Eni — Regulatory Filings 2015

Jun 3, 2015

6-K 1 sj0515en6k.htm HTML PUBLIC "-//IETF//DTD HTML//EN" sj0515en6k

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 May 2015

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

TABLE OF CONTENTS

Fact Book 2014

Summary annual review (Eni in 2014)

Press Release dated May 13, 2015

Ordinary Shareholders’ Meeting Resolutions

Press Release dated May 31, 2015

Table of Contents

/TOC

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: May 31, 2015

Table of Contents Contents

Table of Contents Contents

Table of Contents Contents

Table of Contents

| | Fact
Book 2014 — Contents | Eni’s
Fact Book is a supplement to Eni’s Integrated Annual
Report and is designed to provide supplemental financial
and operating information. It contains certain forward-looking statements in
particular under the section "Outlook"
regarding capital expenditure, dividends, buyback
program, allocation of future cash flow from operations
evolution of financial structure, future operating
performance, targets of production and sale growth,
execution of projects. By their nature, forward-looking
statements involve risks and uncertainties because they
relate to events and depend on circumstances that will or
may occur in the future. Actual results may differ from
those expressed in such statements, depending on a
variety of factors, including the timing of bringing new
fields on stream; management’s ability in carrying
out industrial plans and in succeeding in commercial
transactions; future levels of industry product supply;
demand and pricing; operational problems; general
economic conditions; geopolitical factors including
international tensions, social and political instability,
changes in the economic and legal frameworks in
Eni’s countries of operations, regulation of the
oil&gas industry, power generation and environmental
field, development and use of new technologies; changes
in public expectations and other changes in business
conditions; the actions of competitors. |
| --- | --- | --- |
| ● | Eni at
a glance | 4 |
| ● | Eni’s
business model | 10 |
| ● | Exploration
& Production | 12 |
| ● | Gas
& Power | 38 |
| ● | Refining
& Marketing | 46 |
| ● | Versalis | 56 |
| ● | Engineering
& Construction | 60 |
| | Tables | |
| | Financial Data | 66 |
| | Employees | 81 |
| | Supplemental oil and gas information | 82 |
| | Quarterly information | 101 |

Contents

Eni Fact Book Eni at a glance

Eni at a glance

Results In 2014, in spite of an unfavorable trading environment, Eni delivered excellent results underpinned by record cash flow generation. The performance was driven by the increased contribution from upstream production and the accelerated restructuring of the mid and downstream businesses. Adjusted operating profit of euro 11.57 billion and adjusted net profit of euro 3.71 billion declined by 9% and 16%, respectively, compared to 2013. The mid and downstream businesses reported a euro 1.2 billion improvement driven by contract renegotiations, capacity restructuring and downsizing and cost efficiencies. These positives helped offset the decline of the E&P segment due to lower Brent prices. Additionally, 2014 results were reduced by the loss on the mark-to-market interests in Galp and Snam which underlay two convertible bonds (loss of euro 0.22 billion). Net profit of euro 1.29 billion was impacted by extraordinary charges, net of tax effect, of euro 1.41 billion, which related to asset impairments and the write off of certain deferred tax assets of Italian subsidiaries, as well as the alignment of crude oil and product inventories to current market prices for euro 1 billion. The 75% reduction from 2013 is attributable to the recognition in the past year of sizeable gains on the divestment of a 20% stake in the Mozambique discovery and on the revaluation of Eni’s interest in Artic Russia for an overall euro 4.7 billion. Cash flow of euro 15.1 billion was the best result of the last six years, supported by a reduced working capital in E&P, G&P and Saipem. Proceeds from disposals were euro 3.68 billion and mainly related to the divestment of Eni’s share in Artic Russia, an 8% interest in Galp and in the South Stream project. These cash inflows funded capital expenditure of euro 12.24 billion, focused on upstream activities, dividend payments (euro 4 billion) and share repurchases (euro 0.38 billion), also reducing the Group’s net debt by euro 1.28 billion. As of December 31, 2014, leverage reduced to 0.22, from 0.25 at December 31, 2013. Dividend > The Company’s robust results and strong fundamentals underpin a dividend distribution of euro 1.12 per share (euro 1.10 in 2013) of which euro 0.56 per share paid as interim dividend in September 2014. Share repurchases in 2014 were 21.66 million for a cash outlay of euro 0.38 billion, together with the dividend this ensured a distribution yield of 8.3%. Hydrocarbon production > In 2014, Eni’s hydrocarbon production was 1.598 million boe/d, up by 0.6% from 2013 on a homogeneous basis i.e. excluding the impact of the divestment of Eni’s interest in Artic Russia. Production increases in the United Kingdom, Algeria, the United States and Angola, more than offset mature fields decline. Start-ups and ramp-ups of new fields contributed 126 kboe/d. Proved oil and natural gas reserves > Proved oil and gas reserves as of December 31, 2014 were 6.6 bboe. The reserve replacement ratio was 112%. The reserve life index is 11.3 years.

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Contents

Eni Fact Book Eni at a glance

Development of new fields > In 2014, the West Hub project, located offshore in Block 15/06 in Angola, and Nené project in Block Marine XII in Congo were started up, setting the industry benchmark in terms of time-to-market. Exploration successes > In 2014, Eni continued its track record of exploratory success. Additions to the Company’s resource base were approximately 900 million boe, at a competitive cost of $2.1 per barrel. Main discoveries in Angola, Congo, Ecuador, Indonesia and Gabon were made near-field and characterized by a short time-to-market. Renegotiation of long-term gas supply contracts and take-or-pay reduction > Following the renegotiation of a number of the main long-term supply contracts, gas prices and related trends were better aligned to market conditions. 70% of long-term gas supply portfolio is now indexed to hub prices. Furthermore, the cash advances paid to suppliers due to the take-or-pay clause in those long-term supply contracts were reduced by euro 0.66 billion thanks to contract renegotiation and sales optimization. Turnaround in refining and Chemicals > In 2014, the turnaround plan in the R&M achieved a cut of up to 30% of Eni’s refining capacity compared to 2012 with the agreement on the conversion of the Gela refinery, the start-up of the green plant in Venice and the disposal of Eni’s interest in a refinery in East Europe. Overall the capacity utilization rate increased from the previous year, driving down the breakeven margin of Eni’s refineries below 6 $/bbl. - Eni defined with the Italian Ministry for Economic Development, the Region of Sicily and interested stakeholders (including trade unions and local communities) a plan for the reconversion of the Gela site into a bio-refinery and logistic hub, as well as the start-up of industrial initiatives aimed to relaunch the upstream sector in Sicily. The project intends to achieve the long-term sustainability of the Gela site leveraging on a new plan of capital expenditure, proprietary technologies and Eni’s people skills. - An agreement was signed with relevant Italian institutions and stakeholders to restore the profitability of the loss-making Porto Marghera chemical plant. The pillars of the deal are the development of an innovative green chemical project in partnership with the US-based company Elevance Renewable Science Inc and the shutdown of the oil-based petrochemical unit. The green plant will produce specialties destined for high added-value industrial applications. Restructuring of petrochemical activities in Sardinia > Operations at the green chemical project of Matrìca started up in 2014, marking the full conversion of the Porto Torres site. The 50/50 joint venture between Eni’s subsidiary Versalis and Novamont, Matrìca, is currently producing basic chemical products for industrial applications from renewable feedstock. The Sarroch plant was divested. Sustainability performance Safety > In 2014, Eni continued to implement the communication and training program "Eni in safety", with workshops dedicated to Eni’s employees. The benefit of these and other programs and investments in safety supported a positive trend in the injury frequency rate relating to employees and contractors which improved for the tenth consecutive year (down by 12.6% from 2013). Notwithstanding the 27% decrease in the fatality index, four fatal accidents occurred in 2014. Transparency in Corporate Reporting > In 2014, Eni ranked first in a worldwide survey made by Transparency International about transparency in corporate reporting. The survey analyzed three areas: anti-bribery programs, the organization (e.g. information on subsidiaries, joint arrangements and associates) and the publication of key economic and financial data related to the activities in each country where the company operates. LEAD Board Program > Eni is one of the six companies in the world to adhere to the pilot phase of the UN Global Compact LEAD Board Program, committed to the Board of Directors of certain companies, in order to strengthen their awareness on sustainability issues. During the first module on "The materiality of sustainability" Eni’s Board of Directors discussed on material sustainability issues leading the company to create sustainable value. The initiative will continue in 2015.

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Contents

Eni Fact Book Strategy

Strategy

Industrial Plan In order to cope with a radically changed price environment, the Company outlined for the next four-year period an action plan which comprises a number of rigorous initiatives and objectives in order to mitigate the impact of lower oil prices and to preserve a robust financial structure, particularly in the short-to-medium term. Against the backdrop of a low price environment, our primary target remains cash generation which will be underpinned by well-designed industrial actions, capital discipline, focus on upstream activities and a large disposal plan. In approving the capital expenditure plan the Company selected high-return projects with short pay-back periods; this optimization will result in a euro 47.8 billion capital expenditure in the next four years, down by approximately 17% compared to previous plan, at the same exchange rate. The disposal plan, amounting to more than euro 8 billion in the 2015-2018 period, is based on the anticipated monetization of exploratory discoveries, optimization of the upstream portfolio – which will be refocused based on strategic consideration and on the evaluation of the geopolitical risk – rationalization of midstream and downstream portfolio, and the divestment of residual interests in Snam and Galp. In the years 2015-2016 cash flow from operations will be able to fund projected capital expenditure on our Brent price scenario of 63 $/bbl on average. In the subsequent years, under our planning assumption of a recovery in crude oil prices at 85 $/bbl on average in the years 2017-2018 up to the long-term Brent price of 90 $/bbl, and considering our industrial actions, we will able to increase our cash flow from operations by 40% thus generating a significant surplus over the projected level of capital expenditure. In brief, the Company forecasts that the planned industrial actions, the selective approach to capital expenditure and the disposal plan will enable Eni to preserve a robust financial structure, targeting a leverage below the ceiling of 0.30 throughout the oil cycle. Dividend policy In the framework of the Group’s transformation process and given the targets set out in the plan, the Company intends to propose a 2015 dividend of euro 0.8 per share. The distribution policy will be progressive with underlying earnings growth. For further information on main strategic guidelines and 2015-2018 key targets, see chapter "Eni’s business model" and section "Strategy" of each segment of activity.

Strategic pillars	2014 Achievements	2015-2018 Plan
Disciplined CAPEX plan	- euro 12.6 bln capital
expenditure - down by 3.6% from 2013	- 17% reduction vs. prior plan - 45% unsanctioned capex
Cost
efficiency	-
euro 250 mln G&A cost reduction - OPEX per boe at $8.4	-
G&A reduced by 25% with savings of approximately euro
2 bln - Unitary OPEX reduced by 7%
Assets disposals	- euro 3.7 bln disposal of
assets	- euro 8 bln disposal plan
Robust
balance sheet	-
Leverage at 0.22 from 0.25 reported in 2013	-
0.30 leverage threshold
Dividend policy	- Distribution Yield at 8.3% - Dividend per share of euro 1.12 - Payout > 300%	- Competitive and sustainable
dividend policy - Payout < 100%

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Contents

Eni Fact Book Main data

Main data

Key financial data (a) (euro million) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Net sales from operations	73,692		86,071		87,204		108,082		83,227		98,523		109,589		128,481		114,697		109,847
of which: continuing
operations							106,978		81,932		96,617		107,690		127,109		114,697		109,847
Group operating profit	16,664		19,336		18,739		18,517		12,055		16,111		17,435		16,099		8,888		7,917
Special items	(1,210	)	88		(620	)	2,034		1,295		2,290		1,567		4,743		3,046		2,197
Profit
(loss) on stock	1,942		1,059		885		936		(345	)	(881	)	(1,113	)	(17	)	716		1,460
Group adjusted operating
profit	17,396		20,483		19,004		21,487		13,005		17,520		17,889		20,825		12,650		11,574
Adjusted operating profit - continuing
operations							21,322		12,722		16,845		17,230		19,883		12,650		11,574
Exploration & Production	12,649		15,521		13,770		17,166		9,489		13,898		16,075		18,537		14,643		11,551
Gas
& Power	3,783		4,117		4,414		1,778		2,022		1,268		(247	)	398		(638	)	310
Refining & Marketing	1,210		794		292		555		(381	)	(181	)	(539	)	(289	)	(457	)	(208	)
Versalis	261		219		116		(382	)	(441	)	(96	)	(273	)	(483	)	(386	)	(346	)
Engineering & Construction	314		508		840		1,041		1,120		1,326		1,443		1,485		(99	)	479
Other
activities	(296	)	(299	)	(207	)	(244	)	(258	)	(205	)	(226	)	(222	)	(210	)	(178	)
Corporate and financial companies	(384	)	(244	)	(195	)	(282	)	(342	)	(265	)	(266	)	(325	)	(332	)	(265	)
Impact
of unrealized intragroup profit elimination and
consolidation adjustments	(141	)	(133	)	(26	)	1,690		1,513		1,100		1,263		782		129		231
Adjusted operating
profit - discontinued operations							165		283		675		659		942
Group net profit (*)	8,788		9,217		10,011		8,825		4,367		6,318		6,860		7,790		5,160		1,291
of which: continuing
operations							8,996		4,488		6,252		6,902		4,200		5,160		1,291
of which: discontinued operations							(171	)	(121	)	66		(42	)	3,590
Group adjusted net
profit (*)	9,251		10,401		9,569		10,164		5,207		6,869		6,969		7,325		4,430		3,707
of which: continuing operations							10,315		5,321		6,770		6,938		7,130		4,430		3,707
of
which: discontinued
operations							(151	)	(114	)	99		31		195
Net cash provided by operating activities	14,936		17,001		15,517		21,801		11,136		14,694		14,382		12,567		11,026		15,110
of which: continuing
operations							21,506		10,755		14,140		13,763		12,552		11,026		15,110
of which: discontinued operations							295		381		554		619		15
Capital expenditure	7,414		7,833		10,593		14,562		13,695		13,870		13,438		13,561		12,800		12,240
of which: continuing operations							12,935		12,216		12,450		11,909		12,805		12,800		12,240
of
which: discontinued
operations							1,627		1,479		1,420		1,529		756
Shareholders’ equity including
non-controlling interest	39,217		41,199		42,867		48,510		50,051		55,728		60,393		62,417		61,049		62,209
Net borrowings	10,475		6,767		16,327		18,376		23,055		26,119		28,032		15,069		14,963		13,685
Leverage	0.27		0.16		0.38		0.38		0.46		0.47		0.46		0.24		0.25		0.22
Net capital employed	49,692		47,966		59,194		66,886		73,106		81,847		88,425		77,486		76,012		75,894
Exploration
& Production	19,109		17,783		23,826		31,362		32,455		37,646		42,024		42,369		45,699		47,629
Gas & Power	20,075		19,713		21,333		9,636		11,024		12,931		12,367		10,597		9,201		7,776
Snam							11,918		13,730		14,415		15,393
Refining & Marketing	5,993		5,631		7,675		7,379		8,105		8,321		9,188		8,871		7,998		7,993
Versalis	2,018		1,953		2,228		1,915		1,774		1,978		2,252		2,557		2,656		2,973
Engineering & Construction	2,844		3,399		4,313		5,022		6,566		7,610		8,217		9,937		9,554		8,644
Corporate
financial companies and other activities	2		(95	)	294		24		(192	)	(527	)	(393	)	3,658		1,381		1,089
Impact of unrealized intragroup profit
elimination	(349	)	(418	)	(475	)	(370	)	(356	)	(527	)	(623	)	(503	)	(477	)	(210	)

(a) Following the divestment of Regulated Businesses in Italy, results of Snam have been accounted as "discontinued operations". Results for the 2008-2011 period have been restated accordingly. (*) Attributable to Eni’s shareholders.

Key market indicators 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

| Average
price of Brent dated crude oil (a) | | 54.38 | 65.14 | 72.52 | 96.99 | 61.51 | 79.47 | 111.27 | 111.58 | 108.66 | 98.99 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Average EUR/USD exchange rate (b) | | 1.244 | 1.256 | 1.371 | 1.471 | 1.393 | 1.327 | 1.392 | 1.285 | 1.328 | 1.329 |
| Average
price in euro of Brent dated crude oil | | 43.71 | 51.86 | 52.90 | 65.93 | 44.16 | 59.89 | 79.94 | 86.83 | 81.82 | 74.48 |
| Standard Eni Refining Margin (SERM) (c) | | n.a. | 6.37 | 7.20 | 8.45 | 3.11 | 3.06 | 1.82 | 4.12 | 2.43 | 3.21 |
| Euribor -
three-month euro rate | (%) | 2.2 | 3.1 | 4.3 | 4.6 | 1.2 | 0.8 | 1.4 | 0.6 | 0.2 | 0.2 |

(a) In USD per barrel. Source: Platt’s Oilgram. (b) Source: ECB. (c) In USD per barrel FOB Mediterranean Brent dated crude oil. Source: Eni calculations. Approximates the margin of Eni’s refining system in consideration of material balances and refineries’ product yields.

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Contents

Eni Fact Book Main data

Selected operating data 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Corporate (a) — Employees at period end	(number)	71,773	72,850	75,125	71,714	71,461	73,768	72,574	79,405	83,887	84,405
of
which: - women		10,620	10,841	10,977	11,611	11,955	12,161	12,542	12,847	13,588	13,650
of which: - outside Italy		34,036	35,818	38,634	41,971	42,633	45,967	45,516	52,008	56,509	58,182
Female
managers	(%)	12.4	13.5	14.1	16.3	17.3	18.0	18.5	18.9	19.4	19.7

| Employee injury frequency rate | (number of
injuries/million of worked hours) | 2.74 | 2.45 | 1.93 | 1.22 | 0.84 | 0.80 | 0.65 | 0.57 | 0.40 | 0.38 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Contractor
injury frequency rate | | 2.59 | 1.54 | 1.45 | 1.09 | 0.97 | 0.71 | 0.57 | 0.45 | 0.32 | 0.26 |
| Fatality index | (fatal injuries per one
hundred millions of worked hours) | 3.38 | 2.31 | 2.97 | 2.75 | 1.20 | 4.77 | 1.94 | 1.10 | 0.98 | 0.72 |

Oil spills	(barrel)	6,908	6,151	6,731	4,749	6,259	4,269	7,295	3,759	1,901	1,179
GHG emission (GHG)	(mmtonnes CO 2 eq)	61.85	60.72	67.25	59.59	55.49	58.26	49.13	52.84	47.60	42.93

| R&D
expenditures (b) | (euro million) | 204 | 222 | 208 | 211 | 233 | 218 | 190 | 211 | 197 | 186 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Exploration & Production | | | | | | | | | | | |
| Proved
reserves of hydrocarbons at period end | (mmboe) | 6,837 | 6,436 | 6,370 | 6,600 | 6,571 | 6,843 | 7,086 | 7,166 | 6,535 | 6,602 |
| Reserve life index | (years) | 10.8 | 10.0 | 10.0 | 10.0 | 10.2 | 10.3 | 12.3 | 11.5 | 11.1 | 11.3 |
| Hydrocarbons
production | (kboe/d) | 1,737 | 1,770 | 1,736 | 1,797 | 1,769 | 1,815 | 1,581 | 1,701 | 1,619 | 1,598 |
| Gas & Power | | | | | | | | | | | |
| Sales of
consolidated companies (including own consumption) | (bcm) | 82.62 | 85.76 | 84.83 | 89.32 | 89.60 | 82.00 | 84.05 | 84.30 | 83.60 | 81.73 |
| Sales of Eni’s affiliates (Eni’s
share) | | 7.08 | 7.65 | 8.74 | 8.91 | 7.95 | 9.41 | 9.85 | 8.29 | 6.96 | 4.38 |
| Total
sales and own consumption (G&P) | | 89.70 | 93.41 | 93.57 | 98.23 | 97.55 | 91.41 | 93.90 | 92.59 | 90.56 | 86.11 |
| E&P sales in Europe and in the Gulf of
Mexico | | 4.51 | 4.69 | 5.39 | 6.00 | 6.17 | 5.65 | 2.86 | 2.73 | 2.61 | 3.06 |
| Worldwide
gas sales | | 94.21 | 98.10 | 98.96 | 104.23 | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 | 89.17 |
| Electricity sold | (TWh) | 27.56 | 31.03 | 33.19 | 29.93 | 33.96 | 39.54 | 40.28 | 42.58 | 35.05 | 33.58 |
| Refining & Marketing | | | | | | | | | | | |
| Throughputs on own account | (mmtonnes) | 38.79 | 38.04 | 37.15 | 35.84 | 34.55 | 34.80 | 31.96 | 30.01 | 27.38 | 25.03 |
| Balanced
capacity of wholly-owned refineries | (kbbl/d) | 524 | 534 | 544 | 737 | 747 | 757 | 767 | 767 | 787 | 617 |
| Sales of refined products | (mmtonnes) | 51.63 | 51.13 | 50.15 | 49.16 | 45.59 | 46.80 | 45.02 | 48.33 | 43.49 | 44.41 |
| Retail
sales in Europe | (mmtonnes) | 12.42 | 12.48 | 12.65 | 12.03 | 12.02 | 11.73 | 11.37 | 10.87 | 9.69 | 9.21 |
| Service stations at year end | (units) | 6,282 | 6,294 | 6,440 | 5,956 | 5,986 | 6,167 | 6,287 | 6,384 | 6,386 | 6,220 |
| Average
throughput per service station | (kliters/y) | 2,479 | 2,470 | 2,486 | 2,502 | 2,477 | 2,352 | 2,206 | 2,064 | 1,828 | 1,725 |
| Versalis | | | | | | | | | | | |
| Production | (ktonnes) | 7,282 | 7,072 | 8,795 | 7,372 | 6,521 | 7,220 | 6,245 | 6,090 | 5,817 | 5,283 |
| of which: - Intermediates | | 4,450 | 4,275 | 5,688 | 5,110 | 4,350 | 4,860 | 4,101 | 3,595 | 3,462 | 2,972 |
| of which: -
Polymers | | 2,832 | 2,797 | 3,107 | 2,262 | 2,171 | 2,360 | 2,144 | 2,495 | 2,355 | 2,311 |
| Average plant utilization rate | (%) | 78.4 | 76.4 | 80.6 | 68.6 | 65.4 | 72.9 | 65.3 | 66.7 | 65.3 | 71.3 |
| Engineering & Construction | | | | | | | | | | | |
| Orders acquired | (euro million) | 8,395 | 11,172 | 11,845 | 13,860 | 9,917 | 12,935 | 12,505 | 13,391 | 10,062 | 17,971 |
| Order
backlog at year end | (euro million) | 10,122 | 13,191 | 15,390 | 19,105 | 18,370 | 20,505 | 20,417 | 19,739 | 17,065 | 22,147 |

(a) Following the divestment of Regulated Businesses in Italy, data for the year 2012 do not include Snam contribution. Results for the 2008-2011 period have been restated accordingly. (b) Net of general and administrative costs.

Share data 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Net profit (a) (b)	(euro)	2.34	2.49	2.73	2.43		1.21	1.74		1.89	1.16	1.42	0.36
Net profit - continuing operations (a) (b)
(*)					2.47		1.24	1.72		1.90	1.16	1.42	0.36
Dividend		1.10	1.25	1.30	1.30		1.00	1.00		1.04	1.08	1.10	1.12
Cash dividends (c)	(euro million)	4,086	4,594	4,750	4,714		3,622	3,622		3,695	3,840	3,949	4,006
Cash flow	(euro)	3.97	4.59	4.23	5.99		3.07	4.06		3.97	3.41	3.52	4.18
Dividend yield (d)	(%)	4.7	5.0	5.3	7.6		5.8	6.1		6.6	5.9	6.5	7.6
Net profit
per ADR (e) (*)	(USD)	5.81	6.26	7.49	7.27		3.45	4.56		5.29	2.98	3.77	0.96
Dividend per ADR (e)		2.73	3.14	3.74	3.72		2.91	2.64		2.73	2.82	3.00	2.79
Cash flow
per ADR (e)		9.40	11.53	11.60	17.63		8.56	10.77		11.05	8.77	9.04	11.12
Dividend yield per ADR (d)	(%)	4.7	4.7	5.2	8.1		5.8	6.1		6.6	5.9	6.4	7.7
Pay-out		46	50	47	53		81	57		55	50	77	311
Number of shares at period end representing
share capital	(million)	4,005.4	4,005.4	4,005.4	4,005.4		4,005.4	4,005.4		4,005.4	3,634.2	3,634.2	3,634.2
Average
number of share outstanding in the year (f) (fully diluted)		3,763.4	3,701.3	3,669.2	3,638.9		3,622.4	3,622.5		3,622.7	3,622.8	3,622.8	3,610.4
TSR	(%)	35.3	14.8	3.2	(29.1	)	13.7	(2.2	)	5.1	22.0	1.3	(11.9	)

| (*) Following the
divestment of Regulated Businesses in Italy, results of
Snam have been accounted for as "discontinued
operations", based on IFRS 5. Results for the
2008-2011 period have been restated accordingly. Net
profit refers to results of continuing operations as
reported in Eni consolidated Annual Report. (a) Calculated on the average number of Eni shares
outstanding during the year. (b) Pertaining to Eni’s shareholders. (c) Pertaining to the year. The amount for the year 2014
is based on the Board’s proposal. (d) Ratio between dividend of the year and average share
price in December. (e) One ADR represents 2 shares. Net profit, dividends
and cash flow data were converted using average exchange
rates. Dividends data were converted at the Noon Buying
Rate of the pay-out date. (f) Calculated by excluding own shares in portfolio. |
| --- |
| - 8 - |

Contents

Eni Fact Book Main data

Share information 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Share price - Milan Stock Exchange — High	(euro)	24.96	25.73	28.33	26.93	18.35	18.56	18.42	18.70	19.48	20.41
Low		17.93	21.82	22.76	13.80	12.30	14.61	12.17	15.25	15.29	13.29
Average		21.60	23.83	25.10	21.43	16.59	16.39	15.95	17.18	17.57	17.83
End of the
period		23.43	25.48	25.05	16.74	17.80	16.34	16.01	18.34	17.49	14.51
ADR price (a) -
New York Stock Exchange
High	(USD)	151.35	67.69	78.29	84.14	54.45	53.89	53.74	49.44	52.12	55.30
Low		118.50	54.65	60.22	37.22	31.07	35.37	32.98	36.85	40.39	32.81
Average		134.02	59.97	68.80	63.38	46.36	43.56	44.41	44.24	46.68	47.37
End of the period		139.46	67.28	72.43	47.82	50.61	43.74	41.27	49.14	48.49	34.91
Average
daily exchanged shares	(million of shares)	28.5	26.2	30.5	28.7	27.9	20.7	22.9	15.6	15.4	17.21
Value	(euro million)	620.7	619.1	773.1	610.4	461.7	336.0	355.0	267.0	271.4	304.0
Weighted
average number of shares outstanding (b)	(million)	3,727.3	3,680.4	3,656.8	3,622.4	3,622.4	3,622.7	3,622.7	3,622.8	3,622.8	3,610.4
Market capitalization (c)
EUR	(billion)	87.3	93.8	91.6	60.6	64.5	59.2	58.0	66.4	63.4	52.4
USD		104.0	123.8	132.4	86.6	91.7	79.2	75.0	87.7	87.4	63.6

(a) Effective January 10, 2006 a 5:2 stock split was made. Previous period’s prices have not been restated. (b) Excluding treasury shares. (c) Number of outstanding shares by reference price at period end.

Data on Eni share placement 1995 1996 1997 1998 2001

| Offer
price | (euro/share) | 5.42 | 7.40 | 9.90 | 11.80 | 13.60 |
| --- | --- | --- | --- | --- | --- | --- |
| Number of share placed | (million shares) | 601.9 | 647.5 | 728.4 | 608.1 | 200.1 |
| of
which: through bonus share | (million shares) | | 1.9 | 15.0 | 24.4 | 39.6 |
| Percentage of share capital (a) | (%) | 15.0 | 16.2 | 18.2 | 15.2 | 5.0 |
| Proceeds | (euro million) | 3,254 | 4,596 | 6,869 | 6,714 | 2,721 |

(a) Refers to share capital at December 31, 2014.

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Contents

Eni Fact Book Eni's business model

Eni’s business model

Eni’s business model targets long-term value creation for its stakeholders by delivering on profitability and growth, efficiency and operational excellence and handling operational risks of its businesses, as well as environmental conservation, and local communities relationships, preserving health and safety of people working in Eni and with Eni, in respect of human rights, ethics and transparency. The main capitals used by Eni (financial capital, productive capital, intellectual capital, natural capital, human capital, social and relationship capital) are classified in accordance with the criteria included in the "International IR Framework" published by the International Integrated Reporting Council (IIRC). 2014 financial results and sustainability performance rely on the responsible and efficient use of our capitals. For detailed information on results associated to each capital see the 2014 Integrated Annual Report and the Integrated performance tables.

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Contents

Eni Fact Book Eni's business model

Hereunder is articulated the map of the main capitals exploited by Eni and actions taken in order to achieve the 2015-2018 targets for each business area. The actions reported below are classified on the basis of four strategic targets which lead Eni’s business and represent the management system of each capital which allow to achieve business goals, on the one hand reducing risks, on the other, increasing profitability.

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Contents

Eni Fact Book Exploration & Production

Exploration & Production

Key performance indicators

2010 2011 2012 2013 2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 0.53 | 0.41 | 0.34 | 0.23 | 0.23 |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 29,497 | 29,121 | 35,874 | 31,264 | 28,488 |
| Operating
profit | | 13,866 | 15,887 | 18,470 | 14,868 | 10,766 |
| Adjusted operating profit | | 13,898 | 16,075 | 18,537 | 14,643 | 11,551 |
| Adjusted
net profit | | 5,609 | 6,865 | 7,426 | 5,950 | 4,423 |
| Capital expenditure | | 9,690 | 9,435 | 10,307 | 10,475 | 10,524 |
| Adjusted
ROACE | (%) | 16.0 | 17.2 | 17.6 | 13.5 | 9.5 |
| Profit per boe (b) | ($/boe) | 11.9 | 17.0 | 16.0 | 15.5 | 9.9 |
| Opex per
boe (b) | | 6.1 | 7.3 | 7.1 | 8.3 | 8.4 |
| Cash Flow per boe (d) | | 25.5 | 31.7 | 32.8 | 31.9 | 30.1 |
| Finding
& Development cost per boe (c) (d) | | 19.3 | 18.8 | 17.4 | 19.2 | 21.5 |
| Average hydrocarbons realizations (d) | | 55.60 | 72.26 | 73.39 | 71.87 | 65.49 |
| Production
of hydrocarbons (d) | (kboe/d) | 1,815 | 1,581 | 1,701 | 1,619 | 1,598 |
| Estimated net proved reserves of hydrocarbons (d) | (mmboe) | 6,843 | 7,086 | 7,166 | 6,535 | 6,602 |
| Reserves
life index (d) | (years) | 10.3 | 12.3 | 11.5 | 11.1 | 11.3 |
| Organic reserves replacement ratio (d) | (%) | 127 | 143 | 147 | 105 | 112 |
| Employees
at year end | (number) | 10,276 | 10,425 | 11,304 | 12,352 | 12,777 |
| of which: outside Italy | | 6,370 | 6,628 | 7,371 | 8,219 | 8,243 |
| Oil spills
due to operations (>1 barrel) (e) | (bbl) | 3,820 | 2,930 | 3,015 | 1,728 | 936 |
| Produced water re-injected | (%) | 44 | 43 | 49 | 55 | 56 |
| Direct GHG
emissions | (mmtonnes CO 2 eq) | 31.46 | 23.78 | 28.68 | 25.90 | 22.98 |
| of which: from flaring | | 13.83 | 9.55 | 9.46 | 8.48 | 5.64 |
| Community
investment | (euro million) | 72 | 62 | 59 | 53 | 63 |

(a) Before elimination of intragroup sales. (b) Consolidated subsidiaries. (c) Three-year average. (d) Includes Eni’s share of equity-accounted entities. (e) 2010 and 2011 data include also oil spills less than 1 barrel.

Performance of the year
I In 2014, the injury frequency rate
confirmed the positive performance reported in 2013. - Greenhouse gas emissions decreased by 11.3% compared to
the previous year (with a 33.5% reduction in emissions
from flaring) mainly due to the conclusion of the flaring
down project at M’Boundi field in Congo and the
ramp-up of relevant projects in Nigeria. - Oil spills reported a decline from 2013 (with a 46%
decrease in oil spills due to operations), while zero
blow-outs were recorded for the eleventh consecutive
year. - Continued a positive trend in increasing water
reinjection, with a record level of 56%, due among other
to the completion of relevant projects, in particular in
Nigeria, Egypt, Indonesia and Turkmenistan. - In 2014, the E&P segment reported a decline of euro
1,527 million, or 25.7% in adjusted net profit compared
to a year ago, due to lower crude oil and gas prices in
dollar terms (down by 8.9% on average) reflecting the
fall of Brent crude benchmark and the weakness of gas
market, especially in Europe. - Oil and natural gas production was 1.598 million boe/d
in 2014 (up	by 0.6% compared to the
previous year), excluding the impact of the divestment of
Eni’s interest in Siberian assets. - Estimated net proved reserves at December 31, 2014
amounted to 6.6 bboe based on a reference Brent price of
$101 per barrel. The reserves replacement ratio was 112%.
The reserves life index was 11.3 years (11.1 years in
2013). Exploration
activity I Eni continued its track record of
exploratory success. Additions to the Company’s
reserve backlog were approximately 900 million boe of
resources for the full year, at a competitive cost of
$2.1 per barrel. Near-field discoveries marked the
year’s activity: - The Ochigufu 1 NFW well located in the Angolan deep
waters of Block 15/06 (Eni operator with a 35% interest).
This discovery with a potential in place estimated at
approximately 300 million barrels of oil, is located near
the West Hub project, which started up at the end of
2014.

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Eni Fact Book Exploration & Production

• The Minsala Marine 1 NFW in the conventional waters of Block Marine XII (Eni operator with a 65% interest) in Congo, was the third discovery in the last two years increasing the block’s resources in place by 1 billion barrels with characteristics similar to the previous discoveries of Litchendjili and Nené, the latter started up early production in record time. - The Oglan-2 exploration well in Block 10 (Eni operator with a 100% interest), in Ecuador, with a potential in place estimated at approximately 300 million barrels of oil. The discovery is located near the processing facilities of the operated field of Villano and will be put in production with fast-track development. - The Merakes 1 NFW gas well in East Sepinggan offshore block (Eni operator with a 85% interest), in Indonesia. This discovery with a potential in place estimated at approximately 2 Tcf, is located in proximity of the operated field of Jangkrik (Eni’s interest 55%), which is currently under development and will supply additional gas volumes to the Bontang LNG plant. - The conventional waters of Gabon, the Nyonie Deep 1 well in the Block D4 (Eni operator with a 100% interest) showed an estimated potential of approximately 500 million boe in place of gas and condensates. - The appraisal gas wells Agulha 2 and Coral 4 DIR, confirming the extension of their respective fields with a potential in place in Area 4 (Eni operator with a 50% interest) estimated at approximately 88 Tcf. - The exploration portfolio was strengthened by means of new exploration acreage covering approximately 100,000 square kilometers net to Eni in the high potential areas such as Myanmar, Portugal, South Africa and Vietnam, as well as legacy areas such as Algeria, China, Egypt, Norway, the United Kingdom and the United States. - In 2014, exploration expenditure amounted to euro 1,398 million, mainly related to the completion of 44 new exploratory wells (25.8 net to Eni). The overall commercial success rate was 31.3% (38.0% net to Eni). In addition, 101 exploratory wells drilled are in progress at year end (42.2 net to Eni). Sustainability and portfolio developments I The West Hub Development project in Block 15/06 (Eni operator with a 35% interest) achieved the first oil late in 2014. This is the first Eni- operated project in Angola and is currently flowing at 45 kbbl/d, with production ramp-up expected to reach a plateau of up to 100 kbbl/d in the coming months. The start-up was achieved in just 44 months from the announcement of the commercial discovery, a result that is at the top of the industry among deep waters developments. - Production start-up achieved at the recent Nené discovery in Block Marine XII (Eni operator with a 65% interest) in Congo, just 8 months after obtaining the production permit. The early production phase is yielding 7.5 kboe/d and the fast-track development of the field has leveraged on the synergies with the front-end loading and the infrastructures of the fields located in the area. The full-field development will take place in several stages, with a plateau of over 120 kboe/d. - Sanctioned the integrated oil and gas project of the Offshore Cape Three Points (Eni operator with a 47.22% interest) in Ghana. First oil is expected in 2017, first gas in 2018 and production is expected to peak at 80 kboe/d. - Projects to promote local development and to support local communities progressed with programs in educational services, improving sanitary condition, access to water, socio-economic development activities, in particular in Congo, Ecuador, Indonesia, Iraq, Italy, Kazakhstan, Mozambique, Nigeria and Norway. In addition, the construction of educational facilities and programs of access to water were performed in Pakistan, projects of employment and local business development in particular in Tunisia and Australia, as well as activities of enhancement of cultural and environmental heritage. - The Petroleum Technology Association of Nigeria recognized two Eni’s subsidiaries as the best organizations to promote local content in the oil&gas sector in Nigeria (Local Content Operator). This award reaffirmed Eni’s commitment in the implementation of effective initiatives to boost local economic activities also to achieve the high standard requirements in the oil&gas sector. - Performed with the support of the Danish Institute for Human Rights and in line with the UN Guiding Principles on Business and Human Rights a preliminary assessment of the potential impacts of natural gas development on human rights in Mozambique. - Development expenditure was euro 9,021 million (up by 5.1% from 2013) to fuel the growth of major projects and to maintain production plateau particularly in Norway, Angola, Congo, the United States, Italy, Nigeria, Egypt, Indonesia and Kazakhstan. - In 2014, overall R&D expenditure of the Exploration & Production segment amounted to euro 83 million (euro 87 million in 2013).

Strategy

Upstream growth model will continue to focus on conventional assets, which will be organically developed, with a large resource base and a competitive cost structure, which make them profitable even in a low price environment. The sizeable exploration successes of the last years have increased the Company’s resource base, contributing to the Company’s value generation through the early monetization of the discovered resources in excess of the target replacement ratio. Eni’s top priorities are the increase and valorization of discovered resources and a growing cash generation. The drivers to target the increase and valorization of discovered resources are: (i) re-balancing of exploration activities with a focus on near-field initiatives, with the objective of delivering 2 billion boe of discovered resources at a competitive cost of $2.6 per bbl; (ii) renewal of the portfolio of exploration leases by focusing on high materiality play; and (iii) fast-track development of discovered resources by optimizing the time-to-market and exercising tight control on project execution. Cash generation will be driven by: (i) production growth at an annual rate of 3.5% leveraging on a robust pipeline of projects with an average break-even of $45 per bbl which together with the ramp-ups at fields started up in 2014 will add more than 650 kboe/d in 2018. This new production

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Eni Fact Book Exploration & Production

will bring an additional cumulative cash flow of euro 19 billion in the 2015-2018 plan period. Main start-ups are the Goliat field (Eni operator with a 65% interest) in the Barents Sea in Norway, the oil and gas project of Offshore Cape Three Points (Eni operator with a 47.22% interest) in Ghana, the Jangkrik project (Eni operator with a 55% interest) in Indonesia and production re-start of Kashagan field (Eni’s interest 16.81%) by the end of 2016; (ii) project modularization and phasing which will enable the Company to reduce financial exposure and to accelerate production start-ups; (iii) strengthened efficiency by means of several initiatives to reduce operating costs, to be achieved also by renegotiating the supply of field services and goods; and (iv) early monetization of part of discovered volumes. Eni acknowledges that the upstream performance could be adversely impacted in the short-to-medium term by a number of risks: (i) the commodity risk related to current trends in crude oil prices. Eni is planning to mitigate this risk by implementing initiatives of rationalization and optimization, the renegotiation of contractual terms with contractors to align costs of field services and goods to the changed market conditions. In 2015-2018 plan period, Eni estimates a decrease of approximately 13% of capital expenditure net of exchange rate effects versus the previous four year plan due to a reduction in exploration expenditure which will be focused on near-field and appraisal activities, the re-phasing of projects yet to be sanctioned and service contract renegotiations. In addition, Eni intends to reduce operating costs by 7% versus the old plan; (ii) the political risk due to social and political instability in certain countries of operations. A major part of Eni’s activities are currently located in countries that are far from high-risk areas and Eni plans to growth mainly in countries with low-mid political risk (approximately 90% of the capital expenditure of the four-year plan); (iii) risk related to the growing complexity of certain projects due to technological and logistic issues. Eni plans to counteract those risks by strict selection of adequate contractors, tight control of the time-to-market and the retaining of the operatorship in a large number of projects (84% of production related to start-ups); and (iv) the technical risk related to the execution of drilling activities at high pressure/high temperature wells and deep waters wells (24% of planned wells to be drilled in 2015). Eni plans to increase operatorship of critical projects ensuring better direct control and deploying its high operational standards.

Activity areas

n Italy Eni has been operating in Italy since 1926. In 2014, Eni’s oil and gas production amounted to 179 kboe/d. Eni’s activities in Italy are deployed in the Adriatic and Ionian Sea, the Central Southern Apennines, mainland and offshore Sicily and the Po Valley, on a total developed and undeveloped acreage of 21,463 square kilometers (17,297 square kilometers net to Eni). Eni’s exploration and development activities in Italy are regulated by concession contracts (54 operated onshore and 64 operated offshore) and exploration licenses (12 onshore and 9 offshore). Adriatic and Ionian Sea Production Fields in the Adriatic and Ionian Sea accounted for 46% of Eni’s domestic production in 2014, mainly gas. Main operated fields are Barbara, Annamaria, Angela-Angelina, Porto Garibaldi, Cervia, Bonaccia, Luna and Hera Lacinia. Production is operated by means of 71 fixed platforms (3 of these are manned) installed on the main fields, to which satellite fields are linked by underwater infrastructures. Production is carried by sealine to the mainland where it is input in the national gas network. The system is subject

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Eni Fact Book Exploration & Production

continuously to rigorous safety control, maintenance activities and production optimization, in particular at the Barbara, Armida, Cervia, Clara, Arianna, Regina and Torrente Tona fields. Development Main development activities concerned the completion of development activities to achieve start-up of the Fauzia and Elettra fields located in the Adriatic Sea, as well as ongoing maintenance and efficiency improvement activities on Italian energetic grid. Ongoing activities progressed to perform the environmental monitoring, protection and clean-up of the Adriatic coastal area in cooperation with the district of Ravenna. Exploration Exploration activities concerned areas nearby producing fields with identification of possible near field opportunities. Central Southern Apennines Production Eni is the operator of the Val d’Agri concession (Eni’s interest 60.77%) in the Basilicata Region. Production from the Monte Alpi, Monte Enoc and Cerro Falcone fields is treated by the Viggiano oil center. In 2014, the Val d’Agri concession accounted for 40% of Eni’s production in Italy. Development Development plan is progressing in line with the commitments agreed with the Basilicata Region in 1998: (i) the construction of a new gas treatment unit is designed to improve the environmental performance of the treatment center; (ii) continuous improvement of the Environmental Monitoring Plan, which represents a benchmark in terms of environmental protection. This was underpinned by an Action Plan for Biodiversity in Val d’Agri; and (iii) programs to support a cultural and social development, tourism, as well as development of agricultural and food farming businesses. Exploration Eni is currently performing activities to assess the residual mineral potential in the area. Sicily Production Eni is the operator of 12 production concessions onshore and 3 production concessions offshore in Sicily, which in 2014 accounted for approximately 11% of Eni’s production in Italy. The main fields are Gela, Ragusa, Tresauro, Giaurone, Fiumetto and Prezioso. In November 2014, Eni signed a Memorandum of Understanding with the Ministry of Economic Development, Confindustria and other local public bodies to promote and support integrated Oil & Gas business initiatives with socio-economic project in the area in order to ensure an economic sustainable value in the long-term. n Rest of Europe Norway Eni has been operating in Norway since 1965. Eni’s activities are performed in the Norwegian Sea, in the Norwegian section of the North Sea and in the Barents Sea over a developed and undeveloped acreage of 11,404 square kilometers (3,672 square kilometers net to Eni). Eni’s production in Norway amounted to 112 kboe/d in 2014. Exploration and production activities in Norway are regulated by Production Licenses (PL). According to a PL, the holder is entitled to perform seismic surveys and drilling and production activities for a given number of years with possible extensions. Norwegian Sea Production Eni currently holds interests in 10 production areas. The principal producing fields are Åsgard (Eni’s interest 14.82%), Kristin (Eni’s interest 8.25%), Heidrun (Eni’s interest 5.17%), Mikkel (Eni’s interest 14.9%), Tyrihans (Eni’s interest 6.2%), Marulk (Eni operator with a 20% interest) and Morvin (Eni’s interest 30%) which in 2014 accounted for 74% of Eni’s production in Norway. The gas produced in the area is collected at the Åsgard facilities, carried by pipeline to the Karsto treatment plant and then delivered to the Dornum terminal in Germany. Liquids recovered in the area mainly through FPSO units are sold FOB. Development Development activities progressed to production optimization of the Midgard (Eni’s interest 14.9%) and Mikkel fields. Exploration Eni holds interests in 31 Prospecting Licenses ranging from 5% to 50%, 4 of these are operated. Norwegian section of the North Sea Production Eni holds interests in 2 production licenses. The main producing field is Ekofisk (Eni’s interest 12.39%) in PL 018, which in 2014 produced approximately 24 kboe/d net to Eni and accounted for 21% of Eni’s production in Norway. Production from Ekofisk and satellites is carried by pipeline to the Teesside terminal in the United Kingdom for oil and to the Emden terminal in Germany for gas. Development Development activities progressed to maintain and optimize production at the Ekofisk field by means of drilling of infilling wells, upgrading of existing facilities and optimization of water injection. Exploration Eni holds interests in 7 Prospecting Licenses ranging from 12.39% to 45%, of which one as operator. In January 2015, Eni was awarded a 13.12% interest in the PL 044C license.

