments of long-term debt | (20) | (3,314 | ) | (2,793 | ) |
| Increase
(decrease) in short-term debt | (16) | 928 | | 664 | |
| | | 208 | | 348 | |
| Net
capital contributions by non-controlling interest | | | | 1 | |
| Acquisition of additional interests in
consolidated subsidiaries | | (25 | ) | | |
| Dividends
paid to Eni's shareholders | | (1,956 | ) | (1,986 | ) |
| Dividends paid to non-controlling interest | | (210 | ) | (48 | ) |
| Purchase
of treasury shares | | | | (202 | ) |
| Net cash used in financing activities | | (1,983 | ) | (1,887 | ) |
| - of
which with related parties | (35) | 49 | | (17 | ) |
| Effect of change in consolidation
(inclusion/exclusion of significant/insignificant
subsidiaries) | | | | 2 | |
| Effect of
exchange rate changes on cash and cash equivalents and
other changes | | (13 | ) | (10 | ) |
| Net cash flow for the period | | 138 | | 1,087 | |
| Cash
and cash equivalents - beginning of period | | 7,936 | | 5,431 | |
| Cash and cash equivalents - end of period | | 8,074 | | 6,518 | |

(a) See note 2 - "Changes in accounting policies" for information on the restatement of comparative amounts as a result of the adoption of new IFRS 10 and 11.

78 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

| Notes to
the condensed consolidated interim financial statements | |
| --- | --- |
| 1 Basis of
presentation Eni Condensed Consolidated
Interim Financial Statements have been prepared in
accordance with IAS 34 "Interim Financial
Reporting". The statements are the same adopted in
the Annual Report 2013. The Condensed Consolidated Interim Financial Statements
have been prepared adopting the same principles of
consolidation and measurement criteria described in the
Annual Report 2013, except for the international
accounting standards effective starting from January 1,
2014 disclosed in the paragraph "Recent accounting
standards" of Annual Report 2013. The 2014 Condensed Consolidated Interim Financial Statements
have been prepared adopting IFRS 10
"Consolidated Financial Statements"
(hereinafter IFRS 10), IFRS 11 "Joint
Arrangements" (hereinafter IFRS 11) and the revised
version of IAS 28 "Investments in Associates and
Joint Ventures", whose provisions are summarized
below 1 . IFRS 10 provides a new definition of control to be
consistently applied to all entities (included structured
entities). According to this definition, an entity
controls an investee when the investor is exposed, or has
rights, to variable returns from its involvement with the
investee and has the ability to affect those returns
through its power over the investee. IFRS 11 applies to the accounting for all joint
arrangements, in which the parties to the arrangement
classify, as joint operations or joint ventures,
depending upon their underlying contractual rights and
obligations to the joint arrangement. A joint operation
is a joint arrangement in which the parties that have
joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to
the arrangement. A joint venture is a joint (1) Furthermore, as indicated in the
paragraph "Recent accounting standards" of
Annual Report 2013, starting from January 1, 2014, the
following standards are effective: (i) IFRS 12
"Disclosure of Interests in Other Entities";
(ii) the amendments to IAS 32 "Financial
Instruments: Presentation Offsetting Financial
Assets and Financial Liabilities", the amendments to
IAS 36 "Impairment of assets Recoverable
Amount Disclosures for Non-Financial Assets" and the
amendments to IAS 39 "Financial Instruments:
Recognition and Measurement Novation of
Derivatives and Continuation of Hedge Accounting".
IFRS 12 shall not be applied in the Condensed Interim
Financial Statements; the adoption of the amendments to
IAS 32, to IAS 36 and to IAS 39 has not resulted in
material effects. | arrangement in which the
parties that have joint control of the arrangement have
rights to the net assets of the arrangement. A joint arrangement in which the assets and liabilities
relating to the arrangement are held in a separate
vehicle can be either a joint venture or a joint
operation. However, a joint arrangement that is not
structured through a separate vehicle is a joint
operation. According to IFRS 11, joint ventures are accounted for
using the equity method. A joint operator shall recognize
its interest in the assets, liabilities, revenues and
expenses relating to the joint operation, whether or not
structured through a separate vehicle, depending on its
rights and obligations to the arrangement and regardless
of the ownership interest held. After the initial
recognition, the assets, liabilities, revenues and
expenses relating to the joint operation shall be
measured in accordance with the applicable IFRSs. The revised version of IAS 28 requires, among other
things, that: (i) if an investment in an associate
becomes an investment in a joint venture or an investment
in a joint venture becomes an investment in an associate,
the entity continues to apply the equity method and does
not remeasure the retained interest at its fair value;
(ii) in a sale plan of a portion of an investment in an
associate or a joint venture, only the portion of the
investment to be disposed shall be classified as held for
sale. Any retained portion that has not classified as
held for sale shall be accounted for using the equity
method until the disposal of the portion that is
classified as held for sale takes place. After the
disposal takes place, the retained interest shall be
accounted for using the applicable measurement criteria. The report includes selected explanatory notes. Current income taxes have been calculated based on the
estimated taxable profit of the interim period. Current
tax assets and liabilities have been measured at the
amount expected to be paid to/recovered from the tax
authorities, using tax laws that have been enacted or
substantively |

79 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

enacted by the end of the reporting period and the tax rates estimated on an annual basis. The Condensed Consolidated Interim Financial Statements at June 30, 2014, were approved by Enis Board of Directors on July 30, 2014. A limited review has been carried out by the independent auditor Reconta Ernst & Young SpA; a limited review is significantly less in scope than an audit performed in accordance with the generally accepted auditing standards. Amounts in the financial statements and in the notes are expressed in millions of euros (euro million). 2 Changes in accounting policies IFRS 10, IFRS 11 and IAS 28, endorsed by Commission Regulation (EU) No. 1254/2012 of December 11, 2012, have been applied retrospectively restating the opening balances at January 1, 2013 and comparative information for period ended June 30, 2013. The quantitative impact of IFRS 10 and IFRS 11 on the Condensed Consolidated Interim Financial Statements is provided below:

(euro million) January 1, 2013

| Selected
line items only | As reported | IFRS 10-IFRS 11 | | As restated |
| --- | --- | --- | --- | --- |
| Current assets | 48,868 | 128 | | 48,996 |
| Non-current
assets | 90,494 | 186 | | 90,680 |
| - of which property, plant and equipment | 63,466 | 1,332 | | 64,798 |
| - of
which equity-accounted investments | 4,262 | (809 | ) | 3,453 |
| Current liabilities | 33,986 | (34 | ) | 33,952 |
| Non
current liabilities | 42,973 | 489 | | 43,462 |
| Total shareholders equity | 62,558 | (141 | ) | 62,417 |

(euro million) December 31, 2013

| Selected
line items only | As reported | IFRS 10-IFRS 11 | | As restated |
| --- | --- | --- | --- | --- |
| Current assets | 50,435 | 26 | | 50,461 |
| Non-current
assets | 85,357 | 227 | | 85,584 |
| - of which property, plant and equipment | 62,506 | 1,257 | | 63,763 |
| - of
which equity-accounted investments | 3,934 | (781 | ) | 3,153 |
| Current liabilities | 32,947 | (78 | ) | 32,869 |
| Non-current
liabilities | 43,827 | 456 | | 44,283 |
| Total shareholders equity | 61,174 | (125 | ) | 61,049 |

(euro million) First half 2013

| Selected
line items only — Revenue | As reported — 59,646 | | IFRS 10-IFRS 11 — 16 | | As restated — 59,662 | |
| --- | --- | --- | --- | --- | --- | --- |
| Operating
profit | 5,293 | | 45 | | 5,338 | |
| Finance income and expense | (601 | ) | (9 | ) | (610 | ) |
| Income
(expense) from investments | 674 | | (42 | ) | 632 | |
| Net profit for the period | 1,438 | | (3 | ) | 1,435 | |
| -
attributable to Eni | 1,818 | | | | 1,818 | |
| - attributable to non-controlling interest | (380 | ) | (3 | ) | (383 | ) |
| Net cash
provided by operating activities | 4,752 | | 63 | | 4,815 | |
| Net cash used in investing activities | (2,652 | ) | (29 | ) | (2,681 | ) |
| Net cash
used in financing activities | (1,981 | ) | (2 | ) | (1,983 | ) |
| Net cash flow for the period | 85 | | 53 | | 138 | |

The adoption of the revised version of IAS 28 has not resulted in material effects. 3 Use of accounting estimates For a description of the accounting estimates used see the Annual Report 2013.

80 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

4 Recent accounting standards As regards the recent accounting standards, in addition to those indicated in the Annual Report 2013, the main pronouncements issued by IASB and not yet been endorsed by European Union are indicated hereinafter. On May 6, 2014, the IASB issued the amendments to IFRS 11 "Accounting for Acquisitions of Interests in Joint Operations" (hereinafter amendments to IFRS 11), which define the accounting treatment to be applied to the acquisition of both the initial interest and the additional interests in a joint operation (without changing the status of joint operation) whose activity constitutes a business, as defined in IFRS 3. In these cases, the acquired interests in a joint operation shall be recognized in accordance with all the applicable principles on business combination accounting, which include but are not limited to: (i) measuring the identifiable assets and liabilities at fair value, other than items for which exceptions are given in IFRSs; (ii) recognizing acquisition-related costs as expenses in the periods in which the costs are incurred; (iii) recognizing deferred tax assets and liabilities that arise from the initial recognition of assets (except for goodwill) or liabilities in respect of deductible or taxable temporary differences; (iv) recognizing the excess of the consideration transferred over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed, if any, as goodwill; and (v) testing for impairment a cash generating unit to which goodwill has been allocated at least annually, or whenever there is an impairment indicator. The amendments to IFRS 11 shall be applied for annual periods beginning on or after January 1, 2016. On May 12, 2014, the IASB issued the amendments to IAS 16 and IAS 38 "Clarification of Acceptable Methods of Depreciation and Amortization", which consider inappropriate a depreciation or amortization method that is based on revenue that is generated by an activity that includes the use of an asset. For intangible assets, this indication represents a rebuttable presumption which can be overcome only in the following limited circumstances: (i) the right over the use of an intangible asset is set out as a fixed total amount of revenue to be generated; or (ii) when it can be demonstrated that revenue and the consumption of the economic benefits of the intangible assets are highly correlated. The amendments shall be applied for annual periods beginning on or after January 1, 2016. On May 28, 2014, the IASB issued IFRS 15 "Revenue from Contracts with Customers" (hereinafter IFRS 15), which establishes a comprehensive framework for determining when to recognize revenue and how much revenue to recognize; it applies to all the contracts with the customers, including construction contracts. IFRS 15 requires that, to recognize revenue, a company shall apply the following five steps: (i) identify the contract with the customer; (ii) identify the performance obligations (that are promises in a contract to transfer to a customer goods and/or services); (iii) determine the transaction price; (iv) allocate the transaction price to each performance obligation on the basis of the relative stand-alone selling prices of each good or service promised in the contract; and (v) recognize revenue when a performance obligation is satisfied. Moreover, IFRS 15 includes more disclosure requirements about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. IFRS 15 shall be applied for annual periods beginning on or after January 1, 2017. On July 24, 2014, the IASB completed its project to replace IAS 39 by issuing the final version of IFRS 9 "Financial Instruments" (hereinafter IFRS 9). IFRS 9: (i) changes the classification and measurement approach for financial assets; (ii) introduces a new impairment model for financial assets which considers the expected credit losses; and (iii) includes an improved hedge accounting model. IFRS 9 shall be applied for annual periods beginning on or after January 1, 2018. Eni is currently reviewing these standards to determine the likely impact on the Groups results.

81 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Current assets 5 Financial assets held for trading

(euro million) December 31, 2013 June 30, 2014

Quoted bonds issued by sovereign states	1,961	1,526
Other
bonds	3,043	3,494
	5,004	5,020

A breakdown by issuing entity is presented below:

Nominal value (euro million) Fair value (euro million) Rating - Moody's Rating - S&P

Quoted bonds issued by sovereign states
Fixed
rate bonds
Italy	551	557	Baa2	BBB
Spain	123	128	Baa2	BBB
Europe (supranational institutions)	126	128	from Aaa to Aa1	from AAA to AA
France	81	73	Aa1	AA
Germany	55	56	Aaa	AAA
Netherlands	50	52	Aaa	AA+
Canada	31	32	Aaa	AAA
Austria	25	26	Aaa	AA+
	1,042	1,052
Floating
rate bonds
Germany	276	277	Aaa	AAA
Italy	50	50	Baa2	BBB
Europe (supranational institutions)	100	100	from Aaa to Aa1	from AAA to AA
France	47	47	Aa1	AA
	473	474
Total
quoted bonds issued by sovereign states	1,515	1,526
Other bonds
Fixed
rate bonds
Quoted bonds issued by industrial companies	1,473	1,541	from Aaa to Baa3	from AAA to BBB-
Non-quoted
bonds issued by industrial companies	37	37	from P-1 to P-2	from A-1+ to A-2
Quoted bonds issued by financial and insurance
institutions	837	875	from Aaa to Baa3	from AAA to BBB-
Non-quoted
bonds issued by financial and insurance institutions	230	230	from P-1 to P-2	from A-1+ to A-2
	2,577	2,683
Floating
rate bonds
Quoted bonds issued by industrial institutions	90	90	from Aaa to Baa3	from AAA to BBB-
Quoted
bonds issued by financial institutions	719	721	from Aaa to Baa3	from AAA to BBB-
	809	811
Total
other bonds	3,386	3,494
Total financial assets held for trading	4,901	5,020

The fair value was estimated on the basis of market quotations for quoted securities and on the basis of appropriate financial valuation methods available on the marketplace for non-quoted securities.

82 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

6 Financial assets available for sale

(euro million) December 31, 2013 June 30, 2014

| Securities held for operating purposes — Quoted
bonds issued by sovereign states | 165 | 195 |
| --- | --- | --- |
| Quoted bonds issued by financial institutions | 37 | 41 |
| | 202 | 236 |
| Securities held for non-operating purposes | | |
| Quoted
bonds issued by financial institutions | 7 | 8 |
| Other quoted bonds | 26 | |
| | 33 | 8 |
| Total | 235 | 244 |

At June 30, 2014, bonds issued by sovereign states amounted to euro 195 million (euro 165 million at December 31, 2013). A breakdown by issuing entity is presented below:

Nominal value (euro million) Fair value (euro million) Nominal rate of return (%) Maturity date Rating - Moody's Rating - S&P

Fixed rate bonds — Belgium	31	36	from 2.88 to 4.25	from 2014 to 2021	Aa3	AA
Italy	27	28	from 1.50 to 5.75	from 2015 to 2017	Baa2	BBB
Portugal	22	24	from 3.35 to 4.75	from 2015 to 2019	Ba2	BB
Slovakia	15	16	from 1.50 to 4.20	from 2016 to 2018	A2	A
Ireland	13	15	from 4.40 to 4.50	from 2019 to 2020	Baa1	A-
Spain	14	14	from 3.30 to 4.10	from 2014 to 2018	Baa2	BBB
France	12	14	from 1.00 to 3.25	from 2018 to 2021	Aa1	AA
Austria	12	12	from 3.40 to 3.50	from 2014 to 2015	Aaa	AA+
Czech
Republic	7	8	3.63	2021	A1	AA-
Netherlands	6	7	4.00	from 2016 to 2018	Aaa	AA+
Germany	5	5	3.25	2015	Aaa	AAA
United States of America	4	4	3.13	2019	Aaa	AA+
Canada	4	4	1.63	2019	Aaa	AAA
Poland	3	4	6.38	2019	A2	A-
Finland	3	4	from 1.13 to 1.25	from 2015 to 2017	Aaa	AAA
Total	178	195

Bonds amounting to euro 49 million (euro 44 million at December 31, 2013) were issued by financial institutions with a rating ranging from Aaa to B2 (Moodys) and from AAA to BB- (S&P); as of December 31, 2013, other quoted bonds amounted to euro 26 million with a rating of B1 (Moodys) and B- (S&P). Securities held for operating purposes of euro 236 million (euro 202 million at December 31, 2013) were designated to hedge the loss provisions of the Groups insurance company Eni Insurance Ltd. Gains and losses on fair value evaluation of securities are provided in note 25 - Shareholders equity. The fair value of securities available for sale is estimated similarly to the fair value of securities held for trading.

83 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

7 Trade and other receivables

(euro million) December 31, 2013 June 30, 2014

Trade receivables	21,212	19,706
Financing
receivables:
- for operating purposes - short-term	403	411
- for
operating purposes - current portion of long-term
receivables	481	581
- for non-operating purposes	129	115
	1,013	1,107
Other receivables:
- from
disposals	88	86
- other	6,577	7,347
	6,665	7,433
	28,890	28,246

Trade receivables at June 30, 2014, decreased by euro 1,506 million from the prior year balance sheet date, mainly in the Gas & Power segment (down euro 1,791 million) and the Engineering & Construction segment (down euro 314 million). Such decrease was partially offset by the increase in the Exploration & Production segment (up euro 417 million) the Refining & Marketing segment (up euro 227 million). Trade receivables are stated net of the valuation allowance for doubtful accounts:

(euro million) December 31, 2013 Additions Deductions Other changes June 30, 2014

| Trade
receivables | 1,291 | 197 | (26) | 8 | 1,470 |
| --- | --- | --- | --- | --- | --- |
| Financing receivables | 52 | | | 1 | 53 |
| Other
receivables | 534 | 18 | (1) | 5 | 556 |
| | 1,877 | 215 | (27) | 14 | 2,079 |

Additions to the allowance reserve for doubtful accounts of trade receivables amounting to euro 197 million related to the Gas & Power segment (euro 179 million). In particular, such provision was made in respect of Italian retail customers who have been hit by continuing financial difficulties reflecting a slow economic recovery in the country. Eni is taking all the necessary actions to mitigate the counterparty risk by large-scale recovery of doubtful accounts through settlement agreements or specific external services. In the first half of 2014, Eni had in place transactions to transfer to factoring institutions certain trade receivables without recourse for euro 1,844 million, due beyond June 30, 2014 (euro 2,533 million at December 31, 2013, due in 2014). Transferred receivables mainly related to the Refining & Marketing segment (euro 878 million), the Gas & Power segment (euro 650 million), the Engineering & Construction segment (euro 200 million) and the Versalis segment (euro 116 million). Following the contractual arrangements with the financing institutions, Eni collects the transferred receivables and transfers the collected amounts to those institutions. Furthermore, Engineering & Construction transferred certain trade receivables without recourse due beyond June 30, 2014 for euro 236 million through Enis subsidiary Serfactoring SpA (euro 222 million at December 31, 2013, due in 2014). Trade receivables amounting to euro 1,195 million were due in the Exploration & Production segment and related to hydrocarbons supplies to Egyptian state-owned companies. In order to reduce the outstanding amounts, negotiations and contacts are ongoing with top management of those state-owned companies and local governmental authorities, since there are stable relationships with the counterparties. Financing receivables for operating purposes of euro 992 million (euro 884 million at December 31, 2013) mainly related to financing granted to unconsolidated subsidiaries, joint ventures and associates to cover capital expenditure requirements for euro 536 million for executing industrial projects (euro 481 million at December 31, 2013) and cash deposits to hedge the loss provision made by Eni Insurance Ltd for euro 309 million (euro 321 million at December 31, 2013). Financing receivables for non-operating purposes amounted to euro 115 million (euro 129 million at December 31, 2013) and related to: (i) restricted deposits in escrow for euro 80 million held by Eni Trading & Shipping SpA (euro 92 million at December 31, 2013), of which euro 58 million with Citigroup Global Markets Ltd, euro 20 million with BNP Paribas and euro 2 million with ABN AMRO relating to derivatives; (ii) restricted deposits in escrow of

84 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

receivables of the Engineering & Construction segment for euro 25 million (same amount as of December 31, 2013). Receivables from divesting activities of euro 86 million (euro 88 million at December 31, 2013) related to the divestment of a 3.25% interest in the Karachaganak project (equal to Enis 10% interest) to the Kazakh partner KazMunaiGas for euro 79 million (same amount as of December 31, 2013). A description of the transaction is reported in note 15 - Other non-current receivables. Other receivables of euro 7,347 million (euro 6,577 million at December 31, 2013) included: (i) receivables for euro 570 million relating to the recovery of costs incurred in two oil projects in the Exploration & Production segment. In the last recent years Eni commenced two arbitration proceedings that led to the issuance of favorable partial and final award for one of the two and of a favorable partial award for the other one. In respect of the latter, the final award might be recognized once a restrictive measure, that was issued by a Nigerian court to prevent the continuation of this arbitration, will be revoked; (ii) euro 4 million relating to receivables for the settlement of tax positions with unconsolidated subsidiaries which are part of the consolidated accounts for Italian tax purposes (euro 8 million at December 31, 2013). Because of the short-term maturity and conditions of remuneration of trade receivables, the fair value approximated the carrying amount. Receivables with related parties are described in note 35 - Transactions with related parties.

8 Inventories

December 31, 2013 June 30, 2014

(euro million) Crude oil, gas and petroleum products Chemical products Work in progress Other Total Crude oil, gas and petroleum products Chemical products Work in progress Other Total

| Raw and
auxiliary materials and consumables | 714 | 209 | | 1,848 | 2,771 | 499 | 202 | | 1,923 | 2,624 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Products being processed and semi-finished
products | 114 | 14 | | 1 | 129 | 155 | 14 | | 1 | 170 |
| Work in
progress | | | 1,627 | | 1,627 | | | 2,471 | | 2,471 |
| Finished products and goods | 2,496 | 801 | | 93 | 3,390 | 2,104 | 758 | | 113 | 2,975 |
| Certificates
and emission rights | | | | 22 | 22 | | | | 17 | 17 |
| | 3,324 | 1,024 | 1,627 | 1,964 | 7,939 | 2,758 | 974 | 2,471 | 2,054 | 8,257 |

Contract works in progress for euro 2,471 million (euro 1,627 million at December 31, 2013) were stated net of prepayments for euro 1 million (euro 6 million at December 31, 2013) which corresponded to the amount of the works executed. Inventories of euro 71 million (euro 105 million at December 31, 2013) were pledged as a guarantee for payments of storage services. Changes in inventories and in the loss provision were as follows:

(euro million) Carrying amount at the beginning of the year Changes New or increased provisions Deductions Changes in the scope of consolidation Currency translation differences Other changes Carrying amount at the end of the period

| December 31, 2013 — Gross
carrying amount | 8,749 | (373 | ) | | | | (3 | ) | (181 | ) | (66 | ) | 8,126 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Loss provision | (171 | ) | | (168 | ) | 149 | | | 3 | | | | (187 | ) |
| Net
carrying amount | 8,578 | (373 | ) | (168 | ) | 149 | (3 | ) | (178 | ) | (66 | ) | 7,939 | |
| June 30, 2014 | | | | | | | | | | | | | | |
| Gross carrying amount | 8,126 | 403 | | | | | 26 | | 38 | | (161 | ) | 8,432 | |
| Loss provision | (187 | ) | | (150 | ) | 163 | | | | | (1 | ) | (175 | ) |
| Net carrying amount | 7,939 | 403 | | (150 | ) | 163 | 26 | | 38 | | (162 | ) | 8,257 | |

Changes of the period amounting to euro 403 million were recorded in the Engineering & Construction segment for euro 816 million and, as decrease, in the Refining & Marketing segment for euro 322 million. Additions and

85 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

deductions in loss provisions amounted to euro 150 million and euro 163 million, respectively, and primarily related to the Refining & Marketing segment (euro 112 million and euro 121 million, respectively). Other changes of euro 162 million included a reclassification to assets held for sale for euro 139 million.

9 Other current assets

(euro million) December 31, 2013 June 30, 2014

| Fair value of
cash flow hedge derivatives | 14 | 155 |
| --- | --- | --- |
| Fair value of other derivatives | 718 | 2,337 |
| Other current
assets | 593 | 859 |
| | 1,325 | 3,351 |

Derivative fair values were estimated on the basis of market quotations provided by primary info-provider, or alternatively, appropriate valuation methods commonly used in the marketplace. Fair value of cash flow hedge derivatives of euro 155 million (euro 14 million at December 31, 2013) related to commodity hedging entered by the Gas & Power segment. These derivatives were entered into to hedge variability in future cash flows associated to highly probable future sale transactions of gas or electricity or on already contracted sales due to different indexation mechanism of supply costs versus selling prices. A similar scheme applies to exchange rate hedging derivatives. Negative fair value of contracts expiring by June 30, 2015 is disclosed in Note 19 - Other current liabilities; positive and negative fair value of contracts expiring beyond June 30, 2015 is disclosed in Note 15 - Other non-current receivables and in Note 23 - Other non-current liabilities. The effects of the evaluation at fair value of cash flow hedge derivatives are given in Note 25 - Shareholders equity and in Note 29 - Operating expenses. Fair value of other derivatives of euro 2,337 million (euro 718 million at December 31, 2013) consisted of: (i) euro 305 million (euro 369 million at December 31, 2013) of derivatives that failed to meet the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net exposures to movements in foreign currencies, interest rates or commodity prices. Therefore, such derivatives were not related to specific trade or financing transactions; (ii) euro 2,032 million (euro 344 million at December 31, 2013) related to commodity derivatives for trading purposes and proprietary trading. Other current assets of euro 859 million included deferred costs for euro 348 million relating to gas volumes prepayments that were made in previous reporting period due to the take-or-pay obligations in the Companys long-term supply contracts, as the Company is forecasting to make-up the underlying gas volumes based on its sales plans and the benefits of the latest renegotiations which have been achieved at the closing date. Transactions with related parties are described in note 35 - Transactions with related parties.

86 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Non-current assets

10 Property, plant and equipment

(euro million) Gross book amount at December 31, 2013 Provisions for depreciation and impairments at December 31, 2013 Net book amount at December 31, 2013 Additions Depreciation Impairment losses Changes in the scope of consolidation Currency translation differences Other changes Net book amount at June 30, 2014 Gross book amount at June 30, 2014 Provisions for depreciation and impairments at June 30, 2014

Property, plant and equipment 150,768 87,005 63,763 4,752 (3,873) (329) 228 485 887 65,913 157,101 91,188

A break-down of capital expenditures made in the first half of 2014 by segment is provided below:

(euro million) First half 2013 First half 2014

Exploration & Production	3,922	3,974
Gas &
Power	54	47
Refining & Marketing	225	224
Versalis	110	121
Engineering & Construction	484	324
Corporate
and financial companies	72	30
Other segments	5	7
Elimination
of intragroup profits	30	25
	4,902	4,752

In preparing this interim report for the first half of 2014 management evaluated market and other indicators that assets may be impaired within the Groups operating segments. Management did not identify any impairment indicator, except in the refinery and petrochemical business. In performing the above analysis, management considered: (i) the latest forward prices for commodities prevailing in the marketplace for the future four-year period compared with the forward prices considered in the 2013 annual report; (ii) the new assumptions related to Brent crude long-term price of $95 per barrel from 2018 onwards. Therefore, management carried out the impairment review of the recoverability of the carrying amounts in the following segments: (i) Refining Marketing segment, in relation to a significant decline in forward refining margins with respect to the margin projections made in the annual report 2013 which reflected the structural headwinds in the business due to weak demand and excess capacity in Europe and increased competitive pressure from product streams coming from Russia and Asia. In spite of a deteriorating scenario, management confirmed the recoverability of the carrying amounts of the refineries and distribution networks based on: a) further spending optimizations (investments and operating costs) decided by management, compared to the four-year plan 2014-2017; b) a reduction in the discount rate (the Weighted Average Cost of Capital adjusted for country risk - adjusted WACC). An impairment loss euro 97 million was recorded to write-off expenditures incurred on assets which were fully impaired in previous reporting periods since the non-recoverability of such investments has been confirmed. Finally, as part of an ongoing divestiture process, management aligned to fair value the assets related to distribution networks in the Czech Republic and Slovakia (euro 30 million loss; for more information see note 24 - Assets held for sale and liabilities directly associated with assets held for sale); (ii) management carried out the impairment review in Versalis, as a result of weak demand for commodities in Europe and increased competitive pressure from Asian producers which resulted in a higher pressure on sales margins (particularly in the butadiene and elastomers businesses). Management confirmed the recoverability of the carrying amounts of all of the petrochemical CGUs due to: a) the solid industrial actions planned in the next four-year period; b) reduction in the WACC. An impairment loss of euro 9 million was recorded to write-off expenditures incurred on assets which were fully impaired in previous reporting periods since the non-recoverability of such

87 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

investments has been confirmed; (iii) in the Exploration & Production segment, management reviewed a sample of oil & gas Cash Generating Units selected according to criteria of relevance (book value, allocation of unproved mineral interests, headroom between the book value and the value in use at the date of the annual report, etc.) covering about 40% of the assets, for which management tested reserves revisions, changes in projected expenditures and operating costs and modifications at petroleum contracts. Management did not take any impairment charge, with the exception of an oil&gas property whose development activities Eni does not expect to finance in the future (euro 179 million). The criteria adopted by Eni in identifying the Group Cash Generating Unit (CGU) and in reviewing the recoverability of carrying amounts remained unchanged in respect of the Annual Report 2013 (see note 15 - Property, plant and equipment). In particular, in preparing the Interim Report 2014, management maintained unchanged the estimation of the post-tax rate for discounting the future cash flows of the CGUs equal to the weighted average cost of the capital to Eni, adjusted to factor in risks specific to each country of activity (WACC adjusted), considering the reduction in the Italian sovereign risk reflecting the decrease of the expected yields for the ten-year government bonds, whose effects were offset by an increased risk for non-OECD countries; for the Refining & Marketing segment and Versalis, that mainly operate in Italy and Western Europe, it was assessed a reduction of 80-90 basis points as a consequence of a lower country risk which reflects a gradually improving macroeconomic outlook in the Eurozone. The adjusted-WACC rates applied in this interim report ranged from 6.4% to 7.9%. Change in the scope of consolidation of euro 228 million related to the inclusion of Liverpool Bay Ltd following the 100% acquisition. Foreign currency translation differences of euro 485 million primarily related to translations of entities accounts denominated in US dollar (euro 377 million) and entities accounts denominated in British pound (euro 75 million). Other changes of euro 887 million included the initial recognition and change in estimates of decommissioning costs and site restoration in the Exploration & Production segment (euro 1,064 million) primarily as a consequence of reduced discount rates, and, as decrease, the reclassification to assets held for sale (euro 137 million). Unproved mineral interests included in tangible assets in progress and advances are presented below:

(euro million) Book amount at December 31, 2013 Impairment losses Reclassification to Proved Mineral Interest Other changes and currency translation differences Book amount at June 30, 2014

Congo	1,119			11	1,130
Nigeria	711			7	718
Turkmenistan	490			5	495
Algeria	331			3	334
USA	137			1	138
Egypt	44		(4)		40
Others	35	(21)	(14)	2	2
	2,867	(21)	(18)	29	2,857

Contractual commitments related to the purchase of property, plant and equipment are included in note 27 - Guarantees, commitments and risks Liquidity risk.