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Eni Fact Book Exploration & Production

Barents Sea Eni is currently performing exploration and development activities in the Barents Sea. Eni holds interests in 18 prospecting licenses, 13 of these are operated. Barents Sea is a strategic area with a huge resource base, which will be developed in compliance with the tightest environmental and safety standards provided for the people and environment protection, considering the fragile ecosystem. Development Operations have been focused on developing the Goliat discovery made in 2000 at a water depth of 370 meters in PL 229 (Eni operator with a 65% interest). Start-up is expected in the second half of 2015, with a production plateau at approximately 65 kboe/d net to Eni in 2016. During the year, the implementation of an oil spill contingency and response plan progressed by developing techniques and methodologies in response to oil spills. The performed activities in the drilling phases were acknowledged by the Norwegian Authorities as the benchmark for oil spill reaction 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 equipped with a well-advance emergency system for the management of oil spills, in terms of organization, consolidation of the emergency apparatus, as well as equipment and technology advancement. Other ongoing activities concerned programs of enhancement of cultural heritage of Sami local community and of technical and professional skills development of local communities. Exploration Exploration activities yielded positive results with the oil and gas Drivis discovery made at the offshore license PL 532 (Eni 30%), with volumes in place estimated in a range of 125 to 140 million barrels. The discovery will be put into production with the recent oil and gas discoveries of Skrugard, Havis and Skavl by means of the development of the integrated Johan Castberg Hub. The total recoverable resources of the license are estimated at over 600 million barrels at 100%. In January 2015, Eni was awarded the operatorship and a 40% interest in the PL 806 license. United Kingdom Eni has been present in the United Kingdom since 1964. Eni’s activities are carried out in the British section of the North Sea, the Irish Sea and Atlantic Ocean, over a developed and undeveloped acreage of 1,284 square kilometers (744 square kilometers net to Eni). In 2014, Eni’s net production of oil and gas averaged 71 kboe/d (the portion of liquids was approximately 43%). Exploration and production activities in the United Kingdom are regulated by concession contracts. Production Eni currently holds interests in 5 production areas of which the Liverpool Bay is operated by Eni with a 100% interest (the acquisition of the assets was completed in April 2014) and Hewett Area is operated with an 89.3% interest. The other fields are Elgin/Franklin (Eni’s interest 21.87%), J-Block and Jasmine (Eni’s interest 33%), Jade (Eni’s interest 7%) and MacCulloch (Eni’s interest 40%), which in 2014 accounted for 66% of Eni’s production in the Country. Development Development activities mainly concerned: (i) production start-up of the West Franklin field (Eni’s interest 21.87%) with the

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Eni Fact Book Exploration & Production

completion of the Phase 2 development program by means of the installation of production platform and pipeline connection to the treatment facility in the area; and (ii) production ramp-up of the Jasmine project (Eni’s interest 33%) with the completion of commissioning and start-up of 4 additional production wells. Exploration Eni holds interests in 11 exploration blocks ranging from 7% to 50%, in 2 of these Eni is operator. Exploration activities yielded positive results with the Romeo North discovery, already linked to the production platform of the Jade field. During the year Eni was awarded the operatorship of the 22/19c (Eni’s interest 50%), 22/19e (Eni’s interest 57.14%) and 30/1b (Eni’s interest 100%) exploration blocks in the North Sea. n North Africa Algeria Eni has been present in Algeria since 1981. In 2014, Eni’s oil and gas production amounted to 109 kboe/d. Developed and undeveloped acreage of Eni’s interests in Algeria was 3,409 square kilometers (1,179 square kilometers net to Eni). Operated and participated activities are located in the Bir Rebaa desert, in the Central-Eastern area of the Country: (i) Blocks 403a/d (Eni’s interest from 65% to 100%); (ii) Block Rom North (Eni’s interest 35%); (iii) Blocks 401a/402a (Eni’s interest 55%); (iv) Blocks 403 (Eni’s interest 50%); (v) Block 405b (Eni’s interest 75%); and (vi) Block 212 (Eni’s interest 22.38%) with discoveries already made. In addition Eni holds interest in the non-operated block 404 and block 208 with a 12.25% stake. Eni was granted three prospection permits in the Timimoun and Oued Mya areas, in southern onshore Algeria. The agreements expire in two years and cover a total acreage of 46,837 square kilometers. The program includes studies and drilling of prospection wells to assess the mineral potential. Exploration and production activities in Algeria are regulated by PSAs and concession contracts. Blocks 403a/d and Rom Nord Production Main producing fields are HBN and Rom and satellite which represented approximately 20% of Eni’s production in Algeria in 2014. Production from Rom and satellites (Zea, Zek and Rec) is treated at the Rom Central Production Facilities (CPF) and sent to the BRN treatment plant for final treatment, while production from the HBN field is treated at the HBN/HBNS oil center operated by the Groupment Berkine. Blocks 401a/402a Production Main producing fields are ROD/SFNE and satellite which accounted for approximately 14% of Eni’s production in Algeria in 2014. Activities are being performed in order to maintain the current production plateau. Block 403 Production The main fields in block 403 are BRN, BRW and BRSW which accounted for approximately 11% of Eni’s production in the Country in 2014. Block 404 Production The main fields in block 404 are HBN and HBNS which accounted for approximately 25% of Eni’s production in the Country in 2014. Block 405 Production Main producing asset is the MLE-CAFC project which accounted for approximately 15% of Eni’s production in the Country in 2014. The natural gas treatment plant has a production and export capacity of 320 mmcf/d of gas, 15 kbbl/d of oil and condensates and 12 kbbl/d of LPG. Four export pipelines link it to the national grid system. Development Development and optimization activities progressed at the MLE-CAFC project. Activities include an additional oil phase with start-up expected in 2017, targeting a production plateau of approximately 33 kboe/d net to Eni. Block 208 Production The El Merk field is the main production project in the area and accounted for approximately 15% of Eni’s production in the Country in 2014. Production is treated by means of a gas treatment plant for approximately 600 mmcf/d and two oil trains for 65 kbbl/d each. Production ramp-up was completed in the year with a production plateau target of approximately 18 kboe/d net to Eni. Egypt Eni has been present in Egypt since 1954. In 2014, Eni’s share of production in this Country amounted to 206 kboe/d and accounted for 13% of Eni’s total annual hydrocarbon production. Developed and undeveloped acreage in Egypt was 11,726 square kilometers (4,946 square kilometers net to Eni). Eni’s main producing liquid fields are located in the Gulf of Suez, primarily the Belayim field (Eni’s interest 100%), and in the Western Desert mainly the Meleiha (Eni’s interest 76%) and the Ras Qattara (Eni’s interest 75%) concessions. Gas production mainly comes from the operated or participated concession of North Port Said (Eni’s interest 100%), El Temsah (Eni’s interest 50%), Baltim (Eni’s interest 50%) and Ras el Barr (Eni’s interest 50%, non operated), located offshore the Nile Delta. In 2014, production from

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these large concessions accounted for approximately 94% of Eni’s production in the Country. In March 2015, Eni and the Egyptian Ministry of Petroleum and Mineral Resources signed a framework agreement to develop the oil and gas resources in the Country with an estimated investment of $5 billion at 100%. The investments, which will be utilized through the realization of projects to be implemented in the next 4 years, are directed to the development of 200 mm/bbl of oil and 1.3 Tcf of gas. In 2014, Eni was awarded: (i) the operatorship of the South-West Meleiha onshore exploration licenses (Eni’s interest 100%), nearby the Meleiha concession, and the Block 9 (Eni’s interest 100%) and Block 8 (Eni’s interest 50%) located in the deep offshore of the Mediterranean Sea. The closing was achieved in the early 2015 with the ratification of the relevant concession agreements; and (ii) the Shorouk concession (Eni’s interest 100%) in the deep offshore of the Mediterranean Sea. Exploration and production activities in Egypt are regulated by PSAs. Gulf of Suez Production Production mainly comes from the Belayim field, Eni’s first large oil discovery in Egypt, which produced approximately 101 kbbl/d (52 kboe/d net to Eni) in 2014. Development Drilling and infilling activities were carried out in the Belayim area, in order to optimize the recovery of its mineral potential. Exploration Exploration activities yielded positive results with the oil discovery ARM-14 in the Abu Rudeis license (Eni’s interest 100%). The discovery was linked to the nearby production facilities and a double production level was achieved in 2014. Nile Delta North Port Said Production Production for the year amounted to approximately 30 kboe/d (approximately 24 kboe/d net to Eni), approximately 141 mmcf/d of natural gas and approximately 3 kbbl/d of condensates. Part of the production of this concession is supplied to the United Gas Derivatives Co (Eni’s interest 33.33%) with a treatment capacity of 1.3 bcf/d of natural gas and a yearly production of 380 ktonnes of propane, 305 ktonnes of LPG and 1.5 mmbbl of condensates. Development Ongoing development activities aimed at supporting current gas production. Baltim Production In 2014, production amounted to approximately 53 kboe/d (approximately 17 kboe/d net to Eni); approximately 247 mmcf/d of natural gas and 7 kbbl/d of condensates. Development Ongoing development activities aim at supporting current gas production. Ras el Barr Production In 2014, the production amounted to approximately 103 kboe/d (approximately 36 kboe/d net to Eni), mainly gas from Ha’py, Akhen, Taurt and Seth fields. Development Development activities concerned infilling activities at the Ha’py field to optimize the mineral potential recovery factor. During the year the END Phase 3 sub-sea project was started up. El Temsah Production This concession includes the Temsah, Denise and Tuna fields. Production in 2014 amounted to approximately 135 kboe/d (approximately 41 kboe/d net to Eni); approximately 212 mmcf/d of natural gas and approximately 2 kbbl/d of condensates net to Eni. In August 2014, the DEKA project started up with a production of approximately 64 mmcf/d of gas and 800 bbl/d of associated condensates. Produced gas is being processed at the onshore El Gamil plant. Peak production of approximately 230 mmcf/d net to Eni was achieved by the first quarter of 2015. Development Development activities included infilling activities in order to optimize the mineral potential recovery factor. Western Desert Production Other operated production activities are located in the Western Desert, in particular in the Meleiha, Ras Qattara, West Abu Gharadig (Eni’s interest 45%) and West Razzak (Eni’s interest 100%) development permits containing mainly oil. Concessions in the Western Desert accounted for approximately 13% of Eni’s production in Egypt in 2014. Development Development activities included infilling activities in order to optimize the mineral potential recovery factor. Exploration Exploration activities yielded positive results with the oil discovery West Deep in the Meleiha concession that flowed at approximately 2 kbbl/d in test production. The discovery confirms the mineral potential of the deep area in the western desert which was identified leveraging on the application of the e-dvatm proprietary technology for processing seismic 3D imaging. Additional delineation and development wells will be drilled to achieve a production level of approximately 8 kbbl/d by the end of 2015. The discovery is characterized by a fast time-to-market and are in line with Eni’s strategy of focusing on high value exploration activities and synergic assets.

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Libya Eni started operations in Libya in 1959. Developed and undeveloped acreage in Libya was 26,635 square kilometers (13,294 square kilometers net to Eni). Production activity is carried out in the Mediterranean Sea facing Tripoli and in the Libyan Desert area and includes six contract areas. Onshore contract areas are: (i) Area A consisting in the former concession 82 (Eni’s interest 50%); (ii) Area B, former concession 100 (Bu Attifel field) and the NC125 Block (Eni’s interest 50%); (iii) Area E with El Feel (Elephant) field (Eni’s interest 33.3%); and (iv) Area F with Block 118 (Eni’s interest 50%). Offshore contract areas are: (i) Area C with the Bouri oilfield (Eni’s interest 50%); and (ii) Area D with Blocks NC41 and NC169 (onshore) that feed the Western Libyan Gas Project (Eni’s interest 50%). In the exploration phase, Eni is operator of four onshore blocks in the Kufra area (186/1, 2, 3 & 4) and in the onshore contract Areas A, B and offshore Area D. The internal situation in Libya continues to represent an issue to Eni’s management. Following the internal conflict of 2011 and the fall of the regime, which forced the Company to shut down almost all its producing facilities including gas exports for a period of about 8 months, a period of social and political instability began which turned into disorders, strikes, protests and a resurgence of the internal conflict. These events jeopardized Eni’s ability to perform its industrial activity in safety, forcing the Company to interrupt its operations on certain occasions as precautionary measure. These events were fairly frequent in 2013 and sporadic in 2014. In 2014, Eni’s facilities in Libya produced on average 239 kboe/d, registering a small increase compared to 2013. In light of the recent developments in Libya, management decided to strengthen security measures at the Company’s production installations and facilities in the Country. However, we did not suffer any significant production shutdowns in the first part of 2015. Exploration and production activities in Libya are regulated by six Exploration and Production Sharing contracts (EPSA). The licenses of Eni’s assets in Libya expire in 2042 and 2047 for oil and gas properties, respectively. Exploration activities yielded positive results with the B1-16/4 well in the Bahr Essalam South prospects in the offshore Area D that flowed at approximately 35 mmcf/d of natural gas and over 600 bbl/d of condensates in test production. Tunisia Eni has been present in Tunisia since 1961. In 2014, Eni’s production amounted to 13 kboe/d. Eni’s activities are located mainly in the Southern Desert areas and in the Mediterranean offshore facing Hammamet, over a developed acreage of 6,464 square kilometers (2,274 square kilometers net to Eni). Exploration and production in this Country are regulated by concessions. Production Production mainly comes from operated Maamoura and Baraka offshore blocks (Eni’s interest 49%) and the Adam (Eni operator with a 25% interest), Oued Zar (Eni operator with a 50% interest), Djebel Grouz (Eni operator with a 50% interest), MLD (Eni’s interest 50%) and El Borma (Eni’s interest 50%) onshore blocks. Development Production optimization represents the main activity currently performed in the above listed concessions to mitigate the natural field production decline. The Titan project progressed at the Tataouine area in order to improve youth employment in tourism and agriculture. n Sub-Saharan Africa Angola Eni has been present in Angola since 1980. In 2014, Eni’s production amounted to 84 kboe/d. Eni’s activities are concentrated in the conventional and deep offshore, over a developed and undeveloped acreage of 21,160 square kilometers (4,327 square kilometers net to Eni). The main Eni’s asset in Angola is the Block 15/06 (Eni operator with a 35% interest) where the West Hub project started up in 2014 and other development projects are underway. Eni participates in other producing blocks: (i) Block 0 in Cabinda (Eni’s interest 9.8%) North of the Angolan coast; (ii) Development Areas in the former Block 3 (Eni’s interest 12%) offshore the Congo Basin; (iii) Development Areas in the Block 14 (Eni’s interest 20%) in the deep offshore west of Block 0; and (iv) Development Areas in the former Block 15 (Eni’s interest 20%) in the deep offshore of the Congo Basin. Eni retains interests in other non-producing concessions, particularly the Lianzi Development Area (Block 14K/A Imi Unit Area - Eni’s interest 10%), Block 35/11 (Eni operator with a 30% interest) and in Block 3/05-A (Eni’s interest 12%), onshore Cabinda North (Eni’s interest 15%) and the Open Areas of Block 2 awarded to the Gas Project (Eni’s interest 20%). In November 2014, Eni signed with the national oil company Sonangol a strategic agreement on future co-operation activities. In particular, the agreement includes the studies to analyze the potential of the non-associated gas present in the Lower Congo Basin and offshore Angola. The project scope is to analyze the different options both internationally and in the domestic market, also in order to sustain the local economy. In addition, the companies will asses possible projects on the mid-downstream business to be carried out in the Country. Exploration and production activities in Angola are regulated by concessions and PSAs.

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Block 0 Production Block 0 is divided into Areas A and B. In 2014, production from this block amounted to approximately 292 kbbl/d (approximately 29 kbbl/d net to Eni). Oil production from Area A, deriving mainly from the Takula, Malongo and Mafumeira fields amounted to approximately 18 kbbl/d net to Eni. Production of Area B derives mainly from the Bomboco, Kokongo, Lomba, N’Dola, Nemba and Sanha fields, and amounted to approximately 11 kbbl/d net to Eni. Development The main development activities performed in the year concerned: (i) the progress of the Nemba field project to reduce flaring gas. In 2015, once the project is completed, flared gas is expected to decrease by approximately 85% from current level; (ii) the Mafumeira Sul field (Eni’s interest 9.8%) with start-up expected in 2016. Infilling activities and near-field exploration are underway on the whole block in order to mitigate the natural field production decline. Exploration Exploration activities yielded positive results with the appraisal of the Pinda Fm discovery. Block 3 Production Block 3 is divided into three production offshore areas. Oil production is treated at the Palanca terminal and delivered to storage vessel unit and then exported. In 2014, production from this area amounted to approximately 51 kbbl/d (approximately 4 kbbl/d net to Eni). Development Activities concerned the Caco-Gazela area with start-up in the first months of 2015. Development scheme is underway at the Punja area. Block 14 Production In 2014, Development Areas in Block 14 produced approximately 122 kbbl/d (approximately 16 kbbl/d net to Eni), accounting for approximately 15% of Eni’s production in the Country. It is one of the most fruitful areas in the West African offshore, recording 9 commercial discoveries to date. Its main fields are Kuito, Landana and Tombua, as well as Benguela-Belize/Lobito-Tomboco. Associated gas of the area will be re-injected in the Nemba reservoir and later it will be delivered via a transport facility to the A-LNG liquefaction plant (see below). Development The main development activities performed in the year concerned the Lianzi project in the Block 14K/A Imi Unit Area (Eni’s interest 10%), with start-up expected in the second half of 2015 and production plateau of 35 kboe/d. Concept definition studies of Malange discovery are underway. Block 15 Production The Block produced approximately 340 kbbl/d (approximately 32 kbbl/d net to Eni) in 2014. Block 15 is considered the most interesting area in the West African offshore with recoverable reserves estimated at 2.55 bbbl of oil. Production derives mainly from the Kizomba discovery area with: (i) the Hungo/Chocalho fields, started-up in 2004 as part of phase A of the global development plan of the Kizomba reserves; (ii) the Kissanje/Dikanza fields, started up in 2005, as part of Phase Kizomba B; (iii) satellites Kizomba Phase 1 project, started-up in 2012. These fields are operated by FPSO units. In 2014, the fields of Kizomba area produced approximately 250 kbbl/d (approximately 24 kbbl/d net to Eni). Other main fields in Block 15 are Mondo and Saxi/Batuque fields which produced approximately 96 kbbl/d (approximately 8 kbbl/d net to Eni) in 2014. In the medium term, phased development of satellite discoveries will maintain the current production plateau of the area. Development Activities concerned the Kizomba satellites Phase 2 project. The project provides to put into production three additional discoveries that will be linked to the existing FPSO. Start-up is expected in 2015, with a production plateau of 70 kboe/d in 2016. Block 15/06 The activities concerned to put in production approximately 450 mmbbl of reserves by means of the development of West Hub projects, sanctioned in 2010, and East Hub project, sanctioned in September 2013. In December 2014, first oil was achieved at the West Hub Development Project in Block 15/06 in the deep offshore. This first Eni-operated producing project in the country is currently producing 45 kboe/d through the N’Goma FPSO, with a production ramp-up expected to reach a plateau up to 100 kboe/d in the coming months. The start-up was achieved in just 44 months from the announcement of the commercial discovery, a result that is at the top of the industry for development in deep waters. The N’Goma FPSO is currently producing from the Sangos discovery, future production will leverage the progressive hooking up of the Block’s discoveries. The East Hub project with start-up expected in 2017 will develop the reservoir in the north-eastern area by means of a development program similar to the West Hub. Exploration activities yielded positive results with the Ochigufu 1 NFW discovery in the deep water of the block with a potential in place estimated at approximately 300 million barrels of oil, increasing resources of the West Hub project. The exploration activity was performed with an innovative 3D seismic acquisition.

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In January 2015, Eni obtained from the Angolan authorities a three-year extension of the exploration period of the above mentioned block. The LNG business in Angola Eni holds a 13.6% interest of the Angola LNG consortium that manages a LNG plant, started up in 2013, with a processing capacity of approximately 1.1 bcf/d of natural gas, producing 5.2 mmtonnes/y of LNG and over 50 kbbl/d of condensates and LPG. The plant envisages the development of 10,594 bcf of gas in 30 years. Eni is part of the Gas Project (Eni’s interest 20%) that will apprise and explore further potential gas discoveries to support the feasibility of a second LNG train or other alternative projects to market gas and associated liquids. Congo Eni has been present in Congo since 1968. In 2014, production averaged 106 kboe/d net to Eni. Eni’s activities are concentrated in the conventional and deep offshore facing Pointe-Noire and onshore over a developed and undeveloped acreage of 4,363 square kilometers (2,883 square kilometers net to Eni). In July 2014, a cooperation agreement was signed with the relevant authorities and ratified by law to extend existing oil permits and to develop new initiatives in the Country’s coastal basin, which extends from onshore Mayombe to frontage deep waters. Exploration and production activities in Congo are regulated by Production Sharing Agreements. Production Eni’s main operated oil producing interests in Congo are the Zatchi (Eni’s interest 56%), Loango (Eni’s interest 42.5%), Ikalou (Eni’s interest 100%), Djambala (Eni’s interest 50%), Foukanda and Mwafi (Eni’s interest 58%), Kitina (Eni’s interest 52%), Awa Paloukou (Eni’s interest 90%), M’Boundi (Eni’s interest 83%), Kouakouala (Eni’s interest 75%), Zingali and Loufika (Eni’s interest 100%) fields, with an overall production of 76 kboe/d net to Eni. Other relevant producing areas are a 35% interest in the Pointe-Noire Grand Fond, PEX and Likouala permits with a production of 30 kboe/d net to Eni. At the end of December 2014 was achieved the start-up of the recent Nené Marine discovery in Block Marine XII (Eni operator with a 65% interest) just 8 months after obtaining the production permit. The early production phase is yielding 7,500 boe/d and the fast-track development of the field has leveraged on the synergies with the front-end loading and the infrastructures of the fields located in the area. The full-field development will take place in several stages and will include the installation of production platforms and the drilling of approximately 30 wells, with a plateau of over 120 kboe/d. Development The flaring down project of the M’Boundi field was completed during the year with a decrease of approximately 64 mmcf in daily volumes of gas flaring, thus achieving the zero flaring target in the area. In particular, the associated gas was fully valorized through: (i) a program of gas injection in order to optimize reserve recovery; and (ii) a long-term supply contract to power plants in the area including the CEC Centrale Electrique du Congo plant (Eni’s interest 20%) with a 300 MW generation capacity. In 2014, M’Boundi contractual supplies were approximately 106 mmcf/d (approximately 17 kboe/d net to Eni). These facilities will also receive volumes of gas from the offshore discoveries of the Block Marine XII in the future. Project Integrée Hinda (PIH) progressed to support the population in the M’Boundi area. The social project provides to improve education, health, production capacity in agriculture with specific programs and in collaboration with local authorities. Planned activities for the 2011-2015 periods achieved a work progressing of 80% at the end of 2014. The program involved approximately 25,000 people. Eni with the support of the Earth Institute of the Columbia University launched a program to design a monitoring system to assess the effectiveness of the PIH project and to check its support to the development of the area. In addition, local cultural promotion programs started-up with specific activities in the Pointe-Noire area, Makoua, located in the north of the country and in the capital, Brazzaville. Development of the Litchendjili sanctioned project progressed in the Marine XII block. The project provides for the installation of a production platform, the construction of transport facilities and onshore treatment plant. Start-up is expected in the second half of 2015 with a peak production of 12 kboe/d net to Eni. Production will also feed the CEC power station. Exploration Exploration activities yielded positive results in the Marine XII offshore block with: (i) the Nené Marine 3 appraisal well confirming the oil and gas mineral potential of the area; and (ii) the significant Minsala Marine oil discovery with resources in place of approximately 1 billion boe. Exploration activities used the application of the e-dva™ proprietary technology for processing seismic imaging that allowed an optimal positioning of exploration wells. Mozambique Eni has been present in Mozambique since 2006. Eni is operator with a 50% interest of Area 4 Block located in the offshore Rovuma Basin, which represents a new frontier in oil and gas industry thanks to extraordinary gas discoveries made during intense only three-year

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exploration campaign. To date, resource base reached 88 Tcf located in the different sections of the area. During the year, exploration activities yielded positive results with the appraisal gas wells Agulha 2 and Coral 4 DIR, confirming the extension of their respective discoveries. The exploration activity was underpinned by the utilization of the e-dva™ proprietary technology of processing seismic imaging. The Company is planning to develop as first target the Coral discovery and a portion of the Mamba straddling resources. As part of the Mamba plan, based on the enactment of a law decree which defines the fiscal and contractual regime applicable to onshore liquefaction projects, Eni expects to obtain the necessary authorizations to develop and produce up to 12 Tcf from the straddling reservoir via an independent industrial plan which needs to be coordinated with the operator of Area 1. An Unitization Agreement for the straddling resources has to be agreed among concessionaries of the straddling reservoirs and submitted to the Mozambique Government within six months dating back to the enactment of the special law on onshore projects which occurred in December 2014. The Coral project scheme comprises construction of a floating unit for the treatment, liquefaction and storage of natural gas (Floating LNG-FLNG) fed by subsea wells. The development plan was formally submitted to the local Authorities at the end of 2014. The FID is expected in the second half of 2015. The award of the relevant EPCIC contracts for the construction, installation and commissioning of the floating unit is expected by the end of 2015. Production start-up is expected for the end of 2019. The development plan of the first stage of the Mamba project contemplates construction and commissioning of two onshore LNG trains and the drilling of 16 subsea wells, with start-up in 2022. The scheduled activities comprise: (i) the submission of the Declaration of Commerciality to the Government by the third quarter of 2015; (ii) the filing of the development plan by the end of 2015; and (iii) the finalization of the commercial agreements and the project financing by the first quarter of 2016. The FID is expected in 2016-2017. In October 2014, Eni signed with the South Korean Company KOGAS a cooperation agreement for jointly development opportunities in the upstream and LNG areas, in particular in the Area 4 in Mozambique. Leveraging on Eni’s cooperation model, a medium-long term program was defined to support local communities also involving all local stakeholders as part of the development activity of the gas discoveries in the Country. The guideline of the program includes projects to develop the socio-economic conditions of local communities and respect for biodiversity. In particular, during 2014 certain projects were completed in the Pemba area in order to: (i) support the access to education, with the construction of a primary school; (ii) develop training activities in collaboration with National Institute for Employment and Vocational Training (INEFP) also supplying educational materials; and (iii) enhance the national health service, also with the restructuring of some hospital departments and specific course dedicated to health staff. In the Pemba area ongoing activities also concerned: (i) access to water with construction of a supply system for approximately 4,000 people; and (ii) studies of access to energy for rural communities also with renewable energy supplies. In addition, the construction of a gas fired power plant for domestic consumption is being planned with the support of the Mozambican Government. Eni performed with the support of the Danish Institute for Human Rights and in line with the UN Guiding Principles on Business and Human Rights a preliminary assessment of the potential impacts of the natural gas development projects on human rights in the Country. Nigeria Eni has been present in Nigeria since 1962. In 2014, Eni’s oil and gas production amounted to 135 kboe/d over a developed and undeveloped acreage of 36,123 square kilometers (7,638 square kilometers net to Eni) located mainly in the onshore and offshore of the Niger Delta. In the development/production phase Eni operates onshore Oil Mining Leases (OML) 60, 61, 62 and 63 (Eni’s interest 20%) and offshore OML 125 (Eni’s interest 85%) and OPL 245 (Eni’s interest 50%), holding interests in OML 118 (Eni’s interest 12.5%) and in OML 116 and 119 Service Contracts. As partners of SPDC JV, the largest joint venture in the Country, Eni also holds a 5% interest in 21 onshore blocks and in 5 conventional offshore blocks. In the exploration phase Eni operates offshore OML 134 (Eni’s interest 85%) and OPL 2009 (Eni’s interest 49%); onshore OPL 282 (Eni’s interest 90%) and OPL 135 (Eni’s interest 48%). Eni also holds a 12.5% interest in OML 135. The project of the Kwale-Akri pipeline in the Niger Delta is almost completed. The e-vpms™ (eni-vibroacoustic pipeline monitoring system) proprietary technology installed with the aim of identify leaks in real time and significantly reducing bunkering. During the year, supporting programs for the local community progressed with main activities in the construction of public infrastructure, improving the quality of education services, enhancing of basic health services, expanding the access to energy for local area, as well as training programs to promote the economic development, in particular in the agricultural sector. 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. In 2014, the Petroleum Technology Association of Nigeria recognized two Eni’s subsidiaries as the best organizations to promote local content in the oil and gas sector in Nigeria (Local Content Operator). This award reaffirmed the Eni’s commitment in the implementation of effective initiatives to boost local economic activities also to achieve the high standard requirements in the oil and gas sector. Exploration and production activities in Nigeria are regulated mainly by production sharing agreements and concession contracts, as well as service contracts, in two blocks, where Eni acts as contractor for state-owned company. Blocks OMLs 60, 61, 62 and 63 Production Onshore four licenses produced approximately 59 kboe/d and accounted for over 40% of Eni’s production in Nigeria in 2014. Liquid and gas production is supported by the NGL plant at Obiafu-Obrikom with a treatment capacity of approximately 1 bcf/d and by the oil tanker terminal at Brass with a storage capacity of approximately 3.5 mmbbl. A large portion of the gas reserves of these four OMLs is destined to supply the Bonny Island liquefaction plant (see below). Another portion of gas production is employed in firing the combined cycle power plant at Kwale-Okpai with a 480 MW generation capacity. In 2014, supplies to this power station were an overall amount of approximately 70 mmcf/d, corresponding to approximately 12 kboe/d (approximately 2 kboe/d net to Eni). Development The treatment and re-injection of produced water program started up at the Ebocha flowstation in the OML 61 block. The project provides for the treatment of 60 kbbl/d of produced water. Associated gas program progressed with further reductions of gas flared.

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Block OML 118 Production The Bonga oil field produced approximately 15 kbbl/d of oil net to Eni in 2014. Production is supported by an FPSO unit with a 225 kbbl/d treatment capacity and a 2 mmbbl storage capacity. Associated gas is carried to a collection platform on the EA field and, from there, is delivered to the Bonny liquefaction plant. In the year production start-up was achieved at the Bonga NW field with the drilling and completion of 4 production and 2 injection wells. Block OML 119 Production Production derived mainly from the Okono/Okpoho fields which yielded approximately 1 kbbl/d of oil net to Eni in 2014. Production is supported by an FPSO unit with an 80 kbbl/d treatment capacity and a 1 mmbbl storage capacity. Block OML 116 Production Production derived mainly from the Agbara field which yielded approximately 2 kbbl/d of oil net to Eni in 2014. Block OML 125 Production Production derived mainly from the Abo field which yielded approximately 20 kbbl/d of oil net to Eni in 2014. Production is supported by an FPSO unit with a 45 kbbl/d capacity and an 800 kbbl storage capacity. Exploration Exploration activities yielded positive results with the Abo 12 oil well. The discovery will be linked to facilities of Abo field during 2015. SPDC Joint Venture (NASE) In 2014, production from the SPDC JV accounted for approximately 27% of Eni’s production in Nigeria (36 kboe/d). Development activities progressed at the OML 28 block: (i) the drilling campaign progressed within the integrated oil and natural gas project in the Gbaran-Ubie area. 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; and (ii) the development plan of the Forkados-Yokri field 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 LNG business in Nigeria Eni holds a 10.4% interest in the Nigeria LNG Ltd joint venture, which runs the Bonny liquefaction plant, located in the Eastern Niger Delta. The plant has a design treatment capacity of approximately 1,236 bcf/y of feed gas corresponding to a production of 22 mmtonnes/y of LNG on six trains. The seventh unit is being engineered as it is in the planning phase. When fully operational, total capacity will amount to approximately 30 mmtonnes/y of LNG, corresponding to a feedstock of approximately 1,624 bcf/y. Natural gas supplies to the plant are provided under gas supply agreements with a 20-year term from the SPDC JV and the NAOC JV, the latter operating the OMLs 60, 61, 62 and 63 blocks with an overall amount of approximately 2,825 mmcf/d (approximately 268 mmcf/d net to Eni corresponding to approximately 49 kboe/d). LNG production is sold under long-term contracts and

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exported to European, Asian and US markets by the Bonny Gas Transport fleet, wholly owned by Nigeria LNG Co. n Kazakhstan Eni has been present in Kazakhstan since 1992. Eni co-operates the Karachaganak producing field and is a partner of the consortium of the North Caspian Sea PSA (NCSPSA) to develop the Kashagan field. 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 Eni holds a 16.81% working interest in the North Caspian Sea Production Sharing Agreement. The NCSPSA defines terms and conditions for the exploration and development of the giant Kashagan field which was discovered in the Northern section of the contractual area in the year 2000 over an undeveloped area extending for approximately 4,600 square kilometers. The NCSPSA will expire at the end of 2041. The exploration and development activities of the Kashagan field and the other discoveries made in the contractual area are executed through an operating model which entails an increased role of the Kazakh partner and defines the international parties’ responsibilities in the execution of the subsequent development phases of the project. During the course of 2014, the Consortium performed an assessment of the technical issues which forced the operator to shut down the production at the Kashagan field soon after the production start-up with the effective completion of Phase 1 of the development plan (the Experimental Program). The findings of the assessment confirmed the necessity to fully replace the damaged pipelines. The Consortium recently finalized the contracts for the replacement of both oil and gas lines. The Consortium expects to complete the installation works in the second half of 2016 with production re-start by the end of 2016. The planned production rate will be achieved during 2017. The Phase 1 is targeting an initial production capacity of 180 kbbl/d; when a second offshore treatment train comes online and compression facilities for gas reinjection are operational production capacity will ramp 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 capacity for reinjection in the reservoir. The partners submitted the scheme of this additional phase to the relevant Kazakh Authorities. In December 2014, the Consortium and the Kazakh Government signed an agreement which settled a number of pending issues relating to financial, environmental and operational matters. In 2014, the Consortium agreed a new setup of the operating model to execute the development of the project, targeting to streamline decision-making process, to increase efficiency in operations and to reduce costs. This new operating model provides that a company, participated by the seven partners of the Consortium, acts as the sole operator of all exploration, development and production activities at the Kashagan field. As part of this process, in 2014 the shareholding in AKCO NV (Eni’s interest 100%) was transferred to NCOC BV. The activities needed to set up the new operating model will be completed by the first half of 2015. An innovative environmental monitoring system was implemented in 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. During the year 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. Within the agreements reached with the local Authorities, Eni continues its training program for Kazakh resources in the oil&gas sector. Karachaganak Located onshore in West Kazakhstan, Karachaganak (Eni’s interest 29.25%) is a liquid, gas and condensate giant field. Operations are conducted by the Karachaganak Petroleum Operating Consortium (KPO) and are regulated by a PSA lasting 40 years, until 2037. Eni and British Gas are co-operators of the venture. Production In 2014, production of the Karachaganak field averaged 242 kbbl/d of liquids (52 kbbl/d net to Eni) and 909 mmcf/d of natural gas (201 mmcf/d net to Eni). This field is developed by producing liquids from the deeper layers of the reservoir. The gas is marketed (about 50%) at the Russian gas plant in Orenburg and the remaining volumes is utilized for re-injecting in the higher layers and the production of fuel gas. Over 90% of liquid production are stabilized at the Karachaganak Processing Complex (KPC) with a capacity of approximately 250 kbbl/d and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline. The remaining volumes of non-stabilized liquid production (approximately 16 kbbl/d) are marketed at the Russian terminal in Orenburg.

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Development The expansion project is currently being assessed by the Consortium 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. Phase-one development to increase injection and treatment capacity of natural gas are under economical and technical assessment. Further development projects to support liquids production plateau are under study. Eni continues its involvement to support local communities by means of the construction of schools and educational facilities, as well as water supply plant and road infrastructures for the villages located in the nearby area of Karachaganak, in particular in the western area. n Rest of Asia Indonesia Eni has been present in Indonesia since 2001. In 2014, Eni’s production mainly composed of gas, amounted to 16 kboe/d. Activities are concentrated in the Eastern offshore and onshore of East Kalimantan, offshore Sumatra, and offshore and onshore of West Timor and West Papua, over a developed and undeveloped acreage of 34,826 square kilometers (26,248 square kilometers net to Eni) in 14 blocks. Exploration and production activities in Indonesia are regulated by Production Sharing Agreements. Production Production consists mainly of gas and derives from the Sanga Sanga permit (Eni’s interest 37.8%) with seven production fields. This gas is treated at the Bontang liquefaction plant, one of the largest in the world. Liquefied gas is exported to the Japanese, South Korean and Taiwanese markets. Development Main ongoing activities to feed the Bontang plant concerned: (i) the Jangkrik field (Eni operator with a 55% interest) in the Kalimantan offshore. 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. Start-up is expected in 2017; and (ii) the Bangka project (Eni’s interest 20%) in the eastern Kalimantan, with start-up expected in 2016. Other main activities were performed on the environmental protection, health care and educational system to support local communities located in the operated area of the eastern Kalimantan, Papua and North Sumatra. Exploration Exploration activities yielded positive results with a gas discovery through the Merakes 1 NFW exploration well in the East Sepinggan offshore block (Eni operator with an 85% interest). This discovery with a potential in place estimated at approximately 2 Tcf, is located in proximity of the operated Jangkrik field, which is currently under development, and will supply additional gas volumes to the Bontang LNG plant. Exploration activity was performed leveraging on the innovative seismic analysis to allow an effective activities by means of the evaluation of several geological data. Iraq Eni has been present in Iraq since 2009 and is performing development activities over a developed acreage of 1,074 square kilometers (446 square kilometers net to Eni). Production comes from Zubair oil field (Eni’s interest 41.6%) with a production of 21 kbbl/d net to Eni in 2014. Development and production activities in Iraq are regulated by Technical Service Contract. Development In 2014, phase one of the Rehabilitation Plan of the Zubair field progressed. The project includes the construction of an oil treatment plant for a capacity of 300 kbbl/d, the revamping of existing treatment facilities and the drilling of production and water injection wells. In March 2014, the national oil company South Oil Co sanctioned the Enhanced Redevelopment Plan to achieve a production plateau of 850 kbbl/d. The main contracts to build new facilities were awarded in the first half of 2014. Activities to support local farms and communities progressed during the year. Pakistan Eni has been present in Pakistan since 2000. In 2014, Eni’s production amounted to 45 kboe/d, mainly gas. Activities are located mainly onshore covering a developed and undeveloped acreage of 25,639 square kilometers (9,467 square kilometers net to Eni). Exploration and production activities in Pakistan are regulated by concessions (onshore) and PSAs (offshore). Production Eni’s main permits in the Country are Bhit/Bhadra (Eni operator with a 40% interest), Sawan (Eni’s interest 23.68%) and Zamzama (Eni’s interest 17.75%), which in 2014 accounted for 75% of Eni’s production in the Country. Development Development activities concerned mainly infilling programs in order to counteract natural production depletion. Programs to support the development of local communities nearby the production field of Bhit, Badhra and Kadanwari progressed with: (i) the construction of school infrastructure; (ii) programs to fresh water access; and (iii) vocational training initiatives in the upstream sector. Turkmenistan Eni started its activities in Turkmenistan with the purchase of the British company Burren Energy Plc in 2008. Activities are focused on the onshore Nebit Dag Area in the Western part of the Country, over a developed acreage of 200 square kilometers (180 square kilometers net to Eni). In 2014, Eni’s production averaged 10 kboe/d. In November 2014, Eni and the State Agency for Management and Use of Hydrocarbon Resources signed an addendum to the Production Sharing Agreement regulating exploration and production activities at the onshore Nebit Dag Area. The addendum extends the duration of the PSA to 2032. The agreement also establishes the transfer of a 10% stake out of the contractor share to the State oil company Turkmenneft (Eni retains a 90% interest stake). The agreement also includes the construction of the Training Center for technical staff in the upstream sector. Vocational training program in oil&gas sector progressed for local graduates. In addition, Eni and Turkmen State Agency signed a Memorandum of Understanding to evaluate the extension of Eni’s activities also in the Turkmenistan’s offshore section of the Caspian Sea. Production Production derives mainly from the Burun oilfield. Oil production is shipped to the Turkmenbashi refinery plant. Eni receives, by means of a swap arrangement with the Turkmen Authorities, an equivalent amount of oil at the Okarem terminal, close to the South coast of the Caspian Sea. Eni’s entitlement is sold FOB. Associated natural gas is used for own consumption and gas lift system. The remaining amount is delivered to the national oil company Turkmenneft, via national grid. Development Development activities include: (i) a program to mitigate the natural field production decline; and (ii) the completion of the revamping of the treatment oil plant at the Burun field in order to increase treatment capacity, as well as to improve safety, efficiency and environment performance also by means of reducing gas flaring and increasing water re-injection capacity.

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n Americas Ecuador Eni has been present in Ecuador since 1988. Operations are performed in Block 10 (Eni’s interest 100%) located in the Oriente Basin, in the Amazon forest, over a developed acreage of 1,985 square kilometers net to Eni. In 2014, Eni’s production averaged 12 kbbl/d. Exploration and production activities in Ecuador are regulated by a service contract that expires in 2023. Production Production deriving from the Villano field, started in 1999, is processed by means of a Central Production Facility and transported via a pipeline network to the storage facility located in the Pacific coast. Development In the year, the following projects were sanctioned: (i) the Phase VI of the Villano field, with a production start-up expected in 2016; and (ii) Oglan discovery, with start-up expected in 2017. Maintenance activities and facilities upgrading progressed to support high safety standard and efficiency levels. In 2014, the first three years of the Plan of Action on Biodiversity in the Amazon forest near the Villano field, concluded that Eni’s production activities were performed with minimal environmental impacts. Eni’s commitment to support the socio-economic development nearby the production areas progressed by means of: (i) improving sanitary condition with medical supplies, equipments and vehicles; (ii) educational plans with the construction of schools, supplies and scholarship foundation; and (iii) training activities and programs to develop agricultural sector also with specific equipments supplies. Exploration Exploration activities yielded positive results with the Oglan-2 exploration well with a potential in place estimated at 300 million barrels of oil, located near the processing facilities of the operated field of Villano. Trinidad & Tobago Eni has been present in Trinidad & Tobago since 1970. In 2014, Eni’s production averaged 60 mmcf/d (11 kboe/d). Activity is concentrated offshore North of Trinidad over a developed acreage of 382 square kilometers (66 square kilometers net to Eni). Exploration and production activities in Trinidad & Tobago are regulated by PSAs. Production Production is provided by the Chaconia, Ixora, Hibiscus, Ponsettia, Bougainvillea and Heliconia gas fields, located in the North Coast Marine Area 1 block (Eni’s interest 17.3%). Production is supported by two fixed platforms linked to the Hibiscus processing facility. Natural gas is used to feed trains 2, 3 and 4 of the Atlantic LNG liquefaction plant on Trinidad’s coast and it is sold under long-term contracts in the United States, as well as alternative destinations on a spot basis. United States Eni has been present in the United States since 1968. Activities are performed in the Gulf of Mexico, Alaska and onshore in Texas. Developed and undeveloped acreage covers 6,092 square kilometers (3,500 square kilometers net to Eni). In 2014, Eni’s oil and gas production amounted to 92 kboe/d. Exploration and production activities in the United States are regulated by concessions. Gulf of Mexico Eni holds interests in 188 exploration and production blocks in deep and conventional offshore of the Gulf of Mexico of which 122 are operated by Eni. In 2014, Eni was awarded the operatorship of exploration licenses MC246 and MC290 with a 100% interest. Production The main operated fields are Allegheny and Appaloosa (Eni’s interest 100%), Pegasus (Eni’s interest 85%), Longhorn, Devils Towers and Triton (Eni’s interest 75%). Eni also holds interests in Europa (Eni’s interest 32%), Medusa (Eni’s interest 25%) and Thunder Hawk (Eni’s interest 25%) fields. Production start-up was achieved at the St. Malo (Eni’s interest 1.25%) and Lucius (Eni 8.5%) fields, the latter started up in January 2015. The start-up of Hadrian South (Eni’s interest 30%) is achieved in March 2015 and will allow to achieve an expected peak production of 144 kboe/d (22 kboe/d net to Eni) for the Lucius-Hadrian South project. Development Development activities concerned: (i) the Heidelberg project (Eni’s interest 12.5%) in the deep offshore of the Gulf of Mexico. Activities include the drilling of 5 production wells and the installation of a production platform. Start-up is expected a the end of 2016 with a production of 9 kboe/d net to Eni; and (ii) the drilling of development wells at the operated Devils Tower and Pegasus fields, as well as non-operated Europa and K2 (Eni’s interest 13.39%) fields . Texas Production Production comes from the Alliance area (Eni’s interest 27.5%), in the Fort Worth basin. This asset was acquired following an agreement with Quicksilver for unconventional gas reserves (shale gas). In 2014, Eni’s production amounted to approximately 8 kboe/d. Development The development of unconventional gas reserves (shale gas) progressed in the area with start-up of additional 21 production wells.

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Exploration Exploration activities yielded positive results with the Stallings 1H and Mitchell 1H exploratory wells, under the agreement with Quicksilver Resources signed at the end of 2013 providing for joint evaluation, exploration and development of unconventional oil reservoirs (shale oil) in the southern part of the Delaware Basin in West Texas. The wells were already connected to existing production facilities with an initial flow of 1,500 bbl/d. Eni was awarded in the Leon Valley (Western Texas) with a 50% interest for exploring and developing an area with unconventional oil reservoirs. Alaska Eni holds interests in 99 exploration and development blocks, with interests ranging from 10% to 100%; Eni is the operator in 46 of these blocks. Production Eni’s production is provided by Nikaitchuq (Eni operator with a 100% interest) and Oooguruk (Eni’s interest 30%) fields with a 2014 overall net production of approximately 21 kbbl/d. Development Drilling activities progressed at the Nikaitchuq and Oooguruk fields. In June 2014, the Nikaitchuq field achieved the production target of 25 kboe/d. This relevant result required the expertise and the application of Eni’s 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. Venezuela Eni has been present in Venezuela since 1998. In 2014, Eni’s production averaged 10 kbbl/d. Activity is concentrated both offshore (Gulf of Venezuela and Gulf of Paria) and onshore in the Orinoco Oil Belt, over a developed and undeveloped acreage of 2,804 square kilometers (1,066 square kilometers net to Eni). Exploration and production of oilfields are regulated by the terms of the so-called Empresa Mixta. Under the new legal framework, only a company incorporated under the law of Venezuela is entitled to conduct petroleum operations. A stake of at least 60% in the capital of such company is held by an affiliate of the Venezuela state oil company, PDVSA, preferably Corporación Venezuelana de Petróleo (CVP). Production Eni’s production comes from the Corocoro field (Eni’s interest 26%), in the Gulf of Paria, and the Junin 5 field (Eni’s interest 40%), located in the Orinoco Oil Belt which contains 35 bbbl of certified heavy oil in place. Development Drilling activities progressed at the Junin 5 field with the drilling of 22 wells. The early production of the first phase started up in 2013 with a target plateau of 75 kbbl/d. The full field development phase includes a long-term production plateau of 240 kbbl/d. The project provides for the construction of a refinery. Eni agreed to finance a part of PDVSA’s development costs for the Early production phase and engineering activity of refinery plant up to $1.74 billion. Ongoing development activities progressed at the Perla gas field in the Cardon IV Block (Eni’s interest 50%), located in the Gulf of Venezuela. The early production start-up is expected by the second quarter of 2015 with a target production of approximately 450 mmcf/d. The full project includes the utilization of existing wells, the drilling of 17 additional wells and the installation of production platforms linked by pipelines to an onshore treatment plant. Production ramp-up is expected in 2017 with a target of approximately 800 mmcf/d. The development plan targets a long-term production plateau of approximately 1,200 mmcf/d from 2020. Exploration Eni is also participating with a 19.5% interest in Petrolera Güiria for oil exploration and with a 40% interest in Punta Pescador and Gulf of Paria Ovest for gas exploration, both located offshore in the Eastern Venezuela. n Australia and Oceania Australia Eni has been present in Australia since 2001. In 2014, Eni’s production of oil and natural gas averaged 26 kboe/d. Activities are focused on conventional and deep offshore fields, over a developed and undeveloped acreage of 22,819 square kilometers (13,376 square kilometers net to Eni). The main production blocks in which Eni holds interests are WA-33-L (Eni’s interest 100%), JPDA 03-13 (Eni’s interest 10.99%) and JPDA 06-105 (Eni operator with a 40% interest). In the appraisal and development phase Eni holds interests in NT/P68 (Eni’s interest 50%) and NT/RL7 (Eni’s interest 32.5%). In addition, Eni holds interest in 6 exploration licenses, of which 1 in the JPDA. Exploration and production activities in Australia are regulated by concession agreements, whereas in the cooperation zone between Timor Leste and Australia (Joint Petroleum Development Area-JPDA) they are regulated by PSAs. Block JPDA 03-13 Production The liquids and gas Bayu Undan field started-up in 2004 and produced 138 kboe/d (approximately 12 kboe/d net to Eni) in 2014. Liquid production is supported by 3 treatment platforms and an FSO unit. Production of natural gas is mostly carried by an approximately 500-kilometer long pipeline and is treated at the Darwin liquefaction plant which has a capacity of 3.6 mmtonnes/y of LNG (equivalent to approximately 177 bcf/y of feed gas). LNG is sold to Japanese power generation companies under long-term contracts. Development The Development Phase 3 is currently underway, aiming at increasing of liquid production and supporting of LNG production. Block JPDA 06-105 Production The Kitan oil field (Eni operator with a 40% interest) started-up in 2011 and amounted to 6 kbbl/d in 2014 (approximately 2 kbbl/d net to Eni). Production is supported by 3 sub-sea wells and operated by an FPSO unit for the oil treatment. Development Development activities progressed at the Kitan field with the drilling of one additional well to increase production in 2015. Block WA-33-L Production The Blacktip gas field (Eni’s interest 100%) started-up in 2009 and produced approximately 24 bcf/y in 2014 (approximately 12 kboe/d). The project is supported by a production platform and carried by a 108-kilometer long pipeline to an onshore treatment plant with a capacity of 42 bcf/y. Natural gas extracted from this field is sold under a 25-year contract to supply a power plant, signed with Australian society Power & Water Utility Co.

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Estimated net proved hydrocarbons reserves by geographic area (mmboe)

(at December 31) Italy (a) Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

| 2010 — Estimated net proved
hydrocarbons reserves | 724 | 601 | 2,119 | 1,161 | 1,126 | 612 | 373 | 127 | 6,843 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated
subsidiaries | 724 | 601 | 2,096 | 1,133 | 1,126 | 295 | 230 | 127 | 6,332 |
| Equity-accounted entities | | | 23 | 28 | | 317 | 143 | | 511 |
| Developed | 554 | 405 | 1,237 | 817 | 543 | 182 | 167 | 117 | 4,022 |
| Consolidated subsidiaries | 554 | 405 | 1,215 | 812 | 543 | 139 | 141 | 117 | 3,926 |
| Equity-accounted
entities | | | 22 | 5 | | 43 | 26 | | 96 |
| Undeveloped | 170 | 196 | 882 | 344 | 583 | 430 | 206 | 10 | 2,821 |
| Consolidated
subsidiaries | 170 | 196 | 881 | 321 | 583 | 156 | 89 | 10 | 2,406 |
| Equity-accounted entities | | | 1 | 23 | | 274 | 117 | | 415 |
| 2011 | | | | | | | | | |
| Estimated net proved
hydrocarbons reserves | 707 | 630 | 2,052 | 1,104 | 950 | 886 | 624 | 133 | 7,086 |
| Consolidated
subsidiaries | 707 | 630 | 2,031 | 1,021 | 950 | 230 | 238 | 133 | 5,940 |
| Equity-accounted entities | | | 21 | 83 | | 656 | 386 | | 1,146 |
| Developed | 540 | 374 | 1,194 | 746 | 482 | 134 | 188 | 112 | 3,770 |
| Consolidated subsidiaries | 540 | 374 | 1,175 | 742 | 482 | 129 | 162 | 112 | 3,716 |
| Equity-accounted
entities | | | 19 | 4 | | 5 | 26 | | 54 |
| Undeveloped | 167 | 256 | 858 | 358 | 468 | 752 | 436 | 21 | 3,316 |
| Consolidated
subsidiaries | 167 | 256 | 856 | 279 | 468 | 101 | 76 | 21 | 2,224 |
| Equity-accounted entities | | | 2 | 79 | | 651 | 360 | | 1,092 |
| 2012 | | | | | | | | | |
| Estimated net proved
hydrocarbons reserves | 524 | 591 | 1,935 | 1,129 | 1,041 | 852 | 966 | 128 | 7,166 |
| Consolidated
subsidiaries | 524 | 591 | 1,915 | 1,048 | 1,041 | 184 | 236 | 128 | 5,667 |
| Equity-accounted entities | | | 20 | 81 | | 668 | 730 | | 1,499 |
| Developed | 406 | 349 | 1,100 | 716 | 458 | 190 | 190 | 107 | 3,516 |
| Consolidated subsidiaries | 406 | 349 | 1,080 | 716 | 458 | 108 | 170 | 107 | 3,394 |
| Equity-accounted
entities | | | 20 | | | 82 | 20 | | 122 |
| Undeveloped | 118 | 242 | 835 | 413 | 583 | 662 | 776 | 21 | 3,650 |
| Consolidated
subsidiaries | 118 | 242 | 835 | 332 | 583 | 76 | 66 | 21 | 2,273 |
| Equity-accounted entities | | | | 81 | | 586 | 710 | | 1,377 |
| 2013 | | | | | | | | | |
| Estimated net proved
hydrocarbons reserves | 499 | 557 | 1,802 | 1,230 | 1,035 | 270 | 966 | 176 | 6,535 |
| Consolidated
subsidiaries | 499 | 557 | 1,783 | 1,155 | 1,035 | 263 | 240 | 176 | 5,708 |
| Equity-accounted entities | | | 19 | 75 | | 7 | 726 | | 827 |
| Developed | 408 | 343 | 1,022 | 701 | 566 | 93 | 171 | 123 | 3,427 |
| Consolidated subsidiaries | 408 | 343 | 1,003 | 701 | 566 | 90 | 153 | 123 | 3,387 |
| Equity-accounted
entities | | | 19 | | | 3 | 18 | | 40 |
| Undeveloped | 91 | 214 | 780 | 529 | 469 | 177 | 795 | 53 | 3,108 |
| Consolidated
subsidiaries | 91 | 214 | 780 | 454 | 469 | 173 | 87 | 53 | 2,321 |
| Equity-accounted entities | | | | 75 | | 4 | 708 | | 787 |
| 2014 | | | | | | | | | |
| Estimated net proved
hydrocarbons reserves | 503 | 544 | 1,756 | 1,320 | 1,069 | 290 | 960 | 160 | 6,602 |
| Consolidated
subsidiaries | 503 | 544 | 1,740 | 1,239 | 1,069 | 285 | 232 | 160 | 5,772 |
| Equity-accounted entities | | | 16 | 81 | | 5 | 728 | | 830 |
| Developed | 401 | 335 | 919 | 725 | 589 | 115 | 214 | 135 | 3,433 |
| Consolidated subsidiaries | 401 | 335 | 904 | 702 | 589 | 112 | 188 | 135 | 3,366 |
| Equity-accounted
entities | | | 15 | 23 | | 3 | 26 | | 67 |
| Undeveloped | 102 | 209 | 837 | 595 | 480 | 175 | 746 | 25 | 3,169 |
| Consolidated
subsidiaries | 102 | 209 | 836 | 537 | 480 | 173 | 44 | 25 | 2,406 |
| Equity-accounted entities | | | 1 | 58 | | 2 | 702 | | 763 |

(a) Including approximately 767 billion of cubic feet of natural gas held in storage at December 31, 2010 and 2011.

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Estimated net proved liquids reserves by geographic area (mmbbl)

(at December 31) Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

| 2010 — Estimated net proved liquids
reserves | 248 | 349 | 997 | 756 | 788 | 183 | 273 | 29 | 3,623 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated
subsidiaries | 248 | 349 | 978 | 750 | 788 | 139 | 134 | 29 | 3,415 |
| Equity-accounted entities | | | 19 | 6 | | 44 | 139 | | 208 |
| Developed | 183 | 207 | 674 | 537 | 251 | 44 | 87 | 20 | 2,003 |
| Consolidated subsidiaries | 183 | 207 | 656 | 533 | 251 | 39 | 62 | 20 | 1,951 |
| Equity-accounted
entities | | | 18 | 4 | | 5 | 25 | | 52 |
| Undeveloped | 65 | 142 | 323 | 219 | 537 | 139 | 186 | 9 | 1,620 |
| Consolidated
subsidiaries | 65 | 142 | 322 | 217 | 537 | 100 | 72 | 9 | 1,464 |
| Equity-accounted entities | | | 1 | 2 | | 39 | 114 | | 156 |
| 2011 | | | | | | | | | |
| Estimated net proved liquids
reserves | 259 | 372 | 934 | 692 | 653 | 216 | 283 | 25 | 3,434 |
| Consolidated
subsidiaries | 259 | 372 | 917 | 670 | 653 | 106 | 132 | 25 | 3,134 |
| Equity-accounted entities | | | 17 | 22 | | 110 | 151 | | 300 |
| Developed | 184 | 195 | 638 | 487 | 215 | 34 | 117 | 25 | 1,895 |
| Consolidated subsidiaries | 184 | 195 | 622 | 483 | 215 | 34 | 92 | 25 | 1,850 |
| Equity-accounted
entities | | | 16 | 4 | | | 25 | | 45 |
| Undeveloped | 75 | 177 | 296 | 205 | 438 | 182 | 166 | | 1,539 |
| Consolidated
subsidiaries | 75 | 177 | 295 | 187 | 438 | 72 | 40 | | 1,284 |
| Equity-accounted entities | | | 1 | 18 | | 110 | 126 | | 255 |
| 2012 | | | | | | | | | |
| Estimated net proved liquids
reserves | 227 | 351 | 921 | 688 | 670 | 196 | 273 | 24 | 3,350 |
| Consolidated
subsidiaries | 227 | 351 | 904 | 672 | 670 | 82 | 154 | 24 | 3,084 |
| Equity-accounted entities | | | 17 | 16 | | 114 | 119 | | 266 |
| Developed | 165 | 180 | 601 | 456 | 203 | 49 | 128 | 24 | 1,806 |
| Consolidated subsidiaries | 165 | 180 | 584 | 456 | 203 | 41 | 109 | 24 | 1,762 |
| Equity-accounted
entities | | | 17 | | | 8 | 19 | | 44 |
| Undeveloped | 62 | 171 | 320 | 232 | 467 | 147 | 145 | | 1,544 |
| Consolidated
subsidiaries | 62 | 171 | 320 | 216 | 467 | 41 | 45 | | 1,322 |
| Equity-accounted entities | | | | 16 | | 106 | 100 | | 222 |
| 2013 | | | | | | | | | |
| Estimated net proved liquids
reserves | 220 | 330 | 846 | 738 | 679 | 129 | 263 | 22 | 3,227 |
| Consolidated
subsidiaries | 220 | 330 | 830 | 723 | 679 | 128 | 147 | 22 | 3,079 |
| Equity-accounted entities | | | 16 | 15 | | 1 | 116 | | 148 |
| Developed | 177 | 179 | 577 | 465 | 295 | 38 | 115 | 20 | 1,866 |
| Consolidated subsidiaries | 177 | 179 | 561 | 465 | 295 | 38 | 96 | 20 | 1,831 |
| Equity-accounted
entities | | | 16 | | | | 19 | | 35 |
| Undeveloped | 43 | 151 | 269 | 273 | 384 | 91 | 148 | 2 | 1,361 |
| Consolidated
subsidiaries | 43 | 151 | 269 | 258 | 384 | 90 | 51 | 2 | 1,248 |
| Equity-accounted entities | | | | 15 | | 1 | 97 | | 113 |
| 2014 | | | | | | | | | |
| Estimated net proved liquids
reserves | 243 | 331 | 790 | 756 | 697 | 132 | 264 | 13 | 3,226 |
| Consolidated
subsidiaries | 243 | 331 | 776 | 739 | 697 | 131 | 147 | 13 | 3,077 |
| Equity-accounted entities | | | 14 | 17 | | 1 | 117 | | 149 |
| Developed | 184 | 174 | 534 | 477 | 306 | 64 | 142 | 12 | 1,893 |
| Consolidated subsidiaries | 184 | 174 | 521 | 470 | 306 | 64 | 116 | 12 | 1,847 |
| Equity-accounted
entities | | | 13 | 7 | | | 26 | | 46 |
| Undeveloped | 59 | 157 | 256 | 279 | 391 | 68 | 122 | 1 | 1,333 |
| Consolidated
subsidiaries | 59 | 157 | 255 | 269 | 391 | 67 | 31 | 1 | 1,230 |
| Equity-accounted entities | | | 1 | 10 | | 1 | 91 | | 103 |

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Eni Fact Book Exploration & Production

Estimated net proved natural gas reserves by geographic area (bcf)

(at December 31) Italy (a) Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

| 2010 — Estimated net proved natural
gas reserves | 2,644 | 1,401 | 6,231 | 2,245 | 1,874 | 2,391 | 552 | 544 | 17,882 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated
subsidiaries | 2,644 | 1,401 | 6,207 | 2,127 | 1,874 | 871 | 530 | 544 | 16,198 |
| Equity-accounted entities | | | 24 | 118 | | 1,520 | 22 | | 1,684 |
| Developed | 2,061 | 1,103 | 3,122 | 1,554 | 1,621 | 774 | 437 | 539 | 11,211 |
| Consolidated subsidiaries | 2,061 | 1,103 | 3,100 | 1,550 | 1,621 | 560 | 431 | 539 | 10,965 |
| Equity-accounted
entities | | | 22 | 4 | | 214 | 6 | | 246 |
| Undeveloped | 583 | 298 | 3,109 | 691 | 253 | 1,617 | 115 | 5 | 6,671 |
| Consolidated
subsidiaries | 583 | 298 | 3,107 | 577 | 253 | 311 | 99 | 5 | 5,233 |
| Equity-accounted entities | | | 2 | 114 | | 1,306 | 16 | | 1,438 |
| 2011 | | | | | | | | | |
| Estimated net proved natural
gas reserves | 2,491 | 1,427 | 6,210 | 2,287 | 1,648 | 3,718 | 1,897 | 604 | 20,282 |
| Consolidated
subsidiaries | 2,491 | 1,425 | 6,190 | 1,949 | 1,648 | 685 | 590 | 604 | 15,582 |
| Equity-accounted entities | | 2 | 20 | 338 | | 3,033 | 1,307 | | 4,700 |
| Developed | 1,977 | 995 | 3,087 | 1,441 | 1,480 | 552 | 393 | 491 | 10,416 |
| Consolidated subsidiaries | 1,977 | 995 | 3,070 | 1,437 | 1,480 | 528 | 385 | 491 | 10,363 |
| Equity-accounted
entities | | | 17 | 4 | | 24 | 8 | | 53 |
| Undeveloped | 514 | 432 | 3,123 | 846 | 168 | 3,166 | 1,504 | 113 | 9,866 |
| Consolidated
subsidiaries | 514 | 430 | 3,120 | 512 | 168 | 157 | 205 | 113 | 5,219 |
| Equity-accounted entities | | 2 | 3 | 334 | | 3,009 | 1,299 | | 4,647 |
| 2012 | | | | | | | | | |
| Estimated net proved natural
gas reserves | 1,633 | 1,317 | 5,574 | 2,414 | 2,038 | 3,605 | 3,804 | 572 | 20,957 |
| Consolidated
subsidiaries | 1,633 | 1,317 | 5,558 | 2,061 | 2,038 | 562 | 449 | 572 | 14,190 |
| Equity-accounted entities | | | 16 | 353 | | 3,043 | 3,355 | | 6,767 |
| Developed | 1,325 | 925 | 2,736 | 1,429 | 1,401 | 774 | 340 | 459 | 9,389 |
| Consolidated subsidiaries | 1,325 | 925 | 2,720 | 1,429 | 1,401 | 372 | 334 | 459 | 8,965 |
| Equity-accounted
entities | | | 16 | | | 402 | 6 | | 424 |
| Undeveloped | 308 | 392 | 2,838 | 985 | 637 | 2,831 | 3,464 | 113 | 11,568 |
| Consolidated
subsidiaries | 308 | 392 | 2,838 | 632 | 637 | 190 | 115 | 113 | 5,225 |
| Equity-accounted entities | | | | 353 | | 2,641 | 3,349 | | 6,343 |
| 2013 | | | | | | | | | |
| Estimated net proved natural
gas reserves | 1,532 | 1,247 | 5,246 | 2,704 | 1,957 | 772 | 3,862 | 848 | 18,168 |
| Consolidated
subsidiaries | 1,532 | 1,247 | 5,231 | 2,374 | 1,957 | 744 | 509 | 848 | 14,442 |
| Equity-accounted entities | | | 15 | 330 | | 28 | 3,353 | | 3,726 |
| Developed | 1,266 | 904 | 2,447 | 1,295 | 1,488 | 300 | 315 | 561 | 8,576 |
| Consolidated subsidiaries | 1,266 | 904 | 2,432 | 1,295 | 1,488 | 286 | 310 | 561 | 8,542 |
| Equity-accounted
entities | | | 15 | | | 14 | 5 | | 34 |
| Undeveloped | 266 | 343 | 2,799 | 1,409 | 469 | 472 | 3,547 | 287 | 9,592 |
| Consolidated
subsidiaries | 266 | 343 | 2,799 | 1,079 | 469 | 458 | 199 | 287 | 5,900 |
| Equity-accounted entities | | | | 330 | | 14 | 3,348 | | 3,692 |
| 2014 | | | | | | | | | |
| Estimated net proved natural
gas reserves | 1,432 | 1,171 | 5,306 | 3,095 | 2,049 | 864 | 3,821 | 807 | 18,545 |
| Consolidated
subsidiaries | 1,432 | 1,171 | 5,291 | 2,744 | 2,049 | 846 | 468 | 807 | 14,808 |
| Equity-accounted entities | | | 15 | 351 | | 18 | 3,353 | | 3,737 |
| Developed | 1,192 | 887 | 2,125 | 1,360 | 1,553 | 271 | 399 | 675 | 8,462 |
| Consolidated subsidiaries | 1,192 | 887 | 2,110 | 1,271 | 1,553 | 261 | 393 | 675 | 8,342 |
| Equity-accounted
entities | | | 15 | 89 | | 10 | 6 | | 120 |
| Undeveloped | 240 | 284 | 3,181 | 1,735 | 496 | 593 | 3,422 | 132 | 10,083 |
| Consolidated
subsidiaries | 240 | 284 | 3,181 | 1,473 | 496 | 585 | 75 | 132 | 6,466 |
| Equity-accounted entities | | | | 262 | | 8 | 3,347 | | 3,617 |

(a) Including approximately 767 billion of cubic feet of natural gas held in storage at December 31, 2010 and 2011.

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Eni Fact Book Exploration & Production

Production of oil and natural gas by country (a) (kboe/d) 2010 2011 2012 2013 2014

Italy	183	186	189	186	179
Rest of Europe	222	216	178	155	190
Croatia	8	5	5	8	7
Norway	123	131	126	106	112
United Kingdom	91	80	47	41	71
North Africa	602	438	586	556	567
Algeria	77	72	78	88	109
Egypt	232	236	235	227	206
Libya	273	112	258	228	239
Tunisia	20	18	15	13	13
Sub-Saharan Africa	400	370	345	332	325
Angola	118	102	87	87	84
Congo	110	108	104	120	106
Nigeria	172	160	154	125	135
Kazakhstan	108	106	102	100	88
Rest of Asia	131	112	129	144	98
China	7	8	9	8	4
India	8	4	2	1	1
Indonesia	19	18	18	16	16
Iran	21	6	3	4	1
Iraq	5	7	18	22	21
Pakistan	59	58	57	52	45
Russia			11	31
Turkmenistan	12	11	11	10	10
Americas	143	125	135	116	125
Brazil		1	2
Ecuador	11	7	25	13	12
Trinidad
& Tobago	12	10	11	11	11
United States	109	98	88	82	92
Venezuela	11	9	9	10	10
Australia and Oceania	26	28	37	30	26
Australia	26	28	37	30	26
Total outside Italy	1,632	1,395	1,512	1,433	1,419
	1,815	1,581	1,701	1,619	1,598
of which equity-accounted
entities	25	26	35	54	22
Angola	3	4	2	3	2
Brazil		1	2
Indonesia	6	6	6	5	5
Russia			11	31
Tunisia	5	6	5	5	5
Venezuela	11	9	9	10	10

Oil and natural gas production sold (mmboe) 2010 2011 2012 2013 2014

| Oil and
natural gas production — Change in inventories and other | | 662.3 — (3.4 | ) | 577.0 — (7.4 | ) | 622.6 — 1.6 | | 591.0 — (5.7 | ) | 583.1 — (4.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Own
consumption of gas | | (20.9 | ) | (21.1 | ) | (25.5 | ) | (30.0 | ) | (29.4 | ) |
| Oil and natural gas
production sold (b) | | 638.0 | | 548.5 | | 598.7 | | 555.3 | | 549.5 | |
| Oil | (mmbbl) | 361.30 | | 302.61 | | 325.41 | | 299.54 | | 299.78 | |
| - of which to R&M segment | | 206.41 | | 190.65 | | 185.48 | | 178.83 | | 184.09 | |
| Natural
gas | (bcf) | 1,536 | | 1,367 | | 1,501 | | 1,405 | | 1,371 | |
| - of which to G&P segment | | 432 | | 423 | | 435 | | 385 | | 371 | |

(a) Includes volumes of gas consumed in operations (442, 451, 383, 321 and 318 mmcf/d, in 2014, 2013, 2012, 2011 and 2010, respectively). (b) Includes 6.1 mmboe of equity-accounted entities production sold in 2014 (17.1, 11.2, 7.7 and 8 mmboe in 2013, 2012, 2011 and 2010, respectively).

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Eni Fact Book Exploration & Production

Liquids production by country (kbbl/d) 2010 2011 2012 2013 2014

Italy	61	64	63	71	73
Rest of Europe	121	120	95	77	93
Norway	74	80	74	60	62
United
Kingdom	47	40	21	17	31
North Africa	301	209	271	252	252
Algeria	74	69	71	73	83
Egypt	96	91	88	93	88
Libya	116	36	101	76	73
Tunisia	15	13	11	10	8
Sub-Saharan Africa	321	278	247	242	231
Angola	113	95	80	79	75
Congo	98	87	82	90	80
Nigeria	110	96	85	73	76
Kazakhstan	65	64	61	61	52
Rest of Asia	48	34	44	49	37
China	6	7	8	7	4
India	1
Indonesia	2	2	2	2	2
Iran	21	6	3	4	1
Iraq	5	7	18	22	21
Pakistan	1	1	1
Russia			2	5
Turkmenistan	12	11	10	9	9
Americas	71	65	83	71	84
Brazil		1	2
Ecuador	11	7	25	13	12
United States	49	48	47	48	62
Venezuela	11	9	9	10	10
Australia and Oceania	9	11	18	10	6
Australia	9	11	18	10	6
Total outside Italy	936	781	819	762	755
	997	845	882	833	828
of which equity-accounted
entities	19	19	20	20	15
Angola	3	3	2
Brazil		1	2
Indonesia	1	1	1	1	1
Russia			2	5
Tunisia	4	5	4	4	4
Venezuela	11	9	9	10	10

Oil and natural gas production available for sale (a) (kboe/d) 2010 2011 2012 2013 2014

Italy	178	181	184	179	171
Rest of Europe	214	209	171	149	184
North
Africa	582	420	561	528	532
Sub-Saharan Africa	386	354	328	307	307
Kazakhstan	104	102	98	96	85
Rest of Asia	126	106	121	135	91
Americas	141	124	133	114	122
Australia and Oceania	26	27	35	29	25
	1,757	1,523	1,631	1,537	1,517
of which equity-accounted
entities	23	23	33	51	20
North Africa	5	5	5	5	4
Sub-Saharan Africa	3	3	2	2	2
Rest of Asia	5	4	15	34	4
Americas	10	11	11	10	10

(a) Do not include natural gas consumed in operations.

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Eni Fact Book Exploration & Production

Natural gas production by country (a) (mmcf/d) 2010 2011 2012 2013 2014

Italy	673.2	674.3	695.1	630.2	583.8
Rest of Europe	559.2	537.9	458.9	429.6	535.2
Croatia	45.3	29.9	25.4	43.0	38.2
Norway	271.6	284.0	289.6	250.5	274.2
Ukraine			0.5
United Kingdom	242.3	224.0	143.4	136.1	222.8
North Africa	1,673.2	1,271.5	1,733.5	1,674.2	1,724.2
Algeria	20.2	19.0	40.1	81.6	141.3
Egypt	755.1	800.7	805.9	734.6	649.8
Libya	871.1	423.2	863.5	836.7	911.2
Tunisia	26.8	28.6	24.0	21.3	21.9
Sub-Saharan Africa	441.5	508.0	538.7	495.9	517.8
Angola	31.9	34.7	39.2	46.9	48.6
Congo	67.9	119.1	120.5	161.8	145.1
Nigeria	341.7	354.2	379.0	287.2	324.1
Kazakhstan	237.0	231.0	221.7	213.5	200.7
Rest of Asia	463.9	430.1	468.5	520.5	333.6
China	6.7	5.0	4.4	3.4
India	36.6	19.6	10.5	7.2	3.7
Indonesia	94.4	84.3	84.9	79.2	75.8
Pakistan	326.2	321.2	310.4	283.1	248.2
Russia			52.4	141.6
Turkmenistan			5.9	6.0	5.9
Americas	396.0	334.0	283.5	245.3	218.6
Trinidad
& Tobago	63.6	56.7	58.5	58.6	60.3
United States	332.4	277.3	225.0	185.9	157.5
Venezuela				0.8	0.8
Australia and Oceania	95.7	97.8	100.8	110.4	110.5
Australia	95.7	97.8	100.8	110.4	110.5
Total outside Italy	3,866.5	3,410.3	3,805.6	3,689.4	3,640.6
	4,539.7	4,084.6	4,500.7	4,319.6	4,224.4
of which equity-accounted
entities	35.6	34.0	88.6	186.3	39.6
Angola	0.8	1.9	4.4	14.2	10.3
Indonesia	28.9	25.7	26.0	24.2	23.2
Russia			52.4	141.6
Tunisia	5.9	6.4	5.3	5.5	5.3
Ukraine			0.5
Venezuela				0.8	0.8

Natural gas production available for sale (b) (mmcf/d) 2010 2011 2012 2013 2014

Italy	648	648	667	593	541
Rest of Europe	517	498	421	395	498
North
Africa	1,559	1,169	1,592	1,514	1,536
Sub-Saharan Africa	365	422	444	356	418
Kazakhstan	221	212	202	195	181
Rest of Asia	436	398	423	476	297
Americas	385	323	273	234	205
Australia and Oceania	91	93	96	105	106
	4,222	3,763	4,118	3,868	3,782
of which equity-accounted
entities	27	24	71	165	28
North Africa	3	4	3	4	3
Sub-Saharan Africa				7	7
Rest of Asia	24	20	68	154	18

(a) Includes volumes of gas consumed in operations (442, 451, 383, 321 and 318 mmcf/d, in 2014, 2013, 2012, 2011 and 2010, respectively). (b) Do not include natural gas consumed in operations.

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Eni Fact Book Exploration & Production

Average realizations 2010 2011 2012 2013 2014

Liquids
($/bbl)

| Italy — Rest of
Europe | 72.19 — 67.26 | | 101.20 — 97.56 | 97.18 | 100.52 — 100.67 | 93.11 | 98.50 — 98.97 | | 87.80 — 88.80 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| North Africa | 70.96 | 16.09 | 97.63 | 17.98 | 103.63 | 17.93 | 100.42 | 17.96 | 88.99 | 17.94 |
| Sub-Saharan
Africa | 78.23 | 77.78 | 110.09 | 108.92 | 108.34 | 112.28 | 105.13 | | 93.45 | |
| Kazakhstan | 66.74 | | 98.68 | | 102.25 | | 99.37 | | 91.86 | |
| Rest of
Asia | 75.20 | 57.05 | 101.09 | 74.98 | 103.44 | 40.36 | 99.69 | 33.87 | 77.99 | 65.90 |
| Americas | 72.84 | 71.70 | 101.15 | 93.03 | 85.94 | 93.45 | 85.27 | 93.32 | 79.13 | 81.48 |
| Australia
and Oceania | 73.00 | | 98.05 | | 102.06 | | 98.72 | | 91.61 | |
| | 72.95 | 58.86 | 102.47 | 84.78 | 103.06 | 77.94 | 100.20 | 64.92 | 88.90 | 70.56 |
| Natural gas | | | | | | | | | | |
| ($/kcf) | | | | | | | | | | |
| Italy | 8.71 | | 11.56 | | 10.68 | | 11.65 | | 8.74 | |
| Rest of
Europe | 7.40 | | 9.72 | 10.65 | 10.13 | 11.64 | 10.62 | | 8.49 | |
| North Africa | 6.87 | | 5.95 | 5.39 | 8.13 | 4.91 | 7.96 | 6.29 | 8.08 | 6.08 |
| Sub-Saharan
Africa | 1.87 | | 1.97 | | 2.16 | | 2.16 | | 2.12 | |
| Kazakhstan | 0.49 | | 0.57 | | 0.67 | | 0.64 | | 0.62 | |
| Rest of
Asia | 4.35 | 9.87 | 5.27 | 15.68 | 5.94 | 6.17 | 5.83 | 3.49 | 6.18 | 15.64 |
| Americas | 4.70 | | 4.02 | | 2.90 | | 3.37 | | 3.96 | |
| Australia
and Oceania | 7.40 | | 7.38 | | 7.73 | | 7.80 | | 7.46 | |
| | 6.01 | 8.73 | 6.44 | 13.89 | 7.14 | 6.16 | 7.41 | 4.00 | 6.83 | 14.13 |
| Hydrocarbons | | | | | | | | | | |
| ($/boe) | | | | | | | | | | |
| Italy | 56.60 | | 77.26 | | 73.24 | | 77.56 | | 64.80 | |
| Rest of
Europe | 56.00 | | 79.03 | 66.14 | 80.79 | 69.05 | 79.14 | | 67.87 | |
| North Africa | 55.06 | 13.53 | 64.85 | 20.87 | 73.06 | 19.45 | 70.51 | 21.47 | 65.36 | 21.43 |
| Sub-Saharan
Africa | 66.35 | 77.78 | 88.02 | 108.92 | 84.93 | 112.28 | 85.08 | | 73.18 | |
| Kazakhstan | 42.24 | | 62.87 | | 64.92 | | 62.02 | | 57.20 | |
| Rest of
Asia | 42.45 | 55.04 | 51.51 | 85.80 | 57.98 | 34.78 | 62.59 | 21.46 | 52.75 | 83.12 |
| Americas | 47.84 | 71.70 | 60.28 | 93.03 | 54.61 | 93.45 | 57.89 | 93.32 | 59.94 | 81.48 |
| Australia
and Oceania | 52.51 | | 61.00 | | 73.82 | | 61.79 | | 52.46 | |
| | 55.59 | 56.10 | 72.20 | 83.15 | 73.65 | 59.25 | 72.97 | 37.57 | 65.36 | 72.19 |

Eni’s Group	2010	2011	2012	2013	2014
Liquids ($/bbl)	72.76	102.11	102.58	99.44	88.71
Natural
gas ($/kcf)	6.02	6.48	7.12	7.26	6.87
Hydrocarbons ($/boe)	55.60	72.26	73.39	71.87	65.49

Net developed and undeveloped acreage (square kilometers) 2010 2011 2012 2013 2014

Europe	29,079	26,023	27,423	37,018	44,842
Italy	19,097	16,872	17,556	17,282	17,297
Rest
of Europe	9,982	9,151	9,867	19,736	27,545
Africa	152,671	137,220	142,796	137,096	159,341
North
Africa	44,277	30,532	21,390	20,412	21,693
Sub-Saharan Africa	108,394	106,688	121,406	116,684	137,648
Asia	112,745	55,284	58,042	79,314	109,237
Kazakhstan	880	880	869	869	869
Rest
of Asia	111,865	54,404	57,173	78,445	108,368
Americas	11,187	10,209	9,075	9,206	7,943
Australia and Oceania	15,279	25,685	13,834	13,622	13,376
Total	320,961	254,421	251,170	276,256	334,739

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Eni Fact Book Exploration & Production

Principal oil and natural gas interests at December 31, 2014

Commencement of operations Number of interests Gross developed (a) (b) acreage Net developed (a) (b) acreage Gross undeveloped (a) acreage Net undeveloped (a) acreage Type of fields/acreage Number of producing fields Number of other fields

EUROPE		265	15,883	10,948	53,444	33,894		120	93
Italy	1926	151	10,712	8,989	10,751	8,308	Onshore/Offshore	81	68
Rest of Europe		114	5,171	1,959	42,693	25,586		39	25
Croatia	1996	2	1,975	987			Offshore	10	2
Cyprus	2013	3			12,523	10,018	Offshore
Greenland	2013	2			4,890	1,909	Offshore
Norway	1965	56	2,255	345	9,149	3,327	Offshore	18	20
Portugal	2014	3			9,099	6,370	Offshore
United
Kingdom	1964	35	941	627	343	117	Offshore	11	3
Other countries		13			6,689	3,845	Offshore
AFRICA		282	66,114	20,032	263,572	139,309		268	138
North Africa		117	32,559	14,144	15,675	7,549		101	60
Algeria	1981	42	3,222	1,148	187	31	Onshore	33	10
Egypt	1954	54	4,926	1,772	6,800	3,174	Onshore/Offshore	43	23
Libya	1959	10	17,947	8,950	8,688	4,344	Onshore/Offshore	4	22
Tunisia	1961	11	6,464	2,274			Onshore/Offshore	21	5
Sub-Saharan Africa		165	33,555	5,888	247,897	131,760		167	78
Angola	1980	72	6,555	813	14,605	3,514	Onshore/Offshore	50	33
Congo	1968	28	1,714	921	2,649	1,962	Onshore/Offshore	27	3
Gabon	2008	6			7,615	7,615	Onshore/Offshore
Ghana	2009	3			4,676	1,664	Offshore		2
Kenya	2012	7			61,363	40,426	Offshore
Liberia	2012	3			7,365	1,841	Offshore
Mozambique	2007	1			10,207	5,103	Offshore		6
Nigeria	1962	40	25,286	4,154	10,837	3,484	Onshore/Offshore	90	34
South Africa	2014	1			82,117	32,847	Offshore
Other
countries		4			46,463	33,304	Onshore
ASIA		71	17,556	5,809	199,150	103,428		29	24
Kazakhstan	1992	6	2,391	442	2,542	427	Onshore/Offshore	1	5
Rest of Asia		65	15,165	5,367	196,608	103,001		28	19
China	1984	8	77	19	7,056	7,056	Offshore	5
India	2005	11	206	109	16,546	6,058	Onshore/Offshore	4	3
Indonesia	2001	14	3,218	1,217	31,608	25,031	Onshore/Offshore	7	15
Iraq	2009	1	1,074	446			Onshore	1
Myanmar	2014	2			7,850	7,065	Onshore
Pakistan	2000	17	10,390	3,396	15,249	6,071	Onshore/Offshore	9	1
Russia	2007	3			62,592	20,862	Offshore
Timor Leste	2006	1			1,538	1,230	Offshore
Turkmenistan	2008	1	200	180			Onshore	2
Vietnam	2013	6			39,569	26,384	Offshore
Other
countries		1			14,600	3,244	Offshore
AMERICAS		306	5,064	3,273	11,746	4,670		71	13
Ecuador	1988	1	1,985	1,985			Onshore	1	2
Trinidad &
Tobago	1970	1	382	66			Offshore	7
United
States	1968	290	1,895	954	4,197	2,546	Onshore/Offshore	61	7
Venezuela	1998	6	802	268	2,002	798	Onshore/Offshore	2	3
Other
countries		8			5,547	1,326	Offshore		1
AUSTRALIA AND OCEANIA		14	1,140	709	21,679	12,667		3	2
Australia	2001	14	1,140	709	21,679	12,667	Offshore	3	2
Total		938	105,757	40,771	549,591	293,968		491	270

(a) Square kilometers. (b) Developed acreage refers to those leases in which at least a portion of the area is in production or encompasses proved developed reserves.

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Eni Fact Book Exploration & Production

Capital expenditure (euro million) 2010 2011 2012 2013 2014

Acquisition of proved and unproved properties		754	43	109
North Africa		57	14	109
Sub-Saharan
Africa		697	27
Americas			2
Exploration	1,012	1,210	1,850	1,669	1,398
Italy	34	38	32	32	29
Rest
of Europe	114	100	151	357	188
North Africa	84	128	153	95	227
Sub-Saharan
Africa	406	482	1,142	757	635
Kazakhstan	6	6	3	1
Rest
of Asia	223	156	193	233	160
Americas	119	60	80	110	139
Australia
and Oceania	26	240	96	84	20
Development	8,578	7,357	8,304	8,580	9,021
Italy	630	720	744	743	880
Rest of Europe	863	1,596	2,008	1,768	1,574
North
Africa	2,584	1,380	1,299	808	832
Sub-Saharan Africa	1,818	1,521	1,931	2,675	3,085
Kazakhstan	1,030	897	719	658	521
Rest of Asia	311	361	641	749	1,105
Americas	1,187	831	953	1,127	921
Australia and
Oceania	155	51	9	52	103
Other expenditure	100	114	110	117	105
	9,690	9,435	10,307	10,475	10,524

Reserves life index (years) 2010 2011 2012 2013 2014

Italy	10.9	10.4	7.6	7.3	7.7
Rest of Europe	7.4	8.0	9.0	9.8	7.8
North
Africa	9.6	12.8	9.0	8.9	8.5
Sub-Saharan Africa	7.9	8.2	8.9	10.2	11.1
Kazakhstan	28.7	24.5	28.1	28.8	33.4
Rest of Asia	12.8	21.7	18.1	5.1	8.1
Americas	7.2	13.6	19.7	23.0	21.3
Australia and Oceania	13.1	12.8	9.8	16.0	17.8
	10.3	12.3	11.5	11.1	11.3

Reserves replacement ratio 2010 2011 2012 2013 2014

(%) organic all sources organic all sources organic all sources organic all sources organic all sources

Italy	121	107	72	75	34		62	62		106	106
Rest of Europe	103	102	140	136	37	37	63	40		77	81
North
Africa	167	167	58	58	40	40	32	34		78	78
Sub-Saharan Africa	91	90	63	58	138	117	183	183		182	176
Kazakhstan					467	337	83	83		206	206
Rest of Asia	211	212	768	771	12	12	232			156	156
Americas	274	273	646	647	855	786	102	102		87	87
Australia and Oceania	6	5	155	163	51	51	536	536
	127	125	143	142	147	107	105	(7	)	112	112

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Eni Fact Book Exploration & Production

Exploratory well activity

Net wells completed Wells in progress at Dec. 31 (a)

2012 2013 2014 2014

(units) Productive Dry (b) Productive Dry (b) Productive Dry (b) Gross Net

| Italy — Rest of
Europe | 1.0 — 1.0 | 1.0 | | 3.4 | | 0.6 — 4.3 | 4.0 — 12.0 | 2.8 — 3.3 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| North Africa | 6.3 | 11.3 | 4.9 | 5.4 | 3.5 | 4.3 | 13.0 | 10.3 |
| Sub-Saharan
Africa | 4.5 | 5.1 | 3.2 | 6.6 | 7.3 | 7.3 | 49.0 | 16.9 |
| Kazakhstan | | 0.8 | | 0.4 | | | 6.0 | 1.1 |
| Rest of
Asia | 0.5 | 0.6 | 4.3 | 2.7 | 1.3 | 4.3 | 12.0 | 5.0 |
| Americas | | 0.1 | 0.2 | 1.2 | 2.0 | 1.4 | 4.0 | 2.5 |
| Australia
and Oceania | | 0.4 | | 0.5 | | 0.9 | 1.0 | 0.3 |
| | 13.3 | 19.3 | 12.6 | 20.2 | 14.1 | 23.1 | 101.0 | 42.2 |

Development well activity

Net wells completed Wells in progress at Dec. 31 (a)

2012 2013 2014 2014

(units) Productive Dry (b) Productive Dry (b) Productive Dry (b) Gross Net

Italy	18.0	1.0	7.4	1.0	12.5		5.0	4.6
Rest of
Europe	2.9	0.6	6.3		9.8	1.0	36.0	7.9
North Africa	46.0	1.6	61.6	3.3	54.5	1.0	15.0	7.4
Sub-Saharan
Africa	27.4	0.3	26.3	1.2	31.6		23.0	7.5
Kazakhstan	1.4		0.3		1.5		22.0	3.9
Rest of
Asia	41.2	0.1	61.7	4.3	54.2	1.6	19.0	8.2
Americas	23.1		13.8		22.1	0.7	20.0	6.5
Australia
and Oceania					0.1	0.4	2.0	0.5
	160.0	3.6	177.4	9.8	186.3	4.7	142.0	46.5

Productive oil and gas wells (c)

2014

Oil wells Natural gas wells

(units) Gross Net Gross Net

Italy	241.0	195.1	615.0	532.4
Rest of
Europe	354.0	60.6	188.0	102.9
North Africa	1,710.0	907.0	210.0	89.0
Sub-Saharan
Africa	2,950.0	589.8	341.0	25.7
Kazakhstan	149.0	41.1
Rest of
Asia	475.0	363.0	956.0	364.9
Americas	201.0	112.0	366.0	127.5
Australia
and Oceania	7.0	3.8	14.0	3.3
	6,087.0	2,272.4	2,690.0	1,245.7

(a) Includes temporary suspended wells pending further evaluation. (b) A dry well is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas sufficient quantities to justify completion as an oil or gas well. (c) Includes 2,324 gross (799.1 net) multiple completion wells (more than one producing into the same well bore). Productive wells are producing wells and wells capable of production. One or more completions in the same bore hole are counted as one well.

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Eni Fact Book Gas & Power

Gas & Power

Key performance indicators (*)

2010 2011 2012 2013 2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 3.98 | 3.04 | | 2.23 | | 1.43 | | 0.49 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 27,806 | 33,093 | | 36,198 | | 32,212 | | 28,250 |
| Operating
profit | | 896 | (326 | ) | (3,125 | ) | (2,967 | ) | 186 |
| Adjusted operating profit | | 1,268 | (247 | ) | 398 | | (638 | ) | 310 |
| Marketing | | 923 | (657 | ) | 67 | | (818 | ) | 155 |
| International
transport | | 345 | 410 | | 331 | | 180 | | 155 |
| Adjusted
net profit | | 1,267 | 252 | | 479 | | (253 | ) | 190 |
| EBITDA pro-forma adjusted | | 2,562 | 949 | | 1,137 | | (28 | ) | 760 |
| Marketing | | 1,863 | 257 | | 631 | | (346 | ) | 467 |
| International
transport | | 699 | 692 | | 506 | | 318 | | 293 |
| Capital
expenditure | | 265 | 192 | | 213 | | 229 | | 172 |
| Worldwide gas sales (b) | (bcm) | 97.06 | 96.76 | | 95.32 | | 93.17 | | 89.17 |
| LNG sales (c) | | 15.0 | 15.7 | | 14.6 | | 12.4 | | 13.3 |
| Customers in Italy | (million) | 6.88 | 7.10 | | 7.45 | | 8.00 | | 7.93 |
| Electricity
sold | (TWh) | 39.54 | 40.28 | | 42.58 | | 35.05 | | 33.58 |
| Employees at year end | (number) | 5,072 | 4,795 | | 4,836 | | 4,616 | | 4,228 |
| Direct GHG
emissions | (mmtonnes CO 2 eq) | 13.48 | 12.84 | | 12.77 | | 11.22 | | 10.08 |
| Customer satisfaction index (CSC) (d) | (%) | 87.4 | 88.6 | | 89.7 | | 92.9 | | 93.4 |
| Water
consumption/withdrawals per kWh eq produced (EniPower) | (cm/kWh eq) | 0.013 | 0.014 | | 0.012 | | 0.017 | | 0.017 |

(*) Following the divestment of the Regulated Businesses in Italy, results of the Gas & Power Division include Marketing and International transport activities. Reference periods have been restated accordingly. (a) Before elimination of intragroup sales. (b) Include volumes marketed by the Exploration & Production Division of 2.73 bcm (5.65, 2.86, 2.73 and 2.61 bcm in 2010, 2011, 2012 and 2013, respectively). (c) Refers to LNG sales of the Gas & Power Division (included in worldwide gas sales) and the Exploration & Production Division. (d) Data referred to the first half of 2014, as at the date of publication of this document Authority for Electricity Gas and Water (AEEGSI) has not still published the data for the second part of the year.

Performance of the year

I In 2014, the positive trend in employees’ and contractors’ injury frequency rates was confirmed (down by 66%). I The water consumption rate of EniPower’s plants decreased in absolute terms (down by 5.9% from 2013), while the same index per kWh produced was substantially stable. The decrease was due to lower use of sea water in cooling operations at Brindisi site. Despite the reduction of water consumption in absolute terms, generation of steam and freshwater consumption were essentially stable compared to 2013. I In 2014, adjusted net profit of the Gas & Power segment amounted to euro 190 million, up by euro 443 million from 2013. This reflected the benefits from the renegotiation of a substantial portion of the long-term gas supply portfolio, including greater one-off effects related to the purchase costs of volumes supplied in previous reporting periods. These positive effects were partially offset by declining gas and power prices against the backdrop of continuing weak demand and competitive pressure. I Renegotiation of long-term supply contracts and take-or-pay reductions: gas prices and related trends were better aligned to market conditions. Approximately 70% of long-term gas supply portfolio is now indexed to hub prices. Furthermore, the cash advances paid to suppliers due to the take-or-pay clause were reduced by euro 0.66 billion thanks also to sales optimization. I Eni gas sales (89.17 bcm) were down by 4.3% compared to 2013. Eni’s sales in the domestic market of 34.04 bcm decreased by 5.1% driven by lower sales in all the business segments partially offset by higher spot sales. Barely unchanged volumes marketed in the main European markets (42.21 bcm; down by 1.1%). I Capital expenditure of euro 172 million mainly concerned the flexibility and upgrading of combined cycle power stations (euro 98 million), as well as gas marketing initiatives (euro 66 million).

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Eni Fact Book Gas & Power

Strategy

In the Gas & Power segment, it is forecasted a structural decline in demand due to lower consumption driven by the macroeconomic crisis, competition of other sources, as well as a general oversupply situation in Europe, in the context of an increasing liquidity at hubs. Main target is the focus on profitability and sustainable cash flow, according the following guidelines: (i) complete alignment of supply portfolio to market conditions and substantial recovery of the residual amounts of gas paid in advance; (ii) simplification of operations and optimization of logistic costs with a saving of euro 300 million by 2018; and (iii) development and growth in the value added segments, in particular in the retail segment, developing the client base also through the sale of extracommodity products, trading, as well as in the LNG segment, leveraging on the marketing opportunities in premium markets and upstream integration. Cash flow from operations is expected to contribute for euro 3 billion cumulatively over the four-year plan.

Gas & Power value chain Eni’s Gas & Power segment engages in all phases of the natural gas value chain: supply, trading and marketing of natural gas and LNG. This segment also includes power generation and marketing of electricity. Eni’s leading position in the European gas market is ensured by a set of competitive advantages, including our multi-country approach, long-term gas availability, access to infrastructures, market knowledge and a strong customer base, in addition to long-term relations with producing countries. Furthermore, integration with our upstream operations provides valuables growth options whereby the Company targets to monetize its large gas reserves.

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Eni Fact Book Gas & Power

1. Marketing 1.1 Natural gas Supply The supply of natural gas is a free activity where prices are determined by free negotiations of demand and supply involving natural gas resellers and producers. In order to secure mid and long-term access to gas availability, Eni has signed a number of long-term gas supply contracts with key producing countries that supply the European gas markets. In recent years Eni renegotiated a number of the main long-term supply contracts, thus better aligning gas prices and related trends to market conditions. 70% of long-term gas supply portfolio is now indexed to hub prices. Eni could also leverage on the availability of natural gas deriving from equity production, the access to all phases of the LNG chain (liquefaction, shipping and regasification) and to other gas infrastructures, and by trading and risk management activity. Eni’s long-term gas requirements are met by natural gas from a total of 18 countries, where Eni signed long-term gas supply contracts or holds upstream activities and by access to continental Europe's spot markets. In 2014, Eni’s consolidated subsidiaries supplied 82.91 bcm of natural gas, down by 2.76 bcm, or 3.2% from 2013. Gas volumes supplied outside Italy (75.99 bcm from consolidated companies), imported in Italy or sold outside Italy, represented approximately 92% of total supplies, down by 2.53 bcm, or 3.2% compared to the previous year, due to lower volumes purchased in particular in Russia (down 2.91 bcm), Algeria (down 1.80 bcm), Norway (down 0.73 bcm) and the United Kingdom (down 0.40 bcm), partly offset by higher volumes purchased in Libya (up 0.88 bcm) and the Netherlands (up 0.40 bcm). Supplies in Italy (6.92 bcm) registered a slight decrease from 2013 (down 0.23 bcm) due to mature fields’ decline.

Marketing in Italy and Europe Eni operates in a liberalized market where energy customers are allowed to choose the gas supplier and, according to their specific needs, to evaluate the quality of services and offers. Overall Eni supplies approximately 2,400 customers including large companies, power generation companies, wholesalers and distributors of natural gas for automotive use. Residential users are approximately 7.93 million amid households, professionals, small and medium-sized enterprises and public bodies located all over Italy, and approximately 2.2 million customers in European countries. In a trading environment characterized by a 12% drop of demand in the Italian market compared to the previous year (a similar decline was registered in the European Union) due to declining consumption in all the reference segments and raising competitive pressure, Eni carried out a number of initiatives – such as renegotiation of supply contracts, efficiency and optimization actions – in order to mitigate the negative impact of the reference scenario.