88 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

11 Intangible assets

(euro million) Gross book amount at December 31, 2013 Provisions for amortization and impairments at December 31, 2013 Net book amount at December 31, 2013 Additions Amortization Impairment losses Changes in the scope of consolidation Currency translation differences Other changes Net book amount at June 30, 2014 Gross book amount at June 30, 2014 Provisions for amortization and impairments at June 30, 2014

| Intangible
assets with finite useful lives | 1,730 | 772 | (941) | (1) | | 3 | 10 | 1,573 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Intangible assets with indefinite useful
lives | | | | | | | | |
| Goodwill | 2,146 | | | (51) | 37 | 2 | | 2,134 |
| | 3,876 | 772 | (941) | (52) | 37 | 5 | 10 | 3,707 |

Capital expenditures of euro 772 million (euro 1,045 million in the first half of 2013) included exploration drilling expenditures of the Exploration & Production segment which were fully amortized as incurred for euro 693 million (euro 765 million in the first half of 2013) and license acquisition costs of euro 4 million (euro 179 million in the first half of 2013) primarily related to acquisitions of new exploration acreage in Egypt. Amortization of euro 941 million (euro 1,012 million in the first half of 2013) included the amortization of license acquisition costs for euro 123 million (euro 126 million in the first half of 2013). Goodwill impairments amounting to euro 51 million related the valuation at fair value of the fuel distribution network in the Czech Republic and Slovakia which divestiture is ongoing (see note 10). Change in the scope of consolidation related to goodwill of euro 37 million included the 51% acquisition of Acam Clienti SpA (euro 32 million) and the 100% acquisition of Liverpool Bay Ltd (euro 5 million). The carrying amount of goodwill at the end of the period was euro 2,134 million (euro 2,146 million at December 31, 2013) net cumulative impairment charges amounting to euro 2,349 million (euro 2,396 million at December 31, 2013). The decrease in cumulative impairments was due to the reclassification to assets held for sale. The breakdown of the stated goodwill by operating segment is provided below:

(euro million) December 31, 2013 June 30, 2014

Gas & Power	991	1,025
Engineering
& Construction	748	748
Exploration & Production	250	258
Refining
& Marketing	157	103
	2,146	2,134

Goodwill acquired through business combinations has been allocated to the cash generating units ("CGUs") that are expected to benefit from the synergies of the acquisition. Goodwill has been allocated to the following CGUs.

Gas & Power segment

(euro million) December 31, 2013 June 30, 2014

| Domestic
gas market | 801 | 835 |
| --- | --- | --- |
| Foreign gas market | 190 | 190 |
| - of
which European market | 188 | 188 |
| | 991 | 1,025 |

In the Gas & Power segment, the CGUs consist of commercial business units whose cash flows are interdependent and, therefore, jointly benefit of business combination synergies. Goodwill allocated to the CGU domestic gas market was recognized upon the buy-out of the former Italgas SpA minorities in 2003 through a public offering (euro 706 million) which engaged in the retail sale of gas to the residential sector. In addition, further goodwill amounts have been allocated over the years following business combinations with small, local companies selling gas to residential customers in focused territorial reach and municipalities

89 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

synergic to Eni's activities, the latest acquisition of which was ACAM Clienti SpA finalized in first half 2014 (with an allocated goodwill of euro 32 million as discussed above). In the first half of 2014, in spite of declining gas demand and sales in the residential sector due to unusual winter weather resulting in a 19% contraction in consumed volumes, management did not identify any impairment indicator confirming the assumptions included in the business plan 2014-2017 considered in the assessments of the Annual Report 2013. The excess of the recoverable amount of the CGU domestic gas market over its carrying amount including the allocated portion of goodwill (headroom) amounting to euro 650 million on the basis of the sensitivity analysis performed for the Annual Report 2013 would be reduced to zero under each of the following alternative hypothesis: (i) a decrease of 35% on average in the projected commercial margins; (ii) a decrease of 35% on average in the projected sales volumes; (iii) an increase of 7 percentage points in the discount rate; and (iv) a negative nominal growth rate of 12%. The value-in-use of the CGU domestic gas market and the relevant sensitivity analysis were calculated solely on the basis of retail margins. Goodwill allocated to the CGU European gas market, amounting to euro 188 million after the recognition in previous years of sizeable impairment losses reflecting the downturn in the European gas market, was recorded following the business combinations of Altergaz SA (now Eni Gas & Power France SA) in France, Nuon Belgium NV (now merged in Eni Gas & Power NV) in Belgium, whose carrying amounts are aligned to the respective value-in-use estimated on a stand alone basis in the Annual report 2013. The management did not identify any impairment indicator in the first half 2014.

Engineering & Construction segment

(euro million) December 31, 2013 June 30, 2014

| Offshore
E&C | 415 | 415 |
| --- | --- | --- |
| Onshore E&C | 314 | 314 |
| Other | 19 | 19 |
| | 748 | 748 |

The segment goodwill of euro 748 million was mainly recognized following the acquisition of Bouygues Offshore SA, now Saipem SA (euro 710 million) and allocated to the CGUs Offshore E&C and Onshore E&C. The outlook of the business supports the planned targets of gradual improvements in the competitive position and profitability as low-margin projects acquired in previous years are being progressively completed and new, more profitable works acquired on the basis of a more selective commercial strategy have been starting contributing to profit. Despite the absence of any impairment indicators, management has tested the value-in-use of the CGUs to check the recoverability of the carrying amounts including the allocated goodwill. The values-in-use of the CGUs were assessed on the basis of the expected profits and cash flows provided for in the four-year plan 2014-2017, modified in order to reflect the update in the expected 2014 results. The other most significant assumptions used in estimating the cash flows of the CGUs related to the discount rate and the terminal growth rate remained unchanged compared to the Annual report 2013 (7.6% and 2%, respectively). Management did not recognize any impairment charges. The value-in-use of both the Offshore E&C and Onshore E&C business units significantly exceeds the underlying carrying amounts included any amounts of allocated goodwill; headroom at both CGUs has been verified to be not lower than those disclosed in the Annual Report 2013 based on the tests performed in the 2014 interim period.

90 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

12 Investments

(euro million) Net book amount at December 31, 2013 Additions and subscriptions Divestments and reimbursements Share of profit (loss) of equity-accounted investments Deduction for dividends Changes in fair value Currency translation differences Other changes Net book amount at June 30, 2014

Equity accounted investments	3,153	157	(5)	117	(121)		18	(207)	3,112
Other
investments	3,027		(810)			193	3	(1)	2,412
	6,180	157	(815)	117	(121)	193	21	(208)	5,524

Additions and subscriptions related to investments accounted for using the equity method of euro 157 million mainly related to capital contributions made to companies engaged in the realization of projects in the interest of Eni: South Stream Transport BV (euro 128 million) which is engaged in the study of feasibility of the South Stream pipeline, PetroJunin SA (euro 19 million) which is developing gas and crude oil fields in Venezuela and Angola LNG Ltd (euro 6 million) which currently engages in upgrading a liquefaction plant in order to monetize Enis gas reserves in that country (Enis interest in the project being 13.6%). Divestments and reimbursements of euro 815 million are stated net of gains on disposals (euro 22 million) and related to the sale of an 8.15% interest in Galp Energia SGPS SA for euro 805 million. The disposal of Galp was carried out according to two different transactions: (i) a placement of 58,051,000 ordinary shares, corresponding to approximately 7% of the share capital through an accelerated bookbuilding procedure aimed at qualified institutional investors on March 28, 2014, for a total consideration of euro 702 million, at a price of euro 12.10 per share. A gain of euro 11 million and a reversal of the fair value evaluation reserve for euro 66 million was recognized in the profit and loss account; (ii) spot sales and placements of approximately 1.15% of the share capital for a total consideration of euro 122 million corresponding to an average price of euro 12.83 per share. A gain of euro 8 million and a reversal of the fair value evaluation reserve for euro 11 million was recognized in the profit and loss account. The share of profit of equity-accounted investments of euro 117 million primarily referred to PetroJunin SA (euro 25 million), Unión Fenosa Gas SA (euro 24 million), United Gas Derivatives Co (euro 16 million), CARDáN IV SA (euro 14 million), Eni BTC Ltd (euro 13 million), Unimar Llc (euro 13 million) and PetroSucre SA (euro 11 million). Deductions for dividend distribution of euro 121 million primarily related to Unimar Llc (euro 45 million), Unión Fenosa Gas SA (euro 23 million) and United Gas Derivatives Co (euro 19 million). Currency translation differences of euro 21 million were essentially related to translation of entities accounts denominated in US dollar. Changes in fair value of euro 193 million related to the interests in Snam SpA and Galp Energia SGPS SA which are underlying convertible bonds, was recognized through profit in income from investments as provided by the fair value option of IAS 39 in order to eliminate an accounting mismatch which derives from the measurement at fair value through profit of the options embedded in the convertible bonds. Other changes in equity-accounted investments of euro 208 million primarily related for euro 218 million to the reclassification to assets held for sale of EnBW Eni Verwaltungsgesellschaft mbH, Ceská Refinérská AS, Inversora de Gas Cuy ana SA, Distribuidora de Gas Cuyana SA, Inversora de Gas del Centro SA and Distribuidora de Gas del Centro SA. Other investments of euro 2,412 million included the investments valued at fair value in Snam SpA and Galp Energia SGPS SA (euro 2,158 million). At June 30, 2014, Eni holds 288,683,602 shares equal to 8.54% of Snams outstanding share capital which are underlying the euro 1,250 million convertible bond, issued on January 18, 2013 due on January 18, 2016. At June 30, 2014, the retained interest in Snam was stated at fair value for euro 1,270 million determined at a market price of euro 4.4 per share. At June 30, 2014, Eni holds 66,337,592 shares equal to approximately 8% of Galps outstanding share capital which are underlying the euro 1,028 million convertible bond, issued on November 30, 2012 due on November 30, 2015. At June 30, 2014, the retained interest in Galp was stated at fair value for euro 888 million determined at a market price of euro 13.38 per share.

91 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Investments in subsidiaries, joint arrangements and associates as of June 30, 2014 are presented in annex "List of companies owned by Eni SpA as of June 30, 2014".

13 Other financial assets

(euro million) December 31, 2013 June 30, 2014

Financing receivables for operating purposes	778	893
Securities
held for operating purposes	80	82
	858	975

Financing receivables for operating purposes are stated net of the valuation allowance for doubtful accounts of euro 87 million (euro 66 million at December 31, 2013). Financing receivables for operating purposes of euro 893 million (euro 778 million at December 31, 2013) primarily pertained to loans granted by the Exploration & Production segment (euro 604 million), the Gas & Power segment (euro 149 million), Versalis (euro 70 million) and the Refining & Marketing segment (euro 23 million). Financing receivables granted to unconsolidated subsidiaries, joint ventures and associates amounted to euro 222 million. Securities of euro 82 million (euro 80 million at December 31, 2013), designated as held-to-maturity investments, are listed bonds issued by sovereign states for euro 74 million (euro 69 million at December 31, 2013) and by the European Investment Bank for euro 8 million (same amount as of December 31, 2013) and, as of December 31, 2013, by financial institution euro 3 million. The following table analyses securities by issuing entity:

Amortized cost (euro million) Nominal value (euro million) Fair value (euro million) Nominal rate of return (%) Maturity date Rating - Moody's Rating - S&P

Sovereign states
Fixed
rate bonds
Italy	20	21	22	from 3.50 to 4.75	from 2014 to 2021	Baa2	BBB
Ireland	9	8	9	from 4.40 to 4.50	from 2018 to 2019	Baa1	A-
France	6	5	6	3.25	2021	Aa1	AA
Slovenia	3	3	3	4.88	2014	Ba1	A-
Spain	3	3	3	3.00	2015	Baa2	BBB
Belgium	2	2	2	1.25	2018	Aa3	AA
Floating rate bonds
Italy	15	15	16		from 2014 to 2016	Baa2	BBB
Belgium	7	7	7		2016	Aa3	AA
Spain	7	7	7		2015	Baa2	BBB
Slovakia	2	2	2		2015	A2	A
Total
sovereign states	74	73	77
Other securities
European
Investment Bank	8	8	8		from 2016 to 2018	Aaa	AAA
	82	81	85

The valuation at fair value of receivables for financing operating activities of euro 937 million has been determined based on the present value of expected future cash flows discounted at rates ranging from 0.3% to 3.5% (0.5% and 4.2% at December 31, 2013). The valuation at fair value of financial securities did not produce any significant effects. The fair value of securities was derived from quoted market prices. Receivables with related parties are described in note 35 - Transactions with related parties.

92 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

14 Deferred tax assets

Deferred tax assets are stated net of amounts of deferred tax liabilities that can be offset for euro 3,509 million (euro 3,562 million at December 31, 2013).

(euro million) Amount at December 31, 2013 Net additions Currency translation differences Other changes Amount at June 30, 2014

4,658 61 65 (205) 4,579

Deferred tax assets related to the parent company Eni SpA and other Italian subsidiaries which were part of the consolidated accounts for Italian tax purposes for euro 2,460 million (euro 2,554 million at December 31, 2013) were recorded on the operating losses of the reporting period and the recognition of deferred deductible costs within the limits of the amounts expected to be recovered in future years based on the expected future profit before income taxes. The forecasts for future taxable income are those adopted in the 2013 annual report. Deferred tax liabilities are described in note 22 - Deferred tax liabilities. Income taxes are described in note 32 - Income tax expense.

15 Other non-current receivables

(euro million) December 31, 2013 June 30, 2014

Tax receivables	465	604
Receivables
related to divestments	702	659
Other receivables	148	148
Fair value
of non-hedging derivatives	256	216
Fair value of cash flow hedge derivatives	6
Other
asset	2,099	1,368
	3,676	2,995

Receivables from divestments amounted to euro 659 million (euro 702 million at December 31, 2013) and included: (i) the residual outstanding amount of euro 170 million recognized following the compensation agreed with the Republic of Venezuela for the expropriated Dación oil field in 2006. The receivable accrues interests at market conditions and is being repaid in installments. As agreed by the parties, the reimbursement can be made also in kind through equivalent assignment of volumes of crude oil. Negotiations for further reimbursements are ongoing; (ii) a receivable of euro 350 million related to the divestment of a 1.71% interest in the Kashagan project to the local partner KazMunaiGas on the basis of the agreements defined with the international partners of the North Caspian Sea PSA and the Kazakh government, which became effective from January 1, 2008. The reimbursement of the receivable is provided for in three annual installments commencing from the date in which production target agreed will be reached. The receivable accrues interest income at market rates; (iii) the long-term portion of a receivable of euro 7 million related to the divestment finalized in June 2012 of the 3.25% interest in the Karachaganak project (equal to the Enis 10% interest) to the Kazakh partner KazMunaiGas as part of an agreement between the Contracting Companies of the Final Production Sharing Agreement (FPSA) and Kazakh Authorities which settled disputes on the recovery of the costs incurred by the International Consortium to develop the field, as well as a certain tax claims. The agreement entailed a net cash consideration to Eni, to be paid in cash in three years through monthly installments starting from July 2012. The receivable accrues interest income at market rates. In the first half of 2014, reimbursements amounted to euro 40 million. The short-term portion is disclosed in note 7 - Trade and other receivables. Derivative fair values are calculated based on market quotations provided by primary info-provider or, alternatively, appropriate valuation techniques generally adopted in the marketplace.

93 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Fair values of non-hedging derivatives of euro 216 million (euro 256 million at December 31, 2013) consisted of derivatives that did not meet the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net exposures to foreign currency exchange rates, interest rates and commodity prices. Therefore, such derivatives did not relate to specific trade or financing transactions. Fair values of cash flow hedge derivatives of euro 6 million as of December 31, 2013 related to the Gas & Power segment. These derivatives were designated to hedge exchange rate and commodity risk exposures as described in note 9 - Other current assets. Fair value related to the contracts expiring beyond June 30, 2015 is disclosed in note 23 - Other non-current liabilities; fair value related to the contracts expiring by June 30, 2015 is disclosed in note 9 - Other current assets and in note 19 - Other current liabilities. The effects of fair value evaluation of cash flow hedges are disclosed in note 25 - Shareholders equity and note 29 - Operating expenses. Other non-current asset amounted to euro 1,368 million (euro 2,099 million at December 31, 2013) of which euro 1,173 million (euro 1,892 million at December 31, 2013) related to pre-payments of gas quantities which Eni failed to collect in previous reporting periods to fulfill the minimum take obligations provided by the long-term gas supply contracts, which triggered the obligation to pay in advance the contractual price to the gas suppliers (see note 17 - Trade and other payables). The reduction from the previous year is due to the make-up of part of the pre-paid gas volumes as a result of the renegotiation of certain long-term contracts (which resulted in a reduction of the minimum contractual quantity) and other optimizations performed during the period. The residual deferred costs were classified as non-current assets, as the Company plans to lift the prepaid quantities beyond the term of 12 months. Take-or-pay clauses provide that Eni is required to collect minimum annual quantities of gas, or in case of failure to pay the whole price, or a fraction of it, up to a preset annual minimum quantity. The Company is entitled to lift the pre-paid volumes in future years alongside the contract execution (see the definition of the take-or-pay clause in the section Glossary). These deferred costs, which are substantially equivalent to a receivable in-kind, are stated at the purchase cost or the net realizable value, whichever is lower. Prior-years impairment losses are reversed up to the purchase cost, whenever market conditions indicate that impairment no longer exits or may have decreased. In the first half of 2014, based on this accounting principle an impairment loss of euro 31 million was recorded at the end of the reporting period. The amount of pre-paid gas volumes reflects ongoing difficult market condition in the European gas sector due to weak demand determined by stagnant economic growth and a downturn in the thermo-electric segment and strong competitive pressures fuelled by oversupplies. These trends prevented Eni from fulfilling its minimum take obligations associated with its gas supply contracts in the latest years up to 2013; whilst as discussed above in the interim period prepaid volumes were reduced due to the benefits of contract renegotiations. Management plans to recover those prepaid volumes over the long-term by leveraging on: (i) achieved and planned contract renegotiations in terms of reduction of prices, annual minimum quantities and other operating flexibility; (ii) actions of commercial optimizations as a result of simultaneous presence in different markets and the availability of assets (logistics capacity, transportation rights). Receivables with related parties are described in note 35 - Transactions with related parties.

94 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Current liabilities

16 Short-term debt

(euro million) December 31, 2013 June 30, 2014

Banks	306	677
Commercial papers	1,767	2,206
Other
financial institutions	480	355
	2,553	3,238

The increase in short-term debt of euro 685 million included net assumptions for euro 664 million, partially offset by currency translation differences for euro 21 million. Commercial papers of euro 2,206 million were issued by the Groups financial subsidiaries Eni Finance USA Inc (euro 1,688 million) and Eni Finance International SA (euro 518 million). At June 30, 2014, Eni had undrawn committed and uncommitted borrowing facilities amounting to euro 41 million and euro 12,334 million, respectively (euro 2,141 million and euro 12,187 million at December 31, 2013). Those facilities bore interest rates reflecting prevailing conditions on the marketplace. Charges for unutilized facilities were immaterial. At June 30, 2014, Eni did not report any default on covenants or other contractual provisions in relation to borrowing facilities. Because of the short-term maturity and conditions of remuneration of short-term debts, the fair value approximated the carrying amount. Payables due to related parties are described in note 35 - Transactions with related parties.

17 Trade and other payables

(euro million) December 31, 2013 June 30, 2014

Trade payables	15,584	13,540
Down
payments and advances	2,462	2,182
Other payables:
- related
to capital expenditures	2,045	2,008
- others	3,610	3,501
	5,655	5,509
	23,701	21,231

The decrease in trade receivables for euro 2,044 million primarily related to the Gas & Power segment (euro 2,065 million). Other payables of euro 3,501 million (euro 3,610 million at December 31, 2013) included euro 12 million (the same amount as of December 31, 2013) relating to debt for the settlement of tax positions with unconsolidated subsidiaries which are part of the consolidated accounts for Italian tax purposes. Payables to related parties are described in note 35 - Transactions with related parties. Because of the short-term maturity and conditions of remuneration of trade payables, the fair value approximated the carrying amount.

95 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

18 Income taxes payable

(euro million) December 31, 2013 June 30, 2014

Italian subsidiaries	69	136
Foreign
subsidiaries	686	709
	755	845

Income tax expenses are described in note 32 - Income taxes.

19 Other current liabilities

(euro million) December 31, 2013 June 30, 2014

| Fair value
of cash flow hedge derivatives | 213 | |
| --- | --- | --- |
| Fair value of other derivatives | 782 | 2,259 |
| Other
liabilities | 442 | 501 |
| | 1,437 | 2,760 |

Derivative fair values were estimated on the basis of market quotations provided by primary info-provider or, alternatively, appropriate valuation techniques generally adopted in the marketplace. The fair value of cash flow hedge derivatives amounting to euro 213 million at December 31, 2013 essentially related to the Gas & Power segment. Those derivatives were designated to hedge exchange rate and commodity risk exposures as described in note 9 - Other current assets. Fair value of contracts expiring by June 30, 2015 is disclosed in note 9 - Other current assets; fair value of contracts expiring beyond June 30, 2015 is disclosed in note 23 - Other non-current liabilities and in note 15 - Other non-current receivables. The effects of the evaluation at fair value of cash flow hedge derivatives are disclosed in note 25 - Shareholders equity and in note 29 - Operating expenses. Fair values of other derivatives of euro 2,259 million (euro 782 million at December 31, 2013) consisted of: (i) euro 483 million (euro 376 million at December 31, 2013) of derivatives that did not meet the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net exposures to movements in foreign currencies, interest rates or commodity prices. Therefore, such derivatives were not related to specific trade or financing transactions; (ii) euro 1,775 million (euro 405 million at December 31, 2013) of commodity derivatives entered for trading purposes and proprietary trading; (iii) euro 1 million (same amount as of December 31, 2013) related to fair value hedge derivatives. Other liabilities amounting to euro 501 million (euro 442 million at December 31, 2013) included the current portion of advances received from Suez following a long-term agreement for supplying natural gas and electricity for euro 85 million (euro 111 million at December 31, 2013). Transactions with related parties are described in note 35 - Transactions with related parties.

96 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Non-current liabilities

20 Long-term debt and current maturities of long-term debt

i	i	i

| (euro
million) | i |
| --- | --- |
| i | i |

Banks	1,993	397	2,390	2,203	614	2,817
Ordinary
bonds	16,453	1,698	18,151	15,353	2,408	17,761
Convertible bonds	2,232	8	2,240	2,244	5	2,249
Other
financial institutions	197	29	226	167	30	197
	20,875	2,132	23,007	19,967	3,057	23,024

Long-term debt and the short-term portion of long-term debt of euro 23,024 million (euro 23,007 million at December 31, 2013) increased by euro 17 million. Such increase included currency translation differences relating to foreign subsidiaries and debt denominated in foreign currency recorded by euro-reporting subsidiaries for euro 76 million. Debt due to banks of euro 2,817 million (euro 2,390 million at December 31, 2013) included amounts against committed borrowing facilities for euro 2 million. Debt due to other financial institutions of euro 197 million (euro 226 million at December 31, 2013) included euro 30 million of finance lease transactions (euro 31 million at December 31, 2013). Eni entered into long-term borrowing facilities with the European Investment Bank. These borrowing facilities are subject to the maintenance of certain financial ratios based on Enis Consolidated Financial Statements or a minimum level of credit rating. According to the agreements, should the Company lose the minimum credit rating, new guarantees would be required to be agreed upon with the European Investment Bank. In addition, Eni entered into long-term and medium-term facilities with Citibank Europe Plc providing for conditions similar to those applied by the European Investment Bank. At June 30, 2014, debts subjected to restrictive covenants amounted to euro 2,211 million (euro 1,782 million and December 31, 2013). A possible non-compliance with those covenants would be immaterial to the Companys ability to finance its operations. As of the balance sheet date, Eni was in compliance with those covenants. Ordinary bonds of euro 17,761 million (euro 18,151 million at December 31, 2013) consisted of bonds issued within the Euro Medium Term Notes Program for a total of euro 13,536 million and other bonds for a total of euro 4,225 million.

97 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

The following table provides a breakdown of bonds by issuing entity, maturity date, interest rate and currency as of June 30, 2014:

| i | i | Amount | i | Discount on bond issue and accrued
expense | i | Total | i | Currency | i | i |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| i | i | i | i | i | i | i | i | i | i | i |

(euro million) i i i i i i i i i from i to i from i to

Issuing entity
Euro
Medium Term Notes
Eni SpA	1,500	43		1,543	EUR		2019		4.125
Eni SpA	1,500	28		1,528	EUR		2016		5.000
Eni SpA	1,250	32		1,282	EUR		2017		4.750
Eni SpA	1,200	40		1,240	EUR		2025		3.750
Eni SpA	1,000	19		1,019	EUR		2023		3.250
Eni SpA	1,000	12		1,012	EUR		2020		4.250
Eni SpA	1,000	12		1,012	EUR		2018		3.500
Eni SpA	1,000	7		1,007	EUR		2029		3.625
Eni SpA	1,000	(2	)	998	EUR		2020		4.000
Eni SpA	800	11		811	EUR		2021		2.625
Eni SpA	750	(4	)	746	EUR		2019		3.750
Eni
Finance International SA	561	10		571	GBP	2018	2021	4.750	6.125
Eni Finance International SA	395	2		397	EUR	2017	2043	3.750	5.441
Eni
Finance International SA	224	1		225	YEN	2015	2037	1.530	2.810
Eni Finance International SA	128	1		129	USD		2015	4.450	4.800
Eni
Finance International SA	16			16	EUR		2015		variable
	13,324	212		13,536
Other
bonds
Eni SpA	1,109	29		1,138	EUR		2017		4.875
Eni SpA	1,000	(3	)	997	EUR		2015		4.000
Eni SpA	1,000	(3	)	997	EUR		2015		variable
Eni SpA	330	1		331	USD		2020		4.150
Eni SpA	256			256	USD		2040		5.700
Eni SpA	215			215	EUR		2017		variable
Eni USA Inc	293	(2	)	291	USD		2027		7.300
	4,203	22		4,225
	17,527	234		17,761

Ordinary bonds maturing within 18 months (euro 2,212 million) were issued by Eni SpA (euro 1,994 million) and Eni Finance International SA (euro 218 million). During the first half of 2014, Eni SpA issued new bonds for euro 1,007 million. The following table provides a breakdown of convertible bonds by issuing entity, maturity date, interest rate and currency as of June 30, 2014:

| (euro
million) | i |
| --- | --- |
| i | i |

| Issuing
entity — Eni SpA | 1,250 | (12) | 1,238 | EUR | 2016 | 0.625 |
| --- | --- | --- | --- | --- | --- | --- |
| Eni SpA | 1,028 | (17) | 1,011 | EUR | 2015 | 0.250 |
| | 2,278 | (29) | 2,249 | | | |

The convertible bond amounting to euro 1,238 million (nominal value of euro 1,250 million) is exchangeable into ordinary shares of Snam SpA. Underlying the exchangeable bond are approximately 288.7 million ordinary shares, corresponding to approximately 8.54% of the current outstanding share capital of Snam at a strike

98 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

price of approximately euro 4.33 a share, representing a 20% premium to market prices current at the date of the issuance. The convertible bond amounting to euro 1,011 million (nominal value of euro 1,028 million) is exchangeable into ordinary shares of Galp Energia SGPS SA due within the next 18 months. Underlying the exchangeable bond are approximately 66.3 million ordinary shares of Galp, corresponding to approximately 8% of the current outstanding share capital of Galp at a strike price of approximately euro 15.50 a share, representing a 35% premium to market prices current at the date of the issuance. Convertible bonds of both issues are stated at amortized cost, while the call option embedded in the bonds is measured at fair value through profit. Changes in fair value of the shares underlying the bonds were reported through profit as opposed to equity based on the fair value option provided by IAS 39 from inception. As of June 30, 2014, Eni had undrawn long-term committed borrowing facilities of euro 5,721 million (euro 4,719 million at December 31, 2013). Those facilities bore interest rates reflecting prevailing conditions on the marketplace; charges for unutilized facilities were immaterial. Eni has in place a program for the issuance of Euro Medium Term Notes up to euro 15 billion, of which about euro 13.3 billion were drawn as of June 30, 2014. The Group has credit ratings of A and A-1 respectively for long and short-term debt assigned by Standard & Poors and A3 and P-2 for long and short-term debt assigned by Moodys. The outlook is negative in both ratings. Enis credit rating is linked in addition to the Companys industrial fundamentals and trends in the trading environment to the sovereign credit rating of Italy. On the basis of the methodologies used by Standard & Poors and Moodys, a potential downgrade of Italys credit rating may trigger a potential knock-on effect on the credit rating of Italian issuers such as Eni and make it more likely that the credit rating of the notes or other debt instruments issued by the Company could be downgraded. Fair value of long-term debt, including the current portion of long-term debt amounted to euro 25,724 million (euro 22,891 million at December 31, 2013):

(euro million) December 31, 2013 June 30, 2014

Ordinary bonds	18,071	20,377
Convertible
bonds	2,188	2,289
Banks	2,382	2,840
Other
financial institutions	250	218
	22,891	25,724

The fair value of convertible bonds was determined on the basis of the market quotation. The fair value of other bonds was calculated by discounting the expected future cash flows at discount rates ranging from 0.3% to 3.5% (0.5% and 4.2% at December 31, 2013). As of June 30, 2014, Eni did not pledge restricted deposits as collateral against its borrowings.

99 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Analysis of net borrowings The analysis of net borrowings, as defined in the "Financial review", was as follows:

(euro million) December 31, 2013 June 30, 2014

i i Current i Non-current i Total i Current i Non-current i Total

| A. Cash and cash equivalents — B.
Held-for-trading financial assets | 5,431 — 5,004 | | | 5,431 — 5,004 | 6,518 — 5,020 | | | 6,518 — 5,020 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| C. Available-for-sale securities | 33 | | | 33 | 8 | | | 8 |
| D.
Liquidity (A+B+C) | 10,468 | | | 10,468 | 11,546 | | | 11,546 |
| E. Financing receivables | 129 | | | 129 | 115 | | | 115 |
| F.
Short-term liabilities towards banks | 306 | | | 306 | 677 | | | 677 |
| G. Long-term liabilities towards banks | 397 | | 1,993 | 2,390 | 614 | | 2,203 | 2,817 |
| H. Bonds | 1,706 | | 18,685 | 20,391 | 2,413 | | 17,597 | 20,010 |
| I. Short-term liabilities towards related
parties | 264 | | | 264 | 249 | | | 249 |
| L. Other
short-term liabilities | 1,983 | | | 1,983 | 2,312 | | | 2,312 |
| M. Other long-term liabilities | 29 | | 197 | 226 | 30 | | 167 | 197 |
| N.
Total borrowings (F+G+H+I+L+M) | 4,685 | | 20,875 | 25,560 | 6,295 | | 19,967 | 26,262 |
| O. Net borrowings (N-D-E) | (5,912 | ) | 20,875 | 14,963 | (5,366 | ) | 19,967 | 14,601 |

Financial assets held for trading of euro 5,020 million (euro 5,004 million at December 31, 2013) were maintained by Eni SpA. For further information see Note 5 - Financial assets held for trading. Available-for-sale securities of euro 8 million (euro 33 million at December 31, 2013) were held for non-operating purposes. The Company held at the reporting date certain held-to-maturity and available-for-sale securities which were destined to operating purposes amounting to euro 318 million (euro 282 million at December 31, 2013), of which euro 236 million (euro 202 million at December 31, 2013) were held to hedge the loss reserve of Eni Insurance Ltd. Those securities are excluded from the calculation above. Financing receivables of euro 115 million (euro 129 million at December 31, 2013) were held for non-operating purposes. The Company held at the reporting date certain financing receivables which were destined to operating purposes amounting to euro 992 million (euro 884 million at December 31, 2013), of which euro 536 million (euro 481 million at December 31, 2013) were in respect of financing granted to unconsolidated subsidiaries, joint ventures and affiliates which executed capital projects and investments on behalf of Enis Group companies and a euro 309 million cash deposit (euro 321 million at December 31, 2013) to hedge the loss reserve of Eni Insurance Ltd. Those financing receivables are excluded from the calculation above.