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Eni Fact Book Gas & Power

Sales and market shares by segment (bcm) 2013 2014

Volumes sold Market share (%) Volumes sold Market share (%) % Ch. 2014 vs. 2013

Italy to third parties	29.93	42.7	28.42	46.3	(5.0	)
Wholesalers	4.58		4.05		(11.6	)
Italian
gas exchange and spot markets	10.68		11.96		12.0
Industries	6.07		4.93		(18.8	)
Medium-sized
enterprises and services	1.12		1.60		42.9
Power generation	2.11		1.42		(32.7	)
Residential	5.37		4.46		(16.9	)
Own consumption	5.93		5.62		(5.2	)
TOTAL SALES IN ITALY	35.86	51.2	34.04	55.4	(5.1	)
Gas demand (a)	70.10		61.40		(12.4	)

(a) Source: Italian Ministry of Economic Development.

Gas sales by market (bcm) 2010 2011 2012 2013 2014

ITALY	34.29	34.68	34.78	35.86	34.04
Wholesalers	4.84	5.16	4.65	4.58	4.05
Gas
release	0.68
Italian gas exchange and spot markets	4.65	5.24	7.52	10.68	11.96
Industries	6.41	7.21	6.93	6.07	4.93
Medium-sized enterprises and services	1.09	0.88	0.81	1.12	1.60
Power
generation	4.04	4.31	2.55	2.11	1.42
Residential	6.39	5.67	5.89	5.37	4.46
Own
consumption	6.19	6.21	6.43	5.93	5.62
INTERNATIONAL SALES	62.77	62.08	60.54	57.31	55.13
Rest of Europe	54.52	52.98	51.02	47.35	46.22
Importers in Italy	8.44	3.24	2.73	4.67	4.01
European
markets	46.08	49.74	48.29	42.68	42.21
Iberian Peninsula	7.11	7.48	6.29	4.90	5.31
Germany/Austria	5.67	6.47	7.78	8.31	7.44
Benelux	15.64	13.84	10.31	8.68	10.36
Hungary	2.36	2.24	2.02	1.84	1.55
UK	4.45	4.21	4.75	3.51	2.94
Turkey	3.95	6.86	7.22	6.73	7.12
France	6.09	7.01	8.36	7.73	7.05
Other	0.81	1.63	1.56	0.98	0.44
Extra European markets	2.60	6.24	6.79	7.35	5.85
E&P in Europe and in the Gulf of Mexico	5.65	2.86	2.73	2.61	3.06
WORLDWIDE GAS SALES	97.06	96.76	95.32	93.17	89.17

A review of Eni’s presence in key European markets is presented below:

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Eni Fact Book Gas & Power

Benelux Through a direct presence Eni holds a key position in the Benelux Countries (Belgium, the Netherlands and Luxembourg), in particular in Belgium, which are a strategic hub of the continental gas spot market in Western Europe, thanks to their geographical position and high level of interconnectivity with the gas transit networks of continental Europe. In 2014, sales in Benelux were mainly directed to industrial companies, wholesalers and power generation and amounted to 10.36 bcm, down by 1.68 bcm, or 19.4%, due to higher spot sales. Eni launched its brand in retail gas and power market in Belgium. The Eni brand substituted the brands of the local operators acquired in the past few years, with the aim of becoming one of the major retail operators in France and Belgium while consolidating its leadership on the Belgian business market. France Eni is present in all market segments through its direct commercial activities and through its subsidiary Eni Gas & Power France sa. In 2014, sales in France amounted to 7.05 bcm, with a decrease of 0.68 bcm, or 8.8%, from a year ago. In 2013, Eni launched its brand in France, with the aim of becoming one of the major retail operators in the Country. Germany/Austria Eni operates in Germany through its direct marketing structure. In 2014, Eni divested its 50% stake in EnBW Eni Verwaltungsgesellschaft (EEV), a joint venture which controls the companies Gasversorgung Süddeutschland (GVS) and Terranets BW operating in the gas marketing and transport, to the partner EnBW. In 2014, total sales in Germany/Austria amounted to 7.44 bcm, with a decrease of 0.87 bcm, or 10.5% compared to the previous year. Spain Eni operates in the Spanish gas market through a direct marketing structure that markets its portfolio of LNG and through a joint venture Unión Fenosa Gas "UFG" (Eni’s interest 50%) which mainly supplies natural gas to industrial clients, wholesalers and power generation utilities. In 2014, UFG gas sales amounted to 3.92 bcm (1.96 bcm Eni’s share). UFG holds an 80% interest in the Damietta liquefaction plant, on the Egyptian coast, and a 7.36% interest in a liquefaction plant in Oman. In addition, it holds interests in the Sagunto (Valencia) and El Ferrol (Galicia) regasification plants (42.5% and 18.9%, respectively). In 2014, total sales in Spain amounted to 5.31 bcm, with a decrease of 0.41 bcm, or 8.4%. Turkey Eni sells gas supplied from Russia and transported via the Blue Stream pipeline. In 2014, sales amounted to 7.12 bcm, with an increase of 0.39 bcm, or 5.8% from a year ago. United Kingdom Eni through its subsidiary ETS markets in the United Kingdom the equity gas produced at Eni’s fields in the North Sea and operates in the main continental natural gas hubs (NBP, Zeebrugge, TTF). In 2014, sales amounted to 2.94 bcm, with a decrease of 16.2% from a year ago. 1.2 LNG Eni is present in all phases of the LNG business: liquefaction, gas feeding, shipping, regasification and sale through a direct presence and interests in joint ventures and associates. The LNG business registered a good profitability, leveraging on the growing energy demand in Asia and South America. In the next years Eni intends to increase sales in premium markets, redirecting the availability through portfolio optimization and a higher integration with the upstream segment. In 2014, LNG sales (13.3 bcm) increased by 0.9 bcm from 2013. In particular, LNG sales of the Gas & Power segment (8.9 bcm, included in worldwide gas sales) mainly concerned LNG from Qatar, Algeria and Nigeria marketed in Europe, South America and the Far East. 1.3 Power generation Eni’s power generation sites are located in Ferrera Erbognone, Ravenna, Livorno, Mantova, Brindisi, Ferrara and Bolgiano. Installed generation capacity as of December 31, 2014: 5,283 MW The combined cycle gas fired technology (CCGT) ensures an high level of efficiency and low environmental impact. In particular, management estimates that for a given amount of energy (electricity and steam) produced, using the CCGT technology instead of conventional power generation technology, the emission of carbon dioxide is reduced by about 5 mmtonnes, on an energy production of 26.5 TWh.

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Eni Fact Book Gas & Power

In 2014, power generation was 19.55 TWh, down by 1.83 TWh, or 8.6% from 2013, mainly due to lower production at Ravenna and Brindisi plants due to decreasing demand. As of December 31, 2014, installed operational capacity was 4.9 GW (4.8 GW as of December 31, 2013). Electricity trading reported a slight increase (up 2.6% to 14.03 TWh ) mainly due to higher purchases on the spot market.

1. International transport

Eni, as shipper, has transport rights on a large European and North African networks for transporting natural gas in Italy and Europe, which link key consumption basins with the main producing areas (Russia, Algeria, the North Sea, including the Netherlands, Norway, and Libya). The Company participates to both entities which operate the pipelines and entities which manage transport rights. A description of the main international pipelines currently participated or operated by Eni is provided below: - the TTPC pipeline, 740-kilometer long, is made up of two lines that are each 370-kilometer long with a transport capacity of 33.2 bcm/y and five compression stations. This pipeline transports natural gas from Algeria across Tunisia from Oued Saf Saf at the Algerian border to Cap Bon on the Sicily Channel where it links with the TMPC pipeline; - the TMPC pipeline for the import of Algerian gas is 775-kilometer long and consists of five lines that are each 155-kilometer long with a transport capacity of 33.5 bcm/y. It crosses the Sicily Channel from Cap Bon to Mazara del Vallo in Sicily, the point of entry into the Italian natural gas transport system; - the Green Stream pipeline for the import of Libyan gas produced at the Eni operated fields of Bahr Essalam and Wafa. It is 520-kilometer long with a transport capacity of 8 bcm/y crossing the Mediterranean Sea from Mellitah on the Libyan coast to Gela in Sicily, the point of entry into the Italian natural gas transport system; and - Eni holds a 50% interest in the Blue Stream underwater pipeline (with a record water depth of more than 2,150 meters) linking the Russian coast to the Turkish coast of the Black Sea. This pipeline is 774-kilometer long on two lines and has transport capacity of 16 bcm/y. It is part of a joint venture to sell gas produced in Russia on the Turkish market. These assets generate a steady operating profit thanks to the sale of transport rights on a long-term basis.

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Eni Fact Book Gas & Power

Supply of natural gas (bcm) 2010 2011 2012 2013 2014

Italy	7.29		7.22		7.55		7.15		6.92
Outside Italy
Russia	14.29		21.00		19.83		29.59		26.68
Algeria (including
LNG)	16.23		13.94		14.45		9.31		7.51
Libya	9.36		2.32		6.55		5.78		6.66
Netherlands	10.16		11.02		11.97		13.06		13.46
Norway	11.48		12.30		12.13		9.16		8.43
United Kingdom	4.14		3.57		3.20		3.04		2.64
Hungary	0.66		0.61		0.61		0.48		0.38
Qatar (LNG)	2.90		2.90		2.88		2.89		2.98
Other
supplies of natural gas	4.42		6.16		5.43		3.63		5.56
Other supplies of
LNG	1.56		2.23		2.09		1.58		1.69
	75.20		76.05		79.14		78.52		75.99
Total supplies of Eni’s
own companies	82.49		83.27		86.69		85.67		82.91
Offtake
from (input to) storage	(0.20	)	1.79		(1.35	)	(0.58	)	(0.20	)
Network losses, measurement differences and
other changes	(0.11	)	(0.21	)	(0.28	)	(0.31	)	(0.25	)
AVAILABLE FOR SALE BY ENI'S
CONSOLIDATED SUBSIDIARIES	82.18		84.85		85.06		84.78		82.46
AVAILABLE FOR SALE BY
ENI'S AFFILIATES	9.23		9.05		7.53		5.78		3.65
E&P volumes in Europe and in the Gulf of
Mexico	5.65		2.86		2.73		2.61		3.06
GAS VOLUMES AVAILABLE FOR
SALE	97.06		96.76		95.32		93.17		89.17

Gas sales by entity (bcm) 2010 2011 2012 2013 2014

Sales of consolidated companies	82.00	84.05	84.30	83.60	81.73
Italy (including own consumption)	34.23	34.60	34.66	35.76	34.04
Rest of
Europe	46.74	44.84	44.57	42.30	43.07
Outside Europe	1.03	4.61	5.07	5.54	4.62
Sales of Eni’s affiliates (net to Eni)	9.41	9.85	8.29	6.96	4.38
Italy	0.06	0.08	0.12	0.10
Rest of
Europe	7.78	8.14	6.45	5.05	3.15
Outside Europe	1.57	1.63	1.72	1.81	1.23
E&P in Europe and in the Gulf of Mexico	5.65	2.86	2.73	2.61	3.06
Worldwide gas sales	97.06	96.76	95.32	93.17	89.17

LNG sales (bcm) 2010 2011 2012 2013 2014

G&P sales	11.2	11.8	10.5	8.4	8.9
Italy	0.2
Rest of
Europe	9.8	9.8	7.6	4.6	5.0
Extra European markets	1.2	2.0	2.9	3.8	3.9
E&P sales	3.8	3.9	4.1	4.0	4.4
Liquefaction plants:
Soyo
(Angola)				0.1	0.1
Bontang (Indonesia)	0.7	0.6	0.6	0.5	0.5
Point
Fortin (Trinidad & Tobago)	0.6	0.4	0.5	0.6	0.6
Bonny (Nigeria)	2.2	2.5	2.7	2.4	2.8
Darwin
(Australia)	0.3	0.4	0.3	0.4	0.4
Total LNG sales	15.0	15.7	14.6	12.4	13.3

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Eni Fact Book Gas & Power

Electricity sales (TWh) 2010 2011 2012 2013 2014

Free market	27.84	27.25	31.84	28.73	24.86
Italian
Power Exchange	7.13	8.67	6.10	1.96	4.71
Industrial plants	3.21	3.23	3.30	3.31	3.17
Other (a)	1.36	1.13	1.34	1.05	0.84
Power sales	39.54	40.28	42.58	35.05	33.58
Power generation	25.63	25.23	23.58	21.38	19.55
Trading of electricity (a)	13.91	15.05	19.00	13.67	14.03

(a) Include positive and negative imbalances.

EniPower power stations Installed capacity as of December 31, 2014 (a) Effective/planned start-up Technology Fuel

Power stations — Brindisi	(MW) — 1,321	2006	CCGT	gas
Ferrera
Erbognone	1,030	2004	CCGT	gas/syngas
Livorno	199	2000	Power Station	gas/fuel oil
Mantova	850	2005	CCGT	gas
Ravenna	972	2004	CCGT	gas
Ferrara (b)	841	2008	CCGT	gas
Bolgiano	60	2012	Power Station	gas
Photovoltaic
sites	10	2011-2015	Photovoltaic	Photovoltaic
	5,283

(a) Capacity available after completion of dismantling of obsolete plants. (b) Eni’s share of capacity. 1

EniPower power stations 2010 2011 2012 2013 2014

Purchases — Purchases of natural gas	(mmcm)	5,154	5,008	4,792	4,295	4,074
Purchases
of other fuels	(ktoe)	547	528	462	449	338
- of which steam cracking		103	99	98	99	104
Production
Power generation	(TWh)	25.63	25.23	23.58	21.38	19.55
Steam
generation	(ktonnes)	10,983	14,401	12,603	9,907	9,010
Installed generation capacity
(in operation)	(GW)	5.3	5.3	5.3	4.8	4.9

Transport infrastructure

| Route | Lines (units) | Length (km) | Diameter (inch) | Transport
capacity (a) (bcm/y) | Transit
capacity (b) (bcm/y) | Compression
stations (No.) |
| --- | --- | --- | --- | --- | --- | --- |
| TTPC (Oued
Saf Saf-Cap Bon) | 2 lines of km 370 | 740 | 48 | 34.0 | 33.2 | 5 |
| TMPC (Cap Bon-Mazara del Vallo) | 5 lines of km 155 | 775 | 20/26 | 33.5 | 33.5 | |
| GreenStream
(Mellitah-Gela) | 1 line of km 520 | 520 | 32 | 8.0 | 8.0 | 1 |
| Blue Stream (Beregovaya-Samsun) | 2 lines of km 387 | 774 | 24 | 16.0 | 16.0 | 1 |

(a) Includes both transit capacity and volumes of natural gas destined to local markets and withdrawn at different points along the pipeline. (b) The maximum volume of natural gas coming from different entry points along the pipeline and transported to the next pipeline.

Capital expenditure (euro million) 2010 2011 2012 2013 2014

Italy	155	132	166	161	128
Outside Italy	110	60	47	68	44
	265	192	213	229	172
Market	248	184	200	206	164
Market	133	97	77	87	66
Italy	40	45	43	42	30
Outside
Italy	93	52	34	45	36
Power generation	115	87	123	119	98
International transport	17	8	13	23	8
	265	192	213	229	172

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Refining & Marketing

Key performance indicators

2010 2011 2012 2013 2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 2.56 | | 2.60 | | 1.74 | | 1.01 | | 0.86 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 43,190 | | 51,219 | | 62,531 | | 57,238 | | 56,153 | |
| Operating
profit | | 149 | | (273 | ) | (1,264 | ) | (1,492 | ) | (2,229 | ) |
| Adjusted operating profit | | (181 | ) | (539 | ) | (289 | ) | (457 | ) | (208 | ) |
| Adjusted
net profit | | (56 | ) | (264 | ) | (181 | ) | (232 | ) | (147 | ) |
| Capital expenditure | | 711 | | 866 | | 898 | | 672 | | 537 | |
| Refinery
throughputs on own account | (mmtonnes) | 34.80 | | 31.96 | | 30.01 | | 27.38 | | 25.03 | |
| Conversion index | (%) | 61 | | 61 | | 61 | | 62 | | 51 | |
| Balanced
capacity of refineries | (kbbl/d) | 757 | | 767 | | 767 | | 787 | | 617 | |
| Retail sales of petroleum products in Europe | (mmtonnes) | 11.73 | | 11.37 | | 10.87 | | 9.69 | | 9.21 | |
| Service
stations in Europe at year end | (units) | 6,167 | | 6,287 | | 6,384 | | 6,386 | | 6,220 | |
| Average throughput per service station in Europe | (kliters) | 2,353 | | 2,206 | | 2,064 | | 1,828 | | 1,725 | |
| Retail
efficiency index | (%) | 1.53 | | 1.50 | | 1.48 | | 1.28 | | 1.19 | |
| Employees at year end | (number) | 8,022 | | 7,591 | | 8,608 | | 8,438 | | 6,774 | |
| Direct GHG
emissions | (mmtonnes CO 2 eq) | 7.85 | | 7.28 | | 6.06 | | 5.20 | | 5.34 | |
| SO x (sulphur oxide) emissions | (ktonnes SO 2 eq) | 28.05 | | 23.07 | | 16.99 | | 10.80 | | 6.09 | |
| Water
consumption rate (refineries)/refinery throughputs | (cm/tonnes) | 28.36 | | 31.03 | | 25.43 | | 19.98 | | 22.42 | |
| Biofuels marketed | (mmtonnes) | 17.79 | | 13.26 | | 14.83 | | 10.84 | | 12.93 | |
| Customer
satisfaction index | (likert scale) | 7.84 | | 7.74 | | 7.90 | | 8.10 | | 8.20 | |

(a) Before elimination of intragroup sales.

Performance of the year

I In 2014, continued the positive trend in injury frequency rate for employees and contractors (down by 14.9%). I In 2014, the Refining & Marketing segment reduced the adjusted net loss to euro 147 million (euro 232 million in 2013) driven by improved refining margins, reflecting a fall in oil prices in the last quarter of the year and restructuring initiatives, including the start-up of the Green Refinery project in Venice, as well as cost efficiency initiatives, particularly with respect to energy and overhead costs. I In 2014, refining throughputs were 25.03 mmtonnes, down by 8.6% from 2013. In Italy, processed volumes decreased by 11.7% mainly due to the unfavorable refinery scenario registered in the first part of the year, as well as the shutdown of the Gela and Venice refineries due to the ongoing reconversion activities. I In 2014, the production of biofuels amounted to 12.93 mmtonnes, up by 19.3% compared to a year ago following the start-up of the bio-refinery in Porto Marghera. I Retail sales in Italy amounted to 6.14 mmtonnes, down by 7.5% from 2013 due to strong competitive pressure. In 2014, Eni’s average retail market share was 25.5%, down by 2 percentage points from 2013. I Retail sales in the rest of Europe of 3.07 mmtonnes were substantially stable compared to 2013 (up by 0.7%). Higher volumes marketed in Germany and Austria were offset by lower sales of the other subsidiaries. I Capital expenditure amounting to euro 537 million mainly related to the reconversion of the Venice site to bio-refinery, as well as maintenance and improvement of flexibility and yields of the other plants, in particular at Sannazzaro refinery (euro 362 million) and marketing activities for the rebranding of the retail distribution network (euro 175 million). I In 2014, the expenditure in R&D in the Refining & Marketing segment amounted to approximately euro 18 million. During the year 15 patent applications were filed.

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Portfolio rationalization In line with the Eni’s strategy focused on selectively growing in high profitable markets, Eni signed a preliminary agreement for the divestment of its marketing activities of fuels located in Czech Republic, Slovakia and Romania. The agreement also comprises the refinery capacity to supply the marketing network through a 32.445% interest in the joint refining asset Ceská Rafinérská as (CRC). All these agreements are subject to the approval of the relevant European Antitrust Authorities. Relaunch plan of the Gela site In November 2014, Eni defined with the Ministry for Economic Development, the Region of Sicily and interested stakeholders a plan to restore the profitability of the Gela refinery. The key point of the agreement is the reconversion of the Gela site to a bio-refinery. The reconversion will follow the model adopted for the Venice green refinery, where green diesel is produced from raw vegetable materials by using the proprietary Ecofining TM technology. The agreement also defines terms for building a modern logistic hub and new initiatives in the upstream sector in Sicily, including offshore. Eni will also perform environmental remediation and clean-up activities and institute the Safety Competence Center (SCC), a center of excellence in the security field. The investment plan for such initiatives amounts to euro 2.2 billion, mainly relating to upstream projects in the Sicily region. Start-up of Venice bio-refinery In June 2014, the start-up of the bio-refinery of Porto Marghera was achieved, with a green diesel capacity of approximately 300 ktonnes/y. The green diesel is produced from refined vegetable oil utilizing the proprietary Ecofining TM technology. The production will fulfill half of the Eni’s annual requirement of green diesel, thus ensuring new perspectives for the industrial site of Venice and allowing economic and environmental benefits.

Strategy

For the next four years, the priority for the Refining & Marketing segment is the return to profitability in the context of weak fundamentals of the European refining market, affected by structural overcapacity. Eni intends to reduce refining exposure, through the reconversion of productive processes by the achievement of the breakeven level of adjusted operating profit and of cash flow from 2015 leveraging on: (i) rationalization of refining capacity and reconversion of industrial plants in Italy and abroad, reducing capacity by a further 20% in addition to the 30% capacity downsizing reached up to 2014; (ii) continuous efficiency improvement; and (iii) marketing activities development and rationalization of our portfolio in Italy and abroad. We believe that those actions will reduce our breakeven in the refining business to approximately 3 $/bbl at the end of the plan.

Activities 1. Refining Eni, through its Refining & Marketing segment, is a leader in refining in Italy, with its five wholly-owned refineries (Sannazzaro, Livorno, Venice, Taranto and Gela), and in marketing of petroleum products. In the rest of Europe Eni also holds interests in certain refining poles and is active in retail and wholesale sales in Central-Eastern European countries. Eni’s refining system has balanced capacity of approximately 30.8 mmtonnes (equal to 617 kbbl/d) and a conversion index of 62%.

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In 2014, total refinery throughputs were 25.03 mmtonnes, of which 19.92 mmtonnes in Italy and 5.11 outside Italy. Total throughputs in wholly-owned refineries were 16.24 mmtonnes, down by 2.75 mmtonnes or 14.5% from 2013. This determined a refinery utilization rate of 78%, calculated as the average Eni’s refineries complexity and their utilization rate. Approximately 25.2% of processed volumes were supplied by Eni’s Exploration & Production segment, up by 1.5 percentage points from 2013 (23.7%). n Italy Eni’s refining system in Italy is composed of five wholly-owned refineries and a 50% interest in the Milazzo refinery. Each of Eni’s refineries in Italy has operating and strategic features that aim at maximizing the value associated to the asset structure, the geographic location with respect to end markets, the integration with Eni’s other activities, as well as the development of green technologies. Sannazzaro : refinery has balanced refining capacity of 200 kbbl/d and a conversion index of 70.2%. Management believes that this site is one of the most efficient refineries in Europe. Located in the Po Valley, it mainly supplies markets in North-Western Italy and Switzerland. The high flexibility and conversion capacity of this refinery allows it to process a wide range of feedstock. From a logistical standpoint this refinery is located along the route of the Central Europe pipeline, which links the Genoa terminal with French speaking Switzerland. This refinery contains two primary distillation

Crude oil that needs to be carried to the refinery by means of pipelines or over long distances by tanker ships undergoes processing for the separation of its components. In refineries crude oil is warmed to a temperature of approximately 400°C so that it turns into vapor. Oil vapors are injected in fractionating columns, also called distillation towers, where they flow upward through a series of plates and cool. At various temperatures they condense and return to a liquid state. While cooling and falling they separate in various hydrocarbon fractions (gasoil, kerosene, naphtha, gasoline, methane, ethane, propane and butane, fuel oil, lubricants, paraffin, wax and bitumen).

Refining system in 2014

Ownership share (%) Distillation capacity (total) (kbbl/d) Distillation capacity (Eni’s share) (kbbl/d) Primary balanced refining capacity (Eni’s share) (a) (kbbl/d) Conversion index (%) Fluid catalytic cracking - FCC (kbbl/d) Residue conversion (kbbl/d) Go-Finer/ Mild Hydro-cracking (kbbl/d) Mild Hydro- cracking/ Hydro- cracking (kbbl/d) Visbreaking/ Thermal Cracking (kbbl/d) Coking (kbbl/d) Distillation capacity utilization rate (Eni’s share) (%) Balanced refining capacity utilization rate (Eni’s share) (%)

Wholly-owned refineries		449	449	404	54	34	35	0	66	67	0	72	78
Italy
Sannazzaro	100	223	223	200	70	34	13		51	29		75	83
Gela	100
Taranto	100	120	120	120	56		22		15	38		62	62
Livorno	100	106	106	84	11							71	90
Porto
Marghera	100
Partially-owned refineries (b)		874	245	213	47	167	25		99	27		85	88
Italy
Milazzo	50	248	124	100	60	45	25		32			80	85
Germany
Vohburg/Neustadt (Bayernoil)	20	215	43	41	36	49			43			91	91
Schwedt	8.33	231	19	19	42	49				27		102	102
Czech Republic
Kralupy
e Litvinov (Ceská Rafinérská)	32.4	180	58	53	30	24			24			87	87
TOTAL		1,323	694	617	51	201	60	0	165	94	0	75	82

(a) Actual production capacity: Venice conversion in "Green Refinery"; Gela shutdown in HUB crudes asset. (b) Capacity of conversion plant is 100%.

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plants and relevant facilities, including three desulphurization units. Conversion is obtained through a fluid catalytic cracker (FCC), two hydrocrackers (HDC), the last unit entered into operations in June 2009, which enable middle distillate conversion and a visbreaking thermal conversion unit with a gasification facility loaded with heavy residue from visbreaking unit (tar) to produce syn-gas to feed the nearby EniPower power plant at Ferrera Erbognone. In 2013, the Eni Slurry Technology (EST) project was started up. The conversion plant with a 23 kbbl/d capacity is designed to process extra heavy crude with high sulphur content increasing yields in middle distillates and reducing that of fuel oil. Eni is also developing an upgrading of its conversion technology called Slurry Dual-Catalyst (an evolution of EST), which is based on a combination of two nano-catalysts and aims at increasing productivity and improving product quality, reducing expenditure and operating costs. A further project underway is the proprietary process for hydrogen production, Hydrogen SCT-CPO (Short Contact Time-Catalytic Partial Oxidation). This reforming technology transforms gaseous and liquid hydrocarbons (also derived from bio-mass) into synthetic gas (carbon monoxide and hydrogen) at competitive costs. Taranto : refinery has balanced refining capacity of 120 kbbl/d and a conversion index of 56%. This refinery processes most of oil produced in Eni’s Val d’Agri fields carried to Taranto through the Monte Alpi pipeline (in 2014 a total of 2.91 mmtonnes of this oil was processed). It principally produces fuels for automotive use and residential heating purposes for the Southern Italian markets. The complexity is achieved through a Residue Hydroconversion Unit (RHU)-Hydrocracking process and a "Two Stage" Visbreaking-Thermal Cracking unit. Gela : the refinery was shut down in order to activate the plan of reconversion in bio-refinery following the model adopted for the Venice green refinery and create a logistic hub. Livorno : refinery, with balanced refining capacity of 84 kbbl/d and a conversion index of 11%, manufactures mainly gasoline, fuel oil for bunkering and lubricant bases. Besides its primary distillation plants, this refinery contains two lubricant manufacturing lines. Its infrastructures including highways, railways and pipeline connecting the site with the local harbor and with the Florence storage sites through two pipelines optimizing intake, handling and distribution of products. Venice (Porto Marghera) : in June 2014, the start up of the bio-refinery of Porto Marghera was achieved, with green diesel capacity of approximately 300 ktonnes/y. The green diesel is produced from refined vegetable oil utilizing the proprietary Ecofining TM technology. The production will fulfill half of the Eni’s annual requirement of green diesel, thus ensuring new perspectives for the industrial site of Venice and allowing economic and environmental benefits. Milazzo : jointly-owned by Eni and Kuwait Petroleum Italy, the refinery has balanced primary refining capacity of 124 kbbl/d (Eni’s share) and a conversion rate of 60%. Located on the Northern coast of Sicily, it is provided with two primary distillation plants, one unit of fluid catalytic cracking (FCC), one hydrocracking unit for the conversion of middle distillates (HDCK) and one unit devoted to the residue treatment process (LC-Finer). n Outside Italy In Germany, Eni’s share in the Schwedt refinery is 8.3% and 20% in Bayernoil, an integrated industrial hub that includes Vohburg and Neustadt refineries. Eni’s refining capacity in Germany is approximately 60 kbbl/d mainly to supply Eni’s distribution network in Bavaria and Eastern Germany. In the Czech Republic, Eni owns a share of 32.4% in the Céska Rafinérská which owns and operates two refineries, Kralupy and Litvinov. Eni’s refining capacity amounts to about 53 kbbl/d. The divestment of Eni’s interest is ongoing.

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1. Logistics Eni is a primary operator in storage and transport of petroleum products in Italy with its logistical integrated infrastructure consisting of 18 directly managed storage sites and a network of petroleum product pipelines for products sale and storage of LPG and crude. Eni’s logistic model is based on a hub structure covering five main areas. These hubs monitor and centralize product flows in order to lower collection and delivery costs. Eni holds five partnerships with major Italian operators located in the Vado Ligure-Genoa (Petrolig), Arquata Scrivia (Sigemi), Venice (Petroven), Ravenna (Petra) and Trieste (DCT) sites, they reduce logistic costs, and increase efficiency. Eni operates in oil and refined products transport: (i) by sea through spot and long-term contracts of tanker ships; and (ii) through an owned pipeline network extending 1,462-kilometer long. Secondary distribution to retail and wholesale markets is carried out through outsourcing to little tanker owners and represent leading market positions in their own geographical area. 3. Marketing n Retail sales in Italy Eni is a leader in the Italian retail market of refined products with a 25.5% market share, down by 2 percentage points from 2013. In 2014, retail sales in Italy of 6.14 mmtonnes decreased by approximately 0.50 mmtonnes, or by 7.5% compared to 2013, driven by lower consumption of all products amidst weak demand. Average gasoline and gasoil throughput (1,534 kliters) decreased by approximately 124 kliters from 2013. At December 31, 2014, Eni’s retail network in Italy consisted of 4,592 service stations, 170 stations less compared to December 31, 2013 (4,762 service stations), resulting from the negative balance of the closing of service stations with low throughput (97 units), lack of renewal of two motorway concessions and a negative balance of acquisitions/releases of lease concessions (71 units). By means of the fidelity "you&eni" program, launched in February 2010 and lasting five years, as of December 31, 2014, approximately 1.9 million customers effected at least one transaction within the program of which, approximately 1 million was represented by consumer and loyalty cards. In 2014, volumes sold to customers accumulating points on their cards accounted for approximately 37% of all network throughputs, net of iperself throughputs which do not allow to accumulate points for loyalty programs. n Retail Rest of Europe In 2014, retail sales of refined products marketed in the rest of Europe (3.07 mmtonnes) were essentially stable (up by 0.7%). Higher volumes marketed in Germany and Austria were offset by lower sales in France and in the Czech Republic. At December 31, 2014, Eni’s retail network in the rest of Europe consisted of 1,628 service stations, with an increase of 4 units from December 31, 2013 (1,624 service stations). The network evolution was as follows: (i) the closing of 15 low throughput service stations mainly in France; (ii) the positive balance of acquisitions/releases of lease concessions (10 units), in particular in Germany and Switzerland; (iii) the purchase of 8 service stations, mainly in Germany; and (iv) the opening of 1 new outlet. Average throughput (2,258 kliters) decreased by 64 kliters compared to a year ago (2,322 kliters in 2013).

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1. Wholesale business Fuels Eni markets gasoline and other fuels on the wholesale market in Italy, including diesel fuel for automotive use and for heating purposes, for agricultural vehicles and for vessels and fuel oil. Major customers are resellers, manufacturing industries, service companies, public utilities and transports, as well as final users (transporters, condominiums, farmers, fishers, etc.). Eni provides its customers with its expertise in the area of fuels with a wide range of products that cover all market requirements. Customer care and product distribution is supported by a widespread commercial and logistical organization presence all over Italy and articulated in local marketing offices and a network of agents and concessionaires. In 2014, sales volumes on wholesale markets in Italy (7.57 mmtonnes) declined by approximately 800 ktonnes, down by 9.6%, mainly due to lower sales of all products, in particular gasoil for heating reflecting the mild climate registered in the period, as well as fuel oil and bunkering due to declining demand. Average market share in 2014 was 26.7% (28.8% in 2013). Supplies to the petrochemical industry (0.97 mmtonnes) decreased from 2013 (down by 350 ktonnes) due to lower feedstock supplies. Wholesale sales in the Rest of Europe of approximately 4.60 mmtonnes increased by 8.7% from 2013 due to increased sales in Czech Republic, Hungary and France. Other sales (21.63 mmtonnes) increased by 2.18 mmtonnes, or 11.2%, mainly due to higher sales to the other oil companies. Eni also markets jet fuel directly at 51 airports, of which 30 are in Italy. In 2014, these sales amounted to 2.1 mmtonnes (of which 1.6 mmtonnes are in Italy). Eni is also active in the international market of bunkering, marketing marine fuel, mainly in 115 ports, of which 65 are in Italy. In 2014, marine fuel sales were 1.38 mmtonnes (1.26 mmtonnes in Italy). LPG In Italy, Eni is leader in LPG production, marketing and sale with 590 ktonnes sold for heating and automotive use equal to a 20% market share. An additional 289 ktonnes of LPG were marketed through other channels mainly to oil companies and traders. LPG activities in Italy are supported by direct production, availability from 5 bottling plants and 1 owned storage site, in addition to products imported at coastal storage sites located in Livorno, Naples and Ravenna. Outside Italy, LPG sales in 2014 amounted to 549 ktonnes of which 410 ktonnes in Ecuador where LPG market share is approximately 37.9%. Lubricants Eni operates six (owned and co-owned) blending plants, in Italy, Europe, North and South America and the Far East. With a wide range of products composed of over 650 different blends Eni masters international state of art know-how for the formulation of products for vehicles (engine oil, special fluids and transmission oils) and industries lubricants for hydraulic systems, industrial machinery and metal processing. In Italy, Eni is leader in the manufacture and sale of lubricant bases. Base oils are manufactured primarily at Eni’s refinery in Livorno. Eni also owns one facility for the production of additives and solvents in Robassomero in Turin area. In 2014, retail and wholesale sales in Italy amounted to 90 ktonnes with a 23.4% market share. Eni also sold approximately 3 ktonnes of special products (white oils, transformer oil and anti-freeze fluids). Outside Italy sales amounted to approximately 100 ktonnes, of these about 92% were registered in Europe. Oxygenates Eni, through its subsidiary Ecofuel (100% Eni’s share), sells approximately 1 mmtonnes/y of oxygenates, mainly ethers (approximately 2.9% of world demand) and methanol (approximately 0.1% of world demand). About 81% of oxygenates are produced in Eni’s plants in Italy (Ravenna), Saudi Arabia (in joint venture with Sabic) and the remaining 19% is bought and resold. Eni distributes bio-ETBE in the Italian market in compliance with the new legislation indicating minimum content of bio-fuels. Bio-ETBE like MTBE is an octane booster gained a relevant position in the formulation of gasoline in European Union, because it is produced from ethanol from agricultural crops and qualified as bio-component in European directive on bio-fuels. In Italy from January 2014, the mandatory minimum content of bio-components in the fuels has been kept constant to 4.5 and Eni covered this bio-regulation request through the blending of Bio-ETBE and bio-diesel of 1 st and 2 nd generation (FAME and Green Diesel from Porto Marghera site).

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Supply of oil (mmtonnes) 2010 2011 2012 2013 2014

| Equity crude oil — Production
outside Italy | 26.90 | | 24.29 | | 23.57 | | 22.46 | | 23.66 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Production in Italy | 3.24 | | 3.35 | | 3.35 | | 3.69 | | 3.81 | |
| | 30.14 | | 27.64 | | 26.92 | | 26.15 | | 27.47 | |
| Other crudes oil | | | | | | | | | | |
| Purchases
on spot markets | 20.95 | | 20.44 | | 24.95 | | 25.27 | | 25.60 | |
| Purchases under forward contracts | 17.16 | | 10.94 | | 10.34 | | 14.54 | | 17.07 | |
| | 38.11 | | 31.38 | | 35.29 | | 39.81 | | 42.67 | |
| Total crude oil purchases | 68.25 | | 59.02 | | 62.21 | | 65.96 | | 70.14 | |
| Purchases
of intermediate products | 3.05 | | 4.26 | | 4.53 | | 5.31 | | 4.94 | |
| Purchase of products | 15.28 | | 15.85 | | 20.52 | | 17.79 | | 20.87 | |
| TOTAL PURCHASES | 86.58 | | 79.13 | | 87.26 | | 89.06 | | 95.95 | |
| Consumption for power generation | (0.92 | ) | (0.89 | ) | (0.75 | ) | (0.55 | ) | (0.57 | ) |
| Other
changes (a) | (2.69 | ) | (1.12 | ) | (1.63 | ) | (1.06 | ) | (0.98 | ) |
| | 82.97 | | 77.12 | | 84.89 | | 87.45 | | 94.40 | |

(a) Include changes in inventories, transport declines, consumption and losses.

Refinery capacity 2010 2011 2012 2013 2014

| Primary
distillation capacity (a) | (kbbl/d) | 930 | 930 | 930 | 930 | 694 |
| --- | --- | --- | --- | --- | --- | --- |
| Balanced capacity (a) | | 757 | 767 | 767 | 787 | 617 |
| Refinery
throughputs on own account | | 514 | 455 | 417 | 380 | 317 |
| Distillation capacity utilization rate | (%) | 73 | 72 | 72 | 66 | 75 |

(a) Eni’s share.

Availability of refined products (mmtonnes) 2010 2011 2012 2013 2014

| ITALY — At
wholly-owned refineries | 25.70 | | 22.75 | | 20.84 | | 18.99 | | 16.24 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Less input on account of third parties | (0.50 | ) | (0.49 | ) | (0.47 | ) | (0.57 | ) | (0.58 | ) |
| At
affiliate refineries | 4.36 | | 4.74 | | 4.52 | | 4.14 | | 4.26 | |
| Refinery throughputs on own
account | 29.56 | | 27.00 | | 24.89 | | 22.56 | | 19.92 | |
| Consumption
and losses | (1.69 | ) | (1.55 | ) | (1.34 | ) | (1.23 | ) | (1.33 | ) |
| Products available for sale | 27.87 | | 25.45 | | 23.55 | | 21.33 | | 18.59 | |
| Purchases
of refined products and change in inventories | 4.24 | | 3.22 | | 3.35 | | 4.42 | | 5.38 | |
| Products transferred to operations outside Italy | (4.18 | ) | (1.77 | ) | (2.36 | ) | (1.85 | ) | (0.64 | ) |
| Consumption
for power generation | (0.92 | ) | (0.89 | ) | (0.75 | ) | (0.55 | ) | (0.57 | ) |
| Sales of products | 27.01 | | 26.01 | | 23.79 | | 23.35 | | 22.76 | |
| OUTSIDE ITALY | | | | | | | | | | |
| Refinery throughputs on own
account | 5.24 | | 4.96 | | 5.12 | | 4.82 | | 5.11 | |
| Consumption
and losses | (0.24 | ) | (0.23 | ) | (0.23 | ) | (0.22 | ) | (0.21 | ) |
| Products available for sale | 5.00 | | 4.73 | | 4.89 | | 4.60 | | 4.90 | |
| Purchases
of finished products and change in inventories | 10.61 | | 12.51 | | 17.29 | | 13.69 | | 16.11 | |
| Products transferred from Italian operations | 4.18 | | 1.77 | | 2.36 | | 1.85 | | 0.64 | |
| Sales of products | 19.79 | | 19.01 | | 24.54 | | 20.14 | | 21.65 | |
| Refinery throughputs on own
account | 34.80 | | 31.96 | | 30.01 | | 27.38 | | 25.03 | |
| Total
equity crude input | 5.02 | | 6.54 | | 6.39 | | 5.93 | | 5.81 | |
| Total sales of refined
products | 46.80 | | 45.02 | | 48.33 | | 43.49 | | 44.41 | |
| Crude oil sales | 36.17 | | 32.10 | | 36.56 | | 43.96 | | 49.99 | |
| TOTAL SALES | 82.97 | | 77.12 | | 84.89 | | 87.45 | | 94.40 | |

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Production and sales (mmtonnes) 2010 2011 2012 2013 2014

Products: — Gasoline	7.81	7.24	6.88	6.17	6.07
Gasoil	13.63	12.95	12.24	11.31	10.31
Jet
fuel/kerosene	1.46	1.41	1.35	1.41	1.45
Fuel oil	3.75	2.65	2.77	2.40	2.04
LPG	0.50	0.57	0.51	0.50	0.49
Lubricants	0.67	0.54	0.62	0.60	0.54
Petrochemical
feedstock	2.59	2.49	2.06	2.08	1.67
Other	2.46	2.33	2.00	1.46	0.92
Total products	32.87	30.18	28.43	25.93	23.49
Sales:
Italy	27.01	26.01	23.79	23.35	22.76
Gasoline	2.91	2.78	2.61	2.21	2.00
Gasoil	9.94	9.63	9.14	8.42	7.61
Jet fuel/kerosene	1.45	1.64	1.56	1.58	1.59
Fuel
oil	0.44	0.46	0.33	0.24	0.12
LPG	0.59	0.60	0.61	0.62	0.59
Lubricants	0.11	0.10	0.10	0.09	0.09
Petrochemical
feedstock	1.72	1.71	1.26	1.32	0.97
Other	9.85	9.09	8.18	8.87	9.79
Rest of Europe	16.66	15.88	16.08	16.82	18.76
Gasoline	1.85	1.79	1.81	1.73	1.80
Gasoil	3.95	3.71	3.96	4.23	4.48
Jet
fuel/kerosene	0.38	0.48	0.44	0.49	0.55
Fuel oil	0.25	0.23	0.19	0.22	0.18
LPG	0.12	0.12	0.13	0.12	0.14
Lubricants	0.10	0.09	0.08	0.08	0.09
Other	10.01	9.46	9.47	9.95	11.52
Extra Europe	3.13	3.13	8.46	3.32	2.89
Gasoline	2.74	2.62	8.00	1.55	2.23
LPG	0.37	0.38	0.39	0.39	0.41
Lubricants	0.02	0.02	0.01	0.02	0.01
Other	0.00	0.11	0.06	1.36	0.24
Worldwide
Gasoline	7.50	7.19	12.42	5.49	6.03
Gasoil	13.89	13.34	13.10	12.65	12.09
Jet fuel/kerosene	1.83	2.12	2.00	2.07	2.14
Fuel
oil	0.69	0.69	0.52	0.46	0.30
LPG	1.08	1.10	1.13	1.13	1.14
Lubricants	0.23	0.21	0.19	0.19	0.19
Petrochemical
feedstock	1.72	1.71	1.26	1.32	0.97
Other	19.86	18.66	17.71	20.18	21.55
TOTAL SALES	46.80	45.02	48.33	43.49	44.41

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Sales in Italy and outside Italy by market (mmtonnes) 2010 2011 2012 2013 2014

Retail	8.63	8.36	7.83	6.64	6.14
Wholesale	9.45	9.36	8.62	8.37	7.57
	18.08	17.72	16.45	15.01	13.71
Petrochemicals	1.72	1.71	1.26	1.32	0.97
Other sales	7.21	6.58	6.08	7.01	8.08
Sales in Italy	27.01	26.01	23.79	23.34	22.76
Retail rest of Europe	3.10	3.01	3.04	3.05	3.07
Wholesale
rest of Europe	3.88	3.84	3.96	4.23	4.60
Wholesale outside Europe	0.42	0.43	0.42	0.43	0.43
Retail and wholesale outside Italy	7.40	7.28	7.42	7.71	8.10
Other markets	12.39	11.73	17.12	12.44	13.55
Sales outside Italy	19.79	19.01	24.54	20.15	21.65
TOTAL SALES	46.80	45.02	48.33	43.49	44.41

Retail and wholesale sales of refined products (mmtonnes) 2010 2011 2012 2013 2014

Italy	18.08	17.72	16.45	15.01	13.71
Retail sales	8.63	8.36	7.83	6.64	6.14
Gasoline	2.76	2.60	2.41	1.96	1.71
Gasoil	5.58	5.45	5.08	4.33	4.07
LPG	0.26	0.29	0.31	0.32	0.32
Other	0.03	0.02	0.03	0.03	0.04
Wholesale sales	9.45	9.36	8.62	8.37	7.57
Gasoil	4.36	4.18	4.07	4.09	3.54
Fuel
oil	0.44	0.46	0.33	0.24	0.12
LPG	0.33	0.31	0.30	0.30	0.28
Gasoline	0.16	0.19	0.20	0.25	0.30
Lubricants	0.10	0.10	0.09	0.09	0.09
Bunker	1.35	1.26	1.19	1.00	0.91
Jet fuel	1.46	1.65	1.56	1.58	1.59
Other	1.25	1.21	0.88	0.82	0.74
Outside Italy (retail +
wholesale)	7.40	7.28	7.42	7.71	8.10
Gasoline	1.85	1.79	1.81	1.73	1.80
Gasoil	3.95	3.82	3.96	4.23	4.48
Jet
fuel	0.40	0.49	0.44	0.51	0.56
Fuel oil	0.25	0.23	0.19	0.22	0.18
Lubricants	0.10	0.10	0.09	0.10	0.10
LPG	0.49	0.50	0.52	0.51	0.55
Other	0.36	0.35	0.41	0.41	0.43
TOTAL	25.48	25.00	23.87	22.72	21.81

Number of service stations (units) 2010 2011 2012 2013 2014

Italy		4,542	4,701	4,780	4,762	4,592
Ordinary stations		4,415	4,574	4,653	4,636	4,468
Highway
stations		127	127	127	126	124
Outside Italy		1,625	1,586	1,604	1,624	1,628
Germany		455	454	445	460	469
France		188	181	173	169	160
Austria/Switzerland		582	547	575	585	591
Eastern Europe		400	404	411	410	408
Service
stations selling Blu products		4,994	5,179	5,226	5,021	5,749
"Multi-Energy"
service stations		5	5	6	6	6
Service
stations selling LPG and natural gas		657	864	1,031	1,024	1,206
Non-oil sales	(euro million)	137	156	159	151	151

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Average throughput (kliters/No. of service stations) 2010 2011 2012 2013 2014

Italy	2,322	2,173	1,976	1,657	1,534
Germany	3,360	3,237	3,226	3,279	3,299
France	2,310	2,209	2,121	2,194	2,139
Austria/Switzerland	1,711	1,645	1,879	1,890	1,891
Eastern
Europe	2,508	2,591	2,145	2,044	1,979
Average throughput	2,352	2,206	2,064	1,828	1,725

Market shares in Italy (%) 2010 2011 2012 2013 2014

Retail	30.4	30.5	31.2	27.5	25.5
Gasoline	27.9	27.8	28.8	24.8	22.3
Gasoil	32.5	32.6	33.2	29.6	27.9
LPG
(automotive)	21.4	22.7	23.1	20.8	20.0
Lubricants	35.7	27.7	35.4	30.4	25.8
Wholesale	29.2	28.6	29.5	28.8	26.7
Gasoil	33.5	30.8	33.0	32.7	27.3
Fuel oil	17.8	25.5	23.3	17.5	21.8
Bunker	40.4	33.6	37.6	39.4	39.1
Lubricants	24.0	23.6	24.1	23.5	23.4
Domestic market share (retail
and wholesale)	29.8	29.3	30.3	28.3	26.3

Retail market shares outside Italy (%) 2010 2011 2012 2013 2014

Central Europe — Austria	7.0	9.6	11.7	11.9	12.1
Switzerland	6.5	6.6	7.1	7.3	7.3
Germany	3.4	3.1	3.2	3.2	3.2
France	1.1	1.0	0.9	0.9	0.8
Eastern Europe
Hungary	11.9	11.9	11.9	11.7	11.9
Czech
Republic	11.8	11.6	10.8	9.8	8.9
Slovakia	9.7	9.8	9.7	9.7	9.5
Slovenia	2.3	2.2	2.2	2.3	2.4
Romania	1.5	1.7	1.8	1.9	1.8

Capital expenditure (euro million) 2010 2011 2012 2013 2014

Italy	633	803	834	598	466
Outside Italy	78	63	64	74	71
	711	866	898	672	537
Refining, supply and logistic	446	629	675	497	362
Italy	444	626	671	491	357
Outside
Italy	2	3	4	6	5
Marketing	246	228	223	175	175
Italy	170	168	163	107	109
Outside Italy	76	60	60	68	66
Other	19	9
	711	866	898	672	537

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Eni Fact Book Versalis

Versalis

Key performance indicators

2010 2011 2012 2013 2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 3.42 | | 2.74 | | 1.09 | | 0.57 | | 0.28 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 6,141 | | 6,491 | | 6,418 | | 5,859 | | 5,284 | |
| Intermediates | | 2,833 | | 2,987 | | 3,050 | | 2,709 | | 2,310 | |
| Polymers | | 3,126 | | 3,299 | | 3,188 | | 2,933 | | 2,800 | |
| Other
sales | | 182 | | 205 | | 180 | | 217 | | 174 | |
| Operating profit | | (86 | ) | (424 | ) | (681 | ) | (725 | ) | (704 | ) |
| Adjusted
operating profit | | (96 | ) | (273 | ) | (483 | ) | (386 | ) | (346 | ) |
| Adjusted net profit | | (73 | ) | (206 | ) | (395 | ) | (338 | ) | (277 | ) |
| Capital
expenditure | | 251 | | 216 | | 172 | | 314 | | 282 | |
| Production | (ktonnes) | 7,220 | | 6,245 | | 6,090 | | 5,817 | | 5,283 | |
| Sales of
petrochemical products | | 4,731 | | 4,040 | | 3,953 | | 3,785 | | 3,463 | |
| Average plant utilization rate | (%) | 72.9 | | 65.3 | | 66.7 | | 65.3 | | 71.3 | |
| Employees
at year end | (number) | 5,972 | | 5,804 | | 5,668 | | 5,708 | | 5,443 | |
| Direct GHG emissions | (mmtonnes CO 2 eq) | 4.71 | | 4.15 | | 3.72 | | 3.69 | | 3.09 | |
| NMVOC
(Non-Methane Volatile Organic Compound) emissions | (ktonnes) | 4.71 | | 4.18 | | 4.40 | | 3.93 | | 3.51 | |
| NO x emissions (nitrogen oxide) | (ktonnes NO 2 eq) | 4.87 | | 4.14 | | 3.43 | | 3.29 | | 2.45 | |
| Recycled/reused
freshwater | (%) | 82.7 | | 81.9 | | 81.6 | | 86.2 | | 87.7 | |

(a) Before elimination of intragroup sales.