100 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

21 Provisions for contingencies

(euro million) Carrying amount at December 31, 2013 New or increased provisions Initial recognition and changes in estimates Accretion discount Reversal of utilized provisions Reversal of unutilized provisions Currency translation differences Other changes Carrying amount at June 30, 2014

| Provision
for site restoration, abandonment and social projects | 6,899 | | 1,070 | 125 | (143) | | 63 | 160 | | 8,174 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Provision for environmental risks | 2,862 | 84 | | 2 | (86) | (6) | | (2 | ) | 2,854 |
| Provision
for legal and other proceedings | 858 | 305 | | | (74) | (47) | 4 | 9 | | 1,055 |
| Provision for taxes | 477 | 39 | | | (19) | | 4 | (6 | ) | 495 |
| Provision
for redundancy incentives | 407 | 22 | | 11 | (8) | (19) | | (3 | ) | 410 |
| Provision for onerous contracts | 372 | 2 | | | (42) | | 4 | 51 | | 387 |
| Loss
adjustments and actuarial provisions for Eni's insurance
companies | 358 | 45 | | | (59) | | | 3 | | 347 |
| Provision for green certificates | 255 | 16 | | | (72) | | | (1 | ) | 198 |
| Provision
for losses on investments | 163 | 10 | | | | (6) | | (5 | ) | 162 |
| Provision for OIL insurance cover | 93 | | | | | | | 4 | | 97 |
| Provision
for disposal and restructuring | 96 | | | | (3) | (16) | 2 | | | 79 |
| Provision for long-term construction contracts | 83 | 11 | | | (31) | | 1 | | | 64 |
| Other (*) | 197 | 48 | | | (32) | (8) | | (62 | ) | 143 |
| | 13,120 | 582 | 1,070 | 138 | (569) | (102) | 78 | 148 | | 14,465 |

(*) Each individual amount included herein was lower than euro 50 million.

Initial recognition and changes in estimates included the effects deriving from the reduction in the long-term interest rate. Additions and utilizations to the provisions for legal and other proceedings of euro 305 million and euro 74 million, respectively, mainly related to the Gas & Power segment and were recognized to take account of gas price revisions at both long-term supply and sale contracts, including the settlement of certain arbitrations.

22 Deferred tax liabilities

Deferred tax liabilities were recognized net of the amounts of deferred tax assets which can be offset for euro 3,509 million (euro 3,562 million at December 31, 2013).

(euro million) Amount at December 31, 2013 Net additions Currency translation differences Other changes Amount at June 30, 2014

6,750 406 106 (124) 7,138

Deferred tax assets and liabilities consisted of the following:

(euro million) December 31, 2013 June 30, 2014

| Deferred tax liabilities — Deferred
tax assets available for offset | 10,312 — (3,562 | ) | 10,647 — (3,509 | ) |
| --- | --- | --- | --- | --- |
| | 6,750 | | 7,138 | |
| Deferred
tax assets not available for offset | (4,658 | ) | (4,579 | ) |
| | 2,092 | | 2,559 | |

101 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

23 Other non-current liabilities

(euro million) December 31, 2013 June 30, 2014

Fair value of non-hedging derivatives	282	194
Fair value
of cash flow hedging derivatives	1
Current income tax liabilities	20	20
Tax
authorities	2
Other payables	74	40
Other
liabilities	1,880	1,860
	2,259	2,114

Derivative fair values were estimated on the basis of market quotations provided by primary info-provider or, alternatively, appropriate valuation techniques generally adopted in the marketplace. Fair values of non-hedging derivatives of euro 194 million (euro 282 million at December 31, 2013) consisted of: (i) euro 58 million (euro 155 million at December 31, 2013) of derivatives that did not meet the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net business exposures to foreign currency exchange rates, interest rates or commodity prices. Therefore, such derivatives were not related to specific trade or financing transactions; (ii) euro 136 million (euro 127 million at December 31, 2013) related to the call option embedded in the bonds convertible into Snam SpA and Galp Energia SGPS SA ordinary shares for euro 103 million and euro 33 million, respectively (further information is disclosed in note 20 - Long-term debt and current portion of long-term debt). Fair value of cash flow hedge derivatives amounting to euro 1 million as of December 31, 2013 pertained to the Gas & Power segment. Those derivatives were designated to hedge exchange rate and commodity risk exposures as described in note 9 - Other current assets. Fair value of contracts expiring beyond June 30, 2015 is disclosed in note 15 - Other non-current receivables; fair value of contracts expiring by June 30, 2015 is disclosed in note 19 - Other current liabilities and in note 9 - Other current assets. The effects of fair value evaluation of cash flow hedge derivatives are disclosed in note 25 - Shareholders equity and in note 29 - Operating expenses. Other liabilities of euro 1,860 million (euro 1,880 million at December 31, 2013) included advances received from Suez following a long-term agreement for supplying natural gas and electricity of euro 851 million (euro 876 million at December 31, 2013) and advances relating to amounts of gas of euro 150 million (euro 149 million at December 31, 2013) which were collected for amounts lower than the minimum take for the year by certain of Enis clients, reflecting take-or-pay clauses contained in the long-term sale contracts. Management believes that the underlying gas volumes will be off-taken beyond the twelve-month time horizon. Liabilities with related parties are described in note 35 - Transactions with related parties.

24 Assets held for sale and liabilities directly associated

Assets held for sale and liabilities directly associated with assets held for sale of euro 663 million and euro 221 million, respectively, related to: (i) the sale of 100% stake of the subsidiaries Eni Ceská Republika Sro, Eni Slovensko Spol Sro and Eni Romania Srl, companies operating in the Refining & Marketing segment, with activities in Czech Republic, Slovakia and Romania respectively and the sale of 32.445% stake (entire stake own) in Ceská Rafinérská AS (CRC), a refining company in the Czech Republic. These three subsidiaries and the investment in CRC were classifie d as assets held for sale following the agreement signed by Eni with MOL Group, a Hungarian oil & gas company on May 7, 2014. The transfer is subject to the pre-emption right on the part of the other partner in CRC, Unipetrol, which will be able to purchase the share under the conditions agreed with MOL. The carrying amount of assets held for sale and liabilities directly associated with assets held for sale amounted to euro 458 million and euro 221 million, respectively. The completion of these agreements is subject to certain conditions, including prior approval by the competent European antitrust authorities. Eni will remain active in all three countries through the wholesale marketing of lubricants; (ii) the sale of 50% stake in EnBW Eni Verwaltungsgesellschaft (EEV) (entire stake own), a German company which controls Gasversorgung Süddeutschland and Terranets bw GmbH, companies operating in the distribution and commercialization of natural gas in Germany, to its current partner EnBW (Energie Baden-

102 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Württemberg). The carrying amount of the investment amounted to euro 183 million. The sale is subject to approval by the relevant antitrust authorities; (iii) the sale of 76% stake in Inversora de Gas Cuyana SA (entire stake owned), 6.84% stake in Distribudora de Gas Cuyana SA (entire stake owned), 25% stake in Inversora de Gas del Centro SA (entire stake owned) and 31.35% stake in Distribudora de Gas del Centro SA (entire stake owned), companies operating in the distribution and commercialization of natural gas in Argentina. The carrying amount of the investments amounted to euro 10 million. During the course of the first half 2014, Eni closed the sale of its interest in Artic Russia BV for a carrying amount of euro 2,131 million.

25 Shareholders equity

Non-controlling interest

(euro million) Net profit Shareholders' equity

First half 2013 First half 2014 December 31, 2013 June 30, 2014

Saipem SpA	(376)	56		2,748	2,769
Others	(7)	(99	)	91	(10	)
	(383)	(43	)	2,839	2,759

Eni shareholders equity

(euro million) December 31, 2013 June 30, 2014

| Share capital — Legal
reserve | 4,005 — 959 | | 4,005 — 959 | |
| --- | --- | --- | --- | --- |
| Reserve for treasury shares | 6,201 | | 6,201 | |
| Reserve
related to the fair value of cash flow hedging
derivatives net of tax effect | (154 | ) | 19 | |
| Reserve related to the fair value of
available-for-sale financial instruments net of tax
effect | 81 | | 9 | |
| Reserve
related to the defined benefit plans net of tax effect | (72 | ) | (72 | ) |
| Other reserves | 296 | | 296 | |
| Cumulative
currency translation differences | (698 | ) | (303 | ) |
| Treasury shares | (201 | ) | (403 | ) |
| Retained
earnings | 44,626 | | 45,830 | |
| Interim dividend | (1,993 | ) | | |
| Net profit
for the period | 5,160 | | 1,961 | |
| | 58,210 | | 58,502 | |

Share capital As of June 30, 2014, the parent companys issued share capital consisted of euro 4,005,358,876 represented by 3,634,185,330 ordinary shares without nominal value (same amounts as of December 31, 2013). On May 8, 2014, Enis Shareholders Meeting declared: (i) to distribute a dividend of euro 0.55 per share, with the exclusion of treasury shares held at the ex-dividend date, in full settlement of the 2013 dividend of euro 1.10 per share, of which euro 0.55 per share paid as interim dividend. The balance was paid on May 22, 2014, to shareholders on the register on May 19, 2014, record date on May 21, 2014; (ii) to cancel, for the portion not yet implemented as of the date of the Shareholders Meeting, the authorization for the Board of Directors to acquire treasury shares as resolved at the Shareholders Meeting of May 10, 2013; (iii) to authorize the Board of Directors to purchase on the Mercato Telematico Azionario in one or more transactions and in any case within 18 months from the date of the resolution up to a maximum number of 363,000,000 ordinary Eni shares, for a price of no less than euro 1.102 and not more than the official price reported by the Borsa Italiana for the shares on the trading day prior to each individual transaction, plus 5%, and in any case up to a total amount of euro 6,000 million, in accordance with the procedures established in the Rules of the Markets organized and managed by Borsa Italiana SpA. In order to respect the limit

103 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

envisaged in the third paragraph of Article 2357 of the Italian Civil Code, the number of shares to be acquired and the relative amount shall take into account the number and amount of Eni shares already held in the portfolio.

Legal reserve This reserve represents earnings restricted from the payment of dividends pursuant to Article 2430 of the Italian Civil Code. The legal reserve has reached the maximum amount required by the Italian Law.

Reserve for cash flow hedging derivatives, other available-for-sale financial instruments and defined benefit plans net of the related tax effect The valuation at fair value of cash flow hedging derivatives, other available-for-sale financial instruments and defined benefit plans, net of the related tax effect, consisted of the following:

Cash flow hedging derivatives Available-for-sale financial instruments Defined benefit plans Total

(euro million) i Gross reserve i Tax effect i Net reserve i Gross reserve i Tax effect i Net reserve i Gross reserve i Tax effect i Net reserve i Gross reserve i Tax effect i Net reserve

| Reserve
as of December 31, 2013 | (224 | ) | 70 | | (154 | ) | 83 | | (2 | ) | 81 | | 13 | (72) | (226 | ) | 81 | | (145 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Changes of the period | 287 | | (88 | ) | 199 | | 5 | | (1 | ) | 4 | | | | 292 | | (89 | ) | 203 | |
| Amount
recognized in the profit and loss account | (37 | ) | 11 | | (26 | ) | (77 | ) | 1 | | (76 | ) | | | (114 | ) | 12 | | (102 | ) |
| Reserve as of June 30, 2014 | 26 | | (7 | ) | 19 | | 11 | | (2 | ) | 9 | (85) | 13 | (72) | (48 | ) | 4 | | (44 | ) |

Reserve for available-for-sale financial instruments net of tax effect of euro 9 million (euro 5 million at December 31, 2013) related to the fair value evaluation of securities. The amount of the reserve as of 31 December 2013 of euro 76 million relating to the fair value evaluation of Galp Energia SGPS as of December 31, 2013 was reversed to the profit and loss account following the sale of 8.15% share capital (further information is disclosed in note 12 - Investments).

Other reserves Other reserves amounting to euro 296 million remained unchanged from the Annual Report 2013.

26 Other information

Main acquisitions Acam Clienti SpA In the first half of 2014, Eni purchased a 51% share in the company Acam Clienti SpA. The company operates in the distribution and commercialization of natural gas primarily in the province of La Spezia. Following the acquisition, Eni now owns the 100% stake of the company. The allocation to assets and liabilities of the total value of the investment for euro 30 million was made on a definitive basis.

Liverpool Bay Ltd In the first half of 2014, Eni purchased a 100% share in the company Liverpool Bay Ltd. The company owns a 46.1% interest in the Liverpool Bay oil and gas field. Eni, which already owned a 53.9% of the field, following the acquisition of the company now owns the 100% of the field and acquired the operatorship. The allocation to assets and liabilities of the total value of the investment for euro 21 million was made on a preliminary basis.

104 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

The preliminary and final allocation of the purchase cost is disclosed below:

Acam Clienti SpA Liverpool Bay Ltd

(euro million) Carrying value Fair value Carrying value Fair value

Current assets	60		60		36
Goodwill	8		32		5
Other non-current assets				228	228
Assets
acquired	68		92	264	269
Current liabilities	61		61	34	34
Net
deferred tax liabilities				23	23
Provisions for contingencies				191	191
Other
non-current liabilities	1		1
Liabilities acquired	62		62	248	248
Fair value
of investments held before the acquisition of control	(3	)	(15	)
Eni's shareholders equity	3		15	16	21

Supplemental cash flow information

(euro million) First half 2013 First half 2014

| Effect of investment of companies included in
consolidation and businesses — Current
assets | 26 | | 96 | |
| --- | --- | --- | --- | --- |
| Non-current assets | 27 | | 265 | |
| Net
borrowings | (5 | ) | (19 | ) |
| Current and non-current liabilities | (19 | ) | (291 | ) |
| Fair value
of investments held before the acquisition of control | | | (15 | ) |
| Net effect of investments | 29 | | 36 | |
| Purchase
price | 29 | | 36 | |
| less: | | | | |
| Cash
and cash equivalents | (1 | ) | | |
| Cash flow on investments | 28 | | 36 | |

Investments of the first half of 2014 related to the acquisition of 51% stake in Acam Clienti SpA and 100% stake of Liverpool Bay Ltd. Investments of the first half of 2013 referred to the acquisition of ASA Trade SpA.

105 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

27 Guarantees, commitments and risks

Guarantees The amount of guarantees remained unchanged from the Annual Report 2013.

Commitments and risks The amount of commitments and risks remained unchanged from the Annual Report 2013.

Risk factors

Financial risks Eni considers financial risks those risks connected with market, credit and liquidity. Financial risks are managed in respect of guidelines issued by the Board of Directors of Eni SpA in its role of directing and setting of the risk limits, targeting to align and centrally coordinate Group companies policies on financial risks ("Guidelines on financial risks management and control"). The "Guidelines" define for each financial risk the key components of the management and control process, such as the aim of the risk management, the measurement methodology, the structure of limits, the relation model and the hedging and mitigation instruments.

Market risk Market risk is the possibility that changes in currency exchange rates, interest rates or commodity prices will adversely affect the value of the Groups financial assets, liabilities or expected future cash flows. The Company actively manages market risk in accordance with a set of policies and guidelines that provide a centralized model of handling finance, treasury and risk management operations based on the Companys departments of operational finance: the parent companys (Eni SpA) finance department, Eni Finance International SA, Eni Finance USA Inc and Banque Eni SA, which is subject to certain bank regulatory restrictions preventing the Groups exposure to concentrations of credit risk, and Eni Trading & Shipping SpA, that is in charge to execute certain activities relating to commodity derivatives. In particular Enis finance department and Eni Finance International SA manage subsidiaries financing requirements in and outside Italy, respectively, covering funding requirements and using available surpluses. All transactions concerning currencies and derivative contracts on interest rates and currencies different from commodities are managed by the parent company. The commodity risk of each business unit (Enis Divisions or subsidiaries) is pooled and managed by the Midstream department, while Eni Trading & Shipping SpA executes the negotiation of commodity derivatives. Eni Trading & Shipping SpA and Eni SpA perform trading activities in financial derivatives on external trading venues, such as European and non-European regulated markets, Multilateral Trading Facility (MTF) or similar and brokerage platforms (i.e. SEF), and over the counter on a bilateral basis with external counterparties. Other legal entities belonging to Eni that require financial derivatives enter into these operations through Eni Trading & Shipping SpA and Eni SpA on the basis of the relevant asset class expertises. Eni uses derivative financial instruments (derivatives) in order to minimize exposure to market risks related to fluctuations in exchange rates relating to those transactions denominated in a currency other than the functional currency (the euro) and interest rates, as well as to optimize exposure to commodity prices fluctuations taking into account the currency in which commodities are quoted. Eni monitors every activity in derivatives classified as risk-reducing (in particular, back to back activities, flow hedging activities, asset-backed hedging activities and portfolio management activities) directly or indirectly related to covered industrial assets, so as to effectively optimize the risk profile to which Eni is exposed or could be exposed. If the result of the monitoring shows those derivatives should not be considered as risk-reducing, these derivatives are reclassified in proprietary trading. As the proprietary trading is considered separately from the other activities, its exposure is subject to specific controls, both in

106 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

terms of VaR and stop loss and in terms of nominal gross value. For Eni, the gross nominal value of proprietary trading activities is compared with the limits set by the relevant international standards. The framework defined by Enis policies and guidelines provides that the measurement and control of market risk is performed on the basis of maximum tolerable levels of risk exposure defined in terms of: (i) limits of stop loss, which expresses the maximum tolerable amount of losses associated with a certain portfolio of assets over a pre-defined time horizon; (ii) limits of revision strategy, which consist in the triggering of a revision process of the strategy in the event of exceeding the level of profit and loss given; (iii) Value at Risk (VaR) which measures the maximum potential loss of the portfolio, given a certain confidence level and holding period, assuming adverse changes in market variables and taking into account of the correlation among the different positions held in the portfolio. Enis finance department defines the maximum tolerable levels of risk exposure to changes in interest rates and foreign currency exchange rates in terms of value at risk, pooling Group companies risk positions maximizing, when possible, the benefits of the netting activity. Enis calculation and measurement techniques for interest rate and foreign currency exchange rate risks are in accordance with banking standards, as established by the Basel Committee for bank activities surveillance. Tolerable levels of risk are based on a conservative approach, considering the industrial nature of the company. Enis guidelines prescribe that Eni Group companies minimize such kinds of market risks by transferring risk exposure to the parent company finance department. Enis guidelines define rules to manage the commodity risk aiming at optimizing core activities and pursuing preset targets of stabilizing industrial and commercial margins. The maximum tolerable level of risk exposure is defined in terms of value at risk, limits of revision strategy, stop loss and volumes in connection with exposure deriving from commercial activities, centrally managed by the Midstream department, as well as exposure deriving from proprietary trading, exclusively managed by Eni Trading & Shipping SpA. Internal mandates to manage the commodity risk provide for a mechanism of allocation of the Group maximum tolerable risk level to each business unit. In this framework, Eni Trading & Shipping SpA, in addition to managing risk exposure associated with its own commercial activity and proprietary trading, pools the Midstream department requests for negotiating commodity derivatives and executes them on the marketplace. According to the targets of financial structure included in the financial plan approved by the Board of Directors, Eni has decided to retain a cash reserve to face any extraordinary requirement. Such reserve is managed by Eni's finance department with the aim of optimizing the efficiency and ensuring maximum protection of the capital and its immediate liquidity within the limits assigned. The management of strategic cash represents for Eni a new type of market risk, the price risk of strategic cash. This type of risk is part of the management of strategic cash pursued through transactions on own risk in view of optimizing financial returns, while respecting authorized risk levels, safeguarding the Companys assets and retaining quick access to liquidity. The four different market risks, whose management and control have been summarized above, are described below.

Exchange rate risk Exchange rate risk derives from the fact that Enis operations are conducted in currencies other than the euro (mainly the U.S. dollar). Revenues and expenses denominated in foreign currencies may be significantly affected by exchange rates fluctuations due to conversion differences on single transactions arising from the time lag existing between execution and definition of relevant contractual terms (economic risk) and conversion of foreign currency-denominated trade and financing payables and receivables (transactional risk). Exchange rate fluctuations affect the Groups reported results and net equity as financial statements of subsidiaries denominated in currencies other than the euro are translated from their functional currency into euro. Generally, an appreciation of the U.S. dollar versus the euro has a positive impact on Enis results of operations, and vice versa. Enis foreign exchange risk management policy is to minimize transactional exposures arising from foreign currency movements and to optimize exposures arising from commodity risk. Eni does not undertake any hedging activity for risks deriving from the translation of foreign currency denominated profits or assets and liabilities of subsidiaries which prepare

107 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

financial statements in a currency other than the euro, except for single transactions to be evaluated on a case-by-case basis. Effective management of exchange rate risk is performed within Enis central finance department which pools Group companies positions, hedging the Group net exposure through the use of certain derivatives, such as currency swaps, forwards and options. Such derivatives are evaluated at fair value on the basis of market prices provided by specialized info-providers. Changes in fair value of those derivatives are normally recognized through profit and loss as they do not meet the formal criteria to be recognized as hedges in accordance with IAS 39. The VaR techniques are based on variance/covariance simulation models and are used to monitor the risk exposure arising from possible future changes in market values over a 24-hour period within a 99% confidence level and a 20-day holding period.

Interest rate risk Changes in interest rates affect the market value of financial assets and liabilities of the company and the level of finance charges. Enis interest rate risk management policy is to minimize risk with the aim to achieve financial structure objectives defined and approved in the managements finance plans. Borrowing requirements of Group companies are pooled by the Groups central finance department in order to manage net positions and the funding of portfolio developments consistently with managements plans while maintaining a level of risk exposure within prescribed limits. Eni enters into interest rate derivative transactions, in particular interest rate swaps, to effectively manage the balance between fixed and floating rate debt. Such derivatives are evaluated at fair value on the basis of market prices provided from specialized sources. Changes in fair value of those derivatives are normally recognized through the profit and loss account as they do not meet the formal criteria to be accounted for under the hedge accounting method in accordance with IAS 39. Value at risk deriving from interest rate exposure is measured daily on the basis of a variance/covariance model, with a 99% confidence level and a 20-day holding period.

Commodity risk Enis results of operations are affected by changes in the prices of commodities. A decrease in oil and gas prices generally has a negative impact on Enis results of operations and vice versa, and may jeopardize the achievement of the financial targets preset in the Companys plans and budget. The commodity price risk arises in connection with the following exposures: a) Strategic exposure: exposures directly identified by the Board of Directors as a result of strategic investment decisions or outside the planning horizon of risk. These exposures include those associated with the program for the production of proved and unproved oil and gas reserves, long-term gas supply contracts for the portion not balanced by ongoing or highly probable sale contracts, refining margins identified by the Board of Directors as of strategic nature (the remaining volumes can be allocated to the active management of the margin or to asset backed hedging activities) and minimum compulsory stocks. b) Commercial exposure: includes the exposures related to the components underlying the contractual arrangements of industrial and commercial activities and, if related to take-or-pay commitments, to the components related to the time horizon of the four-year plan and budget and the relevant activities of risk management. Commercial exposures are characterized by a systematic risk management activity conducted on the basis of risk/return assumptions by implementing one or more strategies and subjected to specific risk limits (VaR, stop loss). In particular, the commercial exposures include exposures subjected to asset backed hedging activities, arising from the flexibility/optionality of assets. c) Proprietary trading exposure: includes operations independently conducted for profit purposes in the short-term, and normally not finalized to the delivery, both within the commodity and financial markets, with the aim to obtain a profit upon the occurrence of a favorable result in the market, in accordance with specific limits of authorized risk (VaR, stop loss). In the proprietary trading exposures are included the origination activities, if not connected to contractual or physical assets. Strategic risk is not subject to systematic activity of management/coverage that is eventually carried out only in case of specific market or business conditions. Because of the extraordinary nature, hedging activities related to strategic risks are delegated to the top management. Strategic risk is subject to measuring and monitoring but is not subject to specific risk limits. If previously authorized by the Board of Directors, exposures related to strategic risk can be used in combination with other commercial exposures

108 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

in order to exploit opportunities for natural compensation between the risks (natural hedge) and consequently reduce the use of derivatives (by activating logics of internal market). Eni manages exposure to commodity price risk arising in normal trading and commercial activities in view of achieving stable economic results. The commodity risk and the exposure to commodity prices fluctuations embedded in commodities quoted in currencies other than the euro at each business unit (Enis Divisions or subsidiaries) is pooled and managed by the Portfolio Management unit of the Midstream department for commodities, and by Enis finance department for exchange rate requirements. The Midstream department manages business units risk exposures to commodities, pooling and optimizing Group companies exposures and hedging net exposures on the trading venues through the trading unit of Eni Trading & Shipping SpA. In order to manage commodity price risk, Eni uses derivatives traded on the organized markets of ICE and NYMEX (futures) and derivatives traded over the counter (swaps, forward, contracts for differences and options) with the underlying commodities being crude oil, refined products or electricity. Such derivatives are evaluated at fair value on the basis of market prices provided from specialized sources or, absent market prices, on the basis of estimates provided by brokers or suitable evaluation techniques. Value at risk deriving from commodity exposure is measured daily on the basis of a historical simulation technique, with a 95% confidence level and a one-day holding period.

Price risk of the strategic liquidity Market risk deriving from liquidity management is identified as the possibility that changes in prices of financial instruments (bonds, money market instruments and mutual funds) would impact the value of these instruments when evaluated at fair value. In order to manage the investment activity of the strategic liquidity, Eni defined a specific investment policy with aims and constraints in terms of financial activities and operational boundaries, as well as governance guidelines regulating management and control systems. The setting up and maintenance of a reserve of liquidity is mainly aimed to: (i) guarantee of financial flexibility. Liquidity should allow Eni Group to fund any extraordinary need (such as difficulty in access to credit, exogenous shock, macroeconomic environment, as well as merger and acquisitions); and (ii) maintain/improve the current credit rating by strengthening balance sheet structure, as well as the concurrent availability of a liquidity reserve which will meet the requirements of rating agencies. Strategic liquidity management is regulated in terms of Value at Risk (measured on the basis of a historical simulation technique, with a one-day holding period and a 99% confidence level), stop loss and other operating limits in terms of concentration, duration, ratings, liquidity and instruments to invest on. Financial leverage or short selling is not allowed. Activities in terms of strategic liquidity management started in the second half of the year 2013. The following table shows amounts in terms of Value at Risk, recorded in the firs half 2014 (compared with 2013) relating to interest rate and exchange rate risks in the first section, and commodity risk in the second section.

(Value at risk - parametric method variance/covariance; holding period: 20 days; confidence level: 99%)

2013 First half 2014

(euro million) High Low Average At year end High Low Average At year end

| Interest
rate (a) | 3.67 | 1.49 | 2.07 | 2.15 | 2.19 | 1.29 | 1.67 | 2.19 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Exchange rate (a) | 0.37 | 0.07 | 0.14 | 0.24 | 0.23 | 0.03 | 0.09 | 0.05 |

(a) Value at risk deriving from interest and exchange rates exposures include the following finance department: Eni Corporate Finance Department, Eni Finance International, Banque Eni and Eni Finance USA.

109 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

(Value at risk - Historic simulation weighted method; holding period: 1 day; confidence level: 95%)

2013 First half 2014

(euro million) High Low Average At year end High Low Average At year end

| Commercial
exposures - Management Portfolio (a) | 108.13 | 36.59 | 59.92 | 66.44 | 40.56 | 16.82 | 25.48 | 25.72 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Trading (b) | 7.50 | 1.36 | 4.11 | 2.93 | 5.57 | 1.38 | 3.20 | 3.54 |

(a) Refers to the Midstream Department (risk exposure from Refining & Marketing Division and Gas & Power Division), Versalis, Eni Trading & Shipping BV (Amsterdam) and subsidiaries pertaining to the Divisions outside Italy. (b) Cross-commodity proprietary trading, both for commodity contracts and financial derivatives, refers to Eni Trading & Shipping SpA (London-Bruxelles-Singapore) and Eni Trading & Shipping Inc (Houston).

(Value at risk - Historic simulation method; holding period: 1 day; confidence level: 99%)

2013 First half 2014

(euro million) High Low Average At year end High Low Average At year end

Strategic liquidity (a) 1.07 0.32 0.89 0.92 1.18 0.84 1.00 1.14

(a) The management of the strategic liquidity portfolio started from July 2013.

Credit risk Credit risk is the potential exposure of the Group to losses in case counterparties fail to perform or pay amounts due. The Group manages differently credit risk depending on whether credit risk arises from exposure to financial counterparties or to customers relating to outstanding receivables. Individual business units and Enis corporate financial and accounting units are responsible for managing credit risk arising in the normal course of the business. The Group has established formal credit systems and processes to ensure that before trading with a new counterpart can start, its creditworthiness is assessed. Also credit litigation and receivable collection activities are assessed. Enis corporate units define directions and methods for quantifying and controlling customers reliability. With regard to risk arising from financial counterparties deriving from current and strategic use of liquidity, Eni has established guidelines prior to entering into cash management and derivative contracts to assess the counterpartys financial soundness and rating in view of optimizing the risk profile of financial activities while pursuing operational targets. Maximum limits of risk exposure are set in terms of maximum amounts of credit exposures for categories of counterparties as defined by the Companys Board of Directors taking into account the credit ratings provided by primary credit rating agencies on the marketplace. Credit risk arising from financial counterparties is managed by the Group operating finance department, including Enis subsidiary Eni Trading & Shipping SpA which specifically engages in commodity derivatives transactions and by Group companies and Divisions, only in the case of physical transactions with financial counterparties consistently with the Group centralized finance model. Eligible financial counterparties are closely monitored to check exposures against limits assigned to each counterparty on a daily basis.

Liquidity risk Liquidity risk is the risk that suitable sources of funding for the Group may not be available, or the Group is unable to sell its assets on the marketplace in order to meet short-term finance requirements and to settle obligations. Such a situation would negatively impact Group results as it would result in the Company incurring higher borrowing expenses to meet its obligations or under the worst of conditions the inability of the Company to continue as a going concern. As part of its financial planning process, Eni manages the liquidity risk by targeting such a capital structure as to allow the Company to maintain a level of liquidity adequate to the Groups needs, optimizing the opportunity cost of maintaining liquidity reserves also achieving an efficient balance in terms of maturity and composition of finance debt. For this purpose, Eni holds a significant amount of liquidity reserve (financial assets plus committed credit lines), which aims to: (a) deal with identified risk factors that could significantly affect the cash flow expected in the Financial Plan (i.e. changes in the scenario and/or production volumes, delays in disposals, limitations in profitable acquisitions); (b) ensure a full coverage of short-term debt and the coverage of medium and long-term

110 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

debts with a maturity of 24 months, even in case of restrictions to the credit access; and (c) ensuring the availability of an adequate level of financial flexibility to support the Groups development plans. The financial asset reserve is employed in short-term marketable financial instruments, favoring investments with very low risk profile. At present, the Group believes to have access to sufficient funding to meet the current foreseeable borrowing requirements as a consequence of the availability of financial assets and lines of credit and the access to a wide range of funding at competitive costs through the credit system and capital markets. Eni has in place a program for the issuance of Euro Medium Term Notes up to euro 15 billion, of which about euro 13.3 billion were drawn as of June 30, 2014. The Group has credit ratings of A and A-1, respectively for long and short-term debt assigned by Standard & Poors and A3 and P-2 assigned by Moodys; the outlook is negative for Standard & Poors and stable for Moodys. Enis credit rating is linked in addition to the Companys industrial fundamentals and trends in the trading environment to the sovereign credit rating of Italy. On the basis of the methodologies used by Standard & Poors and Moodys, a potential downgrade of Italys credit rating may trigger a potential knock-on effect on the credit rating of Italian issuers such as Eni and make it more likely that the credit rating of the notes or other debt instruments issued by the Company could be downgraded. Eni, through the constant monitoring of the international economic environment and continuing dialogue with financial investors and rating agencies, believes to be ready to perceive emerging critical issues screened by the financial community and to be able to react quickly to any changes in the financial and the global macroeconomic environment and implement the necessary actions to mitigate such risks, coherently with Company strategies. In the course of the first half 2014, Eni issued a bond amounting to euro 1 billion related to the Euro Medium Term Notes Program. As of June 30, 2014, Eni maintained short-term unused borrowing facilities of euro 12,375 million, of which euro 41 million committed. Long-term committed borrowing facilities amounted to euro 5,721 million, of which euro 150 million were due within 12 months, which were completely undrawn at the balance sheet date. These facilities bore interest rates and fees for unused facilities that reflected prevailing market conditions. The tables below summarize the Group main contractual obligations (undiscounted) for finance debt repayments, including expected payments for interest charges, and trade and other payables maturities outstanding at period end.

Finance liability repayments including expected payments for interest charges and derivatives The tables below summarize the Group main contractual obligations for finance liability repayments, including expected payments for interest charges and derivatives.

(euro million) Maturity year

2014 2015 2016 2017 2018 2019 and thereafter Total

| Non-current
liabilities | 481 | 3,412 | 3,312 | 2,854 | 1,684 | 10,913 | 22,656 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Current financial liabilities | 3,238 | | | | | | 3,238 |
| Fair value
of derivative instruments | 2,259 | 51 | 106 | 5 | | 32 | 2,453 |
| | 5,978 | 3,463 | 3,418 | 2,859 | 1,684 | 10,945 | 28,347 |
| Interest
on finance debt | 397 | 748 | 690 | 597 | 469 | 2,128 | 5,029 |
| Financial guarantees | 172 | | | | | | 172 |

111 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Trade and other payables The tables below summarize the Group trade and other payables by maturity.

(euro million) Maturity year

2014 2019 and thereafter Total

Trade payables	13,540		13,540
Other
payables and advances	7,691	40	7,731
	21,231	40	21,271

Expected payments by period under contractual obligations and commercial commitments The Group has in place a number of contractual obligations arising in the normal course of the business. To meet these commitments, the Group will have to make payments to third parties. The Companys main obligations pertain to take-or-pay clauses contained in the Companys gas supply contracts or shipping arrangements, whereby the Company obligations consist of off-taking minimum quantities of product or service or, in case of failure, paying the corresponding cash amount that entitles the Company the right to collect the product or the service in future years. Future obligations in connection with these contracts were calculated by applying the forecasted prices of energy or services included in the four-year business plan approved by the Companys Board of Directors. The table below summarizes the Group principal contractual obligations as of the balance sheet date, shown on an undiscounted basis.

(euro million) Maturity year

2014 2015 2016 2017 2018 2019 and thereafter Total

| Operating
lease obligations (a) | 403 | 465 | 379 | 297 | 231 | 568 | 2,343 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Decommissioning liabilities (b) | 151 | 116 | 241 | 162 | 284 | 14,298 | 15,252 |
| Environmental
liabilities (c) | 228 | 329 | 248 | 130 | 107 | 669 | 1,711 |
| Purchase obligations (d) | 9,054 | 18,252 | 16,504 | 15,803 | 14,939 | 155,384 | 229,936 |
| Gas | | | | | | | |
| - take-or-pay contracts | 7,645 | 16,606 | 15,089 | 14,420 | 13,800 | 149,005 | 216,565 |
| -
ship-or-pay contracts | 872 | 1,391 | 1,165 | 1,144 | 904 | 4,457 | 9,933 |
| Other take-or-pay or ship-or-pay obligations | 66 | 125 | 117 | 108 | 104 | 478 | 998 |
| Other
purchase obligations (e) | 471 | 130 | 133 | 131 | 131 | 1,444 | 2,440 |
| Other obligations | 3 | 3 | 3 | 3 | 3 | 122 | 137 |
| Memorandum
of intent relating Val dAgri | 3 | 3 | 3 | 3 | 3 | 122 | 137 |
| | 9,839 | 19,165 | 17,375 | 16,395 | 15,564 | 171,041 | 249,379 |

(a) Operating leases primarily regarded assets for drilling activities, time charter and long term rentals of vessels, lands, service stations and office buildings. Such leases did not include renewal options. There are no significant restrictions provided by these operating leases which limit the ability of the Company to pay dividend, use assets or to take on new borrowings. (b) Represents the estimated future costs for the decommissioning of oil and natural gas production facilities at the end of the producing lives of fields, well-plugging, abandonment and site restoration. (c) Environmental liabilities do not include the environmental charge of 2010 amounting to euro 1,109 million for the proposal to the Italian Ministry for the Environment to enter into a global transaction related to nine sites of national interest because the dates of payment are not reasonably estimable. (d) Represents any agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms. (e) Mainly refers to arrangements to purchase capacity entitlements at certain re-gasification facilities in the U.S. (euro 1,874 million).

Capital expenditure commitments In the next four years Eni expects capital expenditures of euro 53.8 billion. The table below summarizes Enis capital expenditure commitments for property, plant and equipment and capital projects. Capital expenditures are considered to be committed when the project has received the appropriate level of internal management approval. At this stage, procurement contracts to execute those projects have already been awarded or are being awarded to third parties.

112 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

The amounts shown in the table below include committed expenditures to execute certain environmental projects.

Maturity year

(euro million) 2014 2015 2016 2017 2018 and thereafter Total

Committed on major projects	5,697	5,246	4,908	3,224	17,709	36,784
Other
committed projects	7,555	4,902	2,865	1,705	865	17,892
	13,252	10,148	7,773	4,929	18,574	54,676

Disclosures about the offsetting of financial instruments The table below summarizes the disclosures about the offsetting of financial instruments.

(euro million) Gross amount of financial assets and liabilities Gross amount of financial assets and liabilities subject to offsetting Net amount of financial assets and liabilities

| December
31, 2013 | | | |
| --- | --- | --- | --- |
| Financial assets | | | |
| Trade and
other receivables | 30,285 | 1,395 | 28,890 |
| Other current assets | 1,620 | 295 | 1,325 |
| Other
non-current assets | 3,711 | 35 | 3,676 |
| Financial liabilities | | | |
| Trade and
other liabilities | 25,096 | 1,395 | 23,701 |
| Other current liabilities | 1,741 | 304 | 1,437 |
| Other
non-current liabilities | 2,285 | 26 | 2,259 |
| June 30, 2014 | | | |
| Financial assets | | | |
| Trade and other receivables | 28,520 | 274 | 28,246 |
| Other current assets | 4,033 | 682 | 3,351 |
| Other non-current assets | 3,128 | 133 | 2,995 |
| Financial liabilities | | | |
| Trade and other liabilities | 21,505 | 274 | 21,231 |
| Other current liabilities | 3,451 | 691 | 2,760 |
| Other non-current liabilities | 2,238 | 124 | 2,114 |

The offsetting of financial assets and liabilities of euro 1,089 million (euro 1,725 million at December 31, 2013) related to the offsetting of financial derivatives by Eni Trading & Shipping SpA for euro 815 million (euro 330 million at December 31, 2013), receivables and debts pertaining to the Exploration & Production segment towards state entities for euro 154 million (euro 1,084 million at December 31, 2013) and receivables and debts pertaining to Eni Trading & Shipping Inc for euro 120 million (euro 311 million at December 31, 2013).

Disclosures on fair value of financial instruments Following the classification of financial assets and liabilities, measured at fair value in the balance sheet, is provided according to the fair value hierarchy defined on the basis of the relevance of the inputs used in the measurement process. In particular, on the basis of the features of the inputs used in making the measurements, the fair value hierarchy shall have the following levels: a) Level 1: quoted prices (unadjusted) in active markets for identical financial assets or liabilities; b) Level 2: measurements based on inputs, other than quoted prices above, which, for assets and liabilities that have to be measured, can be observable directly (e.g. prices) or indirectly (e.g. deriving from prices); and c) Level 3: inputs not based on observable market data.

Financial instruments measured at fair value in the balance sheet as of at June 30, 2014, were classified as follows: (i) level 1 "Quoted financial assets held for trading", "Financial assets available for sale",

113 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

"Inventories - Certificates and emission rights", "Derivatives - Futures" and "Other investments" valued at fair value; and (ii) level 2, derivative instruments different from "Non-quoted financial assets held for trading", "Derivative financial instruments other than futures" included in "Other current assets", "Other non-current assets", "Other current liabilities" and "Other non-current liabilities". During the first half 2014, there were no transfers between the different hierarchy levels of fair value. The table below summarizes the amount of financial instruments valued at fair value:

(euro million) December 31, 2013 June 30, 2014

Note Level 1 Level 2 Level 1 Level 2

| Current
assets — Quoted financial assets held for trading | (5) | 4,461 | 4,753 |
| --- | --- | --- | --- |
| Non-quoted
financial assets held for trading | (5) | 543 | 267 |
| Financial assets available for sale | (6) | 235 | 244 |
| Inventories
- Certificates and emission rights | (8) | 22 | 17 |
| Derivatives - Future | (9) | 64 | |
| Cash flow
hedge derivatives | (9) | 14 | 155 |
| Non-hedging and trading derivatives | (9) | 654 | 2,337 |
| Non-current
assets | | | |
| Other investments valued at fair value | (12) | 2,770 | 2,158 |
| Other
investments valued at fair value held for sale | (24) | 2,131 | |
| Cash flow hedge derivatives | (15) | 6 | |
| Non-hedging
derivatives | (15) | 256 | 216 |
| Current liabilities | | | |
| Derivatives
- Futures | (19) | 12 | 32 |
| Cash flow hedge derivatives | (19) | 213 | |
| Non-hedging
and trading derivatives | (19) | 770 | 2,227 |
| Non-current liabilities | | | |
| Cash flow
hedge derivatives | (23) | 1 | |
| Non-hedging derivatives | (23) | 282 | 194 |

Legal Proceedings Eni is a part to a number of civil actions and administrative arbitral and other judicial proceedings arising in the ordinary course of business. The following is a summary of the most significant proceedings currently pending for which significant developments occurred in the first half of 2014 with respect to the situation reported in the Annual Report 2013, including new proceedings. Unless otherwise is indicated below, no provisions have been made for these legal proceedings as Eni believes that negative outcomes are not probable or because the amount of the provision cannot be estimated reliably.

1. Environment

1.1 Civil and administrative proceedings in the matters of environment, health and safety (i) Syndial SpA (former EniChem SpA) - Summon for alleged environmental damage caused by DDT pollution in the Lake Maggiore - Prosecuting body: Ministry of the Environment. In May 2003, the Ministry of the Environment summoned Syndial (former EniChem) to obtain a sentence condemning the Eni subsidiary to compensate an alleged environmental damage caused by the activity of the Pieve Vergonte plant in the years 1990 through 1996. With a temporarily executive sentence dated July 3, 2008, the District Court of Turin sentenced the subsidiary Syndial SpA to compensate environmental damages amounting to euro 1,833.5 million, plus legal interests that accrued from the filing of the decision. Syndial and Eni technical-legal consultants have considered the decision and the amount of the compensation to be without factual and legal basis and have concluded that a negative outcome of this proceeding is unlikely. Particularly, Eni and its subsidiary deem the amount of the environmental damage to be absolutely wholly groundless as the sentence has been considered to lack sufficient elements to support such a material amount of the liability charged to Eni and its subsidiary with respect to the volume of pollutants ascertained by the Italian environmental minister. Based on these technical-legal advices also supported by external

114 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

accounting consultants, no provisions have been made against the proceeding. In July 2009, Syndial filed an appeal against the above mentioned sentence, and consequently the proceeding continued before a second degree court. In the hearing of June 15, 2012, before the Second Degree Court of Turin, the Minister of the Environment, formalized trough the Board of State Lawyers its decision to not execute the sentence until a final verdict on the whole matter is reached. The Second Degree Court requested Syndial to stand as defendant and then requested a technical appraisal of the matter. This technical appraisal reached a favorable outcome for Syndial; however such outcome has been questioned by the Board of State Lawyers. The hearing for the discussion of the conclusions was held on May 2, 2014. The Judge set the deadline for the filing of conclusions and replies. The ruling is expected in December 2014.

(ii) Kashagan. On March 7, 2014, the Atyrau Region Environmental Department (ARED) launched a series of civil claims against the consortium developing the Kashagan field. These proceedings allege to certain emissions associated with gas flaring occurring during commissioning have resulted in infringements of environmental laws and environmental damages. The aggregate value of the civil claims is approximately US $730 million (KZT 134 billion), of which Enis share would be approximately US $123 million (KZT 22.5 billion). The Kashagan projects consortium disputes these allegations.

(iii) Syndial SpA and Versalis SpA - Summon for alleged environmental damage caused by illegal waste disposal in the municipality of Melilli (Sicily). In May 2014, the municipality of Melilli summoned Enis subsidiaries Syndial, Versalis and SMA.RI Srl for the environmental damage allegedly caused by carrying out illegal waste disposal activities and unauthorized landfill by the mentioned Enis companies. In particular, the arraignment concerns the responsibilities of Syndial and Versalis for the production of waste, acting in quality of commissioners, because the source of the dangerous waste (in particular, the waste with high mercury concentration and railway sleepers no longer in use) would have been allegedly traced back to the Priolo and Gela industrial sites that are managed by the above mentioned Enis subsidiaries. This proceeding is part of a larger criminal procedure which took place in 2001-2003 with regard to the so-called "the Red Sea case". Such waste would have been illegally disposed at the SMA.RIs unauthorized landfill (this landfill is located about 2 kilometers from the town of Melilli). The damage is estimated at euro 500 million or another amount which will be defined during the trial. The first hearing, set for November 10, 2014, will be held by the court of Siracusa.

1.2 Antitrust, EU Proceedings, Actions of the Authority for Electricity, Gas and Water and of Other Regulatory Authorities (i) Eni SpA - Preliminary investigation of the Italian Authority for Electricity Gas and Water (AEEG) about the invoicing to retail clients of gas and electricity. With the resolution 477/2013/S/Com published on October 31, 2013, the Italian AEEG resolved to commence a preliminary investigation to ascertain whether Eni violated certain administrative provisions that regulate the periodical invoicing in the retail selling of gas and electricity. The investigation also includes alleged delays in the invoice of certain documentation which is required in case of change of supplier. Upon the finalization of the investigation, the AEEG may impose an administrative sanction including a possible fine in accordance to Law No. 481/1995, which can currently not be estimated. With the deliberation 306/2014/S/com published on July 1, 2014, the AEEG accepted Enis commitments, presented in order to close the preliminary investigation without verification of the illicit behavior and without sanctions and launched a consultation process of 30 days, in order to allow interested third parties to state their opinions. Later, based also on the expressed observations, the AEEG will decide whether to approve and make binding Enis commitments or to reject them and to continue the preliminary investigation. The proceeding is currently suspended until final provision on the commitments assessment is published by the AEEG.

115 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

2. Court inquiries and of Other Regulatory Authorities

(i) Alleged international corruption in the acquisition of Block OPL 245 Nigeria Prosecuting body: Public Prosecutor in Milan. On July 2, 2014, the Italian Public Prosecutor in Milan served Eni with a notice of investigation relating to potential liability on the part of Eni arising from alleged international corruption, pursuant to Italian Legislative Decree No. 231/2001 whereby companies are liable for the crimes committed by their employees when performing their tasks. According to the notice, the Prosecutor has commenced investigations involving a third party external to the Group and other unidentified persons. As part of the proceeding, Eni was also subpoenaed for documents and other evidence. According to the subpoena, the proceeding was commenced following a claim filed by ReCommon NGO relating to alleged corruptive practices which according to the Prosecutor would have allegedly involved the Resolution Agreement made on April 29, 2011 relating to the Oil Prospecting license of the offshore oilfield that was discovered in Block 245 in Nigeria. Eni is fully cooperating with the Prosecutor and has promptly filed the requested documentation. Furthermore, Eni has reported the matter to the US Department of Justice and the US SEC. Finally, the Eni Watch Structure jointly with the Enis Board of Statutory auditors resolved to engage outside consultants, expert in anticorruption, to conduct a forensic, independent review of the matter, upon informing the judicial authorities. The findings of this review will be transmitted to the judicial authorities to ensure the highest possible degree of transparency and collaboration.

(ii) Eni SpA Refining & Marketing Division Criminal proceedings on fuel excise tax (Criminal proceeding n. 6159/10 RGNR the Italian Public Prosecutor in Frosinone and criminal proceeding No. 7320/14 RGNR the Italian Public Prosecutor in Rome). Two criminal proceedings are currently pending, relating to alleged evasion of excise taxes in the context of the retail sales at the fuel market. In particular, the claim states that the quantity of oil products marketed by Eni was larger than the quantity subjected to the excise tax. The first proceeding, opened by the Public Prosecutors Office of Frosinone against a third company (Turrizziani Petroli) purchaser of Enis fuel, is still pending in the phase of the preliminary investigation. This investigation was subsequently extended to Eni. The Company provided all data and information concerning the performance of the excise tax obligations for the quantities of fuel coming from the storage sites of Gaeta, Naples and Livorno. Eni ensured the best possible collaboration, handing in all the required documentation with promptness. Such proceeding referred to quantities of oil products sold by Eni, allegedly larger than the quantity subjected to the excise tax. After the ending of the investigation, the Fiscal Police from Frosinone, along with the local Customs Agency, in November 2013 issued a claim related to the evasion of the payment of excise taxes in the 2007-2012 periods for euro 1.55 million. In May 2014, the Customs Agency of Rome issued a payment notice relating to the above mentioned claim which was filed by the Fiscal Police and Customs Agency of Frosinone. The Company immediately appealed to the Tributary Commission. The second proceeding, opened by the Public Prosecutors Office of Rome, regarded alleged evasion of excise tax payment on the surplus of the unloading products, as quantity of such products was larger than the quantity reported in the supporting fiscal documents. This proceeding represents a development of the first proceeding above mentioned, and substantially concerns similar facts, with however some differences with regard to both the nature of the contested crimes and the responsibility subjected to verification. In fact, the Public Prosecutors Office of Rome has stated the alleged existence of a criminal conspiracy aimed at the habitual subtraction of oil products at all of the 22 storage sites which are operated by Eni over the national territory. Eni is cooperating with prosecutor in order to prove the correctness of its operation. Moreover, at the Companys request, the National association of refiners asked the Italian Customs Agency to provide its advice on the correctness of the operating models adopted by Eni.

3. Tax Proceedings

Italy (i) Libya. To finance the infrastructural projects provided by the Treaty of Friendship, Partnership and Cooperation between Italy and Libya, signed in Benghazi on August 30, 2008, the Law No. 7/2009

116 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

introduced an additional income tax with a rate of 4% due on a taxable basis represented by the commercial profit before tax when the comprehensive income tax rate is lower than 19%. Eni started the procedure for the refund of such additional income tax paid for the fiscal year 2009 with the competent Tax Court claiming a double taxation effect on dividends received from European subsidiaries in violation of the Parent Subsidiary Directive (Directive 90/435/EEC). In December 2013, the Second Degree Tax Court of Rome ruled in favor of Eni and recognized its right to be refunded. The Italian Tax Administration has not challenged this decision which became final in June 2014. The decision specifically provides the refund of a part of the additional tax paid for the fiscal year 2009 for an amount of about euro 76 million. Eni is verifying the possible effect of the decision on the payments already made in the past fiscal years (2010-2011-2012) and on the future payments: for this purpose Eni has also filed a ruling request to the competent Tax Authorities.

117 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

28 Revenues

The following is a summary of the main components of "Revenues". For more information about changes in revenues, see "Financial review". Net sales from operations were as follows:

(euro million) First half 2013 First half 2014

Revenues from sales and services	59,329		55,736
Change in
contract work in progress	(42	)	820
	59,287		56,556

Net sales from operations were stated net of the following items:

(euro million) First half 2013 First half 2014

Excise taxes	6,337	5,998
Exchanges
of oil sales (excluding excise taxes)	822	813
Services billed to joint venture partners	2,189	2,232
Sales to
service station managers for sales billed to holders of
credit cards	968	909
	10,316	9,952

Revenues from sales and services of euro 56,556 million included revenues recognized in connection with contract works in the Engineering & Construction segment for euro 5,506 million of which euro 425 million related to additional considerations under negotiation (additional consideration measured on the base of the stage of completion for a total amount of euro 926 million as of June 30, 2014). Net sales from operations by industry segment are disclosed in note 34 - Information by industry segment. Net sales from operations with related parties are disclosed in note 35 - Transactions with related parties.

29 Operating expenses

The following is a summary of the main components of "Operating expenses". For more information about changes in operating expenses, see "Financial review".

Purchase, services and other

(euro million) First half 2013 First half 2014

| Production costs - raw, ancillary and consumable
materials and goods — Production
costs - services | 36,082 — 8,702 | | 32,551 — 8,499 | |
| --- | --- | --- | --- | --- |
| Operating leases and other | 1,703 | | 1,906 | |
| Net
provisions for contingencies | 169 | | 146 | |
| Other expenses | 584 | | 462 | |
| | 47,240 | | 43,564 | |
| less: | | | | |
| -
capitalized direct costs associated with self-constructed
assets | (193 | ) | (218 | ) |
| | 47,047 | | 43,346 | |

Services included brokerage fees related to the Engineering & Construction segment for euro 1 million (euro 2 million in the first half of 2013). New or increased risk provisions net of reversal of unused provisions amounted to euro 146 million (euro 169 million in the first half of 2013) and mainly related to environmental risks for euro 78 million (euro 55 million in the first half of 2013) and long-term construction contracts for euro 11 million (euro 92 million in the first half of 2013). More information is provided in note 21 - Provisions.

118 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Payroll and related costs

(euro million) First half 2013 First half 2014

| Payroll
and related cost | 2,700 | | 2,832 | |
| --- | --- | --- | --- | --- |
| less: | | | | |
| -
capitalized direct costs associated with self-constructed
assets | (114 | ) | (116 | ) |
| | 2,586 | | 2,716 | |

Stock-based compensation In 2009, Eni suspended the incentive plan based on the stock option assignment to managers of Eni and its subsidiaries as defined in Article 2359 of the Italian Civil Code. No significant changes were made to these plans as they were described in the Annual Report 2013.

Average number of employees The Group average number and breakdown of employees by category is reported below:

First half 2013 First half 2014

(number) Consolidated subsidiaries Joint operations Consolidated subsidiaries Joint operations

Senior managers	1,452	17	1,467	18
Junior
managers	13,342	70	13,727	73
Employees	38,785	334	40,102	357
Workers	25,649	291	27,848	297
	79,228	712	83,144	745

The average number of employees was calculated as the average between the number of employees at the beginning and end of the period. The average number of senior managers included managers employed and operating in foreign Countries, whose position is comparable to a senior manager status.

Other operating income (loss)

(euro million) First half 2013 First half 2014

Net loss on cash flow hedging derivatives	(4)	(12
Net income
on other derivatives	(6)	415
	(10)	403

Net loss on cash flow hedging derivatives related to the ineffective portion of the hedging relationship on commodities which was recognized through profit and loss in the Gas & Power segment. Net loss on other derivatives related to: (i) gains and losses on fair value measurement and settlement of commodity derivatives entered by the Gas & Power segment for trading purposes and proprietary trading (net gain of euro 117 million); (ii) gains and losses on fair value measurement and settlement of commodity derivatives which could not be elected for hedge accounting under IFRS because they related to net exposure to commodity risk (net gain of euro 306 million); (iii) fair value evaluation at certain derivatives embedded in the pricing formulas of long-term gas supply contracts (net loss of euro 8 million). Operating expenses with related parties are reported in note 35 - Transactions with related parties.

119 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Depreciation, depletion, amortization and impairments

(euro million) First half 2013 First half 2014

| Depreciation,
depletion and amortization — Impairments | 4,597 — 136 | | 4,814 — 381 | |
| --- | --- | --- | --- | --- |
| less: | | | | |
| - revaluations | (48 | ) | (3 | ) |
| -
capitalized direct costs associated with self-constructed
assets | (4 | ) | (4 | ) |
| | 4,681 | | 5,188 | |

30 Finance income (expense)

(euro million) First half 2013 First half 2014

| Finance income (expense) — Finance
income | 3,214 | | 3,361 | |
| --- | --- | --- | --- | --- |
| Finance expense | (3,805 | ) | (3,837 | ) |
| Net income
on financial assets held for trading | | | 16 | |
| | (591 | ) | (460 | ) |
| Gain
(loss) on derivative financial instruments | (19 | ) | (33 | ) |
| | (610 | ) | (493 | ) |

The breakdown of net finance gains or losses is provided below:

(euro million) First half 2013 First half 2014

| Finance
income (expense) related to net borrowings — Interest and other finance expense on ordinary
bonds | (364 | ) | (377 | ) |
| --- | --- | --- | --- | --- |
| Interest
due to banks and other financial institutions | (94 | ) | (83 | ) |
| Interest from banks | 24 | | 13 | |
| Interest
and other income on financing receivables and securities
held for non-operating purposes | 32 | | 14 | |
| Net finance income on financial assets held for
trading | | | 16 | |
| | (402 | ) | (417 | ) |
| Exchange differences | | | | |
| Positive
exchange differences | 3,091 | | 3,234 | |
| Negative exchange differences | (3,180 | ) | (3,220 | ) |
| | (89 | ) | 14 | |
| Other finance income (expense) | | | | |
| Capitalized
finance expense | 79 | | 77 | |
| Interest and other income (expense) on financing
receivables and securities held for operating purposes | 25 | | 34 | |
| Finance
expense due to passage of time (accretion discount) (a) | (132 | ) | (138 | ) |
| Other finance income (expense) | (72 | ) | (30 | ) |
| | (100 | ) | (57 | ) |
| | (591 | ) | (460 | ) |

(a) The item related to the increase in provisions for contingencies that are shown at present value in non-current liabilities.

Net finance gains or losses on derivative financial instruments consisted of the following:

(euro million) First half 2013 First half 2014

| Derivatives
on exchange rate | (18 | ) | (54 | ) |
| --- | --- | --- | --- | --- |
| Derivatives on interest rate | 30 | | 31 | |
| Options | (31 | ) | (10 | ) |
| | (19 | ) | (33 | ) |

Net loss from derivatives of euro 33 million (net loss of euro 19 million in the first half of 2013) was recognized in connection with fair value valuation of certain derivatives which lacked the formal criteria to be treated in accordance with hedge accounting under IFRS as they were entered into for amounts equal to the net exposure to exchange rate risk and interest rate risk, and as such, they cannot be referred to specific trade or financing transactions. Exchange rate derivatives were entered into in order to manage exposures to foreign currency exchange rates arising from the pricing formulas of commodities in the Gas & Power

120 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

segment. The lack of formal requirements to qualify these derivatives as hedges under IFRS also entailed the recognition in profit or loss of currency translation differences on assets and liabilities denominated in currencies other than functional currency, as this effect cannot be offset by changes in the fair value of the related instruments. Net loss on options of euro 10 million related to the measurement at fair value of the options embedded in the bonds convertible into ordinary shares of Galp Energia SGPS SA (income of euro 12 million) and Snam SpA (loss of euro 22 million). More information is provided in note 20 - Long-term debt and current maturities of long-term debt. More information is provided in note 35 - Transactions with related parties.

31 Income (expense) from investments

Share of profit (loss) of equity-accounted investments

(euro million) First half 2013 First half 2014

| Share of
profit of equity-accounted investments — Share of loss of equity-accounted investments | 197 — (41 | 156 — (39 | ) |
| --- | --- | --- | --- |
| Decreases
(increases) in provisions for losses on investments | 5 | (6 | ) |
| | 161 | 111 | |

More information is provided in note 12 - Equity-accounted investments.

Other gain (loss) from investments

(euro million) First half 2013 First half 2014

Dividends	306		174
Gains on disposals, net	174		99
Other
income, net	(9	)	237
	471		510

Dividend income for euro 174 million (euro 306 million in the first half of 2013) primarily related to the Nigeria LNG Ltd for euro 80 million (euro 199 million in the first half of 2013), Snam SpA for euro 43 million (the same amount in the first half of 2013) and Galp Energia SGPS SA for euro 10 million (euro 23 million in the first half of 2013). Net gains on disposals amounted to euro 99 million (euro 174 million in the first half of 2013) and related for euro 96 million to the divestment of 8.15% of the share capital of Galp Energia SGPS SA, of which euro 77 million related to the reversal of the fair value evaluation reserve (euro 95 million related to the divestment of 8% of the share capital, of which euro 65 million related to the reversal of the fair value evaluation reserve in the first half of 2013); in addition, the divestment of 11.69% of the share capital of Snam SpA for euro 75 million, of which euro 8 million related to the reversal of the fair value evaluation reserve in the first half 2013. Other net income of euro 237 million (net loss of euro 9 million in the first half 2013) related to the remeasurement at market fair value of 288.7 million shares of Snam SpA for euro 96 million (loss of euro 6 million in the first half 2013) and 66.3 million shares of Galp Energia SGPS SA for euro 97 million (loss of euro 26 million in the first half 2013) underlying convertible bonds issued by Snam on January 18, 2013 and by Galp on November 30, 2012 and to which the fair value option was applied.

121 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

32 Income taxes

(euro million) First half 2013 First half 2014

| Current taxes: — - Italian
subsidiaries | 279 | | 149 |
| --- | --- | --- | --- |
| - foreign subsidiaries | 4,036 | | 3,617 |
| | 4,315 | | 3,766 |
| Net deferred taxes: | | | |
| - Italian
subsidiaries | (496 | ) | 64 |
| - foreign subsidiaries | 106 | | 281 |
| | (390 | ) | 345 |
| | 3,925 | | 4,111 |

The effective tax rate was 68.2% (73.2% in the first half of 2013) compared with a statutory tax rate of 33.1% (44.5% in the first half of 2013). This was calculated by applying the Italian statutory tax rate on corporate profit of 27.5% (38.0% 2 in the first half 2013) and a 3.5% corporate tax rate applicable to the net value of production (3.9% in the first half 2013) as provided for by Italian laws. This difference is the consequence of the impact of the net profit reported by the foreign companies of the Exploration & Production segment which are subjected to a higher tax rate compared to the Italian statutory tax rate.