Performance of the year

I In 2014, the injury frequency rate (employees and contractors) was more than halved (down by 50.9%) compared to 2013, continuing the positive trend registered in the last years. I In 2014, greenhouse gas emissions and other emissions in the atmosphere were lower than in 2013 (down by 16.3%), following the substantial restructuring of the production assets of Versalis through the closure of the Hythe site, as well as the shutdown of the petrochemical site of Porto Marghera for almost all 2014. Recycled/reused freshwater rate improved, up to 87.7%. I In 2014, adjusted net loss was euro 277 million, euro 61 million lower than in 2013, benefiting from the improvement of margins in intermediates and polyethylene reported in the last part of the year. This was achieved against the backdrop of continued weakness in commodity demand and increasing competition from non-EU producers. Results reflected efficiency initiatives and restructuring programs, mainly relating to the start-up of the Porto Torres green chemical project and the shutdown of certain unprofitable production units. I Sales of petrochemical products amounted to 3,463 ktonnes, down by 322 ktonnes, or 8.5% from 2013, driven by decrease in consumption. I In 2014, the expenditure in R&D amounted to approximately euro 40 million. 14 patent applications were filed. Restructuring of petrochemical activities in Sardinia I In June 2014, the green chemical project of Matrìca, a 50/50 joint venture between Versalis and Novamont, started operations marking the full conversion of the Porto Torres site. Matrìca’s plant is currently leveraging on innovative technology to transform vegetable oils into monomers and intermediates that are feedstock for the production of complex bio-products destined for a number of industries such as the tyre industry, bio-lubricants and plastic production. The overall production capacity of approximately 70 ktonnes per year will come gradually online during 2015. Cracking production line was definitively closed.

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At the end of December 2014, Versalis signed an agreement to divest the Sarroch plant to the refining company Saras, which owns a refinery close to Eni’s petrochemical site. The agreement includes the disposal of the Versalis plants connected with the production cycle of the refinery, in particular the reforming unit, the propylene splitter unit and other related services, including the logistics system. Porto Marghera Green Chemical project I In November 2014, Eni defined with the Ministry for Economic Development and the interested stakeholders a plan to restore the profitability of the petrochemical plant at Porto Marghera. The project, in partnership with the US-based company Elevance Renewable Science Inc, envisages building of world-scale plants which are the first of their kind and the new technology for the production of bio-chemical intermediates from vegetable oils destined for high added-value industrial applications such as detergents, bio-lubricants and chemicals for the oil industry. Development and sustainability initiatives I In November 2014, Versalis signed a partnership with Solazyme, an US-based renewable oil and bio-products company, aimed to expand market access and commercial use of Encapso TM , the world’s first commercially-available, biodegradable encapsulated lubricants for drilling fluids. I Following the strategic partnership signed in 2013 with Yulex, an US-based leader in biomaterials, to produce guayule-based biorubber by using non-food feedstock, is under development the agronomic protocol and the innovative technology engineering, through the development of the entire supply chain, from the cultivation to the extraction of natural rubber, until the construction of a biomass power station.

Strategy

Versalis was negatively affected by a steep decline in market demand and increasing competitive pressure, mainly in commodity business with lower technological content. In this scenario, the priority is the economic sustainability of Versalis in the medium and long term. The breakeven for adjusted operating profit and operating cash flow is expected to be achieved starting from 2016, performing and completing the following strategic guidelines: (i) critical sites reconversions (in particular Porto Torres, Priolo, Porto Marghera, Sarroch and Hythe) with the shutdown and/or divestment of no more competitive production and consolidation of the other businesses; (ii) refocusing on high value-added productions (i.e. specialties) also through the development of green chemistry; and (iii) empowerment of productive platform by means of the internationalization of the business to serve consumers even more global and markets feature by high growth of demand rate, also through strategic alliances signed with industrial players.

The materials produced by Versalis are obtained following a manufacturing cycle which involves several processing stages. Virgin naphtha, a raw material which is a distillation product from petroleum, undergoes thermal cracking also known as steam-cracking. The component molecules split into simpler molecules: monomers (ethylene, propylene, butadiene, etc.) and into blends of aromatic compounds. The monomers are then reconstituted into more complex molecules: polymers. The following are produced from polymers: polyethylene, styrenes and elastomers used by processing companies to produce a whole variety of products for everyday use. The blends of aromatic compounds, properly treated, are used to produce intermediates, so-called because they are used in the manufacturing of products for everyday use.

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Eni Fact Book Versalis

Eni through Versalis performs activities of production and marketing of petrochemical products (basic petrochemicals and polymers), leveraging on a wide range of proprietary technologies, advanced production facilities, as well as a large and efficient retail network present in 17 European countries. Versalis’ portfolio of patents and proprietary technologies covers the whole field of basic petrochemicals and polymers: phenol and its derivatives, polyethylene, styrenes and elastomers, as well as catalysts and special chemical products. As a producer of intermediates, all types of polyethylene and a wide range of elastomers/lattices and of the complete line of styrenic products, Versalis continues in the development of its proprietary technologies supported by the experience it gained in production and R&D. This approach favored the optimization of the design of equipment and plants, of their performance, of proprietary catalysts and other products that allowed it to achieve excellence in all technologies in the specific business areas in order to compete in markets worldwide. A key role is played by the most innovative proprietary catalysts, particularly those based on zeolites developed by Versalis as building blocks of some of its most advanced technologies and available worldwide. The principal objective of basic petrochemicals is granting the adequate availability of monomers (ethylene, butadiene and benzene) covering the needs of further production processes: in particular olefins production is strictly linked with the polyethylene and elastomers business, aromatics grant the benzene availability necessary to produce intermediate products used in the production of resins, artificial fibers and polystyrene. In polymers business Versalis is one of the most relevant European producers of elastomers, where it is present in almost all the relevant sectors (in particular, in the automotive industry), polystyrene and polyethylene, whose most relevant use is in flexible packaging.

Business areas Intermediates Basic petrochemicals are one of the pillars of the activities of Versalis, whose products have a range of important industrial uses, such as the production of polyethylene, polypropylene, PVC and polystyrene. They are also used in the production of petrochemical intermediates that converge, in turn, into a range of other productive processes: plastics, rubbers, fibers, solvents and lubricants. Intermediates revenues (euro 2,310 million) decreased by euro 399 million from 2013 (down by 14.7%) reflecting the shutdown of Porto Marghera cracker, with an effect on sold volumes of aromatics and derivatives. Lower butadiene sales (down by 31%) and xylene (down by 34%) were attributable to market weakness and production overcapacity in Europe. Average unit prices decreased by 2%, with aromatics price lowered by 7% (in particular xylene prices decreased by 15% due to demand weakness), olefins prices by 1% due to lower ethylene and butadiene prices, almost completely offset by higher prices of propylene. Intermediates production (2,972 ktonnes) registered a decrease from the last year (down by 490 ktonnes, or 14.2%) due to reductions in olefins (down by 11%) and in aromatics (down by 31%) driven by the shutdown of Porto Marghera plant from February until the end of the year, as well as lower productions in Sarroch plant. In addition, derivatives productions decreased by 10% due to disruptions and maintenance standstills registered in the second part of the year. Polymers In the polymers business Versalis is active in the production of: - polyethylene that accounts for approximately 40% of the total volume of world production of plastic materials. It is a basic plastic material, used as a raw material by companies that transform it into a wide range of goods; - styrenics that are polymeric materials based on styrenes that are used in a very large number of sectors through a range of transformation technologies. The most common applications are for industrial packaging and in the food industry, small and large electrical appliances, building isolation, electrical and electronic devices, household appliances, car components and toys; and - elastomers that are polymers characterized by high elasticity that allow them to regain their original shape even after having been subjected to extensive deformation. Versalis has a leading position

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in this sector and produces a wide range of products for the following sectors: tyres, footwear, adhesives, building components, pipes, electrical cables, car components and sealing, household appliances; they can be used as modifiers for plastics and bitumens, as additives for lubricating oils (solid elastomers); carpet backing, paper coating, molded foams (synthetic latex). Versalis is one of the world's major producers of elastomers and synthetic latex. Polymers revenues (euro 2,800 million) decreased by euro 133 million, or by 4.5% from 2013 due to average unit prices and volumes of elastomers decreasing by 8% and 5%, respectively, driven by continuing weakness of automotive sectored demand and low price of Asian producers. These negatives were further exacerbated by the decrease of average styrenics prices (down by 4%) and sold volumes down by 4%, also due to new import flows coming from North Africa. Polyethylene prices were barely unchanged. In the elastomers segment, a partial recovery in sales was registered in thermoplastic rubbers (up by 9%), special rubbers EPDM (up by 5%), that partially compensate lower sales of commodity rubbers (SBR down by 11% and BR down by 3%), nitrilic (down by 9%) and lattices (down by 19%). Lower sales of styrenes (down by 4%) is attributable to lower volumes sold of compact polystyrene (down by 4%), due to demand weakness, monomer styrol (down by 15%) due to lower production availability in Europe following the planned shutdown. The sold volumes of polyethylene reported an increase due to higher sales of HDPE (up by 7%), Eva (up by 9%) and LLDPE (up by 1%) driven by lower supply in Europe. LDPE sales decreased by 2.5%. Polymers production (2,311 ktonnes) decreased by 1.9% from 2013, mainly in elastomers segment (down by 8%), due to the definitive closing of Hythe with lower production of lattices and SBR rubbers, and of BR rubbers due to declining demand. Styrene productions decreased by 4% with lower volumes of styrol (down by 5%) due to the planned shutdown of the second half of 2014 and compact polystyrene (down by 6%), partly offset by higher productions of ABS/San (up by 11%) for short-term production rescheduling. Polyethylene sales increased by 2%, due to higher production at Brindisi site (HDPE up by 5%) due to the planned standstill of olefin production lines, and Eva in the Oberhausen site (up by 53%).

Product availability (ktonnes) 2010 2011 2012 2013 2014

Intermediates — Polymers	4,860 — 2,360		4,101 — 2,144		3,595 — 2,495		3,462 — 2,355		2,972 — 2,311
Production	7,220		6,245		6,090		5,817		5,283
Consumption and losses	(2,912	)	(2,631	)	(2,545	)	(2,394	)	(2,292	)
Purchases
and change in inventories	423		426		408		362		472
	4,731		4,040		3,953		3,785		3,463

Revenues by geographic area (euro million) 2010 2011 2012 2013 2014

Italy	3,131	3,364	3,172	2,758	2,565
Rest of
Europe	2,632	2,747	2,826	2,704	2,433
Asia	139	182	271	238	157
Americas	127	101	84	126	105
Africa	108	93	61	28	10
Other
areas	4	4	4	5	14
	6,141	6,491	6,418	5,859	5,284

Revenues by product (euro million) 2010 2011 2012 2013 2014

Olefins	1,705	1,754	1,792	1,487	1,305
Aromatics	704	835	819	791	610
Intermediates	375	359	440	431	394
Elastomers	834	1,062	979	716	627
Styrenics	744	780	774	800	745
Polyethylene	1,597	1,496	1,434	1,418	1,428
Other	182	205	180	216	174
	6,141	6,491	6,418	5,859	5,284

Capital expenditure (euro million) 2010 2011 2012 2013 2014

	251	216	172	314	282
of which:
-
upkeeping	59	59	25	66	26
- plant
upgrades	116	53	53	170	161
-
HSE	29	46	38	52	30
- energy
recovery	45	42	41	8	28

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Engineering & Construction

Key performance indicators

2010 2011 2012 2013 2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 0.40 | 0.31 | 0.32 | 0.26 | | 0.28 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 10,581 | 11,834 | 12,799 | 11,598 | | 12,873 |
| Operating
profit | | 1,302 | 1,422 | 1,453 | (98 | ) | 18 |
| Adjusted operating profit | | 1,326 | 1,443 | 1,485 | (99 | ) | 479 |
| Adjusted
net profit | | 994 | 1,098 | 1,111 | (253 | ) | 309 |
| Capital expenditure | | 1,552 | 1,090 | 1,011 | 902 | | 694 |
| Orders
acquired | (euro million) | 12,935 | 12,505 | 13,391 | 10,062 | | 17,971 |
| Order backlog | | 20,505 | 20,417 | 19,739 | 17,065 | | 22,147 |
| Employees
at year end | (number) | 38,826 | 38,561 | 43,387 | 47,209 | | 49,559 |
| Employees outside Italy rate | (%) | 87.3 | 86.5 | 88.1 | 89.1 | | 89.9 |
| Local
managers rate | | 45.3 | 43.0 | 41.3 | 41.3 | | 42.0 |
| Local procurement rate | | 61.3 | 56.4 | 57.4 | 54.3 | | 55.6 |
| Direct GHG
emissions | (mmtonnes CO 2 eq) | 1.11 | 1.32 | 1.54 | 1.54 | | 1.42 |
| Water withdrawals | (million of cubic
meters) | 6.56 | 7.24 | 8.25 | 8.74 | | 6.32 |

(a) Before elimination of intragroup sales.

Performance of the year

I In 2014, the injury frequency rate registered a 7.7% increase due to a higher index for contractors (up by 12.7%), partially offset by a lower injury frequency rate for employees (down by 4.9%). I In 2014, adjusted net profit of the Engineering & Construction segment amounted to euro 309 million; up by euro 562 million from the adjusted net loss of euro 253 million reported in 2013 which reflected extraordinary losses of margin of certain projects. I Orders acquired amounted to euro 17,971 million (euro 10,062 million in 2013), 97% of which relating to the works outside Italy, while orders from Eni companies amounted to 8% of the total. I Order backlog amounted to euro 22,147 million at December 31, 2014 (euro 17,065 million at December 31, 2013), of which euro 9,035 million to be fulfilled in 2015. I In 2014, R&D expenditure amounted approximately to euro 12 million. 20 patent applications were filed. I Capital expenditure amounted to euro 694 million (euro 902 million in 2013), mainly regarded the upgrading of the drilling and construction fleet.

Strategy

For the Engineering & Construction segment, the 2014 was characterized by the return to profitability, the reduction of net debt and significant results in terms of new orders. The company has a large and diversified order backlog which will express its competitive advantage as that in: ultra deepwater projects, laying of trunk line in extreme conditions, large and complex onshore projects.

Engineering & Construction Offshore Saipem is well positioned in the market of large projects for the development of offshore hydrocarbon fields leveraging on its technical and operational skills (supported by a technologically advanced fleet and the ability to operate in complex environments) and engineering and project management capabilities acquired on the marketplace over recent years (such as Bouygues Offshore). Saipem intends to consolidate its market share strengthening its EPIC oriented business model and leveraging on its satisfactory long-term relationships with

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Eni Fact Book Engineering & Construction

the Major oil companies and National Oil Companies. Higher levels of efficiency and flexibility are expected to be achieved by reaching the technological excellence and the highest economies of scale in its engineering hubs employing local resources in contexts where this represents a competitive advantage, integrating in its own business model the direct management of construction process through the creation of a large construction yard in South-East Asia and revamping/upgrading its construction fleet. Over the next years, Saipem will invest in the upgrading of its fleet, by building a large fabrication yard in Brazil and buying other supporting assets for drilling activity. In 2014, revenues amounted to euro 7,202 million, up by 40% from 2013 due to higher levels of activity in South Central America, Australia and West Africa. Orders acquired in the year amounted to euro 10,043 million (euro 5,581 million in 2013), mainly related to: (i) an EPCI contract on behalf of Total concerning conversion of the two FPSO units, with an oil capacity of 115,000 bbl/d 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; (ii) a transportation and installation contract on behalf of BP for the Phase 2 of the Shah Deniz field development, offshore Azerbaijan; and (iii) an EPCI contract on behalf of Pemex, in Mexico, for the development of the Lakach field. The scope of work of the contract involves the engineering, procurement, construction and installation of the system connecting the offshore field with the onshore gas conditioning plant. In 2014, Saipem continued the development of technologies, leveraging on the realization of innovative solutions developed in previous years, particularly in the SURF (Subsea Umbilical Risers and Flowlines) and the area of the pipelines, as well as part of the technologies applied on materials and cross functional issues. In the field of the laying of pipelines in very deep waters, various technologies have been applied in the relevant commercial projects, such as the Anti-Flooding Tool that prevents the flooding of the pipe during the laying phase and M1 technology to coating the joints. Engineering & Construction Onshore In the Engineering & Construction Onshore business, Saipem is one of the largest operators on turnkey contract base at a worldwide level in the oil&gas segment. Saipem operates in the construction of plants for hydrocarbon production (extraction, separation, stabilization, collection of hydrocarbons, water injection) and hydrocarbon treatment (removal and recovery of sulphur dioxide and carbon dioxide, fractioning of gaseous liquids, recovery of condensates) and in the installation of large onshore transport systems (pipelines, compression stations, terminals). Saipem preserves its own competitiveness through its technology excellence granted by its engineering hubs, its distinctive know-how in the construction of projects in the high-tech market of LNG and the management of large parts of engineering activities in cost efficient areas. In the medium term, underpinning upward trends in the oil service market, Saipem will be focused on taking advantage of the opportunities arising from the market in the plant and pipeline segments leveraging on its solid competitive position in the realization of complex projects in the strategic areas of Middle East, Caspian Sea, Northern and Western Africa and Russia. In 2014, revenues amounted to euro 3,765 million, registering a decrease of 17% from 2013, due to lower levels of activity in the Middle East, Australia and North America partially offset by lower activity in West Africa and South Central America. Orders acquired during the year amounted to euro 6,354 million (euro 2,193 million in 2013). Among the main orders acquired were: (i) contracts on behalf of Saudi Aramco relating to the Integrated Gasification Combined Cycle project (Jazan) as a 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; (ii) a contract on behalf of Saudi Aramco relating to the expansion of the onshore production centers at the Khurais, Mazajili and Abu Jifan fields in Saudi Arabia. The construction of new facilities will allow to process additional 500,000 barrels per day from the above mentioned fields; and (iii) a contract in the Caspian Region regarding engineering, fabrication and pre-commissioning activities, as well as the load-out of pipe racks. In onshore business, the research and development activity involved technology on proprietary process and new solutions in order to improve the quality profile of the project proposals to customers, mainly with regard to energy efficiency and environmental impact, in particular, relating to development process, continued improvements in performance and environmental compatibility of proprietary technology Snamprogetti Urea TM have been registered. Moreover, in the field of energy efficiency, studies on the production of hydroelectric power in petrochemical plants or for the production of fertilizers have been successfully completed.

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Eni Fact Book Engineering & Construction

Offshore drilling Saipem is the only engineering and construction contractor that provides both offshore and onshore drilling services to oil companies. In the offshore drilling segment, Saipem mainly operates in West Africa, the North Sea, the Mediterranean Sea and the Middle East and boasts significant market positions in the most complex segments of deep and ultra-deep offshore, leveraging on the outstanding technical features of its drilling platforms and vessels, capable of drilling exploration and development wells at a maximum water depth of 9,200 meters. In parallel, investments are ongoing to renew and to keep up the production capacity of other fleet equipment (upgrade equipment to the characteristics of projects or to clients’ needs and purchase of support equipment). In 2014, revenues amounted to euro 1,192 million, barely unchanged from 2013. This was mainly attributable to the increased operations of the semi-submersible rigs Scarabeo 5 and Scarabeo 6, which underwent upgrade works in 2013, whose effects were partially offset by lower levels of activity performed by semi-submersible rigs Scarabeo 7, due to upkeeping works performed. Orders acquired in the year amounted to euro 722 million (euro 1,401 million in 2013), mainly related to: (i) a contract for the lease of the semi-submersible Scarabeo 7, for the drilling at least, twelve wells, to be carried out by the first quarter of 2017, for Eni Muara Bakau BV in Indonesia; (ii) a one-year extension of the contract on behalf of Saudi Aramco for the lease of the jack-up Perro Negro 7, for operations in Saudi Arabia; and (iii) a two-year extension of the contract on behalf of NDC (National Drilling Co) for the lease of the jack-up Perro Negro 2 for operations in the Persian Gulf starting in January 2015. During the year the company prosecuted in the development of new techniques and rigs for drilling activities in frontier areas such as Artic Sea. Onshore drilling Saipem operates in this segment as contractor for the major international and national oil companies executing its activity mainly in South America, Saudi Arabia, North Africa and, at a lower extent, in Europe. In these areas Saipem can leverage its knowledge of the market, long-term relations with customers and synergies and integration with other business areas. Saipem boasts a solid track record in remote areas (in particular in the Caspian Sea), leveraging on its own operational skills and its ability to operate in complex environments. In 2014, revenues amounted to euro 714 million, barely unchanged from 2013. Lower levels of activities in South America and Algeria were almost completely absorbed by higher levels of activities in Saudi Arabia. Orders acquired in the year amounted to euro 852 million (euro 887 million in 2013), mainly related to: (i) for various clients in Latin America (mainly in Venezuela and Peru), new contracts for the lease of rigs; and (ii) a one-year extension of the charter for operations in Saudi Arabia, on behalf of Saudi Aramco, for three rigs already operating in the Country plus the award of a five year contract for a further three rigs.

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Eni Fact Book Engineering & Construction

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Eni Fact Book Engineering & Construction

Main operating data 2010 2011 2012 2013 2014

| Offshore
pipelines laid | (km) | 1,365 | 1,682 | 1,435 | 1,106 | 1,772 |
| --- | --- | --- | --- | --- | --- | --- |
| Onshore pipelines laid | (km) | 385 | 889 | 543 | 433 | 1,897 |
| Offshore
structures installed | (t) | 46,606 | 105,033 | 122,765 | 206,959 | 101,799 |
| Onshore structures installed | (t) | 874,428 | 353,480 | 261,410 | 178,252 | 90,873 |
| Offshore
drilling | (km) | 130 | 178 | 194 | 201 | 188 |
| Onshore drilling | (km) | 881 | 985 | 953 | 821 | 878 |
| Offshore
wells drilled | (units) | 44 | 64 | 104 | 127 | 123 |
| Onshore wells drilled | (units) | 279 | 307 | 373 | 373 | 427 |

Drilling vessels

Name Type Drilling plant Maximum depth (m) Drilling maximum (m) Other

| Perro
Negro 2 | Jack-up | Oilwell E 2000 | 90 | 6,500 | Heliport provided |
| --- | --- | --- | --- | --- | --- |
| Perro Negro 3 | Jack-up | Ideco E 2100 | 90 | 6,000 | Heliport provided |
| Perro
Negro 5 | Jack-up | National 1320 UE | 90 | 6,500 | Heliport provided |
| Perro Negro 6 | Jack-up | National SSDG 3000 | 107 | 9,150 | Heliport provided |
| Perro
Negro 7 | Jack-up | National 1625 UE | 115 | 9,150 | Heliport provided |
| Perro Negro 8 | Jack-up | NOV SSDG 3000 | 107 | 9,100 | Heliport provided |
| Scarabeo 3 | Semi-submersible
drilling platform helped propulsion system | National 1625 DE | 550 | 7,600 | Heliport provided |
| Scarabeo 4 | Semi-submersible drilling platform helped
propulsion system | National 1625 DE | 550 | 7,600 | Heliport provided |
| Scarabeo 5 | Semi-submersible
drilling platform helped propulsion system | Emco C 3 | 1,900 | 8,000 | Heliport provided |
| Scarabeo 6 | Semi-submersible drilling platform helped
propulsion system | Oilwell E 3000 | 500 | 7,600 | Heliport provided |
| Scarabeo 7 | Semi-submersible
drilling platform helped propulsion system | Wirth GH 3000 EG | 1,500 | 8,000 | Heliport provided |
| Scarabeo 8 | Semi-submersible drilling platform helped
propulsion system | NOV AHD-500-4600 | 3,000 | 10,660 | Heliport provided |
| Scarabeo 9 | Semi-submersible
drilling platform helped propulsion system | Aker Maritime Ram Rig | 3,650 | 15,200 | Heliport provided |
| Saipem 10000 | Ultra deep waters drillship, self-propelled,
dynamic positioning | Wirth GH 4500 EG | 3,000 | 9,200 | Oil storage capacity:
140,000 bbl; heliport provided |
| Saipem
12000 | Ultra deep
waters drillship, self-propelled, dynamic positioning | NOV SSDG 5750 | 3,650 | 10,000 | Heliport provided |
| Saipem TAD | Tender assisted drilling barge | Bentec 1500 Hp | 150 | 4,877 | Heliport provided |

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Eni Fact Book Engineering & Construction

Construction vessels

Name Type Laying technique Transport/lifting capability (t) Maximum laying depth (m) Pipelaying maximum diameter (inches)

| Saipem
7000 | Semi-submersible,
self-propelled pipelay and DP vessel capable of lifting
structures and J-laying pipelines in deep waters | J | 14,000 | 3,000 | 32 |
| --- | --- | --- | --- | --- | --- |
| Saipem FDS | Multipurpose monohull dynamically positioned
crane and pipelay (J-lay) vessel utilized for the
development of hydrocarbon fields in deep waters | J | 600 | over 2,000 | 22 |
| Saipem FDS
2 | Multipurpose
monohull dynamically positioned crane and pipelay (J-lay)
vessel utilized for the development of hydrocarbon fields
in deep waters. The vessel is equipped with a J-lay tower | J, S | 2,000 | 3,000 | 36 |
| Castoro 6 | Semi-submersible pipelay vessel capable of
laying large diameter pipe | S | 300 | 1,000 | 60 |
| Castoro 7 | Semi-submersible
pipelay vessel capable of laying large diameter pipe | S | | 1,000 | 60 |
| Castoro 8 | Crane and pipelay vessel | S | 2,200 | 600 | 60 |
| Castorone | Self-propelled,
dynamically positioned pipe-laying vessel operating in
S-lay mode with a 120-meter long S-lay stern ramp
composed of 3 articulated and adjustable stinger sections
for shallow and deep-water operation, a holding capacity
of up to 750 tonnes (expandable to 1,000 tonnes), pipelay
capability of up to 60 inches, onboard fabrication
facilities for triple and double joints and large pipe
storage capacity in cargo holds | S | 1,000 | | 60 |
| Saipem 3000 | Mono-hull, self-propelled DP crane ship, capable
of laying flexible pipes and umbilicals in deep waters
and lifting structures | | 2,200 | | |
| Bar
Protector | Dynamically
positioned dive support vessel used for deep waters
diving operations and works on platforms | | | | |
| Semac 1 | Semi-submersible pipelay vessel capable of
laying pipes in deep waters | S | 318 | 600 | 58 |
| Castoro 2 | Derrick/lay
barge | S | 1,000 | | 60 |
| Castoro 10 | Trench/lay barge | S | | 300 | 60 |
| Castoro 12 | Shallow
waters pipelay barge | S | | 1.4 | 40 |
| S355 | Derrick/lay barge | S | 600 | | 42 |
| Castoro 16 | Post-trenching
and back-filling barge of pipelines operating in
ultra-shallow waters | | | 1.4 | 40 |
| Saibos 230 | Derrick pipelay barge equipped with a mobile
crane for piling, marine terminals and fixed platforms | S | | | 30 |
| Ersai 1 (a) | Technical
pontoon equipped with two crawler cranes, capable of
carrying out installations whilst grounded on the seabed
(1,800 tonnes + 300 tonnes) | | 2,100 | | |
| Ersai 2 (a) | Work barge equipped with a fixed crane capable
of lifting structures | | 200 | | |
| Ersai 3 (a) | Self-propelled
workshop/storage barge used as support vessel, with
storage space and office space for 50 people | | | | |
| Ersai 4 (a) | Self-propelled workshop/storage barge used as
support vessel, with storage space and office space for
150 people | | | | |
| Ersai 400 (a) | Accommodation
barge for up to 400 people, equipped with antigas shelter
for H 2 S leaks | | | | |
| Castoro 9 | Launching/cargo barge | | 5,000 | | |
| Castoro 11 | Heavy duty
cargo barge | | 15,000 | | |
| Castoro 14 | Deck cargo barge | | 10,000 | | |
| Castoro 15 | Deck cargo
barge | | 6,200 | | |
| S42 | Deck cargo barge, for S7000 tower storage | | 8,000 | | |
| S43 | Deck cargo
barge | | | | |
| S44 | Launching/cargo barge | | 30,000 | | |
| S45 | Launching/cargo
barge | | 20,000 | | |
| S46 | Deck cargo barge | | | | |
| S47 | Deck cargo
barge | | | | |
| S600 | Deck cargo barge | | 30,000 | | |
| FPSO -
Cidade de Vitoria | FPSO unit
with a production capacity of up to 100,000 barrels a day | | | | |
| FPSO - Gimboa | FPSO unit with a production capacity of up to
60,000 barrels a day | | | | |

(a) Owned by the Saipem-managed joint venture ER SAI Caspian Contractor Llc.

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Eni Fact Book Financial Data

Financial Data

Profit and loss account (euro million) 2010 2011 2012 2013 2014

| Net sales from operations — Other
income and revenues | 96,617 — 967 | | 107,690 — 926 | | 127,109 — 1,548 | | 114,697 — 1,387 | | 109,847 — 1,101 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total revenues | 97,584 | | 108,616 | | 128,657 | | 116,084 | | 110,948 | |
| Purchases,
services and other | (68,774 | ) | (78,795 | ) | (95,034 | ) | (90,003 | ) | (86,340 | ) |
| Payroll and related costs | (4,428 | ) | (4,404 | ) | (4,640 | ) | (5,301 | ) | (5,337 | ) |
| Total operating expenses | (73,202 | ) | (83,199 | ) | (99,674 | ) | (95,304 | ) | (91,677 | ) |
| Other operating income (expense) | 131 | | 171 | | (158 | ) | (71 | ) | 145 | |
| Depreciation,
depletion, amortization and impairments | (9,031 | ) | (8,785 | ) | (13,617 | ) | (11,821 | ) | (11,499 | ) |
| Operating profit | 15,482 | | 16,803 | | 15,208 | | 8,888 | | 7,917 | |
| Finance
income (expense) | (749 | ) | (1,146 | ) | (1,371 | ) | (1,009 | ) | (1,065 | ) |
| Net income from investments | 1,112 | | 2,123 | | 2,789 | | 6,085 | | 490 | |
| Profit before income taxes | 15,845 | | 17,780 | | 16,626 | | 13,964 | | 7,342 | |
| Income taxes | (8,581 | ) | (9,903 | ) | (11,679 | ) | (9,005 | ) | (6,492 | ) |
| Tax
rate (%) | 54.2 | | 55.7 | | 70.2 | | 64.5 | | 88.4 | |
| Net profit - continuing
operations | 7,264 | | 7,877 | | 4,947 | | 4,959 | | 850 | |
| Attributable
to: | | | | | | | | | | |
| - Eni’s shareholders | 6,252 | | 6,902 | | 4,200 | | 5,160 | | 1,291 | |
| -
non-controlling interest | 1,012 | | 975 | | 747 | | (201 | ) | (441 | ) |
| Net profit - discontinued
operations | 119 | | (74 | ) | 3,732 | | | | | |
| Attributable
to: | | | | | | | | | | |
| - Eni’s shareholders | 66 | | (42 | ) | 3,590 | | | | | |
| -
non-controlling interest | 53 | | (32 | ) | 142 | | | | | |
| Net profit | 7,383 | | 7,803 | | 8,679 | | 4,959 | | 850 | |
| Attributable
to: | | | | | | | | | | |
| - Eni’s shareholders | 6,318 | | 6,860 | | 7,790 | | 5,160 | | 1,291 | |
| -
non-controlling interest | 1,065 | | 943 | | 889 | | (201 | ) | (441 | ) |
| Net profit attributable to
Eni's shareholders - continuing operations | 6,252 | | 6,902 | | 4,200 | | 5,160 | | 1,291 | |
| Exclusion
of inventory holding (gains) losses | (610 | ) | (724 | ) | (23 | ) | 438 | | 1,008 | |
| Exclusion of special items | 1,128 | | 760 | | 2,953 | | (1,168 | ) | 1,408 | |
| of
which: | | | | | | | | | | |
| - non-recurring items | (246 | ) | 69 | | | | | | | |
| - other
special items | 1,374 | | 691 | | 2,953 | | (1,168 | ) | 1,408 | |
| Adjusted net profit
attributable to Eni’s shareholders - continuing
operations | 6,770 | | 6,938 | | 7,130 | | 4,430 | | 3,707 | |
| Adjusted net profit attributable to
Eni’s shareholders - discontinued operations | 99 | | 31 | | 195 | | | | | |
| Adjusted net profit
attributable to Eni’s shareholders | 6,869 | | 6,969 | | 7,325 | | 4,430 | | 3,707 | |

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Eni Fact Book Financial Data

Summarized Group Balance Sheet (euro million) Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014

| Fixed assets — Property,
plant and equipment | 67,404 | | 73,578 | | 64,798 | | 63,763 | | 71,962 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Inventories - Compulsory stock | 2,024 | | 2,433 | | 2,541 | | 2,573 | | 1,581 | |
| Intangible
assets | 11,172 | | 10,950 | | 4,487 | | 3,876 | | 3,645 | |
| Equity-accounted investments and other
investments | 6,090 | | 6,242 | | 8,538 | | 6,180 | | 5,130 | |
| Receivables
and securities held for operating purposes | 1,743 | | 1,740 | | 1,126 | | 1,339 | | 1,861 | |
| Net payables related to capital expenditure | (970 | ) | (1,576 | ) | (1,139 | ) | (1,255 | ) | (1,971 | ) |
| | 87,463 | | 93,367 | | 80,351 | | 76,476 | | 82,208 | |
| Net working capital | | | | | | | | | | |
| Inventories | 6,589 | | 7,575 | | 8,578 | | 7,939 | | 7,555 | |
| Trade receivables | 17,221 | | 17,709 | | 19,958 | | 21,212 | | 19,709 | |
| Trade
payables | (13,111 | ) | (13,436 | ) | (15,052 | ) | (15,584 | ) | (15,015 | ) |
| Tax payables and provisions for net deferred tax
liabilities | (2,684 | ) | (3,503 | ) | (3,265 | ) | (3,062 | ) | (1,865 | ) |
| Provisions | (11,792 | ) | (12,735 | ) | (13,567 | ) | (13,120 | ) | (15,898 | ) |
| Other current assets and liabilities | (1,286 | ) | 281 | | 1,735 | | 1,274 | | 222 | |
| | (5,063 | ) | (4,109 | ) | (1,613 | ) | (1,341 | ) | (5,292 | ) |
| Provisions for employee
post-retirement benefits | (1,032 | ) | (1,039 | ) | (1,407 | ) | (1,279 | ) | (1,313 | ) |
| Assets held for sale including related
liabilities | 479 | | 206 | | 155 | | 2,156 | | 291 | |
| CAPITAL EMPLOYED, NET | 81,847 | | 88,425 | | 77,486 | | 76,012 | | 75,894 | |
| Shareholders’ equity | | | | | | | | | | |
| attributable to: - Eni's shareholders | 51,206 | | 55,472 | | 59,060 | | 58,210 | | 59,754 | |
| attributable to: -
non-controlling interest | 4,522 | | 4,921 | | 3,357 | | 2,839 | | 2,455 | |
| | 55,728 | | 60,393 | | 62,417 | | 61,049 | | 62,209 | |
| Net borrowings | 26,119 | | 28,032 | | 15,069 | | 14,963 | | 13,685 | |
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY | 81,847 | | 88,425 | | 77,486 | | 76,012 | | 75,894 | |

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Eni Fact Book Financial Data

Summarized Group Cash Flow Statement (euro million) 2010 2011 2012 2013 2014

Net profit - continuing operations	7,264		7,877		4,947		4,959		850
Adjustments to reconcile net profit to net
cash provided by operating activities:
-
depreciation, depletion and amortization and other
non-monetary items	8,521		8,606		11,501		9,723		12,131
- net gains on disposal of assets	(558	)	(1,176	)	(875	)	(3,770	)	(95	)
-
dividends, interests, taxes and other changes	8,829		9,918		11,962		9,174		6,655
Changes in working capital related to operations	(1,158	)	(1,696	)	(3,281	)	456		2,668
Dividends
received, taxes paid, interest (paid) received during the
period	(8,758	)	(9,766	)	(11,702	)	(9,516	)	(7,099	)
Net cash provided by
operating activities - continuing operations	14,140		13,763		12,552		11,026		15,110
Net cash
provided by operating activities - discontinued
operations	554		619		15
Net cash provided by
operating activities	14,694		14,382		12,567		11,026		15,110
Capital expenditure - continuing operations	(12,450	)	(11,909	)	(12,805	)	(12,800	)	(12,240	)
Capital expenditure - discontinued operations	(1,420	)	(1,529	)	(756	)
Capital expenditure	(13,870	)	(13,438	)	(13,561	)	(12,800	)	(12,240	)
Investments and purchase of consolidated
subsidiaries and businesses	(410	)	(360	)	(569	)	(317	)	(408	)
Disposals	1,113		1,912		6,025		6,360		3,684
Other cash flow related to capital expenditure,
investments and disposals	228		627		(193	)	(243	)	435
Free cash flow	1,755		3,123		4,269		4,026		6,581
Borrowings (repayment) of debt related to
financing activities	(26	)	41		(79	)	(3,981	)	(414	)
Changes in
short and long-term financial debt	2,272		1,104		5,814		1,715		(628	)
Dividends paid and changes in non-controlling
interests and reserves	(4,099	)	(4,327	)	(3,743	)	(4,225	)	(4,434	)
Effect of
changes in consolidation and exchange differences	39		10		(16	)	(40	)	78
NET CASH FLOW FOR THE PERIOD	(59	)	(49	)	6,245		(2,505	)	1,183

Change in net borrowings (euro million) 2010 2011 2012 2013 2014

Free cash flow — Net borrowings of acquired companies	1,755 — (33	)	3,123		4,269 — (2	)	4,026 — (21	)	6,581 — (19	)
Net
borrowings of divested companies			(192	)	12,446		(23	)
Exchange differences on net borrowings and other
changes	(687	)	(517	)	(345	)	349		(850	)
Dividends
paid and changes in non-controlling interest and reserves	(4,099	)	(4,327	)	(3,743	)	(4,225	)	(4,434	)
CHANGE IN NET BORROWINGS	(3,064	)	(1,913	)	12,625		106		1,278

Net sales from operations (euro million) 2010 2011 2012 2013 2014

| Exploration
& Production — Gas & Power | 29,497 — 27,806 | | 29,121 — 33,093 | | 35,874 — 36,198 | | 31,264 — 32,212 | | 28,488 — 28,250 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Refining
& Marketing | 43,190 | | 51,219 | | 62,531 | | 57,238 | | 56,153 | |
| Versalis | 6,141 | | 6,491 | | 6,418 | | 5,859 | | 5,284 | |
| Engineering
& Construction | 10,581 | | 11,834 | | 12,799 | | 11,598 | | 12,873 | |
| Other activities | 105 | | 85 | | 119 | | 80 | | 78 | |
| Corporate
and financial companies | 1,386 | | 1,365 | | 1,369 | | 1,453 | | 1,378 | |
| Impact of unrealized intragroup profit
elimination (a) | 100 | | (54 | ) | (75 | ) | 18 | | 54 | |
| Consolidation
adjustment | (22,189 | ) | (25,464 | ) | (28,124 | ) | (25,025 | ) | (22,711 | ) |
| | 96,617 | | 107,690 | | 127,109 | | 114,697 | | 109,847 | |

(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.

Net sales to customers (euro million) 2010 2011 2012 2013 2014

Exploration & Production	12,947	10,677		15,552		13,046	11,870
Gas &
Power	26,837	31,749		34,160		30,987	27,147
Refining & Marketing	41,845	48,428		59,569		54,341	53,957
Versalis	5,898	6,202		6,007		5,570	5,031
Engineering & Construction	8,779	10,510		11,690		10,580	11,629
Other
activities	80	62		79		41	31
Corporate and financial companies	131	116		127		114	128
Impact of
unrealized intragroup profit elimination	100	(54	)	(75	)	18	54
	96,617	107,690		127,109		114,697	109,847

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Eni Fact Book Financial Data

Net sales by geographic area of destination (euro million) 2010 2011 2012 2013 2014

Italy	45,896	31,906	33,860	31,949	29,621
Other EU
countries	21,125	35,920	35,909	31,629	29,933
Rest of Europe	4,172	7,153	9,645	11,462	12,434
Africa	13,068	11,333	14,710	12,073	11,640
Americas	6,282	9,612	15,244	7,752	8,944
Asia	5,785	10,258	16,394	18,608	16,257
Other areas	289	1,508	1,347	1,224	1,018
Total outside Italy	50,721	75,784	93,249	82,748	80,226
	96,617	107,690	127,109	114,697	109,847

Net sales by geographic area of origin (euro million) 2010 2011 2012 2013 2014

Italy	55,455	62,789	72,607	73,483	69,847
Other EU
countries	16,983	20,914	19,570	15,626	15,936
Rest of Europe	1,986	3,101	3,736	3,292	3,264
Africa	12,586	9,384	13,976	11,851	11,174
Americas	5,588	7,107	12,020	5,793	5,838
Asia	3,692	3,937	4,458	3,779	3,362
Other areas	327	458	742	873	426
Total outside Italy	41,162	44,901	54,502	41,214	40,000
	96,617	107,690	127,109	114,697	109,847

Purchases, services and other (euro million) 2010 2011 2012 2013 2014

| Production
costs - raw, ancillary and consumable materials and goods — Production costs - services | 48,407 — 14,939 | | 60,826 — 13,551 | | 74,643 — 15,142 | | 67,004 — 17,711 | | 63,605 — 16,979 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operating
leases and other | 2,997 | | 3,045 | | 3,440 | | 3,678 | | 4,080 | |
| Net provisions | 1,401 | | 527 | | 856 | | 850 | | 494 | |
| Other
expenses | 1,252 | | 1,140 | | 1,358 | | 1,147 | | 1,516 | |
| less: | | | | | | | | | | |
| capitalized
direct costs associated with self-constructed tangible
and intangible assets | (222 | ) | (294 | ) | (405 | ) | (387 | ) | (334 | ) |
| | 68,774 | | 78,795 | | 95,034 | | 90,003 | | 86,340 | |

Principal accountant fees and services (euro thousand) 2010 2011 2012 2013 2014

Audit fees	21,114	22,031	23,042	28,023	27,607
Audit-related
fees	183	1,113	1,351	1,574	1,287
Tax fees	166	323	25	21	11
All other
fees			3
	21,463	23,467	24,421	29,618	28,905

Payroll and related costs (euro million) 2010 2011 2012 2013 2014

| Wages and salaries — Social
security contributions | 3,299 — 631 | | 3,435 — 675 | | 3,904 — 679 | | 4,395 — 657 | | 4,645 — 709 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Cost related to defined benefit plans | 154 | | 148 | | 110 | | 92 | | 104 | |
| Other
costs | 557 | | 334 | | 184 | | 411 | | 235 | |
| less: | | | | | | | | | | |
| capitalized
direct costs associated with self-constructed tangible
and intangible assets | (213 | ) | (188 | ) | (237 | ) | (254 | ) | (356 | ) |
| | 4,428 | | 4,404 | | 4,640 | | 5,301 | | 5,337 | |

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Eni Fact Book Financial Data

Depreciation, depletion, amortization and impairments (euro million) 2010 2011 2012 2013 2014

| Exploration & Production — Gas &
Power | 6,928 — 425 | | 6,251 — 413 | | 7,985 — 480 | | 7,810 — 413 | | 8,473 — 334 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Refining & Marketing | 333 | | 351 | | 366 | | 345 | | 283 | |
| Versalis | 83 | | 90 | | 90 | | 95 | | 99 | |
| Engineering & Construction | 513 | | 596 | | 683 | | 721 | | 737 | |
| Other
activities | 2 | | 2 | | 1 | | 1 | | 1 | |
| Corporate and financial companies | 79 | | 75 | | 65 | | 61 | | 69 | |
| Impact of
unrealized intragroup profit elimination | (20 | ) | (23 | ) | (25 | ) | (25 | ) | (26 | ) |
| Total depreciation, depletion
and amortization | 8,343 | | 7,755 | | 9,645 | | 9,421 | | 9,970 | |
| Exploration
& Production | 123 | | 189 | | 547 | | 19 | | 690 | |
| Gas & Power | 426 | | 154 | | 2,443 | | 1,685 | | 25 | |
| Refining
& Marketing | 76 | | 488 | | 843 | | 633 | | 284 | |
| Versalis | 52 | | 160 | | 112 | | 44 | | 96 | |
| Engineering
& Construction | 3 | | 35 | | 25 | | | | 420 | |
| Other activities | 8 | | 4 | | 2 | | 19 | | 14 | |
| Total impairment | 688 | | 1,030 | | 3,972 | | 2,400 | | 1,529 | |
| | 9,031 | | 8,785 | | 13,617 | | 11,821 | | 11,499 | |

Operating profit by segment (euro million) 2010 2011 2012 2013 2014

| Exploration & Production — Gas &
Power | 13,866 — 896 | | 15,887 — (326 | ) | 18,470 — (3,125 | ) | 14,868 — (2,967 | ) | 10,766 — 186 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Refining & Marketing | 149 | | (273 | ) | (1,264 | ) | (1,492 | ) | (2,229 | ) |
| Versalis | (86 | ) | (424 | ) | (681 | ) | (725 | ) | (704 | ) |
| Engineering & Construction | 1,302 | | 1,422 | | 1,453 | | (98 | ) | 18 | |
| Other
activities | (1,384 | ) | (427 | ) | (300 | ) | (337 | ) | (272 | ) |
| Corporate and financial companies | (361 | ) | (319 | ) | (341 | ) | (399 | ) | (246 | ) |
| Impact of
unrealized intragroup profit elimination | 1,100 | | 1,263 | | 996 | | 38 | | 398 | |
| | 15,482 | | 16,803 | | 15,208 | | 8,888 | | 7,917 | |

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Eni Fact Book Financial Data

Non-GAAP measures

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 to manage exposure to movements in foreign currency exchange rates which impact industrial margins and translation of commercial payables and receivables. Accordingly also currency translation effects recorded through profit and loss are 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 (27.5%). 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 Eni’s 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 management’s discussion and financial tables. Also, special items allow to allocate to future reporting periods gains and losses on re-measurement at fair value of certain non hedging commodity derivatives and exchange rate derivatives relating to commercial exposures, lacking the criteria to be designed as hedges, 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 segment. 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 segment). 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, adjusted net profit to reported operating profit and reported net profit see tables below.