33 Earnings per share

Basic earnings per ordinary share are calculated by dividing net profit for the period attributable to Enis shareholders by the weighted average number of ordinary shares issued and outstanding during the period, excluding treasury shares. The average number of ordinary shares used for the calculation of the basic earnings per share outstanding for the first half of 2013 and 2014, was 3,622,797,043 and 3,614,997,939, respectively. Diluted earnings per share are calculated by dividing net profit for the period attributable to Enis shareholders by the weighted average number of shares fully-diluted including shares outstanding in the period, excluding treasury shares, including the number of potential shares outstanding in connection with stock-based compensation plans. As of June 30, 2013 and 2014, there are no treasury shares that could be potentially issued and, therefore, the weighted-average number of shares used in the calculation of the basic earnings coincides to the weighted-average number of shares used in the calculation of diluted earnings.

First half 2013 First half 2014

| Average number of shares used for the
calculation of the basic and diluted earnings per share | | 3,622,797,043 | 3,614,997,939 |
| --- | --- | --- | --- |
| Enis
net profit | (euro million) | 1,818 | 1,961 |
| Basic and diluted earning per share | (euro per share) | 0.50 | 0.54 |

(2) Includes a 5.5 percentage points supplemental tax rate on taxable profit of energy companies in Italy (whose primary activity is the production and marketing of hydrocarbons and electricity and with annual revenues in excess of euro 25 million) effective from January 1, 2008 and further increases of 1 percentage point effective from January 1, 2009, pursuant to the Law Decree No. 112/2008 (converted into Law No. 133/2008) and 4 percentage points effective from January 1, 2011, pursuant the Law Decree No. 138/2011 (converted into Law No. 148/2011) which enlarged the scope of application to include renewable energy companies and gas transport and distribution companies. These supplemental tax rates are not applicable to Eni in the first half of 2014.

122 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

34 Information by industry segment

Information by industry segment

(euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Intragroup profits Total

| First half 2013 — Net sales
from operations (a) | 15,614 | | 17,415 | | 29,683 | | 3,063 | | 5,001 | | 680 | | 48 | | (27 | ) | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Less: intersegment sales | (8,718 | ) | (637 | ) | (1,579 | ) | (150 | ) | (461 | ) | (622 | ) | (23 | ) | | | |
| Net sales
to customers | 6,896 | | 16,778 | | 28,104 | | 2,913 | | 4,540 | | 58 | | 25 | | (27 | ) | 59,287 |
| Operating profit | 7,435 | | (531 | ) | (541 | ) | (278 | ) | (476 | ) | (154 | ) | (193 | ) | 76 | | 5,338 |
| Provisions
for contingencies | 34 | | (59 | ) | 18 | | 7 | | 87 | | 30 | | 61 | | (9 | ) | 169 |
| Depreciation, amortization and impairments | 3,850 | | 198 | | 210 | | 48 | | 356 | | 30 | | 2 | | (13 | ) | 4,681 |
| Share of
profit (loss) of equity-accounted investments | 78 | | 57 | | 4 | | (1 | ) | 9 | | 7 | | 7 | | | | 161 |
| Identifiable assets (b) | 60,600 | | 19,415 | | 15,246 | | 3,311 | | 14,515 | | 1,019 | | 299 | | (683 | ) | 113,722 |
| Unallocated
assets | | | | | | | | | | | | | | | | | 24,165 |
| Equity-accounted investments | 2,216 | | 996 | | 70 | | 127 | | 184 | | 14 | | 36 | | | | 3,643 |
| Identifiable
liabilities (c) | 15,769 | | 9,520 | | 6,310 | | 678 | | 5,822 | | 1,475 | | 2,817 | | (13 | ) | 42,378 |
| Unallocated liabilities | | | | | | | | | | | | | | | | | 33,792 |
| Capital
expenditures | 4,893 | | 83 | | 228 | | 111 | | 490 | | 107 | | 5 | | 30 | | 5,947 |
| First half 2014 | | | | | | | | | | | | | | | | | |
| Net sales from operations (a) | 14,802 | | 14,782 | | 28,686 | | 2,804 | | 5,966 | | 671 | | 34 | | (31 | ) | |
| Less: intersegment sales | (8,286 | ) | (529 | ) | (1,131 | ) | (124 | ) | (460 | ) | (608 | ) | (20 | ) | | | |
| Net sales to customers | 6,516 | | 14,253 | | 27,555 | | 2,680 | | 5,506 | | 63 | | 14 | | (31 | ) | 56,556 |
| Operating profit | 6,221 | | 653 | | (623 | ) | (286 | ) | 291 | | (143 | ) | (145 | ) | (67 | ) | 5,901 |
| Provisions for contingencies | 11 | | (10 | ) | 59 | | (9 | ) | 18 | | 61 | | 29 | | (13 | ) | 146 |
| Depreciation, amortization and impairments | 4,261 | | 165 | | 318 | | 56 | | 362 | | 33 | | 5 | | (12 | ) | 5,188 |
| Share of profit (loss) of equity-accounted
investments | 57 | | 35 | | 6 | | (2 | ) | 15 | | | | | | | | 111 |
| Identifiable assets (b) | 62,949 | | 15,852 | | 15,089 | | 3,121 | | 14,830 | | 1,051 | | 250 | | (865 | ) | 112,277 |
| Unallocated assets | | | | | | | | | | | | | | | | | 27,799 |
| Equity-accounted investments | 1,773 | | 912 | | 73 | | 146 | | 174 | | | | 34 | | | | 3,112 |
| Identifiable liabilities (c) | 16,725 | | 7,812 | | 6,616 | | 651 | | 5,534 | | 1,484 | | 2,684 | | (79 | ) | 41,427 |
| Unallocated liabilities | | | | | | | | | | | | | | | | | 37,388 |
| Capital expenditures | 4,688 | | 75 | | 229 | | 125 | | 329 | | 46 | | 7 | | 25 | | 5,524 |

(a) Before elimination of intersegment sales. (b) Includes assets directly associated with the generation of operating profit. (c) Includes liabilities directly associated with the generation of operating profit.

The new provisions of IFRS 10 and IFRS 11 were applied retrospectively by adjusting the opening balance sheet as of January 1, 2013 and the profit and loss account for the first half 2013. Environmental provisions incurred by Eni SpA due to intercompany guarantees on behalf of Syndial have been reported within the segment reporting unit "Other activities". Intersegment revenues are conducted on an arms length basis.

123 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

35 Transactions with related parties

In the ordinary course of its business Eni enters into transactions regarding:

| (a) | exchanges of goods,
provision of services and financing with joint ventures,
associates and non-consolidated subsidiaries; |
| --- | --- |
| (b) | exchanges of goods and
provision of services with entities controlled by the
Italian Government; |
| (c) | contributions to entities
with a non-company form with the aim to develop
solidarity, culture and research initiatives. In
particular these related to: (i) Eni Foundation
established by Eni as a non-profit entity with the aim of
pursuing exclusively solidarity initiatives in the fields
of social assistance, health, education, culture and
environment as well as research and development; (ii) Eni
Enrico Mattei Foundation established by Eni with the aim
of enhancing, through studies, research and training
initiatives, knowledge in the fields of economics, energy
and environment, both at the national and international
level. |

Transactions with related parties were conducted in the interest of Eni companies and, with exception of those with entities with the aim to develop solidarity, culture and research initiatives, on arms length basis. Investments in subsidiaries, joint arrangements and associates as of June 30, 2014 are presented in annex "List of companies owned by Eni SpA as of June 30, 2014".

Trade and other transactions with related parties

(euro million) December 31, 2013 First half 2013

Costs Revenues

Name Receivables and other assets Payables and other liabilities Guarantees Goods Services Other Goods Services Other Other operating (expense) income

| Joint
arrangements and associates | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Agiba Petroleum Co | 1 | 69 | | | 55 | | | | | | |
| CEPAV
(Consorzio Eni per l'Alta Velocità) Uno | 42 | 16 | 6,122 | | 3 | | | 15 | | | |
| CEPAV (Consorzio Eni per l'Alta Velocità) Due | 78 | 165 | | | 29 | | | 71 | | | |
| EnBW Eni
Verwaltungsgesellschaft mbH | 33 | | | | | | 196 | | | | |
| InAgip doo | 57 | 22 | | 2 | 14 | | | | | | |
| Karachaganak
Petroleum Operating BV | 26 | 220 | | 571 | 127 | 7 | | 7 | | | |
| KWANDA - Suporte Logistico Lda | 55 | 5 | | | 1 | | | 4 | | | |
| Mellitah
Oil & Gas BV | 7 | 61 | | 9 | 65 | | | 1 | | | |
| Petrobel Belayim Petroleum Co | 32 | 360 | | | 275 | | | 14 | | | |
| Petromar
Lda | 71 | 7 | 29 | | 5 | | | 30 | | | |
| PetroSucre SA | 57 | | | | | | | 1 | | | |
| Unión
Fenosa Gas Comercializadora SA | 23 | 1 | | | | | 129 | | | | |
| Unión Fenosa Gas SA | 2 | 1 | 57 | | 16 | | 16 | | | | |
| Other () | 123 | 182 | 18 | 4 | 74 | 3 | 101 | 20 | 2 | | |
| | 607 | 1,109 | 6,226 | 586 | 664 | 10 | 442 | 163 | 2 | | |
| Unconsolidated
entities controlled by Eni | | | | | | | | | | | |
| Agip Kazakhstan North Caspian Operating Co NV | 115 | 153 | | | 254 | 21 | | 357 | 2 | | |
| Eni BTC
Ltd | | | 147 | | | | | | | | |
| Industria Siciliana Acido Fosforico - ISAF - SpA
(in liquidation) | 62 | 1 | 10 | | | | | 1 | | | |
| Other () | 14 | 56 | 2 | 2 | 21 | | 7 | 1 | 3 | | |
| | 191 | 210 | 159 | 2 | 275 | 21 | 7 | 359 | 5 | | |
| | 798 | 1,319 | 6,385 | 588 | 939 | 31 | 449 | 522 | 7 | | |
| Entities controlled by the Government | | | | | | | | | | | |
| Enel Group | 134 | 29 | | 3 | 418 | | 10 | 65 | | (1 | ) |
| Snam Group | 337 | 564 | 13 | 48 | 1,102 | | 385 | 138 | | | |
| GSE -
Gestore Servizi Energetici | 86 | 135 | | 430 | | 33 | 186 | 11 | 1 | | |
| Terna Group | 43 | 58 | | 56 | 71 | 9 | 60 | 24 | 1 | 11 | |
| Other
entities controlled by the Government (*) | 47 | 70 | | 4 | 50 | | 28 | 2 | | | |
| | 647 | 856 | 13 | 541 | 1,641 | 42 | 669 | 240 | 2 | 10 | |
| Pension
funds and foundations | | 2 | | | 2 | 17 | | | | | |
| Total | 1,445 | 2,177 | 6,398 | 1,129 | 2,582 | 90 | 1,118 | 762 | 9 | 10 | |

(*) Each individual amount included herein was lower than euro 50 million.

124 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

(euro million) June 30, 2014 First half 2014

Costs Revenues

Name Receivables and other assets Payables and other liabilities Guarantees Goods Services Other Goods Services Other Other operating (expense) income

Joint ventures and associates
Agiba
Petroleum Co	1	78			74
CEPAV (Consorzio Eni per l'Alta Velocità) Uno	35	11	6,267					1
CEPAV
(Consorzio Eni per l'Alta Velocità) Due	101	89			68			69
EnBW Eni Verwaltungsgesellschaft mbH	84						113	4	1
InAgip doo	54	18			27		1	6
Karachaganak Petroleum Operating BV	99	286		627	130	8		11
KWANDA -
Suporte Logistico Lda	58	8			1	3		4
Mellitah Oil & Gas BV	17	35		13	143			4
Petrobel
Belayim Petroleum Co	32	391			274			42
Petromar Lda	92	7	22		1			31
South
Stream Transport BV								258	1
Unión Fenosa Gas Comercializadora SA	11						83
Unión
Fenosa Gas SA			57		1	1
Other (*)	64	43		8	81		52	36	11
	648	966	6,346	648	800	12	249	466	13
Unconsolidated entities controlled by Eni
Agip
Kazakhstan North Caspian Operating Co NV	98	125			179	6		90	2
Eni BTC Ltd			148
Industria
Siciliana Acido Fosforico - ISAF - SpA (in liquidation)	58	1	10					2
Nigerian Agip CPFA Ltd		52
Other (*)	17	13	2		5		3
	173	191	160		184	6	3	92	2
	821	1,157	6,506	648	984	18	252	558	15
Entities controlled by the Government
Enel Group	150	40			461		80	90		138
Snam Group	194	343	9	14	991	3	178	34	3	9
GSE -
Gestore Servizi Energetici	77	113		254		26	63	9	1
Terna Group	43	61		40	79	3	74	14	9	3
Other
entities controlled by the Government (*)	49	61		3	37	1	23
	513	618	9	311	1,568	33	418	147	13	150
Pension
funds and foundations		2			2	19
Total	1,334	1,777	6,515	959	2,554	70	670	705	28	150

(*) Each individual amount included herein was lower than euro 50 million.

Most significant transactions with joint arrangements, associates and non-consolidated subsidiaries concerned:

| - | provisions of specialized
services in upstream activities and Enis share of
expenses incurred to develop oil fields from Agiba
Petroleum Co, Agip Kazakhstan North Caspian Operating Co
NV, Karachaganak Petroleum Operating BV, Mellitah Oil
& Gas BV, Petrobel Belayim Petroleum Co and, only for
Karachaganak Petroleum Operating BV, purchase of oil
products and for Agip Kazakhstan North Caspian Operating
Co NV, provisions of services by the Engineering &
Construction segment; services charged to Enis
associates are invoiced on the basis of incurred costs; |
| --- | --- |
| - | transactions related to the
planning and the construction of the tracks for high
speed/high capacity trains from Milan to Verona with
CEPAV (Consorzio Eni per lAlta Velocità) Due; |
| - | transactions related to the
planning and the construction of the tracks for high
speed/high capacity trains from Milan to Bologna with
CEPAV (Consorzio Eni per lAlta Velocità) Uno and
related guarantees; |
| - | sale of natural gas to EnBW
Eni Verwaltungsgesellschaft mbH and Unión Fenosa Gas SA; |
| - | transactions with inAgip doo
related to the redetermination of the interest in an
offshore field located in the Adriatic Sea; |
| - | planning, construction and
technical assistance to support by KWANDA - Suporte
Logistico Lda and Petromar Lda and, only for Petromar
Lda, guarantees issued in relation to contractual
commitments related to the execution of project planning
and realization; |
| - | engineering and technical
assistance to South Stream Transport BV in relation to
the construction of the first line of the submarine gas
pipeline South Stream; |
| - | performance guarantees given
on behalf of Unión Fenosa Gas SA in relation to
contractual commitments related to the results of
operations and sales of LNG; |

125 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

| - | guarantees issued in
relation to the construction of an oil pipeline on behalf
of Eni BTC Ltd; |
| --- | --- |
| - | services for the
environmental restoration to Industria Siciliana Acido
Fosforico - ISAF - SpA (in liquidation); |
| - | debt due to Nigerian Agip
CPFA Ltd related to Nigerian companies pension fund
contributions. |
| The most
significant transactions with entities controlled by the
Italian Government concerned: | |
| - | sale of fuel oil, sale and
purchase of electricity, acquisition of electricity
transmission services and fair value of derivative
financial instruments with Enel group; |
| - | acquisition of natural gas
transportation, distribution and storage services on the
basis of tariffs set by the Italian Regulatory Authority
for Electricity, Gas and Water and supply of natural gas
on the basis of prices referred to the quotations of the
main energy commodities, as they would be conducted on an
arms length basis with Snam group; |
| - | sale and purchase of
electricity, the acquisition of domestic electricity
transmission service and the fair value of derivative
financial instruments included in the prices of
electricity related to sale/purchase transactions with
Terna group; |
| - | sale and purchase of
electricity and green certificates with GSE - Gestore
Servizi Energetici. |
| Transactions
with pension funds and foundation concerned: | |
| - | provisions to pension funds
for euro 19 million; |
| - | contributions to Eni Enrico
Mattei Foundation for euro 2 million. |

Financing transactions with related parties

(euro million) December 31, 2013 First half 2013

Name Receivables Payables Guarantees Charges Gains

| Joint ventures and associates — CARDáN IV
SA | 236 | | | | 4 |
| --- | --- | --- | --- | --- | --- |
| CEPAV (Consorzio Eni per l'Alta Velocità) Due | | | 150 | | |
| Matrìca
SpA | 100 | | | | |
| Shatskmorneftegaz Sarl | 51 | | | | |
| Société
Centrale Electrique du Congo SA | 74 | | 5 | | |
| Unión Fenosa Gas SA | | 120 | | | |
| Other () | 281 | 86 | 15 | 55 | 3 |
| | 742 | 206 | 170 | 55 | 7 |
| Unconsolidated
entities controlled by Eni | | | | | |
| Other () | 59 | 57 | 1 | | 1 |
| | 59 | 57 | 1 | | 1 |
| Entities controlled by the Government | | | | | |
| Cassa
Depositi e Prestiti Group | | | | | 3 |
| Other (*) | | 1 | | | |
| | | 1 | | | 3 |
| Total | 801 | 264 | 171 | 55 | 11 |

(*) Each individual amount included herein was lower than euro 50 million.

126 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

(euro million) June 30, 2014 First half 2014

Name Receivables Payables Guarantees Charges Gains

| Joint
ventures and associates — CARDáN IV SA | 356 | | | | 11 |
| --- | --- | --- | --- | --- | --- |
| CEPAV
(Consorzio Eni per l'Alta Velocità) Due | | | 150 | | |
| Matrica SpA | 185 | | | | 5 |
| Société
Centrale Eletrique du Congo SA | 75 | | 5 | | |
| Unión Fenosa Gas SA | | 153 | | | |
| Other () | 84 | 11 | 15 | 18 | 2 |
| | 700 | 164 | 170 | 18 | 18 |
| Unconsolidated
entities controlled by Eni | | | | | |
| Other () | 64 | 85 | 1 | | 1 |
| | 64 | 85 | 1 | | 1 |
| Total | 764 | 249 | 171 | 18 | 19 |

(*) Each individual amount included herein was lower than euro 50 million.

Most significant transactions with joint arrangements, associates and non-consolidated subsidiaries concerned:

| - | financing loans granted to
CARDáN IV SA for the exploration and development
activities of a gas field and to Société Centrale
Electrique du Congo SA for the construction of an
electric plant in Congo; |
| --- | --- |
| - | bank debt guarantees issued
on behalf of CEPAV (Consorzio Eni per lAlta
Velocità) Due; |
| - | financing loans granted to
Matrìca SpA in relation to the "Green
Chemistry" project at the Porto Torres plant; |
| - | a cash deposit at Enis
financial companies on behalf of Unión Fenosa Gas SA. |

Impact of transactions and positions with related parties on the balance sheet, profit and loss account and statement of cash flows The impact of transactions and positions with related parties on the balance sheet consisted of the following:

(euro million) December 31, 2013 June 30, 2014

Total Related parties Impact % Total Related parties Impact %

| Trade and
other receivables | 28,890 | 1,869 | 6.47 | 28,246 | 1,794 | 6.35 |
| --- | --- | --- | --- | --- | --- | --- |
| Other current assets | 1,325 | 15 | 1.13 | 3,351 | 34 | 1.01 |
| Other
non-current financial assets | 858 | 320 | 37.30 | 975 | 228 | 23.38 |
| Other non-current assets | 3,676 | 42 | 1.14 | 2,995 | 42 | 1.40 |
| Current
financial liabilities | 2,553 | 264 | 10.34 | 3,238 | 249 | 7.69 |
| Trade and other payables | 23,701 | 2,160 | 9.11 | 21,231 | 1,732 | 8.16 |
| Other
current liabilities | 1,437 | 17 | 1.18 | 2,760 | 25 | 0.91 |
| Other non-current liabilities | 2,259 | | | 2,114 | 20 | 0.95 |

The impact of transactions with related parties on the profit and loss accounts consisted of the following:

(euro million) First half 2013 First half 2014

Total Related parties Impact % Total Related parties Impact %

Net sales from operations	59,287		1,880	3.17	56,556	1,375	2.43
Other
income and revenues	375		9	2.40	192	28	14.58
Purchases, services and other	47,047		3,794	8.06	43,346	3,564	8.22
Payroll
and related costs	2,586		7	0.27	2,716	19	0.70
Other operating income (expense)	(10	)	10	..	403	150	37.22
Financial
income	3,214		11	0.34	3,361	19	0.57
Financial expense	3,805		55	1.45	3,837	18	0.47

Transactions with related parties were part of the ordinary course of Enis business and were mainly conducted on an arms length basis.

127 -

Contents

Eni Interim Consolidated Report / Notes to the condensed consolidated interim financial statements

Main cash flows with related parties are provided below:

(euro million) First half 2013 First half 2014

| Revenues and other income — Costs and
other expenses | 1,889 — (3,285 | ) | 1,403 — (3,046 | ) |
| --- | --- | --- | --- | --- |
| Other operating income (loss) | 10 | | 150 | |
| Net change
in trade and other receivables and liabilities | 56 | | (307 | ) |
| Net interests | 11 | | 19 | |
| Net
cash provided from operating activities | (1,319 | ) | (1,781 | ) |
| Capital expenditures in tangible and intangible
assets | (516 | ) | (537 | ) |
| Net change
in accounts payable and receivable in relation to
investments | (150 | ) | 11 | |
| Change in financial receivables | 1,289 | | 42 | |
| Net
cash used in investing activities | 623 | | (484 | ) |
| Change in financial liabilities | 49 | | (17 | ) |
| Net
cash used in financing activities | 49 | | (17 | ) |
| Total financial flows to related parties | (647 | ) | (2,282 | ) |

The impact of cash flows with related parties consisted of the following:

(euro million) First half 2013 First half 2014

Total Related parties Impact % Total Related parties Impact %

Cash provided from operating activities	4,815		(1,319	..	5,740		(1,781	)	..
Cash used
in investing activities	(2,681	)	623	..	(2,758	)	(484	)	17.55
Cash used in financing activities	(1,983	)	49	..	(1,887	)	(17	)	0.90

36 Significant non-recurring events and operations In the first half of 2013 and 2014, no non-recurring events and operations were reported.

37 Positions or transactions deriving from atypical and/or unusual operations In the first half of 2013 and 2014, no transactions deriving from atypical and/or unusual operations were reported.

38 Subsequent events No significant events were reported after June 30, 2014.

128 -

Contents

Certification pursuant to rule 154- bis, paragraph 5 of the Legislative Decree No. 58/1998 (Testo Unico della Finanza)

| 1. | The
undersigned Claudio Descalzi and Massimo Mondazzi, in
their respective role as Chief Executive Officer and
officer responsible for the preparation of financial
reports of Eni, also pursuant to rule 154- bis ,
paragraphs 3 and 4 of Legislative Decree No. 58 of
February 24, 1998, hereby certify that internal controls
over financial reporting in place for the preparation of
the condensed consolidated interim financial statements
as of June 30, 2013 and during the period covered by the
report, were: adequate to the Company structure, and effectively applied during the process of
preparation of the report. | |
| --- | --- | --- |
| 2. | Internal
controls over financial reporting in place for the
preparation of the 2014 condensed consolidated interim
financial statements have been defined and the evaluation
of their effectiveness has been assessed based on
principles and methodologies adopted by Eni in accordance
with the Internal Control-Integrated Framework Model
issued by the Committee of Sponsoring Organizations of
the Treadway Commission, which represents an
internationally-accepted framework for the internal
control system. | |
| 3. | In addition, we
certify that: | |
| 3.1 | These condensed
consolidated interim financial statements as of June 30,
2014: | |
| | a) | have
been prepared in accordance with applicable international
accounting standards recognised by the European Community
pursuant to Regulation (CE) No. 1606/2002 of the European
Parliament and European Council of July 19, 2002; |
| | b) | correspond to the
information in the accounting books and entries; |
| | c) | fairly and
truly represent the financial position, the performance
and the cash flows of the issuer and the companies
included in the scope of consolidation as of, and for,
the period presented in this report. |
| 3.2 | The
interim operating and financial review includes a
reliable analysis of the material events occurred during
the first half of 2014 and their impact on condensed
consolidated interim financial statements, as well as a
description of the main risks and uncertainties for the
second half of the year. The interim operating and
financial review contains a reliable analysis of the
disclosure on significant related-partly transactions. | |

July 30, 2014

/s/ Claudio Descalzi Claudio Descalzi Chief Executive Officer /s/ Massimo Mondazzi Massimo Mondazzi Chief Financial and Risk Management Officer

129 -

Contents

130 -

Contents

131 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements

List of companies owned by Eni SpA as of June 30, 2014 Subsidiaries and significant investments owned by Eni as of June 30, 2014 In accordance with the provisions of Articles 38 and 39 of the Legislative Decree No. 127/1991 and Article No. 126 of Consob Resolution No. 11971 of May 14, 1999 and subsequent amendments and Consob communication No. DEM/6064293 of July 28, 2006, below is presented the list of subsidiaries, associates and significant investments owned by Eni SpA as of June 30, 2014. Companies are divided by business segment and, within each segment, they are ordered between Italy and outside Italy and alphabetically. For each company are indicated: company name, registered head office, operating office, share capital, shareholders and percentage of ownership; for consolidated subsidiaries is indicated the equity ratio attributable to Eni; for unconsolidated investments owned by consolidated companies is indicated the valuation method. In the footnotes are indicated which investments are quoted in the Italian regulated markets or in other regulated markets of the European Union and the percentage of the ordinary voting rights entitled to shareholders if different from the percentage of ownership. The currency codes indicated are reported in accordance with the International Standard ISO 4217. As of June 30, 2014, the break down of the companies owned by Eni is provided in the table below:

Subsidiaries Joint arrangements and associates Other significant investments (a)

Italy Outside Italy Total Italy Outside Italy Total Italy Outside Italy Total

| Fully
consolidated subsidiaries | 39 | 213 | 252 | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated joint operations | | | | 7 | 8 | 15 | | | |
| Investments
owned by consolidated companies (b) | | | | | | | | | |
| Equity-accounted investments | 5 | 39 | 44 | 29 | 66 | 95 | | | |
| Investments
valued at cost | 4 | 7 | 11 | 5 | 34 | 39 | 5 | 25 | 30 |
| Investments valued at fair value | | | | | | | 1 | 1 | 2 |
| | 9 | 46 | 55 | 34 | 100 | 134 | 6 | 26 | 32 |
| Investments owned by unconsolidated companies | | | | | | | | | |
| Owned by
controlled companies | | 1 | 1 | | | | | | |
| Owned by joint arrangements | | | | | 19 | 19 | | | |
| | | 1 | 1 | | 19 | 19 | | | |
| Total | 48 | 260 | 308 | 41 | 127 | 168 | 6 | 26 | 32 |

(a) Relates to investments in companies other than subsidiaries, joint arrangements and associates with an ownership interest greater than 2% for listed entities or 10% for unlisted companies. (b) Investments in subsidiaries accounted for using the equity method and valued at cost relate to non-significant companies and entities acting as sole-operator in the management of oil and gas contracts.

Subsidiaries, joint arrangements and affiliates resident in countries with a privileged tax regime Pending the publication of the decree that identifies the list of countries and territories allowing an adequate exchange of information and owning a taxation level not significantly lower than the one applied in Italy, at the present, the countries with a privileged tax regime are those identified by the decree issued by the Ministry for the Economy and Finance dated November 21, 2001: (i) in general and without distinctions, by Article 1; (ii) with the exclusion of specific cases, by Article 2; (iii) and, limitedly to some specific tax regimes, by Article 3. At December 31, 2013, Eni controls 12 companies or branches based (1) in countries with a privileged tax regime as identified by the Decree. Of these 12 companies, 7 are subject to taxation in Italy because they are included in the tax return of Eni. The remaining 5 companies are not subject to Italian taxation, but to the specific local tax regimes, as a consequence of the exemption obtained by the Italian Revenue Agency by taking into account of the taxation level applied or of the industrial and commercial activities carried out. Of these 12 companies, 9 come from the acquisitions of Lasmo Plc, Bouygues Offshore SA, the activities carried out in Congo by Maurel & Prom and Burren Energy Plc. As well, Eni controls 25 companies resident in countries or territories listed in Article 3 of the Decree that do not take advantage of the privileged regime provided for. These subsidiaries, resident or located in countries identified by the Decree, did not issued financial instruments and all the financial statements for 2013 were audited by Ernst & Young. In addition, at June 30, 2014, Eni owns, directly or indirectly, interests not lower than 20% in the profit of 11 companies resident or located in countries or territories with a privileged tax regime listed in the Decree, of which 3 are subject to taxation in Italy because they benefit of the privileged tax regime and 1 is only subject to local taxation as a consequence of the exemption obtained by the Italian Revenue Agency by taking into account of the industrial and commercial activities carried out. The remaining 7 companies are not subject to taxation in Italy because, although they are resident or located in countries or territories listed in Article 3 of the Decree, they do not take advantage of the privileged tax regime provided for in those countries. In the following list of subsidiaries, joint arrangements and associates, companies resident in countries or territories listed in the Decree are marked with a footnote indicating the reference to the articles of the Decree and the related taxation in Italy.

132 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Parent company

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership

Eni SpA (#) Rome Italy EUR 4,005,358,876 Cassa Depositi e Prestiti SpA Ministry of Economy and Finance Eni SpA Other shareholders 25.76 4.34 0.63 69.27

Subsidiaries

Exploration & Production
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni Angola
SpA | San Donato
Milanese (MI) | Angola | EUR | 20,200,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Medio Oriente SpA | San Donato Milanese (MI) | Italy | EUR | 6,655,992 | Eni SpA | 100.00 | | Eq. |
| Eni
Mediterranea Idrocarburi SpA | Gela (CL) | Italy | EUR | 5,200,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Mozambico SpA | San Donato Milanese (MI) | Italy | EUR | 200,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Timor
Leste SpA | San Donato
Milanese (MI) | Timor Est | EUR | 6,841,517 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni West Africa SpA | San Donato Milanese (MI) | Angola | EUR | 10,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Zubair
SpA | San Donato
Milanese (MI) | Italy | EUR | 120,000 | Eni SpA Minority interest | 99.99 (..) | 100.00 | F.C. |
| Floaters SpA | San Donato Milanese (MI) | Italy | EUR | 200,120,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Ieoc SpA | San Donato
Milanese (MI) | Egypt | EUR | 18,331,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Società Adriatica Idrocarburi SpA | San Giovanni Teatino (CH) | Italy | EUR | 14,738,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Società
Ionica Gas SpA | San Giovanni
Teatino (CH) | Italy | EUR | 11,452,500 | Eni SpA | 100.00 | 100.00 | F.C. |
| Società Petrolifera Italiana SpA | San Donato Milanese (MI) | Italy | EUR | 24,103,200 | Eni SpA Minority interest | 99.96 0.04 | 99.96 | F.C. |
| Tecnomare
- Società per lo Sviluppo delle Tecnologie Marine SpA | Venice
Marghera (VE) | Italy | EUR | 2,064,000 | Eni SpA | 100.00 | 100.00 | F.C. |

133 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Outside Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Agip
Caspian Sea BV | Amsterdam (Netherlands) | Kazakhstan | EUR | 20,005 | Eni International BV | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Agip Energy and Natural Resources (Nigeria) Ltd | Abuja (Nigeria) | Nigeria | NGN | 5,000,000 | Eni International BV Eni Oil Holdings BV | 95.00 5.00 | 100.00 | F.C. |
| Agip
Karachaganak BV | Amsterdam (Netherlands) | Kazakhstan | EUR | 20,005 | Eni International BV | 100.00 | 100.00 | F.C. |
| Agip Kazakhstan North Caspian Operating Co NV | Amsterdam (Netherlands) | Kazakhstan | EUR | 52,500 | Agip Caspian Sea BV | 100.00 | | Co. |
| Agip Oil
Ecuador BV (1) | Amsterdam (Netherlands) | Ecuador | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Agip Oleoducto de Crudos Pesados BV | Amsterdam (Netherlands) | Ecuador | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| Burren
(Cyprus) Holdings Ltd | Nicosia (Cyprus) | Cyprus | EUR | 1,710 | Burren En. (Berm) Ltd | 100.00 | | Co. |
| Burren Energy (Bermuda) Ltd (9) | Hamilton (Bermuda) | United Kingdom | USD | 62,342,955 | Burren Energy Plc | 100.00 | 100.00 | F.C. |
| Burren
Energy Congo Ltd (9) | Tortola (British Virgin Islands) | Republic of
the Congo | USD | 50,000 | Burren En. (Berm) Ltd | 100.00 | 100.00 | F.C. |
| Burren Energy (Egypt) Ltd | London (United Kingdom) | Egypt | GBP | 2 | Burren Energy Plc | 100.00 | | Eq. |
| Burren
Energy India Ltd | London (United Kingdom) | United
Kingdom | GBP | 2 | Burren Energy Plc | 100.00 | 100.00 | F.C. |
| Burren Energy Ltd | Nicosia (Cyprus) | Cyprus | EUR | 1,710 | Burren En. (Berm) Ltd | 100.00 | 100.00 | F.C. |
| Burren
Energy Plc | London (United Kingdom) | United
Kingdom | GBP | 28,819,023 | Eni UK Holding Plc Eni UK Ltd | 99.99 (..) | 100.00 | F.C. |
| Burren Energy (Services) Ltd | London (United Kingdom) | United Kingdom | GBP | 2 | Burren Energy Plc | 100.00 | 100.00 | F.C. |
| Burren
Energy Ship Management Ltd | Nicosia (Cyprus) | Cyprus | EUR | 1,710 | Burren (Cyp) Hold. Ltd | 100.00 | | |
| Burren Energy Shipping and Transportation Ltd | Nicosia (Cyprus) | Cyprus | EUR | 3,420 | Burren (Cyp) Hold. Ltd Burren En. (Berm) Ltd | 50.00 50.00 | | Co. |
| Burren
Shakti Ltd (8) | Hamilton (Bermuda) | United
Kingdom | USD | 65,300,000 | Burren En. India Ltd | 100.00 | 100.00 | F.C. |
| Eni Abu Dhabi BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| Eni AEP
Ltd | London (United Kingdom) | Pakistan | GBP | 73,471,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni Algeria Exploration BV | Amsterdam (Netherlands) | Algeria | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Algeria Ltd Sàrl (10) | Luxembourg (Luxembourg) | Algeria | USD | 20,000 | Eni Oil Holdings BV | 100.00 | 100.00 | F.C. |
| Eni Algeria Production BV | Amsterdam (Netherlands) | Algeria | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Ambalat Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (1) | The company
owns a branch in Ecuador that does not avail itself of a
privileged tax regime as provided for by Article 3 of the
Ministerial Decree dated November 21, 2001. |
| (8) | The company
is included in the list provided for by Articles 1 and 2
of the Ministerial Decree dated November 21, 2001: the
profit pertaining to the Group is subject to the Italian
taxation. |
| (9) | The company
is included in the list provided for by Articles 1 and 2
of the Ministerial Decree dated November 21, 2001: the
company is not subject to the Italian taxation following
the admission of the instance by the Italian Revenue
Agency. |
| (10) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. |

134 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni
America Ltd | Dover,
Delaware (USA) | USA | USD | 72,000 | Eni UHL Ltd | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Angola Exploration BV (2) | Amsterdam (Netherlands) | Angola | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Angola
Production BV (2) | Amsterdam (Netherlands) | Angola | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Argentina Exploración y Explotación SA | Buenos Aires (Argentina) | Argentina | ARS | 24,136,336 | Eni International BV Eni Oil Holdings BV | 95.00 5.00 | | Eq. |
| Eni Arguni
I Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Australia BV | Amsterdam (Netherlands) | Australia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Australia Ltd | London (United Kingdom) | Australia | GBP | 20,000,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni BBI Ltd | London (United Kingdom) | United Kingdom | GBP | 1 | Eni UK Ltd | 100.00 | | Eq. |
| Eni BB
Petroleum Inc | Dover,
Delaware (USA) | USA | USD | 1,000 | Eni Petroleum Co Inc | 100.00 | 100.00 | F.C. |
| Eni BTC Ltd | London (United Kingdom) | United Kingdom | GBP | 34,000,000 | Eni International BV | 100.00 | | Eq. |
| Eni Bukat
Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Bulungan BV | Amsterdam (Netherlands) | Indonesia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Canada
Holding Ltd | Calgary (Canada) | Canada | USD | 1,453,200,001 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni CBM Ltd | London (United Kingdom) | Indonesia | USD | 2,210,728 | Eni Lasmo Plc | 100.00 | 100.00 | F.C. |
| Eni China
BV | Amsterdam (Netherlands) | China | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Congo SA | Pointe-Noire (Republic of the Congo) | Republic of the Congo | USD | 17,000,000 | Eni E&P Holding BV Eni Int. NA NV Sàrl Eni International BV | 99.99 (..) (..) | 100.00 | F.C. |
| Eni
Croatia BV | Amsterdam (Netherlands) | Croatia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Cyprus Ltd | Nicosia (Cyprus) | Cyprus | EUR | 2,001 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Dación BV | Amsterdam (Netherlands) | Netherlands | EUR | 90,000 | Eni Oil Holdings BV | 100.00 | 100.00 | F.C. |
| Eni Denmark BV | Amsterdam (Netherlands) | Denmark | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni do
Brasil Investimentos em Exploraçío e Produçío de
Petróleo Ltda (former Eni Oil do Brasil SA) | Rio de
Janeiro (Brazil) | Brazil | BRL | 1,579,800,000 | Eni International BV Eni Oil Holdings BV | 99.99 (..) | | Eq. |
| Eni East Sepinggan Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni
Elgin/Franklin Ltd | London (United Kingdom) | United
Kingdom | GBP | 100 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni Energy Russia BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (2) | The company
owns a branch in Angola that does not avail itself of a
privileged tax regimes as provided for by Article 3 of
the Ministerial Decree dated November 21, 2001. |

135 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni
Engineering E&P Ltd | London (United Kingdom) | United
Kingdom | GBP | 40,000,001 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Exploration & Production Holding BV | Amsterdam (Netherlands) | Netherlands | EUR | 29,832,777.120 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Gabon
SA | Libreville (Gabon) | Gabon | XAF | 7,400,000,000 | Eni International BV Minority interest | 99.96 0.04 | 99.96 | F.C. |
| Eni Ganal Ltd | London (United Kingdom) | Indonesia | GBP | 2 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Gas
& Power LNG Australia BV | Amsterdam (Netherlands) | Australia | EUR | 10,000,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Ghana Exploration and Production Ltd | Accra (Ghana) | Ghana | GHS | 21,412,500 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Hewett
Ltd | Aberdeen (United Kingdom) | United
Kingdom | GBP | 3,036,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni Hydrocarbons Venezuela Ltd (former Eni Forties Ltd) | London (United Kingdom) | United Kingdom | GBP | 11,000 | Eni Lasmo Plc | 100.00 | | Eq. |
| Eni India
Ltd | London (United Kingdom) | India | GBP | 44,000,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni Indonesia Ltd | London (United Kingdom) | Indonesia | GBP | 100 | Eni ULX Ltd | 100.00 | 100.00 | F.C. |
| Eni
International NA NV Sàrl (10) | Luxembourg (Luxembourg) | United
Kingdom | USD | 25,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni International Resources Ltd | London (United Kingdom) | United Kingdom | GBP | 50,000 | Eni SpA Eni UK Ltd | 99.99 (..) | 100.00 | F.C. |
| Eni
Investments Plc | London (United Kingdom) | United
Kingdom | GBP | 750,050,000 | Eni SpA Eni UK Ltd | 99.99 (..) | 100.00 | F.C. |
| Eni Iran BV | Amsterdam (Netherlands) | Iran | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Iraq
BV | Amsterdam (Netherlands) | Irak | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Ireland BV | Amsterdam (Netherlands) | Ireland | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni JPDA
03-13 Ltd | London (United Kingdom) | Australia | GBP | 250,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni JPDA 06-105 Pty Ltd | Perth (Australia) | Australia | AUD | 80,830,576 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni JPDA
11-106 BV | Amsterdam (Netherlands) | Australia | EUR | 50,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Kenya BV (21) | Amsterdam (Netherlands) | Kenya | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Krueng
Mane Ltd | London (United Kingdom) | Indonesia | GBP | 2 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Lasmo Plc | London (United Kingdom) | United Kingdom | GBP | 337,638,724.250 | Eni Investments Plc Eni UK Ltd | 99.99 (..) | 100.00 | F.C. |
| Eni
Liberia BV | Amsterdam (Netherlands) | Liberia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Liverpool Bay Operating Co Ltd (former Eni Transportation Ltd) | London (United Kingdom) | United Kingdom | GBP | 5,001,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni LNS
Ltd | London (United Kingdom) | United
Kingdom | GBP | 80,400,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |

136 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni Mali
BV | Amsterdam (Netherlands) | Mali | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Marketing Inc | Dover, Delaware (USA) | USA | USD | 1,000 | Eni Petroleum Co Inc | 100.00 | 100.00 | F.C. |
| Eni Middle
East BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Middle East Ltd | London (United Kingdom) | United Kingdom | GBP | 5,000,002 | Eni ULT Ltd | 100.00 | 100.00 | F.C. |
| Eni MOG
Ltd (in liquidation) | London (United Kingdom) | United
Kingdom | GBP | 220,711,147.500 | Eni Lasmo Plc Eni LNS Ltd | 99.99 (..) | 100.00 | F.C. |
| Eni Mozambique Engineering Ltd | London (United Kingdom) | United Kingdom | GBP | 1 | Eni UK Ltd | 100.00 | | Eq. |
| Eni
Mozambique LNG Holding BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| Eni Muara Bakau BV | Amsterdam (Netherlands) | Indonesia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Myanmar BV | Amsterdam (Netherlands) | Myanmar | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| Eni Norge AS | Forus (Norway) | Norway | NOK | 278,000,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni North
Africa BV | Amsterdam (Netherlands) | Libya | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni North Ganal Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Oil
& Gas Inc | Dover,
Delaware (USA) | USA | USD | 100,800 | Eni America Ltd | 100.00 | 100.00 | F.C. |
| Eni Oil Algeria Ltd | London (United Kingdom) | Algeria | GBP | 1,000 | Eni Lasmo Plc | 100.00 | 100.00 | F.C. |
| Eni Oil
Holdings BV | Amsterdam (Netherlands) | Netherlands | EUR | 450,000 | Eni ULX Ltd | 100.00 | 100.00 | F.C. |
| Eni Pakistan Ltd | London (United Kingdom) | Pakistan | GBP | 90,087 | Eni ULX Ltd | 100.00 | 100.00 | F.C. |
| Eni
Pakistan (M) Ltd Sàrl (10) | Luxembourg (Luxembourg) | Pakistan | USD | 20,000 | Eni Oil Holdings BV | 100.00 | 100.00 | F.C. |
| Eni Papalang Ltd | London (United Kingdom) | Indonesia | GBP | 2 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni
Petroleum Co Inc | Dover,
Delaware (USA) | USA | USD | 156,600,000 | Eni SpA Eni International BV | 63.86 36.14 | 100.00 | F.C. |
| Eni Petroleum US Llc | Dover, Delaware (USA) | USA | USD | 1,000 | Eni BB Petroleum Inc | 100.00 | 100.00 | F.C. |
| Eni PNG
Ltd | Port Moresby (Papua New Guinea) | Papua New
Guinea | PGK | 15,400,274 | Eni International BV | 100.00 | | Eq. |
| Eni Polska spólka z ograniczona
odpowiedzialnoscia | Warsaw (Poland) | Poland | PLN | 4,100,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Popodi
Ltd | London (United Kingdom) | Indonesia | GBP | 2 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Rapak Ltd | London (United Kingdom) | Indonesia | GBP | 2 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni RD
Congo SA (former Eni RD Congo SPRL) | Kinshasa (Democratic Republic of the Congo) | Democratic
Republic of the Congo | CDF | 10,000,000,000 | Eni International BV Eni Oil Holdings BV | 99.99 (..) | 100.00 | F.C. |

137 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni South
Africa BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni South China Sea Ltd Sàrl (10) | Luxembourg (Luxembourg) | China | USD | 20,000 | Eni International BV | 100.00 | | Eq. |
| Eni South
Salawati Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni TNS Ltd | Aberdeen (United Kingdom) | United Kingdom | GBP | 1,000 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni Togo
BV | Amsterdam (Netherlands) | Togo | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| Eni Trinidad and Tobago Ltd | Port of Spain (Trinidad and Tobago) | Trinidad and Tobago | TTD | 1,181,880 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Tunisia BV | Amsterdam (Netherlands) | Tunisia | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Turkmenistan Ltd (9) (former Burren Resources Petroleum Ltd) | Hamilton (Bermuda) | Turkmenistan | USD | 20,000 | Burren En. (Berm) Ltd | 100.00 | 100.00 | F.C. |
| Eni UHL
Ltd | London (United Kingdom) | United
Kingdom | GBP | 1 | Eni ULT Ltd | 100.00 | 100.00 | F.C. |
| Eni UKCS Ltd | London (United Kingdom) | United Kingdom | GBP | 100 | Eni UK Ltd | 100.00 | 100.00 | F.C. |
| Eni UK
Holding Plc | London (United Kingdom) | United
Kingdom | GBP | 424,050,000 | Eni Lasmo Plc Eni UK Ltd | 99.99 (..) | 100.00 | F.C. |
| Eni UK Ltd | London (United Kingdom) | United Kingdom | GBP | 250,000,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Ukraine Deep Waters BV | Amsterdam (Netherlands) | Ukraine | EUR | 20,000 | Eni Ukraine Hold. BV | 100.00 | | Eq. |
| Eni Ukraine Holdings BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Ukraine Llc | Kiev (Ukraine) | Ukraine | UAH | 42,004,757.640 | Eni Ukraine Hold. BV Eni International BV | 99.99 0.01 | 100.00 | F.C. |
| Eni Ukraine Shallow Waters BV | Amsterdam (Netherlands) | Ukraine | EUR | 20,000 | Eni Ukraine Hold. BV | 100.00 | | Eq. |
| Eni ULT
Ltd | London (United Kingdom) | United
Kingdom | GBP | 93,215,492.250 | Eni Lasmo Plc | 100.00 | 100.00 | F.C. |
| Eni ULX Ltd | London (United Kingdom) | United Kingdom | GBP | 200,010,000 | Eni ULT Ltd | 100.00 | 100.00 | F.C. |
| Eni USA
Gas Marketing Llc | Dover,
Delaware (USA) | USA | USD | 10,000 | Eni Marketing Inc | 100.00 | 100.00 | F.C. |
| Eni USA Inc | Dover, Delaware (USA) | USA | USD | 1,000 | Eni Oil & Gas Inc | 100.00 | 100.00 | F.C. |
| Eni US
Operating Co Inc | Dover,
Delaware (USA) | USA | USD | 1,000 | Eni Petroleum Co Inc | 100.00 | 100.00 | F.C. |
| Eni Venezuela BV | Amsterdam (Netherlands) | Venezuela | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni
Venezuela E&P Holding SA | Brussels (Belgium) | Belgium | USD | 300,000 | Eni International BV Eni Oil Holdings BV | 99.97 0.03 | | Eq. |
| Eni Ventures Plc (in liquidation) | London (United Kingdom) | United Kingdom | GBP | 278,050,000 | Eni International BV Eni Oil Holdings BV | 99.99 (..) | | Co. |
| Eni
Vietnam BV | Amsterdam (Netherlands) | Vietnam | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |

138 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni
Western Asia BV | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV | 100.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni West Timor Ltd | London (United Kingdom) | Indonesia | GBP | 1 | Eni Indonesia Ltd | 100.00 | 100.00 | F.C. |
| Eni Yemen
Ltd | London (United Kingdom) | Yemen | GBP | 1,000 | Burren Energy Plc | 100.00 | | Eq. |
| Eurl Eni Algérie | Algeri (Algeria) | Algeria | DZD | 1,000,000 | Eni Algeria Ltd Sàrl | 100.00 | | Eq. |
| First
Calgary Petroleums LP | Wilmington (USA) | Algeria | USD | 1 | Eni Canada Hold. Ltd FCP Partner Co ULC | 99.90 0.10 | 100.00 | F.C. |
| First Calgary Petroleums Partner Co ULC | Calgary (Canada) | Canada | CAD | 10 | Eni Canada Hold. Ltd | 100.00 | 100.00 | F.C. |
| Hindustan
Oil Exploration Co Ltd | Vadodara (India) | India | INR | 1,304,932,890 | Burren Shakti Ltd Eni UK Holding Plc Burren En. India Ltd Minority interest | 27.16 20.01 0.01 52.82 | 47.18 | F.C. |
| HOEC Bardahl India Ltd | Vadodara (India) | India | INR | 5,000,200 | Hindus. Oil E. Co Ltd | 100.00 | | Eq. |
| Ieoc
Exploration BV | Amsterdam (Netherlands) | Egypt | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Ieoc Production BV | Amsterdam (Netherlands) | Egypt | EUR | 20,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Lasmo
Sanga Sanga Ltd (9) | Hamilton (Bermuda) | Indonesia | USD | 12,000 | Eni Lasmo Plc | 100.00 | 100.00 | F.C. |
| Liverpool Bay Ltd | London (United Kingdom) | United Kingdom | USD | 29,075,343 | Eni ULX Ltd | 100,00 | 100,00 | F.C. |
| Nigerian
Agip CPFA Ltd | Lagos (Nigeria) | Nigeria | NGN | 1,262,500 | NAOC Ltd Agip En Nat Res. Ltd Nigerian Agip E. Ltd | 98.02 0.99 0.99 | | Co. |
| Nigerian Agip Exploration
Ltd | Abuja (Nigeria) | Nigeria | NGN | 5,000,000 | Eni
International BV Eni Oil Holdings BV | 99.99 0.01 | 100.00 | F.C. |
| Nigerian
Agip Oil Co Ltd | Abuja (Nigeria) | Nigeria | NGN | 1,800,000 | Eni International BV Eni Oil Holdings BV | 99.89 0.11 | 100.00 | F.C. |
| OOO "Eni
Energhia" | Moscow (Russia) | Russia | RUB | 2,000,000 | Eni Energy
Russia BV Eni Oil Holdings BV | 99.90 0.10 | 100.00 | F.C. |
| Tecnomare
Egypt Ltd | Cairo (Egypt) | Egypt | EGP | 50,000 | Tecnomare SpA Soc. Ionica Gas SpA | 99.00 1.00 | | Eq. |
| Zetah Congo Ltd (8) | Nassau (Bahamas) | Republic of the Congo | USD | 300 | Eni Congo SA Burren En. Congo Ltd | 66.67 33.33 | | Co. |
| Zetah
Kouilou Ltd (8) | Nassau (Bahamas) | Republic
of the Congo | USD | 2,000 | Eni Congo SA Burren En. Congo Ltd Minority interest | 54.50 37.00 8.50 | | Co. |

139 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

| Gas
& Power |
| --- |
| In
Italy |

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| ACAM
Clienti SpA | La Spezia | Italy | EUR | 120,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ASA Trade SpA | Livorno | Italy | EUR | 706,518 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Gas
Transport Services Srl | San Donato
Milanese (MI) | Italy | EUR | 120,000 | Eni SpA | 100.00 | | Co. |
| EniPower Mantova SpA | San Donato Milanese (MI) | Italy | EUR | 144,000,000 | EniPower SpA Minority interest | 86.50 13.50 | 86.50 | F.C. |
| EniPower
SpA | San Donato
Milanese (MI) | Italy | EUR | 944,947,849 | Eni SpA | 100.00 | 100.00 | F.C. |
| Est Più SpA | Gorizia | Italy | EUR | 7,100,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| LNG
Shipping SpA | San Donato
Milanese (MI) | Italy | EUR | 240,900,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Servizi Fondo Bombole Metano SpA | Rome | Italy | EUR | 13,580,000.200 | Eni SpA | 100.00 | | Co. |
| Trans
Tunisian Pipeline Co SpA | San Donato
Milanese (MI) | Tunisia | EUR | 1,098,000 | Eni SpA | 100.00 | 100.00 | F.C. |

(*) Consolidation method or valutation method: F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.

140 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Outside Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Adriaplin
Podjetje za distribucijo zemeljskega plina doo Ljubljana | Ljubljana (Slovenia) | Slovenia | EUR | 12,956,935 | Eni SpA Minority interest | 51.00 49.00 | | 51.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Distrigas LNG Shipping SA | Brussels (Belgium) | Belgium | EUR | 788,579.550 | LNG Shipping SpA Eni Gas & Power NV | 99.99 (..) | | 100.00 | F.C. |
| Eni
G&P France BV | Amsterdam (Netherlands) | France | EUR | 20,000 | Eni International BV | 100.00 | | 100.00 | F.C. |
| Eni G&P Trading BV | Amsterdam (Netherlands) | Turkey | EUR | 70,000 | Eni International BV | 100.00 | | 100.00 | F.C. |
| Eni Gas
& Power España SA (in liquidation) | Madrid (Spain) | Spain | EUR | 2,000,000 | Eni International BV | 100.00 | | | Eq. |
| Eni Gas & Power France SA | Levallois Perret (France) | France | EUR | 29,937,600 | Eni G&P France BV Minority interest | 99.85 0.15 | | 99.85 | F.C. |
| Eni Gas
& Power GmbH | Düsseldorf (Germany) | Germany | EUR | 1,025,000 | Eni SpA | 100.00 | | 100.00 | F.C. |
| Eni Gas & Power NV | Brussels (Belgium) | Belgium | EUR | 413,248,823.140 | Eni SpA Eni International BV | 99.99 (..) | | 100.00 | F.C. |
| Eni Gas
Transport Services SA (10) (in liquidation) | Lugano (Switzerland) | Switzerland | CHF | 100,000 | Eni International BV | 100.00 | | 100.00 | F.C. |
| Eni Power Generation NV | Brussels (Belgium) | Belgium | EUR | 5,161,500 | Eni SpA Eni Gas & Power NV | 99.99 (..) | | 100.00 | F.C. |
| Eni Wind
Belgium NV | Brussels (Belgium) | Belgium | EUR | 333,000 | Eni Gas & Power NV Eni International BV | 99.70 0.30 | | 100.00 | F.C. |
| Société de Service du Gazoduc Transtunisien
SA - Sergaz SA | Tunisi (Tunisia) | Tunisia | TND | 99,000 | Eni International BV Minority interest | 66.67 33.33 | | 66.67 | F.C. |
| Société
pour la Construction du Gazoduc Transtunisien SA - Scogat
SA | Tunisi (Tunisia) | Tunisia | TND | 200,000 | Eni International BV Eni Gas & Power GmbH Eni Gas & Power NV Trans Tunis. P. Co SpA | 99.85 0.05 0.05 0.05 | | 100.00 | F.C. |
| Tigáz Gepa Kft | Hajdúszoboszló (Hungary) | Hungary | HUF | 52,780,000 | Tigáz Zrt | 100.00 | | | Eq. |
| Tigáz-Dso
Földgázelosztó kft | Hajdúszoboszló (Hungary) | Hungary | HUF | 62,066,000 | Tigáz Zrt | 100.00 | | 98.04 | F.C. |
| Tigáz Tiszántúli Gázszolgáltató
Zártkörûen Mûködõ Részvénytársaság | Hajdúszoboszló (Hungary) | Hungary | HUF | 17,000,000,000 | Eni SpA Tigáz Zrt Minority interest | 97.88 0.16 1.96 | (a) | 98.04 | F.C. |

(a)	98.04
Minority
interest	1.96

141 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Refining & Marketing
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Consorzio
AgipGas Sabina (in liquidation) | Cittaducale
(RI) | Italy | EUR | 5,160 | Eni Rete o&no SpA | 100.00 | | Co. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consorzio Condeco Santapalomba (in liquidation) | Pomezia (RM) | Italy | EUR | 125,507 | Eni SpA Minority interest | 92.66 7.34 | | Eq. |
| Consorzio
Movimentazioni Petrolifere nel Porto di Livorno | Stagno (LI) | Italy | EUR | 1,000 | Ecofuel SpA Costiero Gas L. SpA Minority interest | 49.90 11.00 39.10 | | Co. |
| Ecofuel SpA | San Donato Milanese (MI) | Italy | EUR | 52,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Fuel
Centrosud SpA | Rome | Italy | EUR | 21,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Fuel Nord SpA | San Donato Milanese (MI) | Italy | EUR | 9,670,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Rete
oil&nonoil SpA | Rome | Italy | EUR | 27,480,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni Trading & Shipping SpA | Rome | Italy | EUR | 60,036,650 | Eni SpA Eni Gas & Power NV | 94.73 5.27 | 100.00 | F.C. |
| Raffineria
di Gela SpA | Gela (CL) | Italy | EUR | 15,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Outside
Italy | | | | | | | | |
| Agip
Lubricantes SA (in liquidation) | Buenos Aires (Argentina) | Argentina | ARS | 1,500,000 | Eni International BV Eni Oil Holdings BV | 97.00 3.00 | | Eq. |
| Eni Austria GmbH | Wien (Austria) | Austria | EUR | 78,500,000 | Eni International BV Eni Deutsch. GmbH | 75.00 25.00 | 100.00 | F.C. |
| Eni
Benelux BV | Rotterdam (Netherlands) | Netherlands | EUR | 1,934,040 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Ceská Republika Sro | Prague (Czech Republic) | Czech Republic | CZK | 359,000,000 | Eni International BV Eni Oil Holdings BV | 99.99 0.01 | 100.00 | F.C. |
| Eni
Deutschland GmbH | Munich (Germany) | Germany | EUR | 90,000,000 | Eni International BV Eni Oil Holdings BV | 89.00 11.00 | 100.00 | F.C. |
| Eni Ecuador SA (10) | Quito (Ecuador) | Ecuador | USD | 103,142.080 | Eni International BV Esain SA | 99.93 0.07 | 100.00 | F.C. |
| Eni France
Sàrl | Lyon (France) | France | EUR | 56,800,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Hungaria Zrt | Budaörs (Hungary) | Hungary | HUF | 15,441,600,000 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Iberia
SLU | Alcobendas (Spain) | Spain | EUR | 17,299,100 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Lubricants Trading (Shanghai) Co Ltd | Shanghai (China) | China | EUR | 5,000,000 | Eni International BV | 100.00 | | Eq. |
| Eni
Marketing Austria GmbH | Wien (Austria) | Austria | EUR | 19,621,665.230 | Eni Mineralölh. GmbH Eni International BV | 99.99 (..) | 100.00 | F.C. |
| Eni Mineralölhandel GmbH | Wien (Austria) | Austria | EUR | 34,156,232.060 | Eni Austria GmbH | 100.00 | 100.00 | F.C. |

142 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni
Romania Srl | Bucharest (Romania) | Romania | RON | 23,876,310 | Eni International BV Eni Oil Holdings BV | 99.00 1.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Schmiertechnik GmbH | Wurzburg (Germany) | Germany | EUR | 2,000,000 | Eni Deutsch.
GmbH | 100.00 | 100.00 | F.C. |
| Eni
Slovenija doo | Ljubljana (Slovenia) | Slovenia | EUR | 3,795,528.290 | Eni International BV | 100.00 | 100.00 | F.C. |
| Eni Slovensko Spol Sro | Bratislava (Slovakia) | Slovakia | EUR | 36,845,251 | Eni
International BV Eni Oil Holdings BV | 99.99 0.01 | 100.00 | F.C. |
| Eni
Suisse SA (10) | Lausanne (Switzerland) | Switzerland | CHF | 102,500,000 | Eni International BV Minority interest | 99.99 (..) | 100.00 | F.C. |
| Eni Trading & Shipping
BV | Amsterdam (Netherlands) | Netherlands | EUR | 3,720,000 | ETS SpA | 100.00 | 100.00 | F.C. |
| Eni
Trading & Shipping Inc | New
Castle (USA) | USA | USD | 36,000,000 | ETS SpA | 100.00 | 100.00 | F.C. |
| Eni USA R&M Co Inc | Wilmington (USA) | USA | USD | 11,000,000 | Eni
International BV | 100.00 | 100.00 | F.C. |
| Esacontrol
SA (10) | Quito (Ecuador) | Ecuador | USD | 60,000 | Eni Ecuador SA Minority interest | 87.00 13.00 | | Eq. |
| Esain SA (10) | Quito (Ecuador) | Ecuador | USD | 30,000 | Eni Ecuador
SA Tecnoesa SA | 99.99 (..) | 100.00 | F.C. |
| Oléoduc
du Rhône SA (10) | Valais (Switzerland) | Switzerland | CHF | 7,000,000 | Eni International BV | 100.00 | | Eq. |
| OOO "Eni-Nefto" | Moscow (Russia) | Russia | RUB | 1,010,000 | Eni
International BV Eni Oil Holdings BV | 99.01 0.99 | | Eq. |
| Tecnoesa
SA (10) | Quito (Ecuador) | Ecuador | USD | 36,000 | Eni Ecuador SA Esain SA | 99.99 (..) | | Eq. |