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Eni Fact Book Financial Data

2010 (euro million)

Other activities (a) Discontinued operations

Exploration & Production Gas & Power (a) Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Snam Other activities Impact of unrealized intragroup profit elimination GROUP Snam Consolidation adjustments Total Continuing operations

Reported operating profit	13,866		896		149		(86	)	1,302		(361	)	2,000		)	(271	)	16,111		(2,000	)	1,371		(629	)	15,482
Exclusion
of inventory holding (gains) losses			(117	)	(659	)	(105	)										(881	)							(881	)
Exclusion of special items:
net asset
impairments	127		426		76		52		3				10	8				702		(10	)			(10	)	692
gains on disposal of assets	(241	)			(16	)			5				4					(248	)	(4	)			(4	)	(252	)
risk
provisions			78		2						8			7				95								95
environmental charges	30		16		169								9	1,145				1,369		(9	)			(9	)	1,360
provision
for redundancy incentives	97		52		113		26		14		88		23	10				423		(23	)			(23	)	400
commodity derivatives			30		(10	)			(22	)								(2	)							(2	)
exchange
rate differences and derivatives	14		195		(10	)	17											216								216
other	5		(38	)	5									9				(19	)							(19	)
Special items of operating profit	32		489		329		95		24		96		46	1,179				2,290		(46	)			(46	)	2,244
Adjusted operating profit	13,898		1,268		(181	)	(96	)	1,326		(265	)	2,046	(205	)	(271	)	17,520		(2,046	)	1,371		(675	)	16,845
Net
finance (expense) income (b)	(205	)	34						33		(783	)	22	(9	)			(908	)	(22	)			(22	)	(930	)
Net income (expense) from investments (b)	274		362		92		1		10				44	(2	)			781		(44	)			(44	)	737
Income
taxes (b)	(8,358	)	(397	)	33		22		(375	)	181		(667	)		102		(9,459	)	667		(78	)	589		(8,870	)
Tax rate (%)	59.8		23.9		..				27.4				31.6					54.4								53.3
Adjusted net profit	5,609		1,267		(56	)	(73	)	994		(867	)	1,445	(216	)	(169	)	7,934		(1,445	)	1,293		(152	)	7,782
of which attributable to:
-
non-controlling interest																		1,065						(53	)	1,012
- Eni’s shareholders																		6,869						(99	)	6,770
Reported net profit attributable to
Eni’s shareholders																		6,318						(66	)	6,252
Exclusion of inventory holding(gains) losses																		(610	)							(610	)
Exclusion
of special items:																		1,161						(33	)	1,128
- non-recurring charges																		(246	)							(246	)
- other
special (income) charges																		1,407						(33	)	1,374
Adjusted net profit
attributable to Eni’s shareholders																		6,869						(99	)	6,770

(a) Following the announced divestment plan, Snam results are reclassified from "Gas & Power" sector to "Other activities" and accounted as discontinued operations. (b) Excluding special items.

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Eni Fact Book Financial Data

2011 (euro million)

Other activities (a) Discontinued operations

Exploration & Production Gas & Power (a) Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Snam Other activities Impact of unrealized intragroup profit elimination GROUP Snam Consolidation adjustments Total Continuing operations

Reported operating profit	15,887		(326	)	(273	)	(424	)	1,422		(319	)	2,084		(427	)	(189	)	17,435		(2,084	)	1,452		(632	)	16,803
Exclusion
of inventory holding (gains) losses			(166	)	(907	)	(40	)											(1,113	)							(1,113	)
Exclusion of special items:
net asset
impairments	190		154		488		160		35				(9	)	4				1,022		9				9		1,031
gains on disposal of assets	(63	)			10				4		(1	)	(4	)	(7	)			(61	)	4				4		(57	)
risk
provisions			77		8						(6	)			9				88								88
environmental charges					34		1						10		141				186		(10	)			(10	)	176
provision
for redundancy incentives	44		34		81		17		10		9		6		8				209		(6	)			(6	)	203
commodity derivatives	1		45		(3	)			(28	)									15								15
exchange
rate differences and derivatives	(2	)	(82	)	(4	)	3												(85	)							(85	)
other	18		17		27						51		24		(13	)			124		(24	)			(24	)	100
Special items of operating profit	188		245		641		191		21		53		27		201				1,567		(27	)			(27	)	1,540
Adjusted operating profit	16,075		(247	)	(539	)	(273	)	1,443		(266	)	2,111		(226	)	(189	)	17,889		(2,111	)	1,452		(659	)	17,230
Net
finance (expense) income (b)	(231	)	43								(876	)	19		5				(1,040	)	(19	)			(19	)	(1,059	)
Net income (expense) from investments (b)	624		363		99				95		1		44		(3	)			1,223		(44	)			(44	)	1,179
Income
taxes (b)	(9,603	)	93		176		67		(440	)	388		(918	)	(1	)	78		(10,160	)	918		(195	)	723		(9,437	)
Tax rate (%)	58.3		..		..				28.6				42.2						56.2								5.4
Adjusted net profit	6,865		252		(264	)	(206	)	1,098		(753	)	1,256		(225	)	(111	)	7,912		(1,256	)	1,257		1		7,913
of which attributable to:
-
non-controlling interest																			943						32		975
- Eni’s shareholders																			6,969						(31	)	6,938
Reported net profit attributable to
Eni’s shareholders																			6,860						42		6,902
Exclusion of inventory holding (gains) losses																			(724	)							(724	)
Exclusion
of special items:																			833						(73	)	760
- non-recurring charges																			69								69
- other
special (income) charges																			764						(73	)	691
Adjusted net profit
attributable to Eni’s shareholders																			6,969						(31	)	6,938

(a) Following the announced divestment plan, Snam results are reclassified from "Gas & Power" sector to "Other activities" and accounted as discontinued operations. (b) Excluding special items.

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Eni Fact Book Financial Data

2012 (euro million)

Other activities (a) Discontinued operations

Exploration & Production Gas & Power (a) Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Snam Other activities Impact of unrealized intragroup profit elimination GROUP Snam Consolidation adjustments Total Continuing operations

Reported operating profit	18,470		(3,125	)	(1,264	)	(681	)	1,453		(341	)	1,679		(300	)	208		16,099		(1,679	)	788		(891	)	15,208
Exclusion
of inventory holding (gains) losses			163		(29	)	63										(214	)	(17	)							(17	)
Exclusion of special items:
asset
impairments	550		2,443		846		112		25						2				3,978								3,978
gains on disposal of assets	(542	)	(3	)	5		1		3				(22	)	(12	)			(570	)	22				22		(548	)
risk
provisions	7		831		49		18				5				35				945								945
environmental charges			(2	)	40								71		25				134		(71	)			(71	)	63
provision
for redundancy incentives	6		5		19		14		7		11		2		2				66		(2	)			(2	)	64
commodity derivatives	1						1		(3	)									(1	)							(1	)
exchange
rate differences and derivatives	(9	)	(52	)	(8	)	(11	)											(80	)							(80	)
other	54		138		53										26				271								271
Special items of operating profit	67		3,360		1,004		135		32		16		51		78				4,743		(51	)			(51	)	4,692
Adjusted operating profit	18,537		398		(289	)	(483	)	1,485		(325	)	1,730		(222	)	(6	)	20,825		(1,730	)	788		(942	)	19,883
Net
finance (expense) income (b)	(264	)	11		(14	)	(3	)	(7	)	(867	)	(54	)	(24	)			(1,222	)	54				54		(1,168	)
Net income (expense) from investments (b)	436		233		43		2		46		99		38		(1	)			896		(38	)			(38	)	858
Income
taxes (b)	(11,283	)	(163	)	79		89		(413	)	116		(712	)			2		(12,285	)	712		(123	)	589		(11,696	)
Tax rate (%)	60.3		25.4		..				27.1				41.5						59.9								59.8
Adjusted net profit	7,426		479		(181	)	(395	)	1,111		(977	)	1,002		(247	)	(4	)	8,214		(1,002	)	665		(337	)	7,877
of which attributable to:
-
non-controlling interest																			889						(142	)	747
- Eni’s shareholders																			7,325						(195	)	7,130
Reported net profit attributable to
Eni’s shareholders																			7,790						(3,590	)	4,200
Exclusion of inventory holding (gains) losses																			(23	)							(23	)
Exclusion
of special items																			(442	)					3,395		2,953
Adjusted net profit
attributable to Eni’s shareholders																			7,325						(195	)	7,130

(a) Following the announced divestment plan, Snam results are reclassified from "Gas & Power" sector to "Other activities" and accounted as discontinued operations. (b) Excluding special items.

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Eni Fact Book Financial Data

2013 (euro million)

Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Other activities Corporate and financial companies Impact of unrealized intragroup profit elimination GROUP

Reported operating profit	14,868		(2,967	)	(1,492	)	(725	)	(98	)	(337	)	(399	)	38		8,888
Exclusion
of inventory holding (gains) losses			191		221		213								91		716
Exclusion of special items:
asset
impairments	19		1,685		633		44				19						2,400
gains on disposal of assets	(283	)	1		(9	)			107		(3	)					(187	)
risk
provisions	7		292				4				31						334
environmental charges			(1	)	93		61				52						205
provision
for redundancy incentives	52		10		91		23		2		20		72				270
commodity derivatives	(2	)	314		5		(1	)	(1	)							315
exchange
rate differences and derivatives	(2	)	(186	)	(2	)	(5	)									(195	)
other	(16	)	23		3				(109	)	8		(5	)			(96	)
Special items of operating profit	(225	)	2,138		814		126		(1	)	127		67				3,046
Adjusted operating profit	14,643		(638	)	(457	)	(386	)	(99	)	(210	)	(332	)	129		12,650
Net
finance (expense) income (a)	(264	)	14		(6	)	(2	)	(5	)	4		(571	)			(830	)
Net income (expense) from investments (a)	367		70		56				2		1		290				786
Income
taxes (a)	(8,796	)	301		175		50		(151	)			129		(90	)	(8,382	)
Tax rate (%)	59.7		..		..				..				41.5				66.5
Adjusted net profit	5,950		(253	)	(232	)	(338	)	(253	)	(205	)	(484	)	39		4,224
of which attributable to:
-
non-controlling interest																	(206	)
- Eni’s shareholders																	4,430
Reported net profit attributable to
Eni’s shareholders																	5,160
Exclusion of inventory holding (gains) losses																	438
Exclusion
of special items																	(1,168	)
Adjusted net profit
attributable to Eni’s shareholders																	4,430

(a) Excluding special items.

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Eni Fact Book Financial Data

2014 (euro million)

Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Other activities Corporate and financial companies Impact of unrealized intragroup profit elimination GROUP

Reported operating profit	10,766		186		(2,229	)	(704	)	18		(272	)	(246	)	398		7,917
Exclusion
of inventory holding (gains) losses			(119	)	1,576		170								(167	)	1,460
Exclusion of special items:
asset
impairments	692		25		284		96		420		14						1,531
gains on disposal of assets	(76	)			(2	)	45		2		3						(28	)
risk
provisions	(5	)	(42	)					25		7		5				(10	)
environmental charges					111		27				41						179
provision
for redundancy incentives	24		11		(6	)			5		(3	)	(22	)			9
commodity derivatives	(28	)	(43	)	42		4		9								(16	)
exchange
rate differences and derivatives	6		228		(9	)	4										229
other	172		64		25		12				32		(2	)			303
Special items of operating profit	785		243		445		188		461		94		(19	)			2,197
Adjusted operating profit	11,551		310		(208	)	(346	)	479		(178	)	(265	)	231		11,574
Net
finance (expense) income (a)	(287	)	7		(9	)	(3	)	(6	)	(22	)	(542	)			(862	)
Net income (expense) from investments (a)	323		49		67		(3	)	21				(156	)			301
Income
taxes (a)	(7,164	)	(176	)	3		75		(185	)			312		(79	)	(7,214	)
Tax rate (%)	61.8		48.1		..				37.4								65.5
Adjusted net profit	4,423		190		(147	)	(277	)	309		(200	)	(651	)	152		3,799
of which attributable to:
-
non-controlling interest																	92
- Eni’s shareholders																	3,707
Reported net profit attributable to
Eni’s shareholders																	1,291
Exclusion of inventory holding (gains) losses																	1,008
Exclusion
of special items																	1,408
Adjusted net profit
attributable to Eni’s shareholders																	3,707

(a) Excluding special items.

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Eni Fact Book Financial Data

Breakdown of special items (a) (euro million) 2010 2011 2012 2013 2014

| Non-recurring charges
(income) | (246 | ) | 69 | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| of
which: estimated charge from the possible resolution of
the TSKJ matter | | | | | | | | | | |
| of which: settlement/payments on antitrust and other
Authorities proceedings | (246 | ) | 69 | | | | | | | |
| Other special charges (income): | 2,536 | | 1,498 | | 4,743 | | 3,046 | | 2,197 | |
| - asset impairments | 702 | | 1,022 | | 3,978 | | 2,400 | | 1,531 | |
| - gains on
disposal of assets | (248 | ) | (61 | ) | (570 | ) | (187 | ) | (28 | ) |
| - risk provisions | 95 | | 88 | | 945 | | 334 | | (10 | ) |
| -
environmental charges | 1,369 | | 186 | | 134 | | 205 | | 179 | |
| - provision for redundancy incentives | 423 | | 209 | | 66 | | 270 | | 9 | |
| -
commodity derivatives | (2 | ) | 15 | | (1 | ) | 315 | | (16 | ) |
| - exchange rate differences and derivatives | 216 | | (85 | ) | (80 | ) | (195 | ) | 229 | |
| - other | (19 | ) | 124 | | 271 | | (96 | ) | 303 | |
| Special items of operating
profit | 2,290 | | 1,567 | | 4,743 | | 3,046 | | 2,197 | |
| Net finance (income) expense | (181 | ) | 89 | | 203 | | 179 | | 203 | |
| of which: | | | | | | | | | | |
| exchange
rate differences and derivatives | (216 | ) | 85 | | 80 | | 195 | | (229 | ) |
| Net income (expense) from
investments | (324 | ) | (883 | ) | (5,373 | ) | (5,299 | ) | (189 | ) |
| of which: | | | | | | | | | | |
| gains on disposals
of assets | (332 | ) | (1,118 | ) | (2,354 | ) | (3,599 | ) | (159 | ) |
| of
which: international transport | | | (1,044 | ) | | | | | | |
| of which: divestment of the 28.57% of Eni’s
interest in Eni East Africa | | | | | | | (3,359 | ) | | |
| of which: Galp | | | | | (311 | ) | (98 | ) | | |
| of which: Snam | | | | | (2,019 | ) | (75 | ) | | |
| of which: Padana Energia | (169 | ) | | | | | | | | |
| of which: GreenStream | (93 | ) | | | | | | | | |
| gains
on investment revaluation | | | | | (3,151 | ) | (1,682 | ) | (54 | ) |
| of
which: Galp | | | | | (1,700 | ) | | | | |
| of which: Snam | | | | | (1,451 | ) | | | | |
| of which: Artic Russia | | | | | | | (1,682 | ) | | |
| impairments | 28 | | 191 | | 191 | | 11 | | (38 | ) |
| Income taxes | (624 | ) | 60 | | (15 | ) | 901 | | (270 | ) |
| of which: | | | | | | | | | | |
| impairment on
deferred tax assets of Italian subsidiaries | | | | | 803 | | 954 | | 976 | |
| other
net tax refund | | | | | | | | | (824 | ) |
| deferred tax
adjustment on PSAs | | | 552 | | | | 490 | | 69 | |
| re-allocation
of tax impact on intercompany dividends and other special
items | 29 | | 29 | | 147 | | 64 | | (12 | ) |
| taxes on special
items | (653 | ) | (521 | ) | (965 | ) | (607 | ) | (479 | ) |
| Total special items of net profit | 1,161 | | 833 | | (442 | ) | (1,173 | ) | 1,941 | |
| attributable to: | | | | | | | | | | |
| -
non-controlling interest | | | | | | | (5 | ) | 533 | |
| - Eni's shareholders | 1,161 | | 833 | | (442 | ) | (1,168 | ) | 1,408 | |

(a) Including discontinued operations.

Adjusted operating profit by segment (euro million) 2010 2011 2012 2013 2014

| Exploration & Production — Gas &
Power | 13,898 — 1,268 | | 16,075 — (247 | ) | 18,537 — 398 | | 14,643 — (638 | ) | 11,551 — 310 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Refining & Marketing | (181 | ) | (539 | ) | (289 | ) | (457 | ) | (208 | ) |
| Versalis | (96 | ) | (273 | ) | (483 | ) | (386 | ) | (346 | ) |
| Engineering & Construction | 1,326 | | 1,443 | | 1,485 | | (99 | ) | 479 | |
| Other
activities | (205 | ) | (226 | ) | (222 | ) | (210 | ) | (178 | ) |
| Corporate and financial companies | (265 | ) | (266 | ) | (325 | ) | (332 | ) | (265 | ) |
| Impact of
unrealized intragroup profit elimination | 1,100 | | 1,263 | | 782 | | 129 | | 231 | |
| | 16,845 | | 17,230 | | 19,883 | | 12,650 | | 11,574 | |

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Eni Fact Book Financial Data

Adjusted net profit by segment (euro million) 2010 2011 2012 2013 2014

| Exploration
& Production — Gas & Power | 5,609 — 1,267 | | 6,865 — 252 | | 7,426 — 479 | | 5,950 — (253 | ) | 4,423 — 190 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Refining
& Marketing | (56 | ) | (264 | ) | (181 | ) | (232 | ) | (147 | ) |
| Versalis | (73 | ) | (206 | ) | (395 | ) | (338 | ) | (277 | ) |
| Engineering
& Construction | 994 | | 1,098 | | 1,111 | | (253 | ) | 309 | |
| Other activities | (216 | ) | (225 | ) | (247 | ) | (205 | ) | (200 | ) |
| Corporate
and financial companies | (867 | ) | (753 | ) | (977 | ) | (484 | ) | (651 | ) |
| Impact of unrealized intragroup profit
elimination | 1,124 | | 1,146 | | 661 | | 39 | | 152 | |
| | 7,782 | | 7,913 | | 7,877 | | 4,224 | | 3,799 | |
| of which attributable to: | | | | | | | | | | |
| -
non-controlling interest | 1,012 | | 975 | | 747 | | (206 | ) | 92 | |
| - Eni's shareholders | 6,770 | | 6,938 | | 7,130 | | 4,430 | | 3,707 | |

Finance income (expense) (euro million) 2010 2011 2012 2013 2014

| Income
from equity instruments — Exchange differences, net | 92 | | (111 | ) | 131 | | 37 | | (250 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Finance
income (expense) related to net borrowings and other | (634 | ) | (809 | ) | (1,101 | ) | (892 | ) | (856 | ) |
| Net income from securities | 10 | | 9 | | 9 | | 8 | | 9 | |
| Financial
expense due to the passage of time (accretion discount) | (236 | ) | (235 | ) | (308 | ) | (240 | ) | (293 | ) |
| Income (expense) on derivatives | (131 | ) | (112 | ) | (252 | ) | (92 | ) | 162 | |
| less: | | | | | | | | | | |
| finance expense capitalized | 150 | | 112 | | 150 | | 170 | | 163 | |
| | (749 | ) | (1,146 | ) | (1,371 | ) | (1,009 | ) | (1,065 | ) |
| of which, net income from receivables and
securities held for financing operating activities and
interest on tax credits | 64 | | 67 | | 46 | | 58 | | 111 | |

Income (expense on) from investments (euro million) 2010 2011 2012 2013 2014

| Share of profit of equity-accounted investments — Share of
loss of equity-accounted investments | 673 — (149 | ) | 634 — (106 | ) | 451 — (250 | ) | 313 — (105 | 215 — (86 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Gains on disposals | 332 | | 1,121 | | 349 | | 3,598 | 163 | |
| Dividends | 264 | | 659 | | 431 | | 400 | 385 | |
| Decreases (increases) in the provision for
losses on investments | (31 | ) | (28 | ) | (15 | ) | 14 | (8 | ) |
| Other
income (expense), net | 23 | | (157 | ) | 1,823 | | 1,865 | (179 | ) |
| | 1,112 | | 2,123 | | 2,789 | | 6,085 | 490 | |

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Eni Fact Book Financial Data

Property, plant and equipment by segment (at year end) (euro million) 2010 2011 2012 2013 2014

| Property, plant and equipment by segment,
gross — Exploration & Production | 85,494 | | 96,561 | | 103,318 | | 107,329 | | 129,331 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Gas &
Power | 4,155 | | 4,206 | | 5,735 | | 5,763 | | 5,982 | |
| Refining & Marketing | 14,177 | | 14,884 | | 16,805 | | 17,383 | | 17,358 | |
| Versalis | 5,226 | | 5,438 | | 5,589 | | 5,898 | | 6,070 | |
| Engineering & Construction | 10,714 | | 11,809 | | 12,621 | | 12,774 | | 13,657 | |
| Other
activities - Snam () | 18,355 | | 19,449 | | | | | | | |
| Other activities | 1,614 | | 1,617 | | 1,617 | | 1,522 | | 1,548 | |
| Corporate
and financial companies | 372 | | 422 | | 470 | | 589 | | 653 | |
| Impact of unrealized intragroup profit
elimination | (495 | ) | (523 | ) | (486 | ) | (490 | ) | (572 | ) |
| | 139,612 | | 153,863 | | 145,669 | | 150,768 | | 174,027 | |
| Property, plant and equipment
by segment, net | | | | | | | | | | |
| Exploration
& Production | 40,521 | | 45,527 | | 47,509 | | 48,134 | | 56,654 | |
| Gas & Power | 2,614 | | 2,501 | | 3,356 | | 1,969 | | 1,984 | |
| Refining
& Marketing | 4,766 | | 4,758 | | 4,851 | | 4,575 | | 4,461 | |
| Versalis | 990 | | 960 | | 928 | | 1,105 | | 1,193 | |
| Engineering
& Construction | 7,422 | | 7,969 | | 8,213 | | 7,928 | | 7,616 | |
| Other activities - Snam () | 11,262 | | 12,016 | | | | | | | |
| Other
activities | 78 | | 76 | | 76 | | 72 | | 74 | |
| Corporate and financial companies | 171 | | 196 | | 227 | | 322 | | 378 | |
| Impact of
unrealized intragroup profit elimination | (420 | ) | (425 | ) | (362 | ) | (342 | ) | (398 | ) |
| | 67,404 | | 73,578 | | 64,798 | | 63,763 | | 71,962 | |

(*) Property, plant and equipment pertaining to the segment Other activities - Snam has been reclassified from the Gas & Power segment.

Capital expenditure by segment (euro million) 2010 2011 2012 2013 2014

Exploration & Production	9,690		9,435		10,307	10,475		10,524
Gas &
Power	265		192		213	229		172
Refining & Marketing	711		866		898	672		537
Versalis	251		216		172	314		282
Engineering & Construction	1,552		1,090		1,011	902		694
Other
activities	22		10		14	21		30
Corporate and financial companies	109		128		152	190		83
Impact of
unrealized intragroup profit elimination	(150	)	(28	)	38	(3	)	(82	)
Capital expenditure -
continuing operations	12,450		11,909		12,805	12,800		12,240
Capital
expenditure - discontinued operations	1,420		1,529		756
Capital expenditure	13,870		13,438		13,561	12,800		12,240
Investments	410		360		569	317		408
Capital expenditure and
investments	14,280		13,798		14,130	13,117		12,648

Capital expenditure by geographic area of origin (euro million) 2010 2011 2012 2013 2014

Italy	1,624	2,058	2,170	2,044	1,785
Other European Union countries	1,710	1,343	1,263	1,089	853
Rest of
Europe	724	1,168	1,626	1,553	1,407
Africa	5,083	4,369	4,725	4,556	4,864
Americas	1,156	978	1,184	1,506	1,196
Asia	1,941	1,608	1,663	1,799	1,974
Other areas	212	385	174	253	161
Total outside Italy	10,826	9,851	10,635	10,756	10,455
Capital expenditure - continuing operations	12,450	11,909	12,805	12,800	12,240
Capital expenditure - discontinued operations
Italy	1,420	1,529	756
Capital expenditure	13,870	13,438	13,561	12,800	12,240

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Eni Fact Book Financial Data

Net borrowings (euro million)

Debt and bonds Cash and cash equivalents Securities held for trading and other securities held for non-operating purposes Financing receivables held for non-operating purposes Total

2010 — Short-term debt	7,478	(1,549	)	(109	)	(6	)	5,814
Long-term
debt	20,305							20,305
	27,783	(1,549	)	(109	)	(6	)	26,119
2011
Short-term debt	6,495	(1,500	)	(37	)	(28	)	4,930
Long-term
debt	23,102							23,102
	29,597	(1,500	)	(37	)	(28	)	28,032
2012
Short-term debt	5,047	(7,936	)	(36	)	(1,151	)	(4,076	)
Long-term
debt	19,145							19,145
	24,192	(7,936	)	(36	)	(1,151	)	15,069
2013
Short-term debt	4,685	(5,431	)	(5,037	)	(129	)	(5,912	)
Long-term
debt	20,875							20,875
	25,560	(5,431	)	(5,037	)	(129	)	14,963
2014
Short-term debt	6,575	(6,614	)	(5,037	)	(555	)	(5,631	)
Long-term
debt	19,316							19,316
	25,891	(6,614	)	(5,037	)	(555	)	13,685

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Contents

Eni Fact Book Employees

Employees

Employees at year end (*) 2010 2011 2012 2013 2014

	Italy	3,906	3,797	3,933	4,133	4,534
Exploration
& Production	Outside Italy	6,370	6,628	7,371	8,219	8,243
		10,276	10,425	11,304	12,352	12,777
	Italy	2,479	2,310	2,126	2,178	1,980
Gas & Power	Outside Italy	2,593	2,485	2,710	2,438	2,248
		5,072	4,795	4,836	4,616	4,228
	Italy	6,162	5,790	6,098	5,909	4,897
Refining
& Marketing	Outside Italy	1,860	1,801	2,510	2,529	1,877
		8,022	7,591	8,608	8,438	6,774
	Italy	4,903	4,750	4,606	4,615	4,476
Versalis	Outside Italy	1,069	1,054	1,062	1,093	967
		5,972	5,804	5,668	5,708	5,443
	Italy	4,915	5,197	5,186	5,136	5,016
Engineering
& Construction	Outside Italy	33,911	33,364	38,201	42,073	44,543
		38,826	38,561	43,387	47,209	49,559
	Italy	939	880	871	818	726
Other activities	Outside Italy	-	-	-	-	-
		939	880	871	818	726
	Italy	4,497	4,334	4,577	4,589	4,594
Corporate
and financial companies	Outside Italy	164	184	154	157	304
		4,661	4,518	4,731	4,746	4,898
	Italy	27,801	27,058	27,397	27,378	26,223
Total employees at year end	Outside Italy	45,967	45,516	52,008	56,509	58,182
		73,768	72,574	79,405	83,887	84,405
of which: senior managers		1,454	1,468	1,504	1,505	1,503

(*) 2012, 2013 and 2014 data include employees of consolidated subsidiaries and equity accounted entities.

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Contents

Eni Fact Book Supplemental oil and gas information

Supplemental oil and gas information

Oil and natural gas reserves Eni’s criteria concerning evaluation and classification of proved developed and undeveloped reserves follow Regulation S-X 4-10 of the US Securities and Exchange Commission and have been disclosed in accordance with FASB Extractive Activities - Oil & Gas (Topic 932). 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 known reservoirs, and under existing economic conditions, operating methods, and government regulations, prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. 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. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. In 2014, the average price for the marker Brent crude oil was $101 per barrel. Net proved reserves exclude interests and royalties owned by others. Proved reserves are classified as either developed or undeveloped. Developed oil and gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Since 1991, Eni has requested qualified independent oil engineering companies to carry out an independent evaluation of part of its proved reserves on a rotational basis. The description of qualifications of the person primarily responsible of the reserves audit is included in the third party audit report 1 . In the preparation of their reports, independent evaluators rely, without independent verification, upon data furnished by Eni with respect to property interest, production, current costs of operation and development, sale agreements, prices and other factual information and data that were accepted as represented by the independent evaluators. These data, equally used by Eni in its internal process, include logs, directional surveys, core and PVT (Pressure Volume Temperature) analysis, maps, oil/gas/water production/injection data of wells, reservoir studies and technical analysis relevant to field performance, long-term development plans, future capital and operating costs. In order to calculate the economic value of Eni equity reserves, actual prices applicable to hydrocarbon sales, price adjustments required by applicable contractual arrangements, and other pertinent information are provided. In 2014, Ryder Scott Company and DeGolyer and MacNaughton 2 provided an independent evaluation of about 27% of Eni’s total proved reserves as of December 31, 2014 3 , confirming, as in previous years, the reasonableness of Eni’s internal evaluations. In the three-year period from 2012 to 2014, 94% of Eni’s total proved reserves were subject to independent evaluation. As of December 31, 2014, the principal properties not subjected to independent evaluation in the last three years are M’Boundi (Congo) and Junin 5 (Venezuela). Eni operates under production sharing agreements, in several of the foreign jurisdictions where it has oil and gas exploration and production activities. Reserves of oil and natural gas to which Eni is entitled under PSAs arrangements are shown in accordance with Eni’s economic interest in the volumes of oil and natural gas estimated to be recoverable in future years. Such reserves include estimated quantities allocated to Eni for recovery of costs, income taxes owed by Eni but settled by its joint venture partners (which are state-owned entities) out of Eni’s share of production and Eni’s net equity share after cost recovery. Proved oil and gas reserves associated with PSAs represented 47%, 51% and 50% of total proved reserves as of December 31, 2012, 2013 and 2014, respectively, on an oil-equivalent basis. Similar effects as PSAs apply to service and "buy-back" contracts; proved reserves associated with such contracts represented 2%, 3% and 3% of total proved reserves on an oil-equivalent basis as of December 31, 2012, 2013 and 2014, respectively. Oil and gas reserves quantities include: (i) oil and natural gas quantities in excess of cost recovery which the Company has an obligation to purchase under certain PSAs with governments or authorities, whereby the Company serves as producer of reserves. Reserves volumes associated with oil and gas deriving from such obligation represent 1.1%, 1% and 0.6% of total proved reserves as of December 31, 2012, 2013 and 2014, respectively, on an oil equivalent basis; (ii) volumes of natural gas used for own consumption; and (iii) the quantities of hydrocarbons related to the Angola LNG plant. Numerous uncertainties are inherent in estimating quantities of proved reserves, in projecting future productions and development expenditures. The accuracy of any reserve estimate is a function of the quality of available data and engineering and geological interpretation and evaluation. The results of drilling, testing and production after the date of the estimate may require substantial upward or downward revisions. In addition, changes in oil and natural gas prices have an effect on the quantities of Eni’s proved reserves since estimates of reserves are based on prices and costs relevant to the date when such estimates are made. Consequently, the evaluation of reserves could also significantly differ from actual oil and natural gas volumes that will be produced. The following table presents yearly changes in estimated proved reserves, developed and undeveloped, of crude oil (including condensate and natural gas liquids) and natural gas as of December 31, 2012, 2013 and 2014.

(1) From 1991 to 2002 DeGolyer and MacNaughton, from 2003 also Ryder Scott. (2) The reports of independent engineers are available on Eni website eni.com, section Publications/Annual Report 2014. (3) Including reserves of equity-accounted entities.

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved hydrocarbons reserves (mmboe)

Italy (a) Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2012
Consolidated subsidiaries
Reserves
at December 31, 2011	707		630		2,031		1,021		950		230		238		133		5,940
of which:
developed	540		374		1,175		742		482		129		162		112		3,716
undeveloped	167		256		856		279		468		101		76		21		2,224
Purchase
of minerals in place
Revisions of
previous estimates	24		20		67		82		91		(5	)	34		8		321
Improved
recovery			1		20		7										28
Extensions and
discoveries	4		6		10		86		85				9				200
Production	(69	)	(66	)	(213	)	(126	)	(37	)	(41	)	(45	)	(13	)	(610	)
Sales of minerals
in place	(142	)					(22	)	(48	)							(212	)
Reserves at December 31, 2012	524		591		1,915		1,048		1,041		184		236		128		5,667
Equity-accounted entities
Reserves
at December 31, 2011					21		83				656		386				1,146
of which:
developed					19		4				5		26				54
undeveloped					2		79				651		360				1,092
Purchase
of minerals in place
Revisions of
previous estimates											8		247				255
Improved
recovery
Extensions and
discoveries					1		3				10		135				149
Production					(2	)	(1	)			(6	)	(4	)			(13	)
Sales of minerals
in place							(4	)					(34	)			(38	)
Reserves at December 31, 2012					20		81				668		730				1,499
Reserves at December 31, 2012	524		591		1,935		1,129		1,041		852		966		128		7,166
Developed	406		349		1,100		716		458		190		190		107		3,516
consolidated
subsidiaries	406		349		1,080		716		458		108		170		107		3,394
equity-accounted
entities					20						82		20				122
Undeveloped	118		242		835		413		583		662		776		21		3,650
consolidated
subsidiaries	118		242		835		332		583		76		66		21		2,273
equity-accounted
entities							81				586		710				1,377

(a) Including approximately 767 billion cubic feet of natural gas held in storage at December 31, 2011.

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved hydrocarbons reserves (mmboe)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2013
Consolidated subsidiaries
Reserves
at December 31, 2012	524		591		1,915		1,048		1,041		184		236		128		5,667
of which:
developed	406		349		1,080		716		458		108		170		107		3,394
undeveloped	118		242		835		332		583		76		66		21		2,273
Purchase
of minerals in place					4												4
Revisions of
previous estimates	38		35		59		169		30		81		37		59		508
Improved
recovery							5										5
Extensions and
discoveries	4		1		6		53				38		6				108
Production	(67	)	(57	)	(201	)	(120	)	(36	)	(40	)	(39	)	(11	)	(571	)
Sales of minerals
in place			(13	)													(13	)
Reserves at December 31, 2013	499		557		1,783		1,155		1,035		263		240		176		5,708
Equity-accounted entities
Reserves
at December 31, 2012					20		81				668		730				1,499
of which:
developed					20						82		20				122
undeveloped							81				586		710				1,377
Purchase
of minerals in place					1		(5	)			4
Revisions of
previous estimates
Improved
recovery
Extensions and
discoveries
Production					(2	)	(1	)			(13	)	(4	)			(20	)
Sales of minerals
in place											(652	)					(652	)
Reserves at December 31, 2013					19		75				7		726				827
Reserves at December 31, 2013	499		557		1,802		1,230		1,035		270		966		176		6,535
Developed	408		343		1,022		701		566		93		171		123		3,427
consolidated
subsidiaries	408		343		1,003		701		566		90		153		123		3,387
equity-accounted
entities					19						3		18				40
Undeveloped	91		214		780		529		469		177		795		53		3,108
consolidated
subsidiaries	91		214		780		454		469		173		87		53		2,321
equity-accounted
entities							75				4		708				787

• 84 -

Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved hydrocarbons reserves (mmboe)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2014
Consolidated subsidiaries
Reserves
at December 31, 2013	499		557		1,783		1,155		1,035		263		240		176		5,708
of which:
developed	408		343		1,003		701		566		90		153		123		3,387
undeveloped	91		214		780		454		469		173		87		53		2,321
Purchase
of minerals in place			4														4
Revisions of
previous estimates	68		53		154		110		64		45		26		(7	)	513
Improved
recovery					3		1		2								6
Extensions and
discoveries	1		1		5		98				11		8				124
Production	(65	)	(70	)	(205	)	(118	)	(32	)	(34	)	(42	)	(9	)	(575	)
Sales of minerals
in place			(1	)			(7	)									(8	)
Reserves at December 31, 2014	503		544		1,740		1,239		1,069		285		232		160		5,772
Equity-accounted entities
Reserves
at December 31, 2013					19		75				7		726				827
of which:
developed					19						3		18				40
undeveloped							75				4		708				787
Purchase
of minerals in place
Revisions of
previous estimates					(1	)	7						5				11
Improved
recovery
Extensions and
discoveries
Production					(2	)	(1	)			(2	)	(3	)			(8	)
Sales of minerals
in place
Reserves at December 31, 2014					16		81				5		728				830
Reserves at December 31, 2014	503		544		1,756		1,320		1,069		290		960		160		6,602
Developed	401		335		919		725		589		115		214		135		3,433
consolidated
subsidiaries	401		335		904		702		589		112		188		135		3,366
equity-accounted
entities					15		23				3		26				67
Undeveloped	102		209		837		595		480		175		746		25		3,169
consolidated
subsidiaries	102		209		836		537		480		173		44		25		2,406
equity-accounted
entities					1		58				2		702				763

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved liquids reserves (mmbbl)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2012
Consolidated subsidiaries
Reserves
at December 31, 2011	259		372		917		670		653		106		132		25		3,134
of which:
developed	184		195		622		483		215		34		92		25		1,850
undeveloped	75		177		295		187		438		72		40				1,284
Purchase
of minerals in place
Revisions of
previous estimates	(9	)	10		55		26		62		(9	)	40		6		181
Improved
recovery			1		20		7										28
Extensions and
discoveries			3		10		65						8				86
Production	(23	)	(35	)	(98	)	(90	)	(22	)	(15	)	(26	)	(7	)	(316	)
Sales of minerals
in place							(6	)	(23	)							(29	)
Reserves at December 31, 2012	227		351		904		672		670		82		154		24		3,084
Equity-accounted entities
Reserves
at December 31, 2011					17		22				110		151				300
of which:
developed					16		4						25				45
undeveloped					1		18				110		126				255
Purchase
of minerals in place
Revisions of
previous estimates							(1	)			2						1
Improved
recovery
Extensions and
discoveries					1						3						4
Production					(1	)	(1	)			(1	)	(4	)			(7	)
Sales of minerals
in place							(4	)					(28	)			(32	)
Reserves at December 31, 2012					17		16				114		119				266
Reserves at December 31, 2012	227		351		921		688		670		196		273		24		3,350
Developed	165		180		601		456		203		49		128		24		1,806
consolidated
subsidiaries	165		180		584		456		203		41		109		24		1,762
equity-accounted
entities					17						8		19				44
Undeveloped	62		171		320		232		467		147		145				1,544
consolidated
subsidiaries	62		171		320		216		467		41		45				1,322
equity-accounted
entities							16				106		100				222

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved liquids reserves (mmbbl)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2013
Consolidated subsidiaries
Reserves
at December 31, 2012	227		351		904		672		670		82		154		24		3,084
of which:
developed	165		180		584		456		203		41		109		24		1,762
undeveloped	62		171		320		216		467		41		45				1,322
Purchase
of minerals in place					3												3
Revisions of
previous estimates	19		16		12		83		31		62		11		2		236
Improved
recovery							5										5
Extensions and
discoveries			1		2		51						4				58
Production	(26	)	(28	)	(91	)	(88	)	(22	)	(16	)	(22	)	(4	)	(297	)
Sales of minerals
in place			(10	)													(10	)
Reserves at December 31, 2013	220		330		830		723		679		128		147		22		3,079
Equity-accounted entities
Reserves
at December 31, 2012					17		16				114		119				266
of which:
developed					17						8		19				44
undeveloped							16				106		100				222
Purchase
of minerals in place
Revisions of
previous estimates							(1	)					1
Improved
recovery
Extensions and
discoveries
Production					(1	)					(2	)	(4	)			(7	)
Sales of minerals
in place											(111	)					(111	)
Reserves at December 31, 2013					16		15				1		116				148
Reserves at December 31, 2013	220		330		846		738		679		129		263		22		3,227
Developed	177		179		577		465		295		38		115		20		1,866
consolidated
subsidiaries	177		179		561		465		295		38		96		20		1,831
equity-accounted
entities					16								19				35
Undeveloped	43		151		269		273		384		91		148		2		1,361
consolidated
subsidiaries	43		151		269		258		384		90		51		2		1,248
equity-accounted
entities							15				1		97				113

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved liquids reserves (mmbbl)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2014
Consolidated subsidiaries
Reserves
at December 31, 2013	220		330		830		723		679		128		147		22		3,079
of which:
developed	177		179		561		465		295		38		96		20		1,831
undeveloped	43		151		269		258		384		90		51		2		1,248
Purchase
of minerals in place			1														1
Revisions of
previous estimates	49		35		32		70		35		16		22		(7	)	252
Improved
recovery					3		1		2								6
Extensions and
discoveries	1				2		36						5				44
Production	(27	)	(34	)	(91	)	(84	)	(19	)	(13	)	(27	)	(2	)	(297	)
Sales of minerals
in place			(1	)			(7	)									(8	)
Reserves at December 31, 2014	243		331		776		739		697		131		147		13		3,077
Equity-accounted entities
Reserves
at December 31, 2013					16		15				1		116				148
of which:
developed					16								19				35
undeveloped							15				1		97				113
Purchase
of minerals in place
Revisions of
previous estimates					(1	)	3						5				7
Improved
recovery
Extensions and
discoveries
Production					(1	)	(1	)					(4	)			(6	)
Sales of minerals
in place
Reserves at December 31, 2014					14		17				1		117				149
Reserves at December 31, 2014	243		331		790		756		697		132		264		13		3,226
Developed	184		174		534		477		306		64		142		12		1,893
consolidated
subsidiaries	184		174		521		470		306		64		116		12		1,847
equity-accounted
entities					13		7						26				46
Undeveloped	59		157		256		279		391		68		122		1		1,333
consolidated
subsidiaries	59		157		255		269		391		67		31		1		1,230
equity-accounted
entities					1		10				1		91				103

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved natural gas reserves (bcf)

Italy (a) Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2012
Consolidated subsidiaries
Reserves
at December 31, 2011	2,491		1,425		6,190		1,949		1,648		685		590		604		15,582
of which:
developed	1,977		995		3,070		1,437		1,480		528		385		491		10,363
undeveloped	514		430		3,120		512		168		157		205		113		5,219
Purchase
of minerals in place
Revisions of
previous estimates	154		45				284		141		18		(41	)	5		606
Improved
recovery
Extensions and
discoveries	24		15		1		113		469		2		4				628
Production	(254	)	(168	)	(633	)	(196	)	(81	)	(143	)	(104	)	(37	)	(1,616	)
Sales of minerals
in place	(782	)					(89	)	(139	)							(1,010	)
Reserves at December 31, 2012	1,633		1,317		5,558		2,061		2,038		562		449		572		14,190
Equity-accounted entities
Reserves
at December 31, 2011			2		20		338				3,033		1,307				4,700
of which:
developed					17		4				24		8				53
undeveloped			2		3		334				3,009		1,299				4,647
Purchase
of minerals in place
Revisions of
previous estimates			(2	)	(2	)	3				1		1,340				1,340
Improved
recovery
Extensions and
discoveries							17				38		739				794
Production					(2	)	(2	)			(29	)					(33	)
Sales of minerals
in place							(3	)					(31	)			(34	)
Reserves at December 31, 2012					16		353				3,043		3,355				6,767
Reserves at December 31, 2012	1,633		1,317		5,574		2,414		2,038		3,605		3,804		572		20,957
Developed	1,325		925		2,736		1,429		1,401		774		340		459		9,389
consolidated
subsidiaries	1,325		925		2,720		1,429		1,401		372		334		459		8,965
equity-accounted
entities					16						402		6				424
Undeveloped	308		392		2,838		985		637		2,831		3,464		113		11,568
consolidated
subsidiaries	308		392		2,838		632		637		190		115		113		5,225
equity-accounted
entities							353				2,641		3,349				6,343

(a) Including approximately 767 billion cubic feet of natural gas held in storage at December 31, 2011.

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved natural gas reserves (bcf)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2013
Consolidated subsidiaries
Reserves
at December 31, 2012	1,633		1,317		5,558		2,061		2,038		562		449		572		14,190
of which:
developed	1,325		925		2,720		1,429		1,401		372		334		459		8,965
undeveloped	308		392		2,838		632		637		190		115		113		5,225
Purchase
of minerals in place					5												5
Revisions of
previous estimates	105		103		253		475		(3	)	104		142		316		1,495
Improved
recovery
Extensions and
discoveries	24		1		24		14				208		7				278
Production	(230	)	(157	)	(609	)	(176	)	(78	)	(130	)	(89	)	(40	)	(1,509	)
Sales of minerals
in place			(17	)													(17	)
Reserves at December 31, 2013	1,532		1,247		5,231		2,374		1,957		744		509		848		14,442
Equity-accounted entities
Reserves
at December 31, 2012					16		353				3,043		3,355				6,767
of which:
developed					16						402		6				424
undeveloped							353				2,641		3,349				6,343
Purchase
of minerals in place
Revisions of
previous estimates					1		(18	)			16		(2	)			(3	)
Improved
recovery
Extensions and
discoveries
Production					(2	)	(5	)			(60	)					(67	)
Sales of minerals
in place											(2,971	)					(2,971	)
Reserves at December 31, 2013					15		330				28		3,353				3,726
Reserves at December 31, 2013	1,532		1,247		5,246		2,704		1,957		772		3,862		848		18,168
Developed	1,266		904		2,447		1,295		1,488		300		315		561		8,576
consolidated
subsidiaries	1,266		904		2,432		1,295		1,488		286		310		561		8,542
equity-accounted
entities					15						14		5				34
Undeveloped	266		343		2,799		1,409		469		472		3,547		287		9,592
consolidated
subsidiaries	266		343		2,799		1,079		469		458		199		287		5,900
equity-accounted
entities							330				14		3,348				3,692

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Contents

Eni Fact Book Supplemental oil and gas information

Movements in net proved natural gas reserves (bcf)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2014
Consolidated subsidiaries
Reserves
at December 31, 2013	1,532		1,247		5,231		2,374		1,957		744		509		848		14,442
of which:
developed	1,266		904		2,432		1,295		1,488		286		310		561		8,542
undeveloped	266		343		2,799		1,079		469		458		199		287		5,900
Purchase
of minerals in place			21
Revisions of
previous estimates	113		99		668		214		165		156		23		(1	)	1,437
Improved
recovery
Extensions and
discoveries					19		341				59		16				435
Production	(213	)	(195	)	(627	)	(185	)	(73	)	(113	)	(80	)	(40	)	(1,526	)
Sales of minerals
in place			(1	)													(1	)
Reserves at December 31, 2014	1,432		1,171		5,291		2,744		2,049		846		468		807		14,808
Equity-accounted entities
Reserves
at December 31, 2013					15		330				28		3,353				3,726
of which:
developed					15						14		5				34
undeveloped							330				14		3,348				3,692
Purchase
of minerals in place
Revisions of
previous estimates					2		25				(2	)					25
Improved
recovery
Extensions and
discoveries
Production					(2	)	(4	)			(8	)					(14	)
Sales of minerals
in place
Reserves at December 31, 2014					15		351				18		3,353				3,737
Reserves at December 31, 2014	1,432		1,171		5,306		3,095		2,049		864		3,821		807		18,545
Developed	1,192		887		2,125		1,360		1,553		271		399		675		8,462
consolidated
subsidiaries	1,192		887		2,110		1,271		1,553		261		393		675		8,342
equity-accounted
entities					15		89				10		6				120
Undeveloped	240		284		3,181		1,735		496		593		3,422		132		10,083
consolidated
subsidiaries	240		284		3,181		1,473		496		585		75		132		6,466
equity-accounted
entities							262				8		3,347				3,617

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Contents

Eni Fact Book Supplemental oil and gas information

Results of operations from oil and gas producing activities (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2012
Consolidated subsidiaries
Revenues:
- sales to consolidated entities	3,712		3,177		2,338		6,040		459		425		1,614		425		18,190
- sales to
third parties	50		715		9,129		2,243		1,368		1,387		106		333		15,331
Total revenues	3,762		3,892		11,467		8,283		1,827		1,812		1,720		758		33,521
Operations
costs	(302	)	(655	)	(606	)	(913	)	(188	)	(209	)	(361	)	(134	)	(3,368	)
Production taxes	(307	)			(390	)	(818	)			(43	)					(1,558	)
Exploration
expenses	(32	)	(154	)	(153	)	(993	)	(3	)	(230	)	(147	)	(123	)	(1,835	)
D.D. & A. and provision for abandonment (a)	(777	)	(683	)	(1,137	)	(1,750	)	(120	)	(720	)	(1,256	)	(167	)	(6,610	)
Other
income (expenses)	(201	)	(122	)	(934	)	(435	)	206		(149	)	74		(42	)	(1,603	)
Pretax income from producing
activities	2,143		2,278		8,247		3,374		1,722		461		30		292		18,547
Income
taxes	(919	)	(1,524	)	(5,194	)	(2,508	)	(736	)	(176	)	(14	)	(164	)	(11,235	)
Results of operations from
E&P activities of consolidated subsidiaries (b)	1,224		754		3,053		866		986		285		16		128		7,312
Equity-accounted entities
Revenues:
- sales to
consolidated entities
- sales to third parties			2		20		44				144		300				510
Total revenues			2		20		44				144		300				510
Operations costs					(10	)	(5	)			(14	)	(20	)			(49	)
Production
taxes			(1	)	(3	)					(4	)	(128	)			(136	)
Exploration expenses			(5	)	(2	)	(11	)			(4	)					(22	)
D.D. &
A. and provision for abandonment			(50	)	(2	)	(13	)			(41	)	(35	)			(141	)
Other income (expenses)			(7	)	2		(48	)			(6	)	(55	)			(114	)
Pretax income from producing activities			(61	)	5		(33	)			75		62				48
Income taxes					(3	)	4				(36	)	(38	)			(73	)
Results of operations from
E&P activities of equity-accounted entities (b)			(61	)	2		(29	)			39		24				(25	)

(a) Includes asset impairments amounting to euro 547 million in 2012. (b) The "Successful Effort Method" application according to Eni accounting policy would have led to a decrease of result of operations of euro 610 million in 2012 for the consolidated subsidiaries and a decrease of euro 10 million in 2012 for equity-accounted entities.