143 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Versalis

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Versalis
SpA | San Donato
Milanese (MI) | Italy | EUR | 1,553,400,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In
Italy | | | | | | | | |
| Consorzio
Industriale Gas Naturale | San Donato
Milanese (MI) | Italy | EUR | 124,000 | Versalis SpA Raff. di Gela SpA Eni SpA Syndial SpA Raff. Milazzo Scarl | 53.55 18.74 15.37 0.76 11.58 | | Eq. |
| Outside
Italy | | | | | | | | |
| Dunastyr
Polisztirolgyártó Zártkoruen Mukodo
Részvénytársaság | Budapest (Hungary) | Hungary | HUF | 8,092,160,000 | Versalis SpA Versalis Deutschland GmbH Versalis International SA | 96.34 1.83 1.83 | 100.00 | F.C. |
| Eni Chemicals Trading (Shanghai) Co Ltd | Shanghai (China) | China | USD | 5,000,000 | Versalis SpA | 100.00 | 100.00 | F.C. |
| Polimeri
Europa Elastomeres France SA (in liquidation) | Champagnier (France) | France | EUR | 13,011,904 | Versalis SpA | 100.00 | | Eq. |
| Versalis Deutschland GmbH (12) (former Polimeri Europa GmbH) | Eschborn (Germany) | Germany | EUR | 100,000 | Versalis SpA | 100.00 | 100.00 | F.C. |
| Versalis
International SA (12) | Brussels (Belgium) | Belgium | EUR | 15,449,173.880 | Versalis SpA Versalis Deutschland GmbH Dunastyr Zrt Versalis France | 59.00 23.71 14.43 2.86 | 100.00 | F.C. |
| Versalis Kimya Ticaret Limited Sirketi (former Polimeri Europa Kimya Ürünleri Ticaret Ltd
Sirketi) | Istanbul (Turkey) | Turkey | TRY | 20,000 | Versalis International SA | 100.00 | | Eq. |
| Versalis
Pacific (India) Private Ltd | Mumbai (India) | India | INR | 100,000 | Versalis Pacific Trading Minority interest | 99.99 0.01 | | Eq. |
| Versalis Pacific Trading (Shanghai) Co Ltd | Shanghai (China) | China | CNY | 1,000,000 | Eni Chem. Trad. Co Ltd | 100.00 | 100.00 | F.C. |
| Versalis
UK Ltd (former Polimeri Europa UK Ltd) | Hythe (United Kingdom) | United
Kingdom | GBP | 4,004,041 | Versalis SpA | 100.00 | 100.00 | F.C. |
| Versalis France SAS (former Polimeri Europa France SAS) | Mardyck (France) | France | EUR | 126,115,582.900 | Versalis SpA | 100.00 | 100.00 | F.C. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (12) | The company
owns a branch in Switzerland that does not avail itself
of a privileged tax regimes as provided for by Article 3
of the Ministerial Decree dated November 21, 2001. |

144 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Engineering & Construction

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Saipem SpA (#) | San Donato
Milanese (MI) | Italy | EUR | 441,410,900 | Eni SpA Saipem SpA Minority interest | 42.91 0.44 56.65 | 43.11 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In
Italy | | | | | | | | |
| Denuke
Scarl | San Donato
Milanese (MI) | Italy | EUR | 10,000 | Saipem SpA Minority interest | 55.00 45.00 | 23.71 | F.C. |
| Servizi Energia Italia SpA | San Donato Milanese (MI) | Italy | EUR | 291,000 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Smacemex
Scarl | San Donato
Milanese (MI) | Italy | EUR | 10,000 | Saipem SpA Minority interest | 60.00 40.00 | 25.87 | F.C. |
| SnamprogettiChiyoda SAS di Saipem SpA | San Donato Milanese (MI) | Algeria | EUR | 10,000 | Saipem SpA Minority interest | 99.90 0.10 | 43.07 | F.C. |
| Outside
Italy | | | | | | | | |
| Andromeda
Consultoria Tecnica e Representações Ltda | Rio de
Janeiro (Brazil) | Brazil | BRL | 5,494,210 | Saipem SpA Snamprog. Netherl. BV | 99.00 1.00 | 43.11 | F.C. |
| Boscongo SA | Pointe-Noire (Republic of the Congo) | Republic of the Congo | XAF | 1,597,805,000 | Saipem SA Minority interest | 99.99 (..) | 43.11 | F.C. |
| Construction
Saipem Canada Inc | Montréal (Canada) | Canada | CAD | 1,000 | Saipem Canada Inc | 100.00 | 43.11 | F.C. |
| ER SAI Caspian Contractor Llc | Almaty (Kazakhstan) | Kazakhstan | KZT | 1,105,930,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | 21.56 | F.C. |
| ER SAI
Marine Llc | Almaty (Kazakhstan) | Kazakhstan | KZT | 1,000,000 | ER SAI Caspian Llc | 100.00 | 21.56 | F.C. |
| ERS - Equipment Rental & Services BV | Amsterdam (Netherlands) | Netherlands | EUR | 90,760 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Global
Petroprojects Services AG (10) | Zurich (Switzerland) | Switzerland | CHF | 5,000,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Moss Maritime AS | Lysaker (Norway) | Norway | NOK | 40,000,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Moss
Maritime Inc | Houston (USA) | USA | USD | 145,000 | Moss Maritime AS | 100.00 | 43.11 | F.C. |
| North Caspian Service Co Llp | Almaty (Kazakhstan) | Kazakhstan | KZT | 1,910,000,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Petrex SA | Iquitos (Peru) | Peru | PEN | 762,729,045 | Saipem Intern. BV Snamprog. Netherl. BV | 99.99 (..) | 43.11 | F.C. |
| Professional Training Center Llc | Karakiyan (Kazakhstan) | Kazakhstan | KZT | 1,000,000 | ER SAI Caspian Llc | 100.00 | 21.56 | F.C. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (#) | Company with
shares quoted in the regulated market of Italy or of
other EU countries. |
| (10) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. |

(a)	43.11
Minority
interest	56.89

145 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| PT Saipem
Indonesia | Jakarta
Selatan (Indonesia) | Indonesia | USD | 152,778,100 | Saipem Intern. BV Saipem Asia Sdn Bhd | 68.55 31.45 | 43.11 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SAGIO Companhia Angolana de Gestío de
Instalaçío Offshore Ltda (10) | Luanda (Angola) | Angola | AOA | 1,600,000 | Saipem Intern. BV Minority interest | 60.00 40.00 | | Eq. |
| Saigut SA
de CV | Delegacion
Cuauhtemoc (Mexico) | Mexico | MXN | 90,050,000 | Saimexicana SA Saipem Serv. M. SA CV | 99.99 (..) | 43.11 | F.C. |
| Saimep Limitada | Maputo (Mozambico) | Mozambico | MZN | 10,000,000 | Saipem SA Saipem Intern. BV | 99.98 0.02 | 43.11 | F.C. |
| Saimexicana
SA de CV | Delegacion
Cuauhtemoc (Mexico) | Mexico | MXN | 1,528,188,000 | Saipem SA Sofresid SA | 99.99 (..) | 43.11 | F.C. |
| Saipem America Inc | Wilmington (USA) | USA | USD | 50,000,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem
Argentina de Perforaciones, Montajes Y Proyectos Sociedad
Anónima, Minera, Industrial, Comercial y Financiera (in liquidation) | Buenos Aires (Argentina) | Argentina | ARS | 1,805,300 | Saipem Intern. BV Minority interest | 99.90 0.10 | | Eq. |
| Saipem Asia Sdn Bhd (9) | Kuala Lumpur (Malaysia) | Malaysia | MYR | 8,116,500 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem
Australia Pty Ltd | West Perth (Australia) | Australia | AUD | 10,661,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem (Beijing) Technical Services Co Ltd | Beijing (China) | China | USD | 1,750,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem
Canada Inc | Montréal (Canada) | Canada | CAD | 100,100 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem Contracting Algérie SpA | Algeri (Algeria) | Algeria | DZD | 1,556,435,000 | Sofresid SA Saipem SA | 99.99 (..) | 43.11 | F.C. |
| Saipem
Contracting Netherlands BV (18) | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem Contracting (Nigeria) Ltd | Lagos (Nigeria) | Nigeria | NGN | 827,000,000 | Saipem Intern. BV Minority interest | 97.94 2.06 | 42.23 | F.C. |
| Saipem do
Brasil Serviçõs de Petroleo Ltda | Rio de
Janeiro (Brazil) | Brazil | BRL | 698,696,299 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem Drilling Co Private Ltd | Mumbai (India) | India | INR | 50,273,400 | Saipem SA Saipem Intern. BV | 50.27 49.73 | 43.11 | F.C. |
| Saipem
Drilling Norway AS | Sola (Norway) | Norway | NOK | 100,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem East Africa Ltd | Kampala (Uganda) | Uganda | UGX | 50,000,000 | Saipem Intern. BV Minority interest | 51.00 49.00 | | Eq. |
| Saipem
India Projects Ltd | Chennai (India) | India | INR | 407,000,000 | Saipem SA | 100.00 | 43.11 | F.C. |
| Saipem Ingenieria y Construcciones SLU | Madrid (Spain) | Spain | EUR | 80,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem
International BV | Amsterdam (Netherlands) | Netherlands | EUR | 172,444,000 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Saipem Libya Llc - SA.LI.CO. Llc | Tripoli (Libya) | Libya | LYD | 10,000,000 | Saipem Intern. BV Snamprog. Netherl. BV | 60.00 40.00 | 43.11 | F.C. |
| Saipem Ltd | Kingston Upon
Thames - Surrey (United Kingdom) | United
Kingdom | EUR | 7,500,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem Luxembourg SA (2) (10) | Luxembourg (Luxembourg) | Luxembourg | EUR | 31,002 | Saipem Maritime Sàrl Saipem Portugal Lda | 99.99 (..) | 43.11 | F.C. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (2) | The company
owns a branch in Angola that does not avail itself of a
privileged tax regimes as provided for by Article 3 of
the Ministerial Decree dated November 21, 2001. |
| (9) | The company
is included in the list provided for by Articles 1 and 2
of the Ministerial Decree dated November 21, 2001: the
company is not subject to the Italian taxation following
the admission of the instance by the Italian Revenue
Agency. |
| (10) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. |
| (18) | The company
owns a branch in Sharjah, United Arabian Emirates,
included in the list provided for by Articles 1 and 2 of
the Ministerial Decree dated November 21, 2001: the
profit pertaining to the Group is subject to the Italian
taxation. |

146 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Saipem
(Malaysia) Sdn Bhd (8) | Kuala
Lumpur (Malaysia) | Malaysia | MYR | 1,033,500 | Saipem Intern. BV Minority interest | 41.94 58.06 | 17.84 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Saipem Maritime Asset
Management Luxembourg Sàrl (10) | Luxembourg (Luxembourg) | Luxembourg | USD | 378,000 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Saipem
Misr for Petroleum Services SAE | Port
Said (Egypt) | Egypt | EUR | 2,000,000 | Saipem Intern. BV ERS BV Saipem Portugal Lda | 99.92 0.04 0.04 | 43.11 | F.C. |
| Saipem (Nigeria) Ltd | Lagos (Nigeria) | Nigeria | NGN | 259,200,000 | Saipem
Intern. BV Minority interest | 89.41 10.59 | 38.55 | F.C. |
| Saipem
Norge AS | Sola (Norway) | Norway | NOK | 100,000 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem Offshore Norway AS | Sola (Norway) | Norway | NOK | 120,000 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Saipem
(Portugal) Comércio Marítimo, Sociedade Unipessoal Lda | Caniçal (Portugal) | Portugal | EUR | 299,278,738.240 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem SA | Montigny-Le-Bretonneux (France) | France | EUR | 26,488,694.960 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Saipem
Services México SA de CV | Delegacion
Cuauhtemoc (Mexico) | Mexico | MXN | 50,000 | Saimexicana SA Saipem America Inc | 99.99 (..) | 43.11 | F.C. |
| Saipem Services SA (in liquidation) | Brussels (Belgium) | Belgium | EUR | 61,500 | Saipem
Intern. BV ERS BV | 99.98 0.02 | 43.11 | F.C. |
| Saipem
Singapore Pte Ltd (8) | Singapore (Singapore) | Singapore | SGD | 28,890,000 | Saipem SA | 100.00 | 43.11 | F.C. |
| Saipem UK Ltd (in liquidation) | London (United Kingdom) | United Kingdom | GBP | 9,705 | Saipem
Intern. BV | 100.00 | 43.11 | F.C. |
| Saipem
Ukraine Llc | Kiev (Ukraine) | Ukraine | EUR | 106,060.610 | Saipem Intern. BV Saipem Luxemb. SA | 99.00 1.00 | 43.11 | F.C. |
| Sajer Irak Co for Petroleum
Services Trading General Contracting & Transport Llc | Baghdad (Irak) | Irak | IQD | 300,000,000 | Saipem
Intern. BV Minority interest | 60.00 40.00 | 25.87 | F.C. |
| Saudi
Arabian Saipem Ltd | Al
Khobar (Saudi Arabia) | Saudi
Arabia | SAR | 5,000,000 | Saipem Intern. BV Minority interest | 60.00 40.00 | 25.87 | F.C. |
| Sigurd Rück AG (10) | Zurich (Switzerland) | Switzerland | CHF | 25,000,000 | Saipem
Intern. BV | 100.00 | 43.11 | F.C. |
| Snamprogetti
Engineering & Contracting Co Ltd | Al
Khobar (Saudi Arabia) | Saudi
Arabia | SAR | 10,000,000 | Snamprog. Netherl. BV Minority interest | 70.00 30.00 | 30.18 | F.C. |
| Snamprogetti Engineering BV | Amsterdam (Netherlands) | Netherlands | EUR | 18,151.200 | Saipem
Maritime Sàrl | 100.00 | 43.11 | F.C. |
| Snamprogetti
Ltd (in liquidation) | London (United Kingdom) | United
Kingdom | GBP | 9,900 | Snamprog. Netherl. BV | 100.00 | 43.11 | F.C. |
| Snamprogetti Lummus Gas Ltd | Sliema (Malta) | Malta | EUR | 50,000 | Snamprog.
Netherl. BV Minority interest | 99.00 1.00 | 42.68 | F.C. |
| Snamprogetti
Netherlands BV | Amsterdam (Netherlands) | Netherlands | EUR | 92,117,340 | Saipem SpA | 100.00 | 43.11 | F.C. |
| Snamprogetti Romania Srl | Bucharest (Romania) | Romania | RON | 5,034,100 | Snamprog.
Netherl. BV Saipem Intern. BV | 99.00 1.00 | 43.11 | F.C. |
| Snamprogetti
Saudi Arabia Co Ltd Llc | Al
Khobar (Saudi Arabia) | Saudi
Arabia | SAR | 10,000,000 | Saipem Intern. BV Snamprog. Netherl. BV | 95.00 5.00 | 43.11 | F.C. |
| Sofresid Engineering SA | Montigny-Le-Bretonneux (France) | France | EUR | 1,267,142.800 | Sofresid SA Minority interest | 99.99 0.01 | 43.11 | F.C. |
| Sofresid
SA | Montigny-Le-Bretonneux (France) | France | EUR | 8,253,840 | Saipem SA Minority interest | 99.99 (..) | 43.11 | F.C. |
| Sonsub International Pty Ltd | Sydney (Australia) | Australia | AUD | 13,157,570 | Saipem Intern. BV | 100.00 | 43.11 | F.C. |

(a)	41.38
Minority
interest	58.62

147 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Other activities

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Syndial
SpA - Attività Diversificate | San Donato
Milanese (MI) | Italy | EUR | 409,936,364.070 | Eni SpA Minority interest | 99.99 (..) | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In
Italy | | | | | | | | |
| Anic
Partecipazioni SpA (in liquidation) | Gela (CL) | Italy | EUR | 23,519,847.160 | Syndial SpA Minority interest | 99.96 0.04 | | Eq. |
| Industria Siciliana Acido Fosforico - ISAF -
SpA (in liquidation) | Gela (CL) | Italy | EUR | 1,300,000 | Syndial SpA Minority interest | 52.00 48.00 | | Eq. |
| Ing. Luigi
Conti Vecchi SpA | Assemini (CA) | Italy | EUR | 130,000 | Syndial SpA | 100.00 | 100.00 | F.C. |
| Outside
Italy | | | | | | | | |
| Oleodotto
del Reno SA (10) | Coira (Switzerland) | Switzerland | CHF | 1,550,000 | Syndial SpA | 100.00 | | Eq. |

148 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Subsidiaries

Corporate and financial companies

In Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Agenzia
Giornalistica Italia SpA | Rome | Italy | EUR | 4,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eni Adfin SpA | Rome | Italy | EUR | 85,537,498.800 | Eni SpA Minority interest | 99.63 0.37 | 99.63 | F.C. |
| Eni
Corporate University SpA | San Donato
Milanese (MI) | Italy | EUR | 3,360,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| EniServizi SpA | San Donato Milanese (MI) | Italy | EUR | 13,427,419.080 | Eni SpA | 100.00 | 100.00 | F.C. |
| Serfactoring
SpA | San Donato
Milanese (MI) | Italy | EUR | 5,160,000 | Eni Adfin SpA Minority interest | 49.00 51.00 | 48.82 | F.C. |
| Servizi Aerei SpA | San Donato Milanese (MI) | Italy | EUR | 79,817,238 | Eni SpA | 100.00 | 100.00 | F.C. |
| Outside
Italy | | | | | | | | |
| Banque Eni
SA | Brussels (Belgium) | Belgium | EUR | 50,000,000 | Eni International BV Eni Oil Holdings BV | 99.90 0.10 | 100.00 | F.C. |
| Eni Finance International SA | Brussels (Belgium) | Belgium | USD | 3,475,036,000 | Eni International BV Eni SpA | 66.39 33.61 | 100.00 | F.C. |
| Eni
Finance USA Inc | Dover,
Delaware (USA) | USA | USD | 15,000,000 | Eni Petroleum Co Inc | 100.00 | 100.00 | F.C. |
| Eni Insurance Ltd | Dublin (Ireland) | Ireland | EUR | 100,000,000 | Eni SpA | 100.00 | 100.00 | F.C. |
| Eni
International BV | Amsterdam (Netherlands) | Netherlands | EUR | 641,683,425 | Eni SpA | 100.00 | 100.00 | F.C. |

(*) Consolidation method or valutation method: F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.

149 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Joint arrangements and associates

Exploration & Production
In Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Eni East
Africa SpA () | San Donato
Milanese (MI) | Mozambico | EUR | 20,000,000 | | Eni SpA Minority interest | 71.43 28.57 | 71.43 | J.O. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Società Oleodotti Meridionali - SOM SpA () | San Donato Milanese (MI) | Italy | EUR | 3,085,000 | | Eni SpA Minority interest | 70.00 30.00 | 70.00 | J.O. |
| Outside
Italy | | | | | | | | | |
| Agiba
Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 50.00 50.00 | | Co. |
| Al-Fayrouz Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Exploration BV Minority interest | 50.00 50.00 | | Co. |
| Angola LNG
Ltd (6) | Hamilton (Bermuda) | Angola | USD | 10,433,585,779 | | Eni Angola Prod. BV Minority interest | 13.60 86.40 | | Eq. |
| Ashrafi Island Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 25.00 75.00 | | Co. |
| Barentsmorneftegaz
Sàrl () (10) | Luxembourg (Luxembourg) | Russia | USD | 20,000 | | Eni Energy Russia BV Minority interest | 33.33 66.67 | | Eq. |
| CARDáN IV SA () | Caracas (Venezuela) | Venezuela | VEF | 17,210,000 | | Eni Venezuela BV Minority interest | 50.00 50.00 | | Eq. |
| Compañia
Agua Plana SA | Caracas (Venezuela) | Venezuela | VEF | 100 | | Eni Venezuela BV Minority interest | 26.00 74.00 | | Co. |
| East Delta Gas Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 37.50 62.50 | | Co. |
| East
Kanayis Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 50.00 50.00 | | Co. |
| El Temsah Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 25.00 75.00 | | Co. |
| EniRepSa
Gas Ltd () (in liquidation) | Al-Khobar (Saudi Arabia) | Saudi Arabia | SAR | 11,250,000 | | Eni Middle East BV Minority interest | 50.00 50.00 | | Co. |
| Enstar Petroleum Ltd | Calgary (Canada) | Canada | CAD | 0.100 | | Unimar Llc | 100.00 | | |
| Fedynskmorneftegaz
Sàrl () (10) | Luxembourg (Luxembourg) | Russia | USD | 20,000 | | Eni Energy Russia BV Minority interest | 33.33 66.67 | | Eq. |
| InAgip doo () | Zagreb (Croatia) | Croatia | HRK | 54,000 | | Eni Croatia BV Minority interest | 50.00 50.00 | | Co. |
| Karachaganak
Petroleum Operating BV | Amsterdam (Netherlands) | Kazakhstan | EUR | 20,000 | | Agip Karachaganak BV Minority interest | 29.25 70.75 | | Co. |
| Karachaganak Project Development Ltd (KPD) | London (United Kingdom) | United Kingdom | GBP | 100 | | Agip Karachaganak BV Minority interest | 38.00 62.00 | | Eq. |
| Khaleej
Petroleum Co Wll | Safat (Kuwait) | Kuwait | KWD | 250,000 | | Eni Middle E. Ltd Minority interest | 49.00 51.00 | | Eq. |
| Liberty National Development Co Llc | Wilmington (USA) | USA | USD | 0 | (a) | Eni Oil & Gas Inc Minority interest | 32.50 67.50 | | Eq. |
| Llc
Astroinvest-Energy | Zinkiv (Ukraine) | Ukraine | UAH | 457,860,000 | | Zagoryanska P BV | 100.00 | | |

150 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Llc
Industrial Company Gazvydobuvannya | Poltava (Ukraine) | Ukraine | UAH | 315,000,000 | | Pokrovskoe P BV | 100.00 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Llc 'Westgasinvest ' () | Lviv (Ukraine) | Ukraine | UAH | 2,000,000 | | Eni Ukraine Hold. BV Minority interest | 50.01 49.99 | Eq. |
| Mediterranean
Gas Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 25.00 75.00 | Co. |
| Mellitah Oil & Gas BV () | Amsterdam (Netherlands) | Libya | EUR | 20,000 | | Eni North Africa BV Minority interest | 50.00 50.00 | Co. |
| Nile Delta
Oil Co Nidoco | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 37.50 62.50 | Co. |
| North Bardawil Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Exploration BV Minority interest | 30.00 70.00 | Co. |
| Petrobel
Belayim Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 50.00 50.00 | Co. |
| PetroBicentenario SA | Caracas (Venezuela) | Venezuela | VEF | 64,000,000 | | Eni Lasmo Plc Minority interest | 40.00 60.00 | Eq. |
| PetroJunín
SA () | Caracas (Venezuela) | Venezuela | VEF | 1,520,100,000 | | Eni Lasmo Plc Minority interest | 40.00 60.00 | Eq. |
| PetroSucre SA | Caracas (Venezuela) | Venezuela | VEF | 220,300,000 | | Eni Venezuela BV Minority interest | 26.00 74.00 | Eq. |
| Pharaonic
Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 25.00 75.00 | Co. |
| Pokrovskoe Petroleum BV () | Amsterdam (Netherlands) | Netherlands | EUR | 25,715 | | Eni Ukraine Hold. BV Minority interest | 30.00 70.00 | Eq. |
| Port Said
Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 50.00 50.00 | Co. |
| Raml Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 22.50 77.50 | Co. |
| Ras
Qattara Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 37.50 62.50 | Co. |
| Shatskmorneftegaz Sàrl ()
(10) | Luxembourg (Luxembourg) | Russia | USD | 20,000 | | Eni Energy Russia BV Minority interest | 33.33 66.67 | Eq. |
| Société
Centrale Electrique du Congo SA | Pointe-Noire (Republic of the Congo) | Republic of
the Congo | XAF | 44,732,000,000 | | Eni Congo SA Minority interest | 20.00 80.00 | Eq. |
| Société Italo Tunisienne dExploitation Pétrolière SA () | Tunisi (Tunisia) | Tunisia | TND | 5,000,000 | | Eni Tunisia BV Minority interest | 50.00 50.00 | Eq. |
| Sodeps -
Société de Développement et dExploitation du Permis du Sud SA () | Tunisi (Tunisia) | Tunisia | TND | 100,000 | | Eni Tunisia BV Minority interest | 50.00 50.00 | Co. |
| Tapco Petrol Boru Hatti Sanayi ve Ticaret AS () | Istanbul (Turkey) | Turkey | TRY | 7,500,000 | | Eni International BV Minority interest | 50.00 50.00 | Eq. |
| Tecninco
Engineering Contractors Llp () | Aksai (Kazakhstan) | Kazakhstan | KZT | 29,478,455 | | Tecnomare SpA Minority interest | 49.00 51.00 | Eq. |
| Thekah Petroleum Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Exploration BV Minority interest | 25.00 75.00 | Co. |
| Unimar Llc () | Houston (USA) | USA | USD | 0 | (a) | Eni America Ltd Minority interest | 50.00 50.00 | Eq. |
| United Gas Derivatives Co | Cairo (Egypt) | Egypt | USD | 285,000,000 | | Eni International BV Minority interest | 33.33 66.67 | Eq. |
| VIC CBM
Ltd () | London (United Kingdom) | Indonesia | USD | 1,315,912 | | Eni Lasmo Plc Minority interest | 50.00 50.00 | Eq. |
| Virginia Indonesia Co CBM Ltd () | London (United Kingdom) | Indonesia | USD | 631,640 | | Eni Lasmo Plc Minority interest | 50.00 50.00 | Eq. |
| Virginia
Indonesia Co Llc | Wilmington (USA) | Indonesia | USD | 10 | | Unimar Llc | 100.00 | |
| Virginia International Co Llc | Wilmington (USA) | Indonesia | USD | 10 | | Unimar Llc | 100.00 | |
| West
Ashrafi Petroleum Co () | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Exploration BV Minority interest | 50.00 50.00 | Co. |
| Zagoryanska Petroleum BV () | Amsterdam (Netherlands) | Netherlands | EUR | 18,000 | | Eni Ukraine Hold. BV Minority interest | 60.00 40.00 | Eq. |
| Zetah
Noumbi Ltd (8) | Nassau (Bahamas) | Republic of
the Congo | USD | 100 | | Burren En. Congo Ltd Minority interest | 37.00 63.00 | Co. |

151 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

| Gas &
Power |
| --- |
| In Italy |

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Mariconsult
SpA () | Milan | Italy | EUR | 120,000 | Eni SpA Minority interest | 50.00 50.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Società EniPower Ferrara Srl () | San Donato Milanese (MI) | Italy | EUR | 170,000,000 | EniPower SpA Minority interest | 51.00 49.00 | 51.00 | J.O. |
| Termica
Milazzo Srl | Milan | Italy | EUR | 23,241,000 | EniPower SpA Minority interest | 40.00 60.00 | | Eq. |
| Transmed SpA () | Milan | Italy | EUR | 240,000 | Eni SpA Minority interest | 50.00 50.00 | | Eq. |
| Outside
Italy | | | | | | | | |
| Blue
Stream Pipeline Co BV () | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Eni International BV Minority interest | 50.00 50.00 | 50.00 | J.O. |
| Distribuidora de Gas Cuyana SA () | Buenos Aires (Argentina) | Argentina | ARS | 202,351,288 | Eni SpA Inv. Gas Cuyana SA Minority interest | 6.84 51.00 42.16 | | Co. |
| Distribuidora
de Gas del Centro SA () | Buenos Aires (Argentina) | Argentina | ARS | 160,457,190 | Eni SpA Inv. Gas Centro SA Minority interest | 31.35 51.00 17.65 | | Co. |
| Egyptian International Gas Technology Co | Cairo (Egypt) | Egypt | EGP | 100,000,000 | Eni International BV Minority interest | 40.00 60.00 | | Co. |
| EnBW Eni Verwaltungsgesellschaft mbH | Karlsruhe (Germany) | Germany | EUR | 25,000 | Eni International BV Minority interest | 50.00 50.00 | | Co. |
| Eteria Parohis Aeriou Thessalias AE () | Larissa (Greece) | Greece | EUR | 78,459,200 | Eni SpA Minority interest | 49.00 51.00 | | Eq. |
| Eteria
Parohis Aeriou Thessalonikis AE () | Ampelokipi -
Menemeni (Greece) | Greece | EUR | 202,850,000 | Eni SpA Minority interest | 49.00 51.00 | | Eq. |
| Gas Directo SA | Madrid (Spain) | Spain | EUR | 6,716,400 | U. Fenosa Gas SA Minority interest | 60.00 40.00 | | |
| Gasifica
SA | Madrid (Spain) | Spain | EUR | 2,000,200 | U. Fenosa Gas SA Minority interest | 90.00 10.00 | | |
| Gerecse Gázvezeték Építõ és
Vagyonkezelõ Részvénytársaság | Tatabànya (Hungary) | Hungary | HUF | 609,600,000 | Turul G. Rt Minority interest | 50.15 49.85 | | |
| GreenStream
BV () | Amsterdam (Netherlands) | Libya | EUR | 200,000,000 | Eni North Africa BV Minority interest | 50.00 50.00 | 50.00 | J.O. |
| Infraestructuras de Gas SA | Madrid (Spain) | Spain | EUR | 340,000 | U. Fenosa Gas SA Minority interest | 85.00 15.00 | | |
| Inversora
de Gas Cuyana SA () | Buenos Aires (Argentina) | Argentina | ARS | 60,012,000 | Eni SpA Minority interest | 76.00 24.00 | | Co. |
| Inversora de Gas del Centro SA () | Buenos Aires (Argentina) | Argentina | ARS | 68,012,000 | Eni SpA Minority interest | 25.00 75.00 | | Co. |
| Nueva
Electricidad del Gas SA | Seville (Spain) | Spain | EUR | 294,272 | U. Fenosa Gas SA | 100.00 | | |

152 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Premium
Multiservices SA | Tunisi (Tunisia) | Tunisia | TND | 200,000 | Sergaz SA Minority interest | 50.00 50.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SAMCO Sagl (20) | Lugano (Switzerland) | Switzerland | CHF | 20,000 | Eni International BV Transmed. Pip. Co Ltd Minority interest | 5.00 90.00 5.00 | | Eq. |
| South
Stream Transport BV | Amsterdam (Netherlands) | Netherlands | EUR | 41,198,000 | Eni International BV Minority interest | 20.00 80.00 | | Eq. |
| Spanish Egyptian Gas Co SAE | Damietta (Egypt) | Egypt | USD | 375,000,000 | U. Fenosa Gas SA Minority interest | 80.00 20.00 | | |
| Transmediterranean
Pipeline Co Ltd () (19) | St. Helier (Jersey) | Jersey | USD | 10,310,000 | Eni SpA Minority interest | 50.00 50.00 | 50.00 | J.O. |
| Turul Gázvezeték Építõ es Vagyonkezelõ
Részvénytársaság () | Tatabànya (Hungary) | Hungary | HUF | 404,000,000 | Tigáz Zrt Minority interest | 58.42 41.58 | | Eq. |
| Unión
Fenosa Gas Comercializadora SA | Madrid (Spain) | Spain | EUR | 2,340,240 | U. Fenosa Gas SA Minority interest | 99.99 (..) | | |
| Unión Fenosa Gas Infrastructures BV | Amsterdam (Netherlands) | Netherlands | EUR | 90,000 | U. Fenosa Gas SA | 100.00 | | |
| Unión
Fenosa Gas Exploración y Produccion SA | Logroño (Spain) | Spain | EUR | 1,060,110 | U. Fenosa Gas SA | 100.00 | | |
| Unión Fenosa Gas SA () | Madrid (Spain) | Spain | EUR | 32,772,000 | Eni SpA Minority interest | 50.00 50.00 | | Eq. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| () | Jointly
controlled entity. |
| (19) | The company
is included in the list provided for by Articles 1 and 2
of the Ministerial Decree dated November 21, 2001: the
profit pertaining to the Group is subject to the Italian
taxation. The company is considered as a controlled
subsidiary as provided for by Article 167, paragraph 3,
of the Italian Tax Consolidated Text. |
| (20) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. The
company is considered as a controlled subsidiary as
provided for by Article 167, paragraph 3, of the Italian
Tax Consolidated Text. |

153 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Refining & Marketing
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Arezzo Gas
SpA () | Arezzo | Italy | EUR | 394,000 | Eni Rete o&no SpA Minority interest | 50.00 50.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CePIM Centro Padano Interscambio Merci SpA | Fontevivo (PR) | Italy | EUR | 6,642,928.320 | Ecofuel SpA Minority interest | 34.93 65.07 | | Eq. |
| Consorzio
Operatori GPL di Napoli | Napoli | Italy | EUR | 102,000 | Eni Rete o&no SpA Minority interest | 25.00 75.00 | | Co. |
| Costiero Gas Livorno SpA () | Livorno | Italy | EUR | 26,000,000 | Eni Rete o&no SpA Minority interest | 65.00 35.00 | 65.00 | J.O. |
| Depositi
Costieri Trieste SpA () | Trieste | Italy | EUR | 1,560,000 | Ecofuel SpA Minority interest | 50.00 50.00 | | Eq. |
| Disma SpA | Segrate (MI) | Italy | EUR | 2,600,000 | Eni Rete o&no SpA Minority interest | 25.00 75.00 | | Eq. |
| PETRA SpA () | Ravenna | Italy | EUR | 723,100 | Ecofuel SpA Minority interest | 50.00 50.00 | | Eq. |
| Petrolig Sr () | Genova | Italy | EUR | 104,000 | Ecofuel SpA Minority interest | 70.00 30.00 | 70.00 | J.O. |
| Petroven
Srl () | Genova | Italy | EUR | 156,000 | Ecofuel SpA Minority interest | 68.00 32.00 | 68.00 | J.O. |
| Porto Petroli di Genova SpA | Genova | Italy | EUR | 2,068,000 | Ecofuel SpA Minority interest | 40.50 59.50 | | Eq. |
| Raffineria
di Milazzo ScpA () | Milazzo (ME) | Italy | EUR | 171,143,000 | Eni SpA Minority interest | 50.00 50.00 | 50.00 | J.O. |
| SeaPad SpA () | Genova | Italy | EUR | 12,400,000 | Ecofuel SpA Minority interest | 80.00 20.00 | | Eq. |
| Seram SpA | Fiumicino
(RM) | Italy | EUR | 852,000 | Eni SpA Minority interest | 25.00 75.00 | | Co. |
| Sigea Sistema Integrato Genova Arquata SpA | Genova | Italy | EUR | 3,326,900 | Ecofuel SpA Minority interest | 35.00 65.00 | | Eq. |
| Venice
Tecnologie SpA () | Porto
Marghera (VE) | Italy | EUR | 150,000 | Eni SpA Minority interest | 50.00 50.00 | | Eq. |

154 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Outside Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| AET -
Raffineriebeteiligungsgesellschaft mbH | Schwedt (Germany) | Germany | EUR | 27,000 | Eni Deutsch. GmbH Minority interest | 33.33 66.67 | | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Area di Servizio City Moesa SA (10) | San Vittore (Switzerland) | Switzerland | CHF | 1,800,000 | City Carburoil SA Minority interest | 58.00 42.00 | | | |
| Bayernoil
Raffineriegesellschaft mbH () | Vohburg (Germany) | Germany | EUR | 10,226,000 | Eni Deutsch. GmbH Minority interest | 20.00 80.00 | | 20.00 | J.O. |
| Ceská Rafinérská AS | Litvinov (Czech Republic) | Czech Republic | CZK | 9,348,240,000 | Eni International BV Minority interest | 32.44 67.56 | | | Co. |
| City
Carburoil SA () (10) | Rivera (Switzerland) | Switzerland | CHF | 6,000,000 | Eni Suisse SA Minority interest | 49.91 50.09 | | | Eq. |
| ENEOS Italsing Pte Ltd (8) | Singapore (Singapore) | Singapore | SGD | 12,000,000 | Eni International BV Minority interest | 22.50 77.50 | | | Eq. |
| FSH
Flughafen Schwechat Hydranten-Gesellschaft OG | Wien (Austria) | Austria | EUR | 9,399,619.870 | Eni Marketing A. GmbH Eni Mineralölh. GmbH Eni Austria GmbH Minority interest | 14.29 14.29 14.28 57.14 | | | Co. |
| Fuelling Aviation Services GIE | Tremblay en France (France) | France | EUR | 1 | Eni France Sàrl Minority interest | 25.00 75.00 | | | Co. |
| Gilg &
Schweiger GmbH () (in liquidation) | Baierbrunn (Germany) | Germany | EUR | 26,000 | Eni Deutsch. GmbH Minority interest | 50.00 50.00 | | | Eq. |
| Mediterranée Bitumes SA | Tunisi (Tunisia) | Tunisia | TND | 1,000,000 | Eni International BV Minority interest | 34.00 66.00 | | | Eq. |
| Prague
Fuelling Services Sro () | Prague (Czech Republic) | Czech
Republic | CZK | 39,984,000 | Eni Ceská R. Sro Minority interest | 50.00 50.00 | | | Eq. |
| Rosa GmbH | Zirndorf (Germany) | Germany | EUR | 2,100,000 | Eni Deutsch. GmbH Minority interest | 24.80 75.20 | | | Co. |
| Routex BV | Amsterdam (Netherlands) | Netherlands | EUR | 67,500 | Eni International BV Minority interest | 20.00 80.00 | | | Eq. |
| Saraco SA (10) | Meyrin (Switzerland) | Switzerland | CHF | 420,000 | Eni Suisse SA Minority interest | 20.00 80.00 | | | Co. |
| Supermetanol
CA () | Jose Puerto
La Cruz (Venezuela) | Venezuela | VEF | 12,086,744.845 | Ecofuel SpA Supermetanol CA Minority interest | 34.51 30.07 35.42 | (a) | 50.00 | J.O. |
| TBG Tanklager Betriebsgesellschaft GmbH () | Salzburg (Austria) | Austria | EUR | 43,603.700 | Eni Marketing A. GmbH Minority interest | 50.00 50.00 | | | Eq. |
| Weat
Electronic Datenservice GmbH | Düsseldorf (Germany) | Germany | EUR | 409,034 | Eni Deutsch. GmbH Minority interest | 20.00 80.00 | | | Eq. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value |
| --- | --- |
| () | Jointly
controlled entity. |
| (8) | The company
is included in the list provided for by Articles 1 and 2
of the Ministerial Decree dated November 21, 2001: the
profit pertaining to the Group is subject to the Italian
taxation. |
| (10) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. |

(a)	50.00
Minority
interest	50.00

155 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Versalis
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Brindisi
Servizi Generali Scarl | Brindisi | Italy | EUR | 1,549,060 | Versalis SpA Syndial SpA EniPower SpA Minority interest | 49.00 20.20 8.90 21.90 | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- |
| IFM Ferrara ScpA | Ferrara | Italy | EUR | 5,270,466 | Versalis SpA Syndial SpA S.E.F. Srl Minority interest | 19.74 11.58 10.70 57.98 | Eq. |
| Matrìca
SpA () | Porto Torres
(SS) | Italy | EUR | 37,500,000 | Versalis SpA Minority interest | 50.00 50.00 | Eq. |
| Newco Tech SpA () | Novara | Italy | EUR | 200,000 | Versalis SpA Genomatica Inc | 88.90 11.10 | Eq. |
| Novamont
SpA | Novara | Italy | EUR | 13,333,500 | Versalis SpA Minority interest | 25.00 75.00 | Eq. |
| Priolo Servizi ScpA | Melilli (SR) | Italy | EUR | 25,600,000 | Versalis SpA Syndial SpA Minority interest | 36.50 4.25 59.25 | Eq. |
| Ravenna
Servizi Industriali ScpA | Ravenna | Italy | EUR | 5,597,400 | Versalis SpA EniPower SpA Ecofuel SpA Minority interest | 42.13 30.37 1.85 25.65 | Eq. |
| Servizi Porto Marghera Scarl | Porto Marghera (VE) | Italy | EUR | 8,751,500 | Versalis SpA Syndial SpA Minority interest | 48.13 38.14 13.73 | Eq. |

Outside Italy

Lotte Versalis Elastomers Co Ltd () Yeosu (South Korea) South Korea KRW 60,200,010,000 Versalis SpA Minority interest 50.00 50.00 Eq.

156 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Engineering & Construction
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| ASG Scarl | San Donato
Milanese (MI) | Italy | EUR | 50,864 | Saipem SpA Minority interest | 55.41 44.59 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CEPAV (Consorzio Eni per lAlta Velocità) Due | San Donato Milanese (MI) | Italy | EUR | 51,645.690 | Saipem SpA Minority interest | 52.00 48.00 | | Eq. |
| CEPAV
(Consorzio Eni per lAlta Velocità) Uno | San Donato
Milanese (MI) | Italy | EUR | 51,645.690 | Saipem SpA Minority interest | 50.36 49.64 | | Eq. |
| Consorzio F.S.B. () | Marghera (VE) | Italy | EUR | 15,000 | Saipem SpA Minority interest | 28.00 72.00 | | Co. |
| Consorzio
Sapro () | San Giovanni
Teatino (CH) | Italy | EUR | 10,329.140 | Saipem SpA Minority interest | 51.00 49.00 | | Co. |
| Modena Scarl (in liquidation) | San Donato Milanese (MI) | Italy | EUR | 400,000 | Saipem SpA Minority interest | 59.33 40.67 | | Eq. |
| PLNG 9 Snc
di Chiyoda Corporation e Servizi Energia Italia SpA () (in liquidation) | San Donato
Milanese (MI) | Malaysia | EUR | 1,000 | SEI SpA Minority interest | 50.00 50.00 | | Eq. |
| Rodano Consortile Scarl | San Donato Milanese (MI) | Italy | EUR | 250,000 | Saipem SpA Minority interest | 53.57 46.43 | | Eq. |
| Rosetti
Marino SpA | Ravenna | Italy | EUR | 4,000,000 | Saipem SA Minority interest | 20.00 80.00 | | Eq. |
| Outside
Italy | | | | | | | | |
| 02 PEARL
Snc () | Montigny-Le-Bretonneux (France) | France | EUR | 1,000 | Saipem SA Minority interest | 50.00 50.00 | 21.56 | J.O. |
| Barber Moss Ship Management AS () | Lysaker (Norway) | Norway | NOK | 1,000,000 | Moss Maritime AS Minority interest | 50.00 50.00 | | Eq. |
| CCS
Netherlands BV () (former CSC Netherlands BV) | Amsterdam (Netherlands) | Netherlands | EUR | 300,000 | Saipem Intern. BV Minority interest | 33.33 66.67 | | Eq. |
| Charville - Consultores e Serviços Lda () | Funchal (Portugal) | Portugal | EUR | 5,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| CMS&A
Wll () | Doha (Qatar) | Qatar | QAR | 500,000 | Snamprog. Netherl. BV Minority interest | 20.00 80.00 | | Eq. |
| CSC Japan Godo Kaisha | Yokohama (Japan) | Japan | JPY | 3,000,000 | CCS Netherlands BV | 100.00 | | |
| CSC
Western Australia Pty Ltd | Perth (Australia) | Australia | AUD | 30,000 | CCS Netherlands BV | 100.00 | | |
| CSFLNG Netherlands BV () | Amsterdam (Netherlands) | Netherlands | EUR | 600,000 | Saipem SA Minority interest | 50.00 50.00 | | Eq. |
| Fertilizantes
Nitrogenados de Oriente CEC | Caracas (Venezuela) | Venezuela | VEB | 9,667,827,216 | Snamprog. Netherl. BV Fertiliz. N. Orien. SA Minority interest | 20.00 (..) 79.99 | | Eq. |
| Fertilizantes Nitrogenados de Oriente SA | Caracas (Venezuela) | Venezuela | VEB | 286,549 | Snamprog. Netherl. BV Minority interest | 20.00 80.00 | | Eq. |
| FPSO
Mystras (Nigeria) Ltd | Victoria
Island (Nigeria) | Nigeria | NGN | 15,000,000 | FPSO Mystras Lda | 100.00 | | |

157 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| FPSO
Mystras - Produçío de Petròleo Lda () | Funchal (Portugal) | Portugal | EUR | 50,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Hazira Cryogenic Engineering &
Construction Management Private Ltd () | Mumbai (India) | India | INR | 500,000 | Saipem SA Minority interest | 55.00 45.00 | | Eq. |
| KWANDA -
Suporte Logistico Lda (17) | Luanda (Angola) | Angola | AOA | 25,510,204 | Saipem SA Minority interest | 49.00 51.00 | (a) | Eq. |
| LNG - Serviços e Gestao de Projectos Lda | Funchal (Portugal) | Portugal | EUR | 5,000 | Snamprog. Netherl. BV Minority interest | 25.00 75.00 | | Eq. |
| Mangrove
Gas Netherlands BV () | Amsterdam (Netherlands) | Netherlands | EUR | 2,000,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| PetRomer Lda () (20) | Luanda (Angola) | Angola | USD | 357,142.850 | Saipem SA Minority interest | 70.00 30.00 | | Eq. |
| RPCO
Enterprises Ltd () (in liquidation) | Nicosia (Cyprus) | Cyprus | EUR | 17,100 | Snamprog. Netherl. BV Minority interest | 50.00 50.00 | | Eq. |
| Sabella SAS | Quimper (France) | France | EUR | 1,200,000 | Sofresid Engine. SA Minority interest | 35.09 64.91 | | Eq. |
| Saidel Ltd () | Victoria
Island Lagos (Nigeria) | Nigeria | NGN | 236,650,000 | Saipem Intern. BV Minority interest | 49.00 51.00 | | Eq. |
| Saipar Drilling Co BV () | Amsterdam (Netherlands) | Netherlands | EUR | 20,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| Saipem
Taqa Al Rushaid Fabricators Co Ltd | Dammam (Saudi Arabia) | Saudi Arabia | SAR | 40,000,000 | Saipem Intern. BV Minority interest | 40.00 60.00 | | Eq. |
| Saipon Snc () | Montigny-Le-Bretonneux (France) | France | EUR | 20,000 | Saipem SA Minority interest | 60.00 40.00 | 25.87 | J.O. |
| Sairus Llc () | Krasnodar (Russia) | Russia | RUB | 83,603,800 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| Société pour la Réalisation du Port de Tanger Méditerranée () | Anjra (Morocco) | Morocco | EUR | 33,000 | Saipem SA Minority interest | 33.33 66.67 | | Eq. |
| Southern
Gas Constructors Ltd () | Lagos (Nigeria) | Nigeria | NGN | 10,000,000 | Saipem Intern. BV Minority interest | 50.00 50.00 | | Eq. |
| SPF - TKP Omifpro Snc () | Paris (France) | France | EUR | 50,000 | Saipem SA Minority interest | 50.00 50.00 | 21.56 | J.O. |
| Sud-Soyo
Urban Development Lda () (13) | Soyo (Angola) | Angola | AOA | 20,000,000 | Saipem SA Minority interest | 49.00 51.00 | | Eq. |
| Tchad Cameroon Maintenance BV () | Rotterdam (Netherlands) | Cameroon | EUR | 18,000 | Saipem SA Minority interest | 40.00 60.00 | | Eq. |
| T.C.P.I.
Angola Tecnoprojecto Internacional SA (10) | Luanda (Angola) | Angola | AOA | 9,000,000 | Petromar Lda Minority interest | 35.00 65.00 | | |
| Tecnoprojecto Internacional Projectos e Realizações Industriais SA | Porto Salvo Concelho De Oeiras (Portugal) | Portugal | EUR | 700,000 | Saipem SA Minority interest | 42.50 57.50 | | Eq. |
| TMBYS SAS () | Guyancourt (France) | Morocco | EUR | 30,000 | Saipem SA Minority interest | 33.33 66.67 | | Eq. |
| TSGI Muhendislik Insaat Limited Sirketi () | Istanbul (Turkey) | Turkey | TRY | 600,000 | Saipem Ing y C. SLU Minority interest | 30.00 70.00 | | Eq. |
| TSKJ -
Serviços de Engenharia Lda | Funchal (Portugal) | Portugal | EUR | 5,000 | Snamprog. Netherl. BV Minority interest | 25.00 75.00 | | Eq. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| () | Jointly
controlled entity. |
| (10) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. |
| (13) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the profit
pertaining to the Group is subject to the Italian
taxation. |
| (17) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
is not subject to the Italian taxation following the
admission of the instance by the Italian Revenue Agency. |
| (20) | The company
is included in the list provided for by Article 3 of the
Ministerial Decree dated November 21, 2001: the company
does not avail itself of privileged tax regimes. The
company is considered as a controlled subsidiary as
provided for by Article 167, paragraph 3, of the Italian
Tax Consolidated Text. |

(a)	40.00
Minority
interest	60.00

158 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Joint arrangements and associates

| Other
activities |
| --- |
| In
Italy |

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership % Equity ratio (*)

| Cengio
Sviluppo ScpA (in liquidation) | Genova | Italy | EUR | 120,255.030 | Syndial SpA Minority interest | 40.00 60.00 | | Eq. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Filatura Tessile Nazionale Italiana - FILTENI
SpA (in liquidation) | Ferrandina (MT) | Italy | EUR | 4,644,000 | Syndial SpA Minority interest | 59.56 40.44 | (a) | Co. |
| Ottana
Sviluppo ScpA (in liquidation) | Nuoro | Italy | EUR | 516,000 | Syndial SpA Minority interest | 30.00 70.00 | | Eq. |

(*) Consolidation method or valutation method: F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.

(a)	48.00
Minority
interest	52.00

159 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Changes in the scope of consolidation for the first half 2014

Other significant investments

| Exploration
& Production |
| --- |
| In
Italy |

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership (*)

| Consorzio
Universitario in Ingegneria per la Qualità e
lInnovazione | Pisa | Italy | EUR | 135,000 | | Eni SpA Minority interest | 16.67 83.33 | Co. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Outside
Italy | | | | | | | | |
| Administradora
del Golfo de Paria Este SA | Caracas (Venezuela) | Venezuela | VEF | 100 | | Eni Venezuela BV Minority interest | 19.50 80.50 | Co. |
| Brass LNG Ltd | Lagos (Nigeria) | Nigeria | USD | 1,000,000 | | Eni Int. NA NV Sàrl Minority interest | 17.00 83.00 | Co. |
| Darwin LNG
Pty Ltd | West Perth (Australia) | Australia | AUD | 1,111,019,258 | | Eni G&P LNG Aus. BV Minority interest | 10.99 89.01 | Co. |
| New Liberty Residential Co Llc | West Trenton (USA) | USA | USD | 0 | (a) | Eni Oil & Gas Inc Minority interest | 17.50 82.50 | Co. |
| Nigeria
LNG Ltd | Port Harcourt (Nigeria) | Nigeria | USD | 1,138,207,000 | | Eni Int. NA NV Sàrl Minority interest | 10.40 89.60 | Co. |
| Norsea Pipeline Ltd | Woking Surrey (United Kingdom) | United Kingdom | GBP | 7,614,062 | | Eni SpA Minority interest | 10.32 89.68 | Co. |
| North
Caspian Operating Co BV | Aja (Netherlands) | Netherlands | EUR | 128,520 | | Agip Caspian Sea BV Minority interest | 16.81 83.19 | Co. |
| North Caspian Transportation Manager Co BV | Amsterdam (Netherlands) | Kazakhstan | EUR | 100,010 | | Agip Caspian Sea BV Minority interest | 16.81 83.19 | Co. |
| OPCO -
Sociedade Operacional Angola LNG SA | Luanda (Angola) | Angola | AOA | 7,400,000 | | Eni Angola Prod. BV Minority interest | 13.60 86.40 | Co. |
| Petrolera Güiria SA | Caracas (Venezuela) | Venezuela | VEF | 1,000,000 | | Eni Venezuela BV Minority interest | 19.50 80.50 | Co. |
| Point
Fortin LNG Exports Ltd | Port of Spain (Trinidad and Tobago) | Trinidad and
Tobago | USD | 10,000 | | Eni T&T Ltd Minority interest | 17.31 82.69 | Co. |
| SOMG - Sociedade de Operações e Manutençío de Gasodutos SA | Luanda (Angola) | Angola | AOA | 7,400,000 | | Eni Angola Prod. BV Minority interest | 13.60 86.40 | Co. |
| Torsina
Oil Co | Cairo (Egypt) | Egypt | EGP | 20,000 | | Ieoc Production BV Minority interest | 12.50 87.50 | Co. |

160 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Other significant investiments

Gas & Power
Outside
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership (*)

| Angola LNG
Supply Services Llc | Wilmington (USA) | USA | USD | 19,278,782 | Eni USA Gas M. Llc Minority interest | 13.60 86.40 | Co. |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Norsea Gas GmbH | Emden (Germany) | Germany | EUR | 1,533,875.640 | Eni International BV Minority interest | 13.04 86.96 | Co. |

(*) Consolidation method or valutation method: F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.

161 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Changes in the scope of consolidation for the first half 2014

Refining & Marketing
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership (*)

| Consorzio
Obbligatorio degli Oli Usati | Rome | Italy | EUR | 36,149 | | Eni SpA Minority interest | 14.41 85.59 | Co. |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Società Italiana Oleodotti di Gaeta SpA (14) | Rome | Italy | ITL | 360,000,000 | | Eni SpA Minority interest | 72.48 27.52 | Co. |
| Outside
Italy | | | | | | | | |
| BFS Berlin
Fuelling Services GbR | Hamburg (Germany) | Germany | EUR | 150,511 | | Eni Deutsch. GmbH Minority interest | 12.50 87.50 | Co. |
| Compania de Economia Mixta
"Austrogas" | Cuenca (Ecuador) | Ecuador | USD | 3,028,749 | | Eni Ecuador SA Minority interest | 13.31 86.69 | Co. |
| Dépot
Pétrolier de Fos SA | Fos-Sur-Mer (France) | France | EUR | 3,954,196.400 | | Eni France Sàrl Minority interest | 16.81 83.19 | Co. |
| Dépôt Pétrolier de la Côte dAzur
SAS | Nanterre (France) | France | EUR | 207,500 | | Eni France Sàrl Minority interest | 18.00 82.00 | Co. |
| Joint
Inspection Group Ltd | London (United Kingdom) | United
Kingdom | GBP | 0 | (a) | Eni SpA Minority interest | 12.50 87.50 | Co. |
| S.I.P.G. Société Immobilier Pétrolier de Gestion Snc | Tremblay en France (France) | France | EUR | 40,000 | | Eni France Sàrl Minority interest | 12.50 87.50 | Co. |
| Sistema
Integrado de Gestion de Aceites Usados | Madrid (Spain) | Spain | EUR | 181,427 | | Eni Iberia SLU Minority interest | 14.96 85.04 | Co. |
| Tanklager - Gesellschaft Tegel (TGT) GbR | Hamburg (Germany) | Germany | EUR | 23 | | Eni Deutsch. GmbH Minority interest | 12.50 87.50 | Co. |
| TAR -
Tankanlage Ruemlang AG | Ruemlang (Switzerland) | Switzerland | CHF | 3,259,500 | | Eni Suisse SA Minority interest | 16.27 83.73 | Co. |
| Tema Lube Oil Co Ltd | Accra (Ghana) | Ghana | GHS | 258,309 | | Eni International BV Minority interest | 12.00 88.00 | Co. |

| (*) | Consolidation
method or valutation method: F.C. = full consolidation,
J.O. = joint operation, Eq. = equity-accounted, Co. =
valued at cost, F.V. = valued at fair value. |
| --- | --- |
| (a) | Shares
without nominal value. |
| (14) | The company
is under extraordinary administration according to Law
No. 95 dated April 3, 1979. |

162 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Other significant investiments

Corporate and financial companies
In
Italy

Company name Registered head office Country of operation Currency Share capital Shareholders % Ownership (*)

| Consorzio
per lInnovazione nella Gestione delle Imprese e
della Pubblica Amministrazione | Milan | Italy | EUR | 150,000 | Eni Corporate U. SpA Minority interest | 10.67 89.33 | Co. |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Emittenti Titoli SpA | Milan | Italy | EUR | 4,264,000 | Eni SpA Emittenti Titoli SpA Minority interest | 10.00 0.78 89.22 | Co. |
| Snam SpA (#) | San Donato
Milanese (MI) | Italy | EUR | 3,571,187,994 | Eni SpA Snam SpA Minority interest | 8.54 0.09 91.37 | F.V. |
| Outside
Italy | | | | | | | |
| Galp
Energia SGPS SA (#) | Lisbon (Portugal) | Portugal | EUR | 829,250,635 | Eni SpA Minority interest | 8.00 92.00 | F.V. |

163 -

Contents

Eni Interim Consolidated Report / Annex to condensed consolidated interim financial statements - Changes in the scope of consolidation for the first half 2014

Changes in the scope of consolidation for the first half of 2014

| Fully
consolidated subsidiaries | | | |
| --- | --- | --- | --- |
| Companies
included (No. 3) | | | |
| ACAM
Clienti SpA | La Spezia | Gas &
Power | Acquisition
of the control |
| Liverpool Bay Ltd | London | Exploration & Production | Acquisition |
| Smacemex
Scarl | San Donato
Milanese | Engineering
& Construction | Constituted |
| Companies
excluded (No. 3) | | | |
| Eni Mali
BV | Amsterdam | Exploration
& Production | Irrelevancy |
| Eni Togo BV | Amsterdam | Exploration & Production | Irrelevancy |
| Saipem
Mediteran Usluge doo (in liquidation) | Rijeka | Engineering
& Construction | Cancellation |

164 -

Contents

Table of Contents

Eni: Report on the purchase of treasury shares

San Donato Milanese (Milan), August 6, 2014 - During the period from July 28 to August 1, 2014, Eni acquired No. 485,500 shares for a total consideration of euro 9,434,920.03, within the authorization to purchase treasury shares approved at Enis General Meeting of shareholders on May 8, 2014, previously subject to disclosure pursuant to Article 144-bis of Consob Regulation 11971/1999. The following are details of transactions for the purchase of treasury shares on the Electronic Stock Market on a daily basis:

| Date | Number of ordinary
shares purchased | Average price (euro) | Consideration (euro) |
| --- | --- | --- | --- |
| 28/07/2014 | 90,200 | 19.7275 | 1,779,423.53 |
| 29/07/2014 | 89,700 | 19.7414 | 1,770,808.02 |
| 30/07/2014 | 94,000 | 19.6118 | 1,843,504.54 |
| 31/07/2014 | 103,100 | 19.1927 | 1,978,764.00 |
| 01/08/2014 | 108,500 | 19.0085 | 2,062,419.94 |
| Total | 485,500 | 19.4334 | 9,434,920.03 |

Following the purchases announced today, considering the treasury shares already held, on August 1, 2014 Eni holds No. 25,089,137 shares equal to 0.69% of the share capital.

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site: www.eni.com

Table of Contents

Eni: Report on the purchase of treasury shares

San Donato Milanese (Milan), August 13, 2014 - During the period from August 4 to August 8, 2014, Eni acquired No. 572,000 shares for a total consideration of euro 10,626,329.19, within the authorization to purchase treasury shares approved at Enis General Meeting of shareholders on May 8, 2014, previously subject to disclosure pursuant to Article 144-bis of Consob Regulation 11971/1999. The following are details of transactions for the purchase of treasury shares on the Electronic Stock Market on a daily basis:

| Date | Number of ordinary
shares purchased | Average price (euro) | Consideration (euro) |
| --- | --- | --- | --- |
| 04/08/2014 | 110,600 | 18.8833 | 2,088,489.20 |
| 05/08/2014 | 114,000 | 18.6969 | 2,131,450.83 |
| 06/08/2014 | 114,500 | 18.4957 | 2,117,752.23 |
| 07/08/2014 | 116,300 | 18.5154 | 2,153,344.45 |
| 08/08/2014 | 116,600 | 18.3130 | 2,135,292.48 |
| Total | 572,000 | 18.5775 | 10,626,329.19 |

Following the purchases announced today, considering the treasury shares already held, on August 8, 2014 Eni holds No. 25,661,137 shares equal to 0.71% of the share capital.

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site: www.eni.com

Table of Contents

Eni: Report on the purchase of treasury shares

San Donato Milanese (Milan), August 20, 2014 - During the period from August 11 to August 14, 2014, Eni acquired No. 493,500 shares for a total consideration of euro 9,008,098.13, within the authorization to purchase treasury shares approved at Enis General Meeting of shareholders on May 8, 2014, previously subject to disclosure pursuant to Article 144-bis of Consob Regulation 11971/1999. The following are details of transactions for the purchase of treasury shares on the Electronic Stock Market on a daily basis:

| Date | Number of ordinary
shares purchased | Average price (euro) | Consideration (euro) |
| --- | --- | --- | --- |
| 11/08/2014 | 115,400 | 18.2596 | 2,107,159.21 |
| 12/08/2014 | 117,100 | 18.2631 | 2,138,612.14 |
| 13/08/2014 | 125,000 | 18.2002 | 2,275,022.96 |
| 14/08/2014 | 136,000 | 18.2890 | 2,487,303.82 |
| Total | 493,500 | 18.2535 | 9,008,098.13 |

Following the purchases announced today, considering the treasury shares already held, on August 14, 2014 Eni holds No. 26,154,637 shares equal to 0.72% of the share capital.

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site: www.eni.com

Table of Contents

Eni: Report on the purchase of treasury shares

San Donato Milanese (Milan), August 27, 2014 - During the period from August 18 to August 22, 2014, Eni acquired No. 614,500 shares for a total consideration of euro 11,328,800.08, within the authorization to purchase treasury shares approved at Enis General Meeting of shareholders on May 8, 2014, previously subject to disclosure pursuant to Article 144-bis of Consob Regulation 11971/1999. The following are details of transactions for the purchase of treasury shares on the Electronic Stock Market on a daily basis:

| Date | Number of ordinary
shares purchased | Average price (euro) | Consideration (euro) |
| --- | --- | --- | --- |
| 18/08/2014 | 125,000 | 18.4314 | 2,303,920.96 |
| 19/08/2014 | 125,000 | 18.3925 | 2,299,068.35 |
| 20/08/2014 | 122,100 | 18.3679 | 2,242,724.91 |
| 21/08/2014 | 120,000 | 18.5692 | 2,228,303.60 |
| 22/08/2014 | 122,400 | 18.4214 | 2,254,782.26 |
| Total | 614,500 | 18.4358 | 11,328,800.08 |

Following the purchases announced today, considering the treasury shares already held, on August 22, 2014 Eni holds No. 26,769,137 shares equal to 0.74% of the share capital.

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site: www.eni.com

AI assistant

Eni Regulatory Filings 2014

4348_ffr_2014-09-02_b2a06eaa-ae3e-49c9-8fa0-3de9da8c2fea.zip

AI assistant

Eni — Regulatory Filings 2014

4348_ffr_2014-09-02_b2a06eaa-ae3e-49c9-8fa0-3de9da8c2fea.zip

More from Eni

Eni Regulatory Filings 2014