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Contents

Eni Fact Book Supplemental oil and gas information

Results of operations from oil and gas producing activities (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2013
Consolidated subsidiaries
Revenues:
- sales to consolidated entities	3,784		2,468		2,341		5,264		396		870		1,537		146		16,806
- sales to
third parties			704		7,723		1,855		1,175		864		93		338		12,752
Total revenues	3,784		3,172		10,064		7,119		1,571		1,734		1,630		484		29,558
Operations
costs	(391	)	(717	)	(649	)	(932	)	(192	)	(224	)	(342	)	(119	)	(3,566	)
Production taxes	(326	)			(317	)	(710	)			(38	)			(25	)	(1,416	)
Exploration
expenses	(32	)	(288	)	(95	)	(869	)	(1	)	(205	)	(136	)	(110	)	(1,589	)
D.D. & A. and provision for abandonment (a)	(907	)	(573	)	(1,192	)	(1,882	)	(111	)	(524	)	(848	)	43		(5,994	)
Other
income (expenses)	(277	)	161		(1,009	)	(519	)	(105	)	(140	)	20		(11	)	(1,880	)
Pretax income from producing
activities	1,851		1,755		6,802		2,207		1,162		603		324		262		14,966
Income
taxes	(872	)	(1,006	)	(4,281	)	(1,702	)	(396	)	(178	)	(117	)	(149	)	(8,701	)
Results of operations from
E&P activities of consolidated subsidiaries (b)	979		749		2,521		505		766		425		207		113		6,265
Equity-accounted entities
Revenues:
- sales to
consolidated entities
- sales to third parties					20		26				199		243				488
Total revenues					20		26				199		243				488
Operations costs					(11	)	(44	)			(18	)	(23	)			(96	)
Production
taxes					(4	)					(14	)	(113	)			(131	)
Exploration expenses			(8	)	(3	)					(25	)	(1	)			(37	)
D.D. &
A. and provision for abandonment			(1	)	(1	)					(65	)	(40	)			(107	)
Other income (expenses)			(4	)	5		(12	)			(13	)	(38	)			(62	)
Pretax income from producing activities			(13	)	6		(30	)			64		28				55
Income taxes					(4	)	(10	)			(35	)	30				(19	)
Results of operations from
E&P activities of equity-accounted entities (b)			(13	)	2		(40	)			29		58				36

(a) Includes asset impairments amounting to euro 15 million in 2013. (b) The "Successful Effort Method" application according to Eni accounting policy would have led to a decrease of result of operations of euro 295 million in 2013 for the consolidated subsidiaries and an increase of euro 6 million in 2013 for equity-accounted entities.

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Contents

Eni Fact Book Supplemental oil and gas information

Results of operations from oil and gas producing activities (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2014
Consolidated subsidiaries
Revenues:
- sales to consolidated entities	3,028		2,721		2,010		4,716		346		589		1,691		67		15,168
- sales to
third parties			596		7,415		1,369		976		774		129		299		11,558
Total revenues	3,028		3,317		9,425		6,085		1,322		1,363		1,820		366		26,726
Operations
costs	(423	)	(687	)	(694	)	(935	)	(208	)	(223	)	(357	)	(124	)	(3,651	)
Production taxes	(293	)			(291	)	(648	)			(33	)			(15	)	(1,280	)
Exploration
expenses	(29	)	(227	)	(207	)	(706	)			(185	)	(189	)	(46	)	(1,589	)
D.D. & A. and provision for abandonment (a)	(818	)	(1,083	)	(1,288	)	(2,010	)	(91	)	(850	)	(1,181	)	(172	)	(7,493	)
Other
income (expenses)	(184	)	(96	)	(773	)	(358	)	(251	)	(117	)	(78	)	(30	)	(1,887	)
Pretax income from producing
activities	1,281		1,224		6,172		1,428		772		(45	)	15		(21	)	10,826
Income
taxes	(351	)	(803	)	(3,928	)	(1,273	)	(291	)	(112	)	(6	)	(16	)	(6,780	)
Results of operations from
E&P activities of consolidated subsidiaries (b)	930		421		2,244		155		481		(157	)	9		(37	)	4,046
Equity-accounted entities
Revenues:
- sales to
consolidated entities
- sales to third parties					19						87		232				338
Total revenues					19						87		232				338
Operations costs					(11	)					(11	)	(27	)			(49	)
Production
taxes					(3	)							(94	)			(97	)
Exploration expenses			(8	)							(45	)	(1	)			(54	)
D.D. &
A. and provision for abandonment			(1	)	(1	)					(44	)	(60	)			(106	)
Other income (expenses)			(1	)	1		(32	)			(3	)	(42	)			(77	)
Pretax income from producing activities			(10	)	5		(32	)			(16	)	8				(45	)
Income taxes					(4	)					(23	)	(17	)			(44	)
Results of operations from
E&P activities of equity-accounted entities (b)			(10	)	1		(32	)			(39	)	(9	)			(89	)

(a) Includes asset impairments amounting to euro 690 million in 2014. (b) The "Successful Effort Method" application according to Eni accounting policy would have led to a decrease of result of operations of euro 5 million in 2014 for the consolidated subsidiaries and an increase of euro 24 million in 2014 for equity-accounted entities.

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Eni Fact Book Supplemental oil and gas information

Capitalized cost (a) (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2013
Consolidated subsidiaries
Proved mineral interests	13,465		12,497		18,237		21,854		2,351		6,604		10,652		1,662		87,322
Unproved
mineral interests	31		385		428		2,835		37		1,441		1,419		190		6,766
Support equipment and facilities	269		37		1,370		992		78		90		57		12		2,905
Incomplete
wells and other	799		2,803		1,105		1,851		6,069		634		669		24		13,954
Gross Capitalized Costs	14,564		15,722		21,140		27,532		8,535		8,769		12,797		1,888		110,947
Accumulated
depreciation, depletion and amortization	(10,241	)	(8,581	)	(11,370	)	(15,562	)	(1,000	)	(6,269	)	(8,406	)	(723	)	(62,152	)
Net Capitalized Costs
consolidated subsidiaries (b) (c)	4,323		7,141		9,770		11,970		7,535		2,500		4,391		1,165		48,795
Equity-accounted entities
Proved mineral interests			2		77		34				438		429				980
Unproved
mineral interests			52								74						126
Support equipment and facilities					7						1		3				11
Incomplete
wells and other			20		4		1,059						378				1,461
Gross Capitalized Costs			74		88		1,093				513		810				2,578
Accumulated
depreciation, depletion and amortization			(56	)	(67	)					(405	)	(145	)			(673	)
Net Capitalized Costs
equity-accounted entities (b) (c)			18		21		1,093				108		665				1,905
2014
Consolidated subsidiaries
Proved mineral interests	14,862		13,754		21,549		27,697		2,917		8,827		13,050		1,825		104,481
Unproved
mineral interests	31		399		493		3,263		43		1,590		1,588		214		7,621
Support equipment and facilities	346		42		1,569		1,164		94		35		66		13		3,329
Incomplete
wells and other	816		3,527		1,411		2,988		7,140		690		819		120		17,511
Gross Capitalized Costs	16,055		17,722		25,022		35,112		10,194		11,142		15,523		2,172		132,942
Accumulated
depreciation, depletion and amortization	(11,154	)	(9,519	)	(14,335	)	(20,039	)	(1,241	)	(8,042	)	(10,605	)	(1,009	)	(75,944	)
Net Capitalized Costs
consolidated subsidiaries (b) (c)	4,901		8,203		10,687		15,073		8,953		3,100		4,918		1,163		56,998
Equity-accounted entities
Proved mineral interests			2		77		24				539		549				1,191
Unproved
mineral interests			31								84						115
Support equipment and facilities					7						1		4				12
Incomplete
wells and other			12		5		1,241						776				2,034
Gross Capitalized Costs			45		89		1,265				624		1,329				3,352
Accumulated
depreciation, depletion and amortization			(39	)	(69	)					(522	)	(230	)			(860	)
Net Capitalized Costs
equity-accounted entities (b) (c)			6		20		1,265				102		1,099				2,492

(a) Capitalized costs represent the total expenditure for proved and unproved mineral interests and related support equipment and facilities utilized in oil and gas exploration and production activities, together with related accumulated depreciation, depletion and amortization. (b) The amounts include net capitalized financial charges totaling euro 715 million in 2013 and euro 868 million in 2014 for the consolidated subsidiaries and euro 12 million in 2013 and euro 46 million in 2014 for equity-accounted entities. (c) The amounts do not include costs associated with exploration activities which are capitalized in order to reflect their investment nature and amortized in full when incurred. The "Successful Effort Method" application according to Eni accounting policy would have led to an increase in net capitalized costs, mainly in relation to exploration cost, of euro 4,378 million in 2013 and euro 4,786 million in 2014 for the consolidated subsidiaries and euro 86 million in 2013 and euro 123 million in 2014 for equity-accounted entities.

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Eni Fact Book Supplemental oil and gas information

Cost incurred (a) (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

2012
Consolidated subsidiaries
Proved property acquisitions			14	27			2		43
Unproved
property acquisitions
Exploration	32	151	153	1,142	3	193	80	96	1,850
Development (b)	1,045	2,485	1,441	2,246	762	702	1,071	16	9,768
Total costs incurred
consolidated subsidiaries	1,077	2,636	1,608	3,415	765	895	1,153	112	11,661
Equity-accounted entities
Proved property acquisitions
Unproved
property acquisitions
Exploration		13	2	11		4			30
Development (c)		19	7	117		188	154		485
Total costs incurred
equity-accounted entities		32	9	128		192	154		515
2013
Consolidated subsidiaries
Proved property acquisitions			64						64
Unproved
property acquisitions			45						45
Exploration	32	357	95	757	1	233	110	84	1,669
Development (b)	697	1,855	765	2,617	600	719	1,141	57	8,451
Total costs incurred
consolidated subsidiaries	729	2,212	969	3,374	601	952	1,251	141	10,229
Equity-accounted entities
Proved property acquisitions
Unproved
property acquisitions
Exploration		5	3			81	1		90
Development (c)		1	5	39		353	318		716
Total costs incurred
equity-accounted entities		6	8	39		434	319		806
2014
Consolidated subsidiaries
Proved property acquisitions
Unproved
property acquisitions
Exploration	29	188	227	635		160	139	20	1,398
Development (b)	1,382	2,395	955	3,479	572	1,118	1,169	122	11,192
Total costs incurred
consolidated subsidiaries	1,411	2,583	1,182	4,114	572	1,278	1,308	142	12,590
Equity-accounted entities
Proved property acquisitions
Unproved
property acquisitions
Exploration		2				33	1		36
Development (c)			1	22		38	375		436
Total costs incurred
equity-accounted entities		2	1	22		71	376		472

(a) Cost incurred represent amounts both capitalized and expenses in connection with oil and gas producing activities. (b) Includes the abandonment costs of the assets for euro 1,381 million in 2012, negative for euro 191 million in 2013 and euro 2,062 million in 2014. (c) Includes the abandonment costs of the assets for euro 63 million in 2012, euro 10 million in 2013 and negative for euro 47 million in 2014.

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Eni Fact Book Supplemental oil and gas information

Standardized measure of discounted future net cash flows

Estimated future cash inflows represent the revenues that would be received from production and are determined by applying the year-end average prices during the years ended. Future price changes are considered only to the extent provided by contractual arrangements. Estimated future development and production costs are determined by estimating the expenditures to be incurred in developing and producing the proved reserves at the end of the year. Neither the effects of price and cost escalations nor expected future changes in technology and operating practices have been considered. The standardized measure is calculated as the excess of future cash inflows from proved reserves less future costs of producing and developing the reserves, future income taxes and a yearly 10% discount factor. Future production costs include the estimated expenditures related to the production of proved reserves plus any production taxes without consideration of future inflation. Future development costs include the estimated costs of drilling development wells and installation of production facilities, plus the net costs associated with dismantlement and abandonment of wells and facilities, under the assumption that year-end costs continue without considering future inflation. Future income taxes were calculated in accordance with the tax laws of the countries in which Eni operates. The standardized measure of discounted future net cash flows, related to the preceding proved oil and gas reserves, is calculated in accordance with the requirements of FASB Extractive Activities - Oil & Gas (Topic 932). The standardized measure does not purport to reflect realizable values or fair market value of Eni’s proved reserves. An estimate of fair value would also take into account, among other things, hydrocarbon resources other than proved reserves, anticipated changes in future prices and costs and a discount factor representative of the risks inherent in the oil and gas exploration and production activity.

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Eni Fact Book Supplemental oil and gas information

Standardized measure of discounted future net cash flows (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

December 31, 2012
Consolidated subsidiaries
Future
cash inflows	30,308		38,912		108,343		56,978		53,504		7,881		11,008		4,957		311,891
Future production
costs	(5,900	)	(8,190	)	(18,555	)	(14,844	)	(9,561	)	(2,854	)	(2,520	)	(921	)	(63,345	)
Future
development and abandonment costs	(3,652	)	(7,511	)	(8,412	)	(6,873	)	(3,802	)	(1,974	)	(1,502	)	(197	)	(33,923	)
Future net inflow before
income tax	20,756		23,211		81,376		35,261		40,141		3,053		6,986		3,839		214,623
Future
income tax	(6,911	)	(15,063	)	(44,256	)	(21,348	)	(10,293	)	(903	)	(2,906	)	(1,181	)	(102,861	)
Future net cash flows	13,845		8,148		37,120		13,913		29,848		2,150		4,080		2,658		111,762
10%
discount factor	(5,519	)	(2,630	)	(16,539	)	(4,976	)	(17,943	)	(496	)	(1,337	)	(1,030	)	(50,470	)
Standardized measure of discounted future net cash
flows	8,326		5,518		20,581		8,937		11,905		1,654		2,743		1,628		61,292
Equity-accounted entities
Future
cash inflows			1		658		3,594				6,689		18,132				29,074
Future production
costs					(203	)	(576	)			(2,216	)	(5,003	)			(7,998	)
Future
development and abandonment costs			(1	)	(17	)	(101	)			(1,061	)	(2,563	)			(3,743	)
Future net inflow before
income tax					438		2,917				3,412		10,566				17,333
Future
income tax					(36	)	(1,291	)			(795	)	(5,729	)			(7,851	)
Future net cash flows					402		1,626				2,617		4,837				9,482
10%
discount factor					(206	)	(962	)			(1,747	)	(3,621	)			(6,536	)
Standardized measure of discounted future net cash
flows					196		664				870		1,216				2,946
Total	8,326		5,518		20,777		9,601		11,905		2,524		3,959		1,628		64,238
December 31, 2013
Consolidated subsidiaries
Future
cash inflows	28,829		33,319		92,661		58,252		50,754		12,487		10,227		5,294		291,823
Future production
costs	(6,250	)	(6,836	)	(16,611	)	(15,986	)	(9,072	)	(3,876	)	(2,379	)	(1,417	)	(62,427	)
Future
development and abandonment costs	(4,593	)	(6,202	)	(8,083	)	(7,061	)	(3,445	)	(3,960	)	(1,561	)	(279	)	(35,184	)
Future net inflow before
income tax	17,986		20,281		67,967		35,205		38,237		4,651		6,287		3,598		194,212
Future
income tax	(5,776	)	(12,746	)	(35,887	)	(20,491	)	(9,939	)	(1,391	)	(2,387	)	(1,093	)	(89,710	)
Future net cash flows	12,210		7,535		32,080		14,714		28,298		3,260		3,900		2,505		104,502
10%
discount factor	(5,048	)	(2,110	)	(14,327	)	(5,619	)	(16,984	)	(1,683	)	(1,353	)	(1,201	)	(48,325	)
Standardized measure of discounted future net cash
flows	7,162		5,425		17,753		9,095		11,314		1,577		2,547		1,304		56,177
Equity-accounted entities
Future
cash inflows					524		4,041				262		17,239				22,066
Future production
costs					(164	)	(1,465	)			(38	)	(5,467	)			(7,134	)
Future
development and abandonment costs					(17	)	(85	)			(73	)	(2,299	)			(2,474	)
Future net inflow before
income tax					343		2,491				151		9,473				12,458
Future
income tax					(20	)	(1,617	)			(61	)	(4,156	)			(5,854	)
Future net cash flows					323		874				90		5,317				6,604
10%
discount factor					(175	)	(401	)			(20	)	(3,681	)			(4,277	)
Standardized measure of discounted future net cash
flows					148		473				70		1,636				2,327
Total	7,162		5,425		17,901		9,568		11,314		1,647		4,183		1,304		58,504

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Eni Fact Book Supplemental oil and gas information

Standardized measure of discounted future net cash flows (euro million)

Italy Rest of Europe North Africa Sub-Saharan Africa Kazakhstan Rest of Asia Americas Australia and Oceania Total

December 31, 2014
Consolidated subsidiaries
Future
cash inflows	24,951		29,140		96,372		65,853		55,740		13,664		10,955		4,849		301,524
Future production
costs	(6,374	)	(6,856	)	(19,906	)	(18,236	)	(9,878	)	(4,158	)	(2,680	)	(1,092	)	(69,180	)
Future
development and abandonment costs	(4,698	)	(5,292	)	(9,673	)	(9,139	)	(4,576	)	(4,600	)	(1,892	)	(356	)	(40,226	)
Future net inflow before
income tax	13,879		16,992		66,793		38,478		41,286		4,906		6,383		3,401		192,118
Future
income tax	(3,583	)	(10,595	)	(35,484	)	(20,514	)	(10,400	)	(1,462	)	(2,401	)	(989	)	(85,428	)
Future net cash flows	10,296		6,397		31,309		17,964		30,886		3,444		3,982		2,412		106,690
10%
discount factor	(4,064	)	(1,464	)	(13,905	)	(7,164	)	(19,699	)	(1,900	)	(1,353	)	(1,106	)	(50,655	)
Standardized measure of discounted future net cash
flows	6,232		4,933		17,404		10,800		11,187		1,544		2,629		1,306		56,035
Equity-accounted entities
Future
cash inflows					485		3,861				200		18,871				23,417
Future production
costs					(165	)	(692	)			(33	)	(5,724	)			(6,614	)
Future
development and abandonment costs					(18	)	(104	)			(51	)	(2,032	)			(2,205	)
Future net inflow before
income tax					302		3,065				116		11,115				14,598
Future
income tax					(23	)	(426	)			(45	)	(4,608	)			(5,102	)
Future net cash flows					279		2,639				71		6,507				9,496
10%
discount factor					(158	)	(1,442	)			(11	)	(4,327	)			(5,938	)
Standardized measure of discounted future net cash
flows					121		1,197				60		2,180				3,558
Total	6,232		4,933		17,525		11,997		11,187		1,604		4,809		1,306		59,593

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Eni Fact Book Supplemental oil and gas information

Changes in standardized measure of discounted future net cash flows (euro million)

Consolidated subsidiaries Equity-accounted entities Total

| Standardized measure of
discounted future net cash flows at December 31, 2011 | 62,238 | | 2,660 | | 64,898 | |
| --- | --- | --- | --- | --- | --- | --- |
| Increase
(decrease): | | | | | | |
| - sales, net of production costs | (28,595 | ) | (325 | ) | (28,920 | ) |
| - net
changes in sales and transfer prices, net of production
costs | 2,264 | | (56 | ) | 2,208 | |
| - extensions, discoveries and improved recovery,
net of future production and development costs | 4,868 | | 812 | | 5,680 | |
| - changes
in estimated future development and abandonment costs | (3,802 | ) | (357 | ) | (4,159 | ) |
| - development costs incurred during the period
that reduced future development costs | 8,199 | | 409 | | 8,608 | |
| -
revisions of quantity estimates | 3,725 | | 824 | | 4,549 | |
| - accretion of discount | 12,527 | | 477 | | 13,004 | |
| - net
change in income taxes | 2,207 | | (830 | ) | 1,377 | |
| - purchase of reserves in-place | | | | | | |
| - sale of
reserves in-place | (1,509 | ) | (615 | ) | (2,124 | ) |
| - changes in production rates (timing) and other | (830 | ) | (53 | ) | (883 | ) |
| Net increase (decrease) | (946 | ) | 286 | | (660 | ) |
| Standardized measure of
discounted future net cash flows at December 31, 2012 | 61,292 | | 2,946 | | 64,238 | |
| Increase
(decrease): | | | | | | |
| - sales, net of production costs | (24,576 | ) | (261 | ) | (24,837 | ) |
| - net
changes in sales and transfer prices, net of production
costs | (3,632 | ) | (223 | ) | (3,855 | ) |
| - extensions, discoveries and improved recovery,
net of future production and development costs | 1,699 | | 3 | | 1,702 | |
| - changes
in estimated future development and abandonment costs | (6,821 | ) | (427 | ) | (7,248 | ) |
| - development costs incurred during the period
that reduced future development costs | 8,456 | | 665 | | 9,121 | |
| -
revisions of quantity estimates | 6,385 | | (298 | ) | 6,087 | |
| - accretion of discount | 11,937 | | 521 | | 12,458 | |
| - net
change in income taxes | 5,587 | | 379 | | 5,966 | |
| - purchase of reserves in-place | 74 | | | | 74 | |
| - sale of
reserves in-place | (252 | ) | (770 | ) | (1,022 | ) |
| - changes in production rates (timing) and other | (3,972 | ) | (208 | ) | (4,180 | ) |
| Net increase (decrease) | (5,115 | ) | (619 | ) | (5,734 | ) |
| Standardized measure of
discounted future net cash flows at December 31, 2013 | 56,177 | | 2,327 | | 58,504 | |
| Increase
(decrease): | | | | | | |
| - sales, net of production costs | (21,795 | ) | (192 | ) | (21,987 | ) |
| - net
changes in sales and transfer prices, net of production
costs | (12,053 | ) | (500 | ) | (12,553 | ) |
| - extensions, discoveries and improved recovery,
net of future production and development costs | 1,667 | | | | 1,667 | |
| - changes
in estimated future development and abandonment costs | (6,047 | ) | 223 | | (5,824 | ) |
| - development costs incurred during the period
that reduced future development costs | 8,745 | | 451 | | 9,196 | |
| -
revisions of quantity estimates | 8,085 | | (325 | ) | 7,760 | |
| - accretion of discount | 11,064 | | 512 | | 11,576 | |
| - net
change in income taxes | 7,049 | | 704 | | 7,753 | |
| - purchase of reserves in-place | 67 | | | | 67 | |
| - sale of
reserves in-place | (271 | ) | | | (271 | ) |
| - changes in production rates (timing) and other | 3,347 | | 358 | | 3,705 | |
| Net increase (decrease) | (142 | ) | 1,231 | | 1,089 | |
| Standardized measure of
discounted future net cash flows at December 31, 2014 | 56,035 | | 3,558 | | 59,593 | |

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Eni Fact Book Quarterly information

Quarterly information

Main financial data (a) (b)

2012 2013 2014

(euro million) I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter

| Net sales from operations — Operating
income | 33,112 — 6,583 | | 30,035 — 2,825 | | 31,466 — 4,115 | | 32,496 — 1,685 | | 127,109 — 15,208 | | 30,440 — 3,867 | | 26,055 — 1,471 | | 28,374 — 3,302 | | 29,828 — 248 | | 114,697 — 8,888 | | 29,203 — 3,646 | | 27,353 — 2,255 | | 26,600 — 2,579 | | 26,691 — (563 | ) | 109,847 — 7,917 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Adjusted operating profit: | 6,271 | | 4,255 | | 4,404 | | 4,953 | | 19,883 | | 3,746 | | 1,959 | | 3,438 | | 3,507 | | 12,650 | | 3,491 | | 2,728 | | 3,032 | | 2,323 | | 11,574 | |
| Exploration
& Production | 5,095 | | 4,239 | | 4,336 | | 4,867 | | 18,537 | | 3,998 | | 3,409 | | 3,916 | | 3,320 | | 14,643 | | 3,450 | | 2,981 | | 3,088 | | 2,032 | | 11,551 | |
| Gas & Power | 1,042 | | (378 | ) | (281 | ) | 15 | | 398 | | (211 | ) | (424 | ) | (344 | ) | 341 | | (638 | ) | 241 | | 70 | | (109 | ) | 108 | | 310 | |
| Refining
& Marketing | (216 | ) | (134 | ) | 60 | | 1 | | (289 | ) | (134 | ) | (176 | ) | (55 | ) | (92 | ) | (457 | ) | (223 | ) | (219 | ) | 39 | | 195 | | (208 | ) |
| Versalis | (169 | ) | (25 | ) | (173 | ) | (116 | ) | (483 | ) | (63 | ) | (82 | ) | (111 | ) | (130 | ) | (386 | ) | (89 | ) | (93 | ) | (98 | ) | (66 | ) | (346 | ) |
| Engineering
& Construction | 381 | | 392 | | 390 | | 322 | | 1,485 | | 204 | | (678 | ) | 220 | | 155 | | (99 | ) | 128 | | 165 | | 155 | | 31 | | 479 | |
| Other activities | (45 | ) | (57 | ) | (40 | ) | (80 | ) | (222 | ) | (55 | ) | (52 | ) | (52 | ) | (51 | ) | (210 | ) | (45 | ) | (43 | ) | (42 | ) | (48 | ) | (178 | ) |
| Corporate
and financial companies | (80 | ) | (99 | ) | (64 | ) | (82 | ) | (325 | ) | (82 | ) | (76 | ) | (92 | ) | (82 | ) | (332 | ) | (81 | ) | (58 | ) | (65 | ) | (61 | ) | (265 | ) |
| Unrealized profit intragroup elimination and
consolidation adjustments | 263 | | 317 | | 176 | | 26 | | 782 | | 89 | | 38 | | (44 | ) | 46 | | 129 | | 110 | | (75 | ) | 64 | | 132 | | 231 | |
| Net
profit: (c) | 3,617 | | 227 | | 2,485 | | 1,461 | | 7,790 | | 1,543 | | 275 | | 3,989 | | (647 | ) | 5,160 | | 1,303 | | 658 | | 1,714 | | (2,384 | ) | 1,291 | |
| - continuing operations | 3,544 | | 156 | | 2,464 | | (1,964 | ) | 4,200 | | 1,543 | | 275 | | 3,989 | | (647 | ) | 5,160 | | 1,303 | | 658 | | 1,714 | | (2,384 | ) | 1,291 | |
| -
discontinued operations | 73 | | 71 | | 21 | | 3,425 | | 3,590 | | | | | | | | | | | | | | | | | | | | | |
| Capital expenditure | 2,643 | | 3,026 | | 3,235 | | 3,901 | | 12,805 | | 3,122 | | 2,825 | | 3,064 | | 3,789 | | 12,800 | | 2,545 | | 2,979 | | 3,083 | | 3,633 | | 12,240 | |
| Investments | 245 | | 61 | | 207 | | 56 | | 569 | | 113 | | 63 | | 40 | | 101 | | 317 | | 60 | | 133 | | 91 | | 124 | | 408 | |
| Net borrowings at period end | 26,984 | | 26,467 | | 19,175 | | 15,069 | | 15,069 | | 15,519 | | 15,984 | | 14,687 | | 14,963 | | 14,963 | | 13,799 | | 14,601 | | 15,837 | | 13,685 | | 13,685 | |

(a) Quarterly data are unaudited. (b) In accordance with the guidelines of IFRS 5, results of the Italian regulated businesses managed by Snam divested in accordance to Law Decree No. 1/2012, enacted into Law on March 14, 2012 have been reported as discontinued operations from July 1, 2012. Prior year data have been reclassified accordingly. (c) Net profit attributable to Eni’s shareholders.

Key market indicators

2012 2013 2014

I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter

Average price of Brent dated crude oil (a)	118.49	108.19	109.61	110.02	111.58	112.60	102.44	110.37	109.27	108.66	108.20	109.63	101.85	76.27	98.99
Average
EUR/USD exchange rate (b)	1.311	1.281	1.250	1.297	1.285	1.321	1.306	1.324	1.361	1.328	1.370	1.371	1.325	1.249	1.329
Average price in euro of Brent dated crude oil	90.38	84.46	87.69	84.33	86.83	85.24	78.44	83.36	80.29	81.82	78.98	79.96	76.87	61.06	74.48
Standard
Eni Refining Margin (SERM) (c)	n.a.	n.a.	n.a.	n.a.	4.12	n.a.	3.25	2.43	0.96	2.43	1.17	2.29	4.39	4.97	3.21
Price of NBP gas (d)	9.34	9.09	9.00	10.49	9.48	11.46	10.06	10.11	10.93	10.63	9.95	7.55	7.03	8.37	8.22
Euribor -
three-month euro rate (%)	1.0	0.7	0.4	0.2	0.6	0.2	0.2	0.2	0.2	0.2	0.3	0.3	0.2	0.1	0.2
Libor - three-month dollar rate (%)	0.5	0.5	0.4	0.3	0.4	0.3	0.3	0.3	0.2	0.3	0.2	0.2	0.2	0.2	0.2

(a) In USD per barrel. Source: Platt’s Oilgram. (b) Source: BCE. (c) In USD per barrel FOB Mediterranean Brent dated crude oil. Source: Eni calculations. Approximates the margin of Eni’s refining system in consideration of material balances and refineries’ product yields. (d) In USD per BTU (British Thermal Unit). Source Platt’s Oilgram.

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Eni Fact Book Quarterly information

Main operating data

2012 2013 2014

I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter I quarter II quarter III quarter IV quarter

Liquids production	(kbbl/d)	867	856	891	912	882	818	845	851	816	833	822	813	812	868	828
Natural
gas production	(mmcf/d)	4,480	4,394	4,545	4,584	4,501	4,290	4,410	4,402	4,177	4,320	4,182	4,234	4,197	4,284	4,224
Hydrocarbons production:	(kboe/d)	1,683	1,656	1,718	1,747	1,701	1,600	1,648	1,653	1,577	1,619	1,583	1,584	1,576	1,648	1,598
Italy		188	187	187	195	189	180	181	189	192	186	182	179	174	182	179
Rest of Europe		206	173	162	172	178	158	151	141	173	155	192	195	179	196	190
North
Africa		570	573	593	610	586	554	598	569	506	556	542	549	584	590	567
Sub-Saharan
Africa		335	333	387	324	345	313	322	377	316	332	324	321	317	339	325
Kazakhstan		111	106	90	99	102	103	105	90	102	100	102	90	76	85	88
Rest of Asia		111	128	128	149	129	141	150	143	143	144	96	104	93	97	98
Americas		119	120	135	166	135	119	110	117	116	116	117	120	131	131	125
Australia and
Oceania		43	36	36	32	37	32	31	27	29	30	28	26	22	28	26
Production
sold	(mmboe)	149.2	144.6	150.5	154.4	598.7	135.8	140.3	141.8	137.4	555.3	134.7	133.0	138.5	143.3	549.5
Sales of natural gas to third parties	(bcm)	26.03	16.29	16.47	21.81	80.60	26.61	16.23	15.27	22.17	80.28	23.56	16.64	17.50	21.47	79.17
Own
consumption of natural gas		1.77	1.57	1.58	1.51	6.43	1.56	1.29	1.53	1.55	5.93	1.48	1.27	1.44	1.43	5.62
Sales to third parties and own consumption		27.80	17.86	18.05	23.32	87.03	28.17	17.52	16.80	23.72	86.21	25.04	17.91	18.94	22.90	84.79
Sales of
natural gas of Eni's affiliates (net to Eni)		2.81	2.29	1.43	1.76	8.29	2.00	1.57	1.55	1.84	6.96	1.72	1.18	0.68	0.80	4.38
Total sales and own consumption of natural gas		30.61	20.15	19.48	25.08	95.32	30.17	19.09	18.35	25.56	93.17	26.76	19.09	19.62	23.70	89.17
Electricity
sales	(TWh)	12.29	9.62	10.54	10.13	42.58	9.16	8.69	8.45	8.75	35.05	8.25	7.75	8.26	9.32	33.58
Sales of refined products:	(mmtonnes)	10.01	12.73	13.25	12.34	48.33	10.65	10.42	11.91	10.51	43.49	10.32	11.03	11.41	11.65	44.41
Retail
sales in Italy		1.81	1.98	2.24	1.80	7.83	1.65	1.71	1.71	1.57	6.64	1.45	1.60	1.58	1.51	6.14
Wholesale sales
in Italy		2.06	2.18	2.20	2.18	8.62	1.86	2.08	2.26	2.17	8.37	1.68	1.79	2.12	1.98	7.57
Retail
sales Rest of Europe		0.72	0.76	0.81	0.75	3.04	0.68	0.78	0.83	0.76	3.05	0.71	0.78	0.83	0.75	3.07
Wholesale sales
Rest of Europe		0.89	1.03	1.05	0.99	3.96	0.94	1.08	1.10	1.11	4.23	1.01	1.17	1.23	1.19	4.60
Wholesale
sales outside Europe		0.10	0.11	0.10	0.11	0.42	0.10	0.11	0.11	0.11	0.43	0.10	0.11	0.11	0.11	0.43
Other markets		4.43	6.67	6.85	6.51	24.46	5.42	4.66	5.90	4.79	20.77	5.37	5.58	5.54	6.11	22.60

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Table of Contents Contents

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Table of Contents

| This
summary review comprises an extract of the description of
the businesses, the management’s discussion and
analysis of financial condition and results of operations
and certain other Company information from Eni’s
Integrated Annual Report for the year ended December 31,
2014. It does not contain sufficient information to allow
as full an understanding of financial results, operating
performance and business developments of Eni as "Eni
2014 Integrated Annual Report". It is not deemed to
be filed or submitted with any Italian or US market or
other regulatory authorities. You may obtain a copy of
"Summary Annual Review - Eni in 2014" and
"Eni 2014 Integrated Annual Report" on request,
free of charge (see the request form on Eni’s
website – eni.com – under the section
"Publications"). The "Summary Annual Review" and "Eni 2014
Integrated Annual Report" may be downloaded from
Eni’s web site under the section
"Publications". Financial data presented in
this report is based on Consolidated Financial Statements
prepared in accordance with the IFRS endorsed by the EU. This report contains certain forward-looking statements
particularly those regarding capital expenditure,
development and management of oil&gas resources,
dividends, buy-back, allocation of future cash flow from
operations, future operating performance, gearing,
targets of production and sale growth, new markets and
the progress and timing of projects. By their nature,
forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that will or may occur in the future.
Actual results may differ from those expressed in such
statements, depending on a variety of factors, including
the timing of bringing new fields on stream;
management’s ability in carrying out industrial
plans and in succeeding in commercial transactions;
future levels of industry product supply; demand and
pricing; operational problems; general economic
conditions; political stability and economic growth in
relevant areas of the world; changes in laws and
regulations; development and use of new technologies;
changes in public expectations and other changes in
business conditions; the actions of competitors and other
factors discussed elsewhere in this document. As Eni
shares, in the form of ADRs, are listed on the New York
Stock Exchange (NYSE), an Annual Report on Form 20-F has
been filed with the US Securities and Exchange Commission
in accordance with the US Securities Exchange Act of
1934. Hard copies may be obtained free of charge (see the
request form on Eni’s website – eni.com –
under the section "Publications"). Eni
discloses on its Annual Report on Form 20-F significant
ways in which its corporate governance practices differ
from those mandated for US companies under NYSE listing
standards. The term "shareholder" in this
report means, unless the context otherwise requires,
investors in the equity capital of Eni SpA, both direct
and/or indirect. Eni shares are traded on the Italian
Stock Exchange (Mercato Telematico Azionario) and on the
New York Stock Exchange (NYSE) under the ticker symbol
"E". | Eni at a glance Our
business model Our
strategy Business review | 2 4 6 |
| --- | --- | --- |
| n | n Exploration & Production n Gas &
Power n Refining
& Marketing n Versalis n Engineering
& Construction Financial review | 8 12 14 16 18 |
| n | Group results for the year 2014 results Profit and loss account Summarized Group balance sheet Summarized Group cash flow statements | 20 20 23 28 30 |
| n | Directors and officers Investor
information | 34 38 |

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Eni at a glance Eni in 2014

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Eni at a glance Eni in 2014

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Our business model Eni in 2014

Our business model

Eni’s business model targets the delivery of long-term value to its stakeholders. This will leverage on profitable production growth, restructuring the mid-downstream businesses, efficiency and operational excellence and managing the operational risks. Our business model is underpinned by our relentless focus on capital stewardship, environmental conservation, attention to local communities, preservation of health and safety of people working in Eni and with Eni, respect of human rights and endorsement of ethics and transparency. The main capitals used by Eni (financial capital, productive capital, intellectual capital, natural capital, human capital, social and relationship capital) are classified in accordance with the criteria included in the "International IR Framework" published by the International Integrated Reporting Council (IIRC). 2014 financial results and sustainability performance rely on the responsible and efficient use of our capitals. Hereunder is articulated the map of the main capitals exploited by Eni and actions positively effecting on their quality and availability. At the same time, the scheme evidences how the efficient use of capitals and related connections create value for the Company and its stakeholders.

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Our strategy Eni in 2014

Our strategy

In order to manage a radically changed price environment, the Company outlined for the next four-year period an action plan which comprises a number of rigorous initiatives and objectives in order to mitigate the impact of lower oil prices and to preserve a robust financial structure, particularly in the short to medium term. Our oil price assumptions for the Brent benchmark are $55 per barrel in 2015 and we expect a gradual recovery in the subsequent years up to our long-term case of $90 per barrel. Against the backdrop of a low price environment in the short to medium term, our primary target remains cash generation which will be underpinned by well-designed industrial actions, capital discipline, focus on Exploration & Production activities and a large disposal plan. In approving the capital expenditure plan the Company selected high-return projects with short pay-back periods; this optimization will result in a euro 48 billion capital expenditures in the next four years, down by approximately 17% compared to the previous plan, net of exchange rate effects. The disposal plan, amounting to more than euro 8 billion in the 2015-2018 period, is based on the anticipated monetization of exploratory discoveries, optimization of the upstream portfolio, rationalization of midstream and downstream portfolio, and the divestment of residual interests in Snam and Galp. The Company forecasts that the planned industrial actions, the selective approach to capital expenditure and the disposal plan will enable Eni to preserve a robust financial structure and we plan to maintain the leverage below the threshold of 0.30 throughout the oil cycle. As part of its effort to preserve liquidity and the balance sheet, the Company decided to rebase the dividend as it is planning to pay a dividend of euro 0.8 per share for fiscal year 2015. In the subsequent years, management will reassess its progressive dividend policy against the backdrop of an expected improvement in the oil price scenario and the planned growth in our cash generation as our value-generation strategy in Exploration & Production and our turnaround of Gas & Power, Refining & Marketing and Versalis progress on targets. The planned reduction in capital expenditure, which will foresee a 17% reduction versus the previous plan at constant exchange rate assumptions, will leverage on: • a reduction in exploration expenditure which will be mainly focused on low-risk activities, particularly on replacing produced reserves in proven areas and nearby producing assets; • a reduction in development expenditure by rescheduling the activities at certain large projects without jeopardizing the achievement of the Company’s targets of production growth; • a reduction of capital expenditure in refining and chemicals due to the shutdown of certain plants which will require fewer investments than in the past and the disposal of certain assets under development like the divestment of our interest in the South Stream project which was defined at the end of 2014; and • renegotiations of contracts for oilfield services and other supplies in our Exploration & Production segment. In conclusion, the strategic transformation we started last May aims at making Eni more focused on exploration and production activities and more profitable by streamling the organization, turning around loss-making segments and diluting our presence in non-core activities.

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Exploration & Production / Business review Eni in 2014

Key performance indicators — 2012	2013	2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 0.34 | 0.23 | 0.23 |
| --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 35,874 | 31,264 | 28,488 |
| Operating
profit | | 18,470 | 14,868 | 10,766 |
| Adjusted operating profit | | 18,537 | 14,643 | 11,551 |
| Adjusted
net profit | | 7,426 | 5,950 | 4,423 |
| Capital expenditure | | 10,307 | 10,475 | 10,524 |
| Adjusted
ROACE | (%) | 17.6 | 13.5 | 9.5 |
| Profit per boe (b) | ($/boe) | 16.0 | 15.5 | 9.9 |
| Opex per
boe (b) | | 7.1 | 8.3 | 8.4 |
| Cash Flow per boe (d) | | 32.8 | 31.9 | 30.1 |
| Finding
& Development cost per boe (c) (d) | | 17.4 | 19.2 | 21.5 |
| Average hydrocarbons realizations (d) | | 73.39 | 71.87 | 65.49 |
| Production
of hydrocarbons (d) | (kboe/d) | 1,701 | 1,619 | 1,598 |
| Estimated net proved reserves of hydrocarbons (d) | (mmboe) | 7,166 | 6,535 | 6,602 |
| Reserves
life index (d) | (years) | 11.5 | 11.1 | 11.3 |
| Organic reserves replacement ratio (d) | (%) | 147 | 105 | 112 |
| Employees
at year end | (number) | 11,304 | 12,352 | 12,777 |
| of which: outside Italy | | 7,371 | 8,219 | 8,243 |
| Oil spills
due to operations (>1 barrel) | (bbl) | 3,015 | 1,728 | 936 |
| Produced water re-injected | (%) | 49 | 55 | 56 |
| Direct GHG
emissions | (mmtonnes CO 2 eq) | 28.68 | 25.90 | 22.98 |
| of which: from flaring | | 9.46 | 8.48 | 5.64 |
| Community
investment | (euro million) | 59 | 53 | 63 |

(a) Before elimination of intragroup sales. (b) Consolidated subsidiaries. (c) Three-year average. (d) Includes Eni’s share of equity-accounted entities.

2014 Highlights

Performance of the year è 2014 marked our strong focusing in HSE activities with significant improvements in all KPIs: - the injury frequency rate confirmed the positive 2013 performance; - greenhouse gas emissions decreased by 11.3% (down by 33.5% from flaring); - oil spills due to operations decreased by 46%; - zero blow-outs for the eleventh consecutive year; and - water re-injection reported a new record at 56% of water reused in operations. è Adjusted net profit declined by euro 1,527 million, or 25.7%, due to lower crude oil and gas prices in dollar terms (down by 8.9% on average) reflecting a falling Brent crude benchmark and a weak gas market, especially in Europe. è Oil and natural gas production was 1.598 million boe/d in 2014 (up by 0.6% compared to the previous year), excluding the impact of the divestment of Eni’s interest in Siberian assets. è Estimated net proved reserves at December 31, 2014 amounted to 6.6 bboe based on a reference Brent price of $101 per barrel. The reserves replacement ratio was 112%. The reserves life index was 11.3 years (11.1 years in 2013). è Development expenditure was euro 9,021 million (up by 5.1% from 2013) to progress major projects and to maintain production plateau particularly in Norway, Angola, Congo, the United States, Italy, Nigeria, Egypt, Indonesia and Kazakhstan. è Eni continued its track record of exploratory success. Additions to the Company’s resource backlog were approximately 900 million boe, at a competitive cost of $2.1 per barrel. Exploration and development activities è Near-field discoveries marked the year’s exploration activity; such discoveries are expected to achieve quick time-to-market leveraging on the synergies from the front-end-loading

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and the utilization of existing production infrastructures: - Ochigufu in the Angolan deep waters of Block 15/06 (Eni operator with a 35% interest) with a potential in place estimated at approximately 300 million barrels of oil; - Minsala in the conventional waters of Block Marine XII (Eni operator with a 65% interest) in Congo, increasing the block’s resources in place by 1 billion barrels; - Oglan in Block 10 (Eni operator with a 100% interest) in Ecuador, with a potential in place estimated at approximately 300 million barrels of oil; - Merakes in East Sepinggan offshore block (Eni operator with a 85% interest) in Indonesia, with a potential of gas in place estimated at approximately 2 Tcf; - Nyonie in Block D4 (Eni operator with a 100% interest) in the conventional waters of Gabon, showed an estimated potential of approximately 500 million boe in place of gas and condensates; and - the appraisal wells at the Agulha and Coral gas discoveries in Mozambique confirmed reach and extension of their respective reservoirs with a potential in place in Area 4 (Eni operator with a 50% interest) estimated at approximately 88 Tcf. è Our acreage was strengthened by adding 100,000 square kilometers net to Eni, which puts us in a position to restart a new exploration cycle. Main licenses were located in high potential areas such as Myanmar, Portugal, South Africa and Vietnam, as well as legacy areas such as Algeria, China, Egypt, Norway, the United Kingdom and the United States. è The West Hub Development Project in Block 15/06 achieved the first oil late in 2014. This is the first Eni-operated project in Angola, with production ramp-up expected to reach a plateau of up to 100 kbbl/d in the coming months. è Production start-up achieved at the recent Nené discovery in Block Marine XII in Congo. The full-field development will take place in several stages, with a plateau of over 120 kbbl/d. è Sanctioned the integrated oil&gas project of the Offshore Cape Three Points (Eni operator with a 47.22% interest) in Ghana. First oil is expected in 2017, first gas in 2018 and production is expected to peak at 80 kboe/d.

| Strategies Our upstream growth model will continue to focus on the organic development of conventional assets, with large resource base and competitive cost structure. Those features will safeguard the profitability of our oil&gas projects even in a low price environment. The sizeable exploration successes of the latest years have increased the Company’s resource base and have contributed to the Company’s value generation through early monetization of the discovered resources in excess of the target replacement ratio. Going forward our top priority in E&P is to enhance cash generation leveraging on profitable production growth and the monetization of the discovered resources. In the next four years, against the backdrop of weak crude oil prices, we intend to monetize our resources by: n re-balancing exploration activities in favor of near-field initiatives to ensure fast support to production; n rejuvenating the portfolio of exploration leases; and n accelerating the development of discovered resources. We plan to grow production at an average rate of 3.5% over the next four years, leveraging on a robust pipeline of projects with an average break-even of $45 per boe, which together with the ramp-ups at fields started up in 2014 will add more than 650 kboe/d in 2018. This new production will bring an additional cumulative cash flow of euro 19 billion in the 2015-2018 plan periods. The main planned start-ups are the Goliat field (Eni operator with a 65% interest) in the Barents Sea in Norway, the oil&gas project of Offshore Cape Three Points (Eni operator with a 47.22% interest) in Ghana, the Jangkrik project (Eni operator with a 55% interest) in Indonesia and production re-start of Kashagan field (Eni’s interest 16.81%) by the end of 2016. The profitability of these projects will be ensured by tight control on execution and time-to-market leveraging on our new development approach whereby we insourced critical project phases. To cope with falling oil prices we plan to be selective in our capital allocation decisions. In 2015-2018 plan periods, we expect a decrease of approximately 13% of capital expenditure net of exchange rate effects versus the previous four-year plan due to a reduction in exploration expenditures which will be focused on near-field and appraisal activities, the re-phasing certain projects yet to be sanctioned, as well as we plan to achieve cost savings by renegotiating contracts for the supply of oilfield services, equipment and other upstream goods. Finally, we intend to manage the typical upstream risks. A major part of our activities are currently located in countries that are far from high-risk areas and Eni plans to growth mainly in countries with low-mid political risk (approximately 90% of the capital expenditure of the four-year plan). We plan to control the environmental risk by means of strict selection of contractors, and by retaining operatorship in a large number of projects (84% of production related to start-ups). Execution of drilling activities at high pressure/high temperature wells and deep waters wells (24% of planned wells to be drilled in 2015) will be managed by continually deploying our high operational standards. | Maintaining strong production growth Eni’s Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations, in 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique.

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Exploration & Production / Business review Eni in 2014

We are targeting a production rate of 3.5% in the next four-year plan. Management plans to achieve the target production growth by continuing development activities and new project start-ups in the main areas of operations, including North Africa, Sub-Saharan Africa, Barents Sea, Kazakhstan, Venezuela and the Far East, leveraging Eni’s vast knowledge of reservoirs and geological basins, as well as technical and producing synergies. Management plans to maximize the production recovery rate at our current fields by counteracting natural field depletion and reducing facilities downtime. This will require intense development activities of work-over and infilling and careful planning of maintenance activities. We expect that continuing technological innovation and competence build-up will drive increasing rates of reserve recovery. Management intends to implement a number of initiatives to support profitability in its upstream operations by exercising tight control on project time schedules and costs. We plan to achieve efficient development of our reserves by: (i) in-sourcing critical engineering and project management activities also redeploying to other areas key competences which will be freed with the start-up of certain strategic projects and increase direct control and governance on construction and commissioning activities; and (ii) signing framework agreements with major suppliers, using standardized specifications to speed up pre-award process for critical equipment and plants, increasing focus on supply chain programming to optimize order flows. Based on these initiatives we believe that almost all of our project which we are currently developing over the next four-year plan will be completed on time and on cost schedule. Production and reserves: 2014 and outlook In 2014, Eni’s liquids and gas production of 1,598 kboe/d increased by 0.6% from 2013, excluding the impact of the divestment of Eni’s interest in Siberian assets. The main production increases were reported in the United Kingdom, Algeria, the United States and Angola. These additions more than offset mature fields’ declines. New fields’ start-ups and continuing production ramp-ups contributed 126 kboe/d of production. In the year we achieved the following main start-ups: (i) the West Hub Development Project in Angola. This first Eni-operated producing project in the Country is currently producing 45 kboe/d through the N’Goma FPSO, with a production ramp-up expected to reach a plateau up to 100 kboe/d in the coming months. The start-up was achieved in just 44 months from the announcement of the commercial discovery, a result that is at the top of the industry for development in deep waters. The N’Goma FPSO is currently producing from the Sangos discovery, future production will leverage the progressive hooking up of the block’s discoveries; (ii) the recent Nené Marine discovery in Congo just 8 months after obtaining the production permit. The early production phase is yielding 7,500 boe/d and the fast-track development of the field has leveraged on the synergies with the front-end loading and the infrastructures of the fields located in the area. The full-field development will take place in several stages and will include the installation of production platforms and the drilling of approximately 30 wells, with a plateau of over 120 kboe/d; and (iii) the DEKA project (Eni operator with a 50% interest) in Egypt with a production of approximately 64 mmcf/d of gas and 800 bbl/d of associated condensates. Peak production is expected at approximately 230 mmcf/d net to Eni. Actual production volumes will vary from year to year due to the timing of individual project start-ups, operational outages, reservoir performance, regulatory changes, asset sales, severe weather events, price effects under production sharing contracts and other factors. Estimated net proved reserves at December 31, 2014 amounted to 6.6 bboe based on a reference Brent price of $101 per barrel. Additions to proved reserves booked in 2014 were 654 mmboe and derived from: (i) revisions of previous estimates were 524 mmboe mainly reported in Libya, Italy, Kazakhstan and Congo due to contractual revisions, continuous development activities and field performances; (ii) extensions and discoveries were up by 124 mmboe, with major increases booked in Ghana, Indonesia, the United States and Congo following new project sanctions and proved area extensions; (iii) improved recovery were up by 6 mmboe mainly reported in Algeria and Kazakhstan; (iv) sales of mineral-in-place mainly related to the divestment of assets in Nigeria (down by 7 mmboe) and the United Kingdom (down by 1 mmboe); and (v) purchases of minerals-in-place referred mainly to interests in assets located in the United Kingdom (up by 4 mmboe). The reserves life index was 11.3 years (11.1 years in 2013). Eni intends to pay special attention to reserve replacement in order to ensure the medium to long-term sustainability of the business. In 2014, we achieved an all sources replacement ratio of 112% through fast sanctioning and relentless focus on field development. Going forward, our reserve replacement will be underpinned by our strong focus on exploration and timely conversion of resources into reserves and production, while at the same time fighting depletion and enhancing the recovery factor in existing fields through effective reservoir management. | Exploration Exploration is the engine of our strategy in the upstream business. Exploration has proved to be a driver of production growth and value generation, as well as Eni’s distinctive feature among the oil majors. Since 2008, Eni has discovered over 10 billion boe in place, corresponding to a growth of 35% in our resource base, more than every other player in the oil industry, of which approximately 900 million boe were discovered in 2014, at a competitive cost of $2.1 per boe. Near-field discoveries marked the year’s activity, in particular: (i) Ochigufu in the deep waters of Block 15/06 in Angola; (ii) in the conventional waters of Block Marine XII in Congo, Minsala was the third discovery in the last two years increasing the block’s resources in place by 1 billion barrels with characteristics similar to the previous discoveries of Litchendjili and Nené, the latter started up early production in record time; (iii) Oglan in Block 10 in Ecuador with a potential in place estimated at approximately 300 million barrels of oil located near the processing facilities of the operated field of Villano; (iv) Merakes in offshore Indonesia. This discovery with a potential in place estimated at approximately 2 Tcf, is located in proximity of the operated field of Jangkrik, which is currently under development and will supply additional gas volumes to the Bontang LNG plant; (v) the appraisal gas wells Agulha 2 and Coral 4 DIR in Mozambique, confirming the extension of their respective fields with a potential in place in Area 4 estimated at approximately 88 Tcf; (vi) Nyonie in the conventional waters of

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Exploration & Production / Business review Eni in 2014

Block D4 in Gabon, with an estimated potential of approximately 500 million boe in place of gas and condensates; (vii) the oil&gas Drivis discovery made at the offshore license PL 532 (Eni 30%) in Norway, with volumes in place estimated in the range of 125 and 140 million barrels and will be put into production with the development of the Johan Castberg Hub; and (viii) the oil discovery ARM-14 in the Abu Rudeis license (Eni 100%) in the Gulf of Suez in Egypt, doubled production level in 2014. These discoveries are expected to have a rapid time-to-market leveraging on the synergies from the front-end loading of ongoing projects and utilization of existing production infrastructures. Leveraging on these results, our exploration plan has been shaped to face the actual challenging scenario: • by shifting focus to proven plays and near field exploration where we plan to drill 70% of our scheduled wells; and • by reducing capital expenditure of 35% net of exchange rate effects in 2015 and 25% over the plan period. Exploration projects will attract some euro 5 billion. The most important amounts of exploration expenses will be incurred in Norway, Nigeria, the United States and Italy. We target the discovery of 2 billion boe of new resources in the four-year plan at a very competitive cost of $2.6 per boe. We plan to anticipate cash generation by disposal of interests in our discoveries in order to balance costs/risk exposure and profitability in an optimal way, in the meanwhile ensuring the reserve replacement and balanced presence in the worldwide upstream. We plan to mitigate the operational risk relating to drilling activities by applying Eni’s rigorous procedures throughout the engineering and execution stages by leveraging on proprietary drilling technologies, excellent skills and know-how, increased control of operations and by deploying technologies which we believe to be able to reduce blow-out risks and to enable the Company to respond quickly and effectively in case of emergencies. We renewed our exploration portfolio through the acquisition of new acreage covering approximately 100,000 square kilometers net to Eni, along the guideline of diversifying the geographical presence. As of December 31, 2014, Eni’s mineral right portfolio consisted of 938 exclusive or shared rights of exploration and development activities for a total acreage of 334,739 square kilometers net to Eni of which developed acreage of 40,771 square kilometers and undeveloped acreage of 293,968 square kilometers net to Eni. We confirm our expansion plans in the Pacific Basin, where we signed the contracts of production sharing for the exploration of 2 onshore blocks in Myanmar and 3 offshore blocks in Vietnam, in addition to the acquisition of licenses in Indonesia, Australia and China. We also confirm our interest for the unexplored basins, following Eni’s entrance in the offshore of Portugal, South Africa and deep offshore of Egypt. | Develop new projects to fuel future growth Eni has a strong pipeline of development projects that will fuel the medium and long-term growth of its oil and gas production. The pipeline of projects is geographically diversified and will become even more balanced across our hubs. These projects have an average breakeven of $45 per boe and will generate an overall cash flow from operations of euro 19 billion in the four-year plan. We are aiming at excellence in time-to-market in order to maximize the value of our reserves. We plan to achieve development efficiency leveraging on the integration of skills along the life cycle of the reserves and by deploying an innovative organizational model which insources engineering and retains tight control of construction and commissioning. Phased project development allowed us to mitigate operating risks and reduce the financial exposure. This approach led to the top results in the industry such as, above mentioned, the West Hub Development Project in Angola and the Block Marine XII in Congo. The latter is the best example of our integrated approach. With the discoveries of Nené, Minsala and Litchendjili we proved that, with advanced technology and innovative geological concepts, it is feasible to unlock material upside also in mature acreage. The huge potential of this play is now about 5.5 bboe of resources and we expect further upsides from the completion of the appraisal of Minsala and the drilling of two additional prospects. In Nené, we expect FID for the second phase by the end of 2015. In addition, later this year, Litchendjili will start oil&gas production. At the end of this decade, we will achieve an overall production of 150 kboe/d. In the next four years, we plan to start-up 16 new major fields operated by Eni. In addition to the above mentioned fields, the main projects include: (i) the Goliat field in the Barents Sea in Norway. The FPSO vessel reached Norway in April 2015 and started the final commissioning phase. Start-up is expected in the second half of 2015, with a production plateau at approximately 65 kboe/d net to Eni in 2016; (ii) the giant Perla gas field in the Block Cardon IV (Eni’s interest 50%), located in the Gulf of Venezuela. The early production start-up is expected by the second quarter of 2015 with a target production of approximately 460 mmcf/d. Production ramp-up is expected in 2017 with a target of approximately 800 mmcf/d. The development plan targets a long-term production plateau of approximately 1,200 mmcf/d in 2020; (iii) the East Hub in Block 15/06 in Angola, which will leverage on the synergies with West Hub. Production start-up is expected in 2017, contributing to an overall block production of 45 kboe/d at the end of the period; (iv) the Offshore Cape Three Points block in Ghana, with a fast track deep offshore development and time-to-market of just four years. Management plans to sanction FID in December and production start-up is targeted in 2017. The project will reach a production of about 40 kboe/d in 2019; and (v) the Jangkrik field in the Kalimantan offshore, in Indonesia. 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. Start-up is expected in 2017. Finally we plan to achieve further cost efficiencies by: (i) increasing the scale of our operations as we concentrate our resources on larger fields than in the past where we plan to achieve economies of scale; (ii) expanding projects where we serve as operator. We believe operatorship will enable the Company to exercise better cost control, effectively manage reservoir and production operations, and deploy our safety standards and procedures to minimize risks; (iii) applying our technologies which we believe can reduce drilling and completion costs; and (iv) renegotiating contracts for oilfield services and other items to reap the benefits of the deflationary trend in the industry.

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Gas & Power / Business review Eni in 2014

Key performance indicators — 2012	2013	2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 2.23 | | 1.43 | | 0.49 |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 36,198 | | 32,212 | | 28,250 |
| Operating
profit | | (3,125 | ) | (2,967 | ) | 186 |
| Adjusted operating profit | | 398 | | (638 | ) | 310 |
| Adjusted
net profit | | 479 | | (253 | ) | 190 |
| Capital expenditure | | 213 | | 229 | | 172 |
| Worldwide
gas sales (b) | (bcm) | 95.32 | | 93.17 | | 89.17 |
| LNG sales (c) | | 14.6 | | 12.4 | | 13.3 |
| Customers
in Italy | (million) | 7.45 | | 8.00 | | 7.93 |
| Electricity sales | (TWh) | 42.58 | | 35.05 | | 33.58 |
| Employees
at year end | (number) | 4,836 | | 4,616 | | 4,228 |
| GHG emissions | (mmtonnes CO 2 eq) | 12.77 | | 11.22 | | 10.08 |
| Customer
satisfaction score (CSC) (d) | (%) | 89.7 | | 92.9 | | 93.4 |
| Water consumption/withdrawals per kWh eq
produced | (cm/kWh eq) | 0.012 | | 0.017 | | 0.017 |

(a) Before elimination of intragroup sales. (b) Include volumes marketed by the Exploration & Production segment of 3.06 bcm (2.73 and 2.61 bcm in 2012 and 2013, respectively). (c) Refers to LNG sales of the Gas & Power segment (included in worldwide gas sales) and the Exploration & Production segment. (d) Data referred to the first half of 2014, as at the date of publication of this document Authority for Electricity Gas and Water (AEEGSI) hasn’t published yet the data for the second part of the year.

2014 Highlights

Performance of the year è In 2014, employees’ and contractors’ injury frequency rates declined by 66%, in line with historical trends. è Greenhouse gas emissions decreased by 10.2% from 2013. è The water consumption rate of EniPower’s plants decreased by 5.9% from 2013, while the same index per KWh produced was substantially stable. The decrease was due to lower use of sea water in cooling operations at Brindisi site and lower production of electricity at Livorno site, due to an unfavorable trading environment, with steam and freshwater consumption almost unchanged from 2013. è Eni gas sales (89.17 bcm) were down by 4.3% compared to 2013. Eni’s sales in the domestic market of 34.04 bcm decreased by 5.1% driven by lower sales in all the business segments partially offset by higher spot sales. Barely unchanged volumes marketed in the main European markets (42.21 bcm; down by 1.1%). è Electricity sales of 33.58 TWh decreased by 1.47 TWh, or 4.2% compared to the previous year. è Capital expenditure of euro 172 million mainly concerned the flexibility and upgrading of combined cycle power stations (euro 98 million), as well as gas marketing initiatives (euro 66 million). è In 2014, adjusted net profit amounted to euro 190 million, up by euro 443 million from 2013. This reflected the benefits from the renegotiation of a substantial portion of the long-term gas supply portfolio, including larger one-off effects related to the purchase costs of volumes supplied in previous reporting periods. These positive effects were partially offset by declining gas and power prices against the backdrop of continuing weak demand and competitive pressure. è In 2014, we achieved several renegotiations of our long-term gas supply contracts and we obtained a reduction in take-or-pay volumes. Approximately 70% of our long-term gas supply portfolio is now indexed to hub prices. Cash advances paid to suppliers due to the take-or-pay clause in those long-term supply contracts were reduced by euro 0.66 billion also leveraging on sales optimization.

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Gas & Power / Business review Eni in 2014

| Strategies Eni's management expects a weak outlook for natural gas sales and prices due to structural headwinds in the industry as we forecast demand stagnation, oversupplies and strong competition across all of our main markets in Europe, including Italy. We believe that going forward reduced sales opportunities and continued pricing competition will be caused by weaker-than-anticipated demand growth which is expected to be dragged down by macroeconomic uncertainties and by the current downturn in the thermoelectric sector which will be penalized by the competition from coal which is cheaper than gas in firing power plants and the development of renewable sources of energy (photovoltaic, solar to name the most important). The absolute level of gas consumption in Europe contracted by approximately 12% in the time span from 2008 to 2013 and in 2014 gas consumption fell dramatically by a further 12%. According to our projections gas consumption will return back to 2013 levels somewhere in 2020. Against this backdrop, European markets remains well supplied thanks to the fast development of liquid hubs where operators can trade spot gas. In 2013, approximately 62% of gas volumes supplied were traded at continental hubs. These trends will drive continuing competition and pricing pressure, which are expected to be exacerbated by the constraints of the long-term supply contracts with take-or-pay clauses whereby wholesaler operators are forced to compete aggressively on pricing in order to limit the financial exposure dictated by the contracts. In Italy we expect that gas prices in the wholesale market will remain under pressure due to a number of negative factors including competitive pressure and the current level of minimum take volumes of Italian operators which are well above the absolute dimension of the Italian market. In the retail market, the regulated tariffs to residential and commercial users are currently indexed to spot prices of gas quoted at continental hubs. Based on the above outlined trends and industrial actions, management will try to retain profitable, cash-positive operations in the Company’s gas marketing business over the plan period. To achieve this object we intend to put in place the following strategic guidelines: n alignment of the supply portfolio to market conditions starting from 2016, leveraging on further renegotiations; n streamlining of operations and optimization of logistic costs; and n development and growth in the value added segments, in particular in the retail segment, developing the client base also through the sale of extra-commodity products, as well as in the LNG segment, leveraging on the marketing opportunities in premium markets and upstream integration.

Gas & Power value chain

Eni’s Gas & Power segment engages in all phases of the natural gas value chain: supply, trading and marketing of natural gas and LNG. This segment also includes power generation and marketing of electricity. Eni’s leading position in the European gas market is ensured by a set of competitive advantages, including our multi-country approach, long-term gas availability, access to infrastructures, market knowledge and a strong customer base, in addition to long-term relations with producing countries. Furthermore, integration with our upstream operations provides valuables growth options whereby the Company targets to monetize its large gas reserves.

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Refining & Marketing / Business review Eni in 2014

Key performance indicators — 2012	2013	2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 1.74 | | 1.01 | | 0.86 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 62,531 | | 57,238 | | 56,153 | |
| Operating
profit | | (1,264 | ) | (1,492 | ) | (2,229 | ) |
| Adjusted operating profit | | (289 | ) | (457 | ) | (208 | ) |
| Adjusted
net profit | | (181 | ) | (232 | ) | (147 | ) |
| Capital expenditure | | 898 | | 672 | | 537 | |
| Refinery
throughputs on own account | (mmtonnes) | 30.01 | | 27.38 | | 25.03 | |
| Conversion index | (%) | 61 | | 62 | | 51 | |
| Balanced
capacity of refineries | (kbbl/d) | 767 | | 787 | | 617 | |
| Retail sales of petroleum products in Europe | (mmtonnes) | 10.87 | | 9.69 | | 9.21 | |
| Service
stations in Europe at year end | (number) | 6,384 | | 6,386 | | 6,220 | |
| Average throughput per service station in Europe | (kliters) | 2,064 | | 1,828 | | 1,725 | |
| Retail
efficiency index | (%) | 1.48 | | 1.28 | | 1.19 | |
| Employees at year end | (number) | 8,608 | | 8,438 | | 6,774 | |
| GHG
emissions | (mmtonnes CO 2 eq) | 6.06 | | 5.20 | | 5.34 | |
| SO x (sulphur oxide) emissions | (ktonnes SO 2 eq) | 16.99 | | 10.80 | | 6.09 | |
| Water
consumption rate (refineries)/refinery throughputs | (cm/tonnes) | 25.43 | | 19.98 | | 22.42 | |
| Bio-fuels marketed | (mmtonnes) | 14.83 | | 10.84 | | 12.93 | |
| Customer
satisfaction index | (Likert scale) | 7.90 | | 8.10 | | 8.20 | |

(a) Before elimination of intragroup sales.

2014 Highlights

Performance of the year è In 2014, the injury frequency rate for employees and contractors was down 14.9% demonstrating our continuing commitment for a more secure workplace. è In 2014, the Refining & Marketing segment reduced the adjusted net loss to euro 147 million (euro 232 million in 2013) driven by improved margins and restructuring initiatives, including the start-up of the green refinery project in Venice, and cost efficiencies. è In 2014, refining throughputs were 25.03 mmtonnes, down by 8.6% from 2013. In Italy, processed volumes decreased by 11.7% mainly due to the unfavorable refinery scenario registered in the first part of the year and the shutdown of the Gela and Venice refineries. è In 2014, the production of bio-fuels amounted to 12.93 mmtonnes, up by 19.3% compared to a year ago following the start-up of the bio-refinery in Venice. è Retail sales in Italy amounted to 6.14 mmtonnes, down by 7.5% from 2013 due to strong competitive pressure. In 2014, Eni’s average retail market share was 25.5%, down by 2 percentage points from 2013. è Retail sales in the rest of Europe of 3.07 mmtonnes were substantially stable compared to 2013 (up by 0.7%). Higher volumes marketed in Germany and Austria were offset by lower sales of other subsidiaries. è Capital expenditure amounted to euro 537 million mainly related to the reconversion of the Venice refinery and improvement of flexibility and yields of the other plants, in particular at Sannazzaro refinery and the rebranding of the retail distribution network. è In 2014, expenditure in R&D amounted to approximately euro 18 million. During the year, 15 patent applications were filed. Portfolio rationalization è In line with the Eni’s strategy focused on selectively growing in high profitable markets, Eni signed a preliminary agreement for the divestment of its marketing activities of fuels located in Czech Republic, Slovakia and Romania to the Hungarian Company MOL. The agreement also comprises the refinery capacity to supply the marketing network through a 32.445% interest in the joint refining asset Ceská Rafinérská as (CRC). All these agreements are subject to the approval of the relevant European Antitrust Authorities.

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Development plan of the Gela site è In November 2014, Eni defined with the Ministry for Economic Development, the Region of Sicily and interested stakeholders a plan to restore the profitability of the Gela refinery. The key point of the agreement is the reconversion of the Gela site to a bio-refinery. è The reconversion will follow the model adopted for the Venice green refinery, by leveraging on raw vegetable materials and use of the proprietary technologies. The agreement also defines terms for building a modern logistic hub and new initiatives in the upstream sector in Sicily, including offshore. Eni will also perform environmental remediation and clean-up activities and institute the Safety Competence Center (SCC), a center of excellence in the security field. The investment plan for such initiatives amounts to euro 2.2 billion, mainly relating to upstream projects in the Sicily region. Start-up of Venice bio-refinery è In June 2014, the start-up of the bio-refinery of Porto Marghera was achieved, with a green diesel capacity of 300 ktonnes/y. The green diesel is produced from refined vegetable oil utilizing the proprietary Ecofining TM technology. The production will fulfill half of the Eni’s annual requirement of green diesel, thus ensuring new perspectives for the industrial site of Venice and allowing economic and environmental benefits.

| Strategies For the next four years, the priority of Eni's Refining & Marketing segment is to return to profitability in the context of weak fundamentals of the European refining market, affected by weak demand, structural overcapacity and competitive pressure from streams of cheaper products from Asia, Russia and the United States. Against this scenario, the Company priority is to recover the economic and financial sustainability in a short timeframe, targeting to break even at both adjusted operating profit and cash generation before investment in 2015, then to stabilize profitability and cash generation in the long run. In order to achieve this goal, our strategy in the Refining & Marketing sector will leverage on reducing and rationalizing refining capacity in order to limit the Company’s exposure to volatile refining margins, and on efficiency initiatives. We are planning for a 50% capacity cut (2012 base) which, once implemented, will bring our installed capacity in line with our targeted exposure to the refining business considering our view of industry trends and fundamentals. Till 2014, we have delivered a 30% capacity downsizing, including the shutdown of the Venice refinery, which underwent a restructuring process to be converted into a plant for the production of bio-fuels based on a proprietary technology, and of the Gela refinery, which will be converted into a unit for the manufacturing of bio-fuels like the Venice site and into a logistic hub. Finally we signed a preliminary agreement to divest our interest in a refining asset located in the Czech Republic and we expect to close the transaction by mid 2015. We believe that the restructuring initiatives implemented so far have reduced the refining break-even margin. Going forward, we plan to divest our interests in certain refining assets abroad and to downsize our less competitive Italian refineries. We intend to make selective capital expenditures expecting to invest approximately euro 1 billion to improve efficiency and optimize existing plant, to complete the bio-refinery at the Venice site and to implement the Gela project. We have defined other initiatives designed to provide for: n optimize plant set-up and logistics operations by means of higher flexibility and process integration; and n deliver cost efficiencies, particularly in refinery fixed expenses and energy savings. In Marketing activities, where we expect continuing competitive pressure due to weak demand trends and oversupplies in our core domestic market, we are planning to achieve a gradual improvement in results of operations mainly by focusing on margin preservation and cost efficiencies. We will try to do this by means of effective marketing initiatives to retain customers, product and service innovation and a continuing focus on the quality of service, as well as the expansion of non-oil activities. Management plans to improve the efficiency of the Italian retail network by closing low-throughput outlets and other rationalizations. Retail operations abroad will be focused on those areas and markets where we expect attractive profitability due to an improving scenario for consumption, while we plan to divest our presence in marginal areas, mainly in Eastern Europe.

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Versalis / Business review Eni in 2014

Key performance indicators — 2012	2013	2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 1.09 | | 0.57 | | 0.28 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 6,418 | | 5,859 | | 5,284 | |
| Intermediates | | 3,050 | | 2,709 | | 2,310 | |
| Polymers | | 3,188 | | 2,933 | | 2,800 | |
| Other
sales | | 180 | | 217 | | 174 | |
| Operating profit | | (681 | ) | (725 | ) | (704 | ) |
| Adjusted
operating profit | | (483 | ) | (386 | ) | (346 | ) |
| Adjusted net profit | | (395 | ) | (338 | ) | (277 | ) |
| Capital
expenditure | | 172 | | 314 | | 282 | |
| Production | (mmtonnes) | 6,090 | | 5,817 | | 5,283 | |
| Sales of
petrochemical products | | 3,953 | | 3,785 | | 3,463 | |
| Average plant utilization rate | (%) | 66.7 | | 65.3 | | 71.3 | |
| Employees
at year end | (number) | 5,668 | | 5,708 | | 5,443 | |
| GHG emissions | (mmtonnes CO 2 eq) | 3.72 | | 3.69 | | 3.09 | |
| NMVOC
(Non-Methane Volatile Organic Compound) emissions | (ktonnes) | 4.40 | | 3.93 | | 3.51 | |
| NO x (nitrogen oxide) emissions | (ktonnes NO 2 eq) | 3.43 | | 3.29 | | 2.45 | |
| Recycled/reused
water | (%) | 81.6 | | 86.2 | | 87.7 | |

(a) Before elimination of intragroup sales.

2014 Highlights

Performance of the year è In 2014, the injury frequency rate (employees and contractors) was more than halved (down by 50.9%) compared to 2013, in continuation of historical positive trend. è In 2014, greenhouse gas emissions and other emissions in the atmosphere were lower than in 2013 (down by 16.3%), following the restructuring of the production assets. Recycled/reused water rate improved, up to 87.7%. è In 2014, adjusted net loss was euro 277 million, euro 61 million lower than in 2013, benefiting from improved margins of intermediates and polyethylene. Results reflected efficiency initiatives and restructuring programs, mainly relating to the start-up of the Porto Torres Green Chemical project and the shutdown of certain unprofitable production units. è Sales of petrochemical products amounted to 3,463 ktonnes, down by 322 ktonnes, or 8.5% from 2013, driven by weak commodity demand and strong competition. è In 2014, expenditure in R&D amounted to approximately euro 40 million, 14 patent applications were filed. Restructuring of petrochemical activities in Sardinia è In June 2014, the Green Chemical project of Matrìca, a 50/50 joint venture between Versalis and Novamont, started operations marking the full conversion of the Porto Torres site. Matrìca’s plant is currently leveraging on an innovative technology to transform vegetable oils into monomers and intermediates that are feedstock for the production of complex production of bio-products destined among other to the tyre industry, production of bio-lubricants and plastic. The overall production capacity of approximately 70 ktonnes per year will come gradually online during 2015. The cracking production line was definitively shut down. è At the end of December 2014, Versalis signed an agreement to divest the Sarroch plant to the refining company Saras, which owns a refinery close to Eni’s petrochemical site. The agreement includes the disposal of the Versalis plants connected with the production cycle of the refinery, in particular the reforming unit, the propylene splitter unit and other related services, including the logistics system. The Green Chemical project of Porto Marghera è In November 2014, Eni defined with the Ministry for Economic Development and the interested stakeholders a plan to restore the profitability of the petrochemical plant at Porto Marghera. The project, in partnership with the US-based company Elevance Renewable Science Inc, envisages building of world-scale plants which are the first of their kind and the

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new technology for the production of bio-chemical intermediates from vegetable oils destined for high added-value industrial applications such as detergents, bio-lubricants and chemicals for the oil industry. Development and sustainability initiatives è In November 2014, Versalis signed a partnership with Solazyme, an US-based renewable oil and bio-products company, aimed to expand market access and commercial use of Encapso™ – the world’s first commercially – available, biodegradable encapsulated lubricants for drilling fluids. Encapso will also be used in oil and gas fields operated by Eni. è Following the strategic partnership signed in 2013 with Yulex, an US- based leader in bio-materials, to produce guayule-based bio-rubber by using non-food feedstock, is under development the agronomic protocol and the innovative technology engineering, through the development of the entire supply chain, from the cultivation to the extraction of natural rubber, until the construction of a bio-mass power station.

| Strategies Versalis’ operations are exposed to volatile costs of oil-based feedstock and the cyclicality of demand due to the commoditized nature of product portfolio and underlying weaknesses in the industry. Our commodity chemical businesses have been unprofitable in recent years and we expect only limited improvements in the scenario in the foreseeable future due to structural cost disadvantages with respect to Asian and Middle East players and also US players, as well as a weak macroeconomic outlook which will hamper a sustainable recovery in demand. We believe that the current improvement in the cost of oil-based feedstock will provide only limited upside to the weak underlying fundamentals of the petrochemical sector in Europe. Against this backdrop, our priority is the economic and financial sustainability in the medium and long term. The breakeven at adjusted operating profit and operating cash flow is expected to be achieved from 2016. This target will be driven by implementing the following strategic guidelines: n downsizing the installed capacity in commoditized and loss-making businesses through the reconversions of inefficient units and plant shutdown and/or divestment and rationalization of the other businesses; n refocusing our chemical portfolio on high value-added productions (i.e. specialties) also through the development of green chemistry; and n upgrading of our production platform by means of the internationalization of the business to serve global clients and markets featured by high demand growth, also through strategic alliances with industrial partners.

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Engineering & Construction / Business review Eni in 2014

Key performance indicators — 2012	2013	2014

| Injury
frequency rate of total Eni workforce | (No. of accidents per million of worked hours) | 0.32 | 0.26 | | 0.28 |
| --- | --- | --- | --- | --- | --- |
| Net sales from operations (a) | (euro million) | 12,799 | 11,598 | | 12,873 |
| Operating
profit | | 1,453 | (98 | ) | 18 |
| Adjusted operating profit | | 1,485 | (99 | ) | 479 |
| Adjusted
net profit | | 1,111 | (253 | ) | 309 |
| Capital expenditure | | 1,011 | 902 | | 694 |
| Orders
acquired | (euro million) | 13,391 | 10,062 | | 17,971 |
| Order backlog | | 19,739 | 17,065 | | 22,147 |
| Employees
at year end | (number) | 43,387 | 47,209 | | 49,559 |
| Employees outside Italy rate | (%) | 88.1 | 89.1 | | 89.9 |
| Local
managers rate | | 41.3 | 41.3 | | 42.0 |
| Local procurement rate | | 57.4 | 54.3 | | 55.6 |
| GHG
emissions | (mmtonnes CO 2 eq) | 1.54 | 1.54 | | 1.42 |
| Water withdrawals | (million of cubic
meters) | 8.25 | 8.74 | | 6.32 |

(a) Before elimination of intragroup sales.

2014 Highlights

Performance of the year è In 2014, the injury frequency rate registered a 7.7% increase due to a poor performance for contractors (up by 12.7%), partially offset by a lower injury frequency rate for employees (down by 4.9%). è In 2014, adjusted net profit of the Engineering & Construction segment amounted to euro 309 million, up by euro 562 million from the adjusted net loss of euro 253 million reported in 2013, which was driven by extraordinary contract losses. è Orders acquired amounted to euro 17,971 million (euro 10,062 million in 2013), 97% of which relating to the works outside Italy, while orders from Eni companies amounted to 8% of the total. è Order backlog amounted to euro 22,147 million at December 31, 2014 (euro 17,065 million at December 31, 2013), of which euro 9,035 million to be executed in 2015. è Expenditure in R&D amounted to euro 12 million. 20 patent applications were filed. è Capital expenditure amounted to euro 694 million (euro 902 million in 2013) which mainly regarded the upgrading of the drilling and construction fleet.

| Strategies We expect a challenging trading environment in the oilfield services sector due to lower crude oil prices. In spite of this, we forecast that the execution of recently-acquired projects will support operating results. Over the four-year plan, the Engineering & Construction segment intends to improve profitability by growing in those market segments where it owns competitive advantages, like ultra-deep projects, pipeline laying, onshore projects in harsh environments and with other complexities. The Engineering & Construction segment will leverage on the enhancement of the EPC(I)-oriented business model, its world-class technology, engineering and delivering skills, its strong local presence and established relationships with other major oil companies and national oil companies. The profitability and cash generation over the plan period will be sustained by selective capital expenditure, efficiency actions and working capital optimization.

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Group results for the year / Financial review Eni in 2014

Group results for the year

In 2014, the Group faced strong headwinds in any of its reference markets. Oil&gas realizations in dollar terms declined due to lower a Brent price, down by 9% from 2013, and lower gas benchmarks. Eni’s refining margins (Standard Eni Refining Margin-SERM) that gauge the profitability of Eni’s refineries were up by 32.1% from the particularly depressed level of 2013, due to a fall in the cost of crude oil feedstock. However, the European refining business continued to be affected by structural headwinds from lower demand, overcapacity and increasing competitive pressure from streams of cheaper refined products imported from Russia, Asia and the United States. The European gas market was adversely affected by weak demand, competitive pressures and oversupply. Price competition was tough 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 22.7% from 2013. Electricity sales reported negative margins due to oversupply and increasing competition from more competitive sources (photovoltaic and coal-fired plants). | 2014 results In 2014, net profit attributable to Eni’s shareholders was euro 1,291 million, a decline of euro 3,869 million from 2013, or 75%; operating profit of euro 7,917 million was down by 10.9%. Business performance was adversely impacted by lower oil prices which decreased revenues in the Exploration & Production segment. The mid-downstream business segments reported cumulatively an improved performance of euro 1.2 billion reflecting gas contract renegotiations, cost efficiencies, as well as optimization and restructuring initiatives, in spite of an unfavorable trading environment. Furthermore, results were affected by a euro 221 million loss on the fair-valued interests in Galp and Snam which underlay two convertible bonds. In addition to these business trends, 2014 net profit was impacted by net charges of euro 2,416 million due to the alignment of crude oil and product inventories to current market prices, asset impairments driven by a lower price environment in the near to medium term impacting the recoverable amounts of oil&gas properties and of rigs and construction vessels in Saipem, as well as the write-off of deferred tax assets of Italian subsidiaries (euro 976 million) due to the projections of lower future taxable profit (euro 500 million) and the write-off for euro 476 million of deferred tax assets accrued in connection with an Italian windfall tax of 6.5 percentage points which adds to the Italian statutory tax rate of 27.5%. This windfall tax, the so-called Robin Tax, was ruled to be illegitimate by an Italian Court on February 11, 2015. It was the first time that a sentence stated the illegitimacy of a tax rule prospectively, denying any reimbursement right. As a result of the abrogation, deferred tax assets of Italian subsidiaries were recalculated with the lower statutory tax rate of 27.5% instead of 33%, with the difference being written off. These effects were partly offset by the recognition of a tax gain of euro 824 million due to the settlement of a tax dispute with the Italian fiscal Authorities regarding how to determine a tax surcharge of 4% due by the parent company Eni SpA (the so-called Libyan tax) since 2009. In 2013, significant disposal gains were recognized due to the divestment of a 20% stake in the Mozambique discovery (euro 2,994 million) and the fair-value evaluation of Eni’s interest in Artic Russia (euro 1,682 million), partly offset by extraordinary charges and inventory holding losses for euro 4 billion (post-tax). These transactions affected the year-on-year comparison of reported net profit. In 2014, adjusted net profit attributable to Eni’s shareholders of euro 3,707 million decreased by 16.3% and excludes an inventory holding loss of euro 1,008 million and special charges of euro 1,408 million, net of tax, with a positive adjustment of euro 2,416 million.

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Group results for the year / Financial review Eni in 2014

| Adjusted net profit — 2012 | (euro
million) | 2013 | 2014 | Change | %
Ch. |
| --- | --- | --- | --- | --- | --- |

| 4,200 | | Net
profit attributable to Eni's shareholders - continuing
operations | 5,160 | | 1,291 | (3,869 | ) | (75.0 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (23 | ) | Exclusion of inventory holding (gains) losses | 438 | | 1,008 | | | | |
| 2,953 | | Exclusion
of special items | (1,168 | ) | 1,408 | | | | |
| 7,130 | | Adjusted net profit attributable to
Eni’s shareholders - continuing operations (a) | 4,430 | | 3,707 | (723 | ) | (16.3 | ) |

(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".

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

| Adjusted net profit by segment — 2012 | (euro
million) | 2013 | 2014 | Change | %
Ch. |
| --- | --- | --- | --- | --- | --- |

| 7,426 | | Exploration
& Production | 5,950 | | 4,423 | | (1,527 | ) | (25.7 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 479 | | Gas & Power | (253 | ) | 190 | ) | 443 | | .. | |
| (181 | ) | Refining
& Marketing | (232 | ) | (147 | ) | 85 | | 36.6 | |
| (395 | ) | Versalis | (338 | ) | (277 | ) | 61 | | 18.0 | |
| 1,111 | | Engineering
& Construction | (253 | ) | 309 | | 562 | | .. | |
| (247 | ) | Other activities | (205 | ) | (200 | ) | 5 | | 2.4 | |
| (977 | ) | Corporate
and financial companies | (484 | ) | (651 | ) | (167 | ) | (34.5 | ) |
| 661 | | Impact of unrealized intragroup profit
elimination (a) | 39 | | 152 | | 113 | | | |
| 7,877 | | Adjusted
net profit - continuing operations | 4,224 | | 3,799 | | (425 | ) | (10.1 | ) |
| | | of which attributable to: | | | | | | | | |
| 747 | | -
non-controlling interest | (206 | ) | 92 | | 298 | | .. | |
| 7,130 | | - Eni's
shareholders | 4,430 | | 3,707 | | (723 | ) | (16.3 | ) |

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

Results by business segment

Exploration & Production The Exploration & Production segment reported a 21.1% decrease in adjusted operating profit to euro 11,551 million. This result reflected reduced oil and gas realizations in dollar terms (down by 8.9% on average) higher depreciation charges taken in connection with the start-up of new fields mainly in the second half of 2013, achieving full ramp-up in the course of 2014. Adjusted net profit of euro 4,423 million decreased by 25.7% due to a reduced operating performance. The adjusted tax rate increased by approximately 2 percentage points in the year due to a larger share of taxable profit reported in countries with higher taxations. Gas & Power The Gas & Power segment reported an adjusted operating profit of euro 310 million reversing an adjusted operating loss of euro 638 million in 2013. The 2014 results were driven by better competitiveness due to the renegotiation of a substantial portion of the long-term gas supply portfolio, including one-off effects related to the purchase costs of volumes supplied in previous reporting periods, which was larger than in the full year 2013. The result also reflected a positive contribution of international LNG sales. These positives were partially offset by a continued decline in sale prices of gas and electricity, driven by weak demand and continuing competitive pressure, exacerbated by oversupply and market liquidity, as well as a different tariff regime for supplying gas to the residential regulated market. Adjusted net profit of 2014 amounted to euro 190 million, up by euro 443 million reported in 2013. This reflected better operating performance, partially offset by lower results from equity-accounted entities. Refining & Marketing The Refining & Marketing segment reported half-sized operating losses at euro 208 million compared to 2013, in spite of continuing industry headwinds on the back of weak demand and overcapacity. The improvement was driven by improved refining margins compared with the particularly depressed scenario of 2013 following a fall in oil prices, and restructuring initiatives, including the start of the green refinery project in Venice, and cost efficiencies, particularly with respect to energy and overhead costs. Marketing results were sustained by a decline of oil prices despite weak demand and rising competitive pressure. The adjusted net loss for the full year was euro 147 million, down by euro 85 million from the previous reporting period. Versalis Versalis reported an adjusted operating loss of euro 346 million, a decrease of euro 40 million, or 10.4% from 2013. The loss matured against the backdrop of an unfavorable trading environment which reflected continued weakness in commodity demand and increasing competition from non-EU producers. These trends were partly offset by efficiency initiatives and restructuring programs, mainly relating to the start-up of the Porto Torres Green Chemical project and the shutdown of certain unprofitable production units, as well as lower oil-based feedstock prices in the last part of 2014. Adjusted net loss of euro 277 million decreased by euro 61 million from 2013. Engineering & Construction The Engineering & Construction segment reported an adjusted operating profit of euro 479 million, up by euro 578 million from 2013 reflecting extraordinary losses incurred in 2013 driven by changed estimates at long-term contracts. Adjusted net profit increased by euro 562 million to euro 309 million.

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Group results for the year / Financial review Eni in 2014

Capital expenditure

2012 (euro million) 2013 2014 Change % Ch.

| 10,307 | Exploration
& Production | 10,475 | | 10,524 | | 49 | | 0.5 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 43 | - acquisition
of proved and unproved properties | 109 | | | | | | | |
| 1,850 | -
exploration | 1,669 | | 1,398 | | | | | |
| 8,304 | - development | 8,580 | | 9,021 | | | | | |
| 110 | -
other expenditure | 117 | | 105 | | | | | |
| 213 | Gas & Power | 229 | | 172 | | (57 | ) | (24.9 | ) |
| 200 | -
marketing | 206 | | 164 | | | | | |
| 13 | - international
transport | 23 | | 8 | | | | | |
| 898 | Refining
& Marketing | 672 | | 537 | | (135 | ) | (20.1 | ) |
| 675 | - refining,
supply and logistics | 497 | | 362 | | | | | |
| 223 | -
marketing | 175 | | 175 | | | | | |
| 172 | Versalis | 314 | | 282 | | (32 | ) | (10.2 | ) |
| 1,011 | Engineering
& Construction | 902 | | 694 | | (208 | ) | (23.1 | ) |
| 14 | Other activities | 21 | | 30 | | 9 | | 42.9 | |
| 152 | Corporate
and financial companies | 190 | | 83 | | (107 | ) | (56.3 | ) |
| 38 | Impact of unrealized intragroup profit
elimination | (3 | ) | (82 | ) | (79 | ) | | |
| 12,805 | Capital
expenditure - continuing operations | 12,800 | | 12,240 | | (560 | ) | (4.4 | ) |
| 756 | Capital expenditure - discontinued operations | | | | | | | | |
| 13,561 | Capital
expenditure | 12,800 | | 12,240 | | (560 | ) | (4.4 | ) |

In 2014, capital expenditure amounted to euro 12,240 million (euro 12,800 million in 2013) relating mainly to: - development activities deployed mainly in Norway, Angola, Congo, the United States, Italy, Nigeria, Egypt, Kazakhstan, Indonesia and exploratory activities of which 98% was spent outside Italy, primarily in Libya, Mozambique, the United States, Angola, Nigeria, Indonesia, Cyprus, Norway and Gabon; - upgrading of the fleet used in the Engineering & Construction segment (euro 694 million); - refining, supply and logistics in Italy and outside Italy (euro 362 million) with projects designed to improve the conversion rate and flexibility of refineries, as well as the upgrade and rebranding of the refined product retail network in Italy and in the rest of Europe (euro 175 million); and - initiatives to improve flexibility of the combined cycle power plants (euro 98 million). Sources and uses of cash The Company’s cash requirements for capital expenditures, buy-back program, dividends to shareholders, and working capital were financed by a combination of funds generated from operations, borrowings and divestments. In 2014, net cash provided by operating activities amounted to euro 15,110 million, as it was supported by a reduction of working capital in E&P, G&P mainly due to a reduction in cash advances related to the take-or-pay clause in gas long-term supply contracts, as well as in Saipem. Proceeds from disposals were euro 3,684 million and mainly related to the divestment of Eni’s share in Artic Russia (euro 2,160 million), an 8% interest in Galp Energia (euro 824 million), Eni’s interest in the EnBW joint venture in Germany, as well as the divestment of Eni’s stake in the South Stream project. These cash inflows funded cash outlays relating to capital expenditure totaling euro 12,240 million and dividend payments, share repurchases and other changes amounting to euro 4,434 million (including euro 2,020 million related to the 2014 interim dividend paid to Eni’s shareholders and euro 380 million of share repurchases), reducing the Group’s net debt from December 31, 2013 by euro 1,278 million. Net cash provided by operating activities was negatively affected by lower receivables due beyond the end of the reporting period, being transferred to financing institutions compared to the amount transferred at the end of the previous reporting period (down by euro 961 million from December 31, 2013).

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Group results for the year / Financial review Eni in 2014

| Profit and loss account

2012 (euro million) 2013 2014 Change % Ch.

| 127,109 | | Net sales
from operations | 114,697 | | 109,847 | | (4,850 | ) | (4.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1,548 | | Other income and revenues | 1,387 | | 1,101 | | (286 | ) | (20.6 | ) |
| (99,674 | ) | Operating
expenses | (95,304 | ) | (91,677 | ) | 3,627 | | 3.8 | |
| (158 | ) | Other operating income (expense) | (71 | ) | 145 | | 216 | | .. | |
| (13,617 | ) | Depreciation,
depletion, amortization and impairments | (11,821 | ) | (11,499 | ) | 322 | | 2.7 | |
| 15,208 | | Operating profit | 8,888 | | 7,917 | | (971 | ) | (10.9 | ) |
| (1,371 | ) | Finance
income (expense) | (1,009 | ) | (1,065 | ) | (56 | ) | (5.6 | ) |
| 2,789 | | Net income from investments | 6,085 | | 490 | | (5,595 | ) | (91.9 | ) |
| 16,626 | | Profit
before income taxes | 13,964 | | 7,342 | | (6,622 | ) | (47.4 | ) |
| (11,679 | ) | Income taxes | (9,005 | ) | (6,492 | ) | 2,513 | | 27.9 | |
| 70.2 | | Tax
rate (%) | 64.5 | | 88.4 | | 23.9 | | | |
| 4,947 | | Net profit - continuing operations | 4,959 | | 850 | | (4,109 | ) | (82.9 | ) |
| 3,732 | | Net
profit - discontinued operations | | | | | | | | |
| 8,679 | | Net profit | 4,959 | | 850 | | (4,109 | ) | (82.9 | ) |
| | | Attributable
to: | | | | | | | | |
| 7,790 | | Eni's shareholders: | 5,160 | | 1,291 | | (3,869 | ) | (75.0 | ) |
| 4,200 | | -
continuing operations | 5,160 | | 1,291 | | (3,869 | ) | (75.0 | ) |
| 3,590 | | - discontinued operations | | | | | | | | |
| 889 | | Non-controlling
interest: | (201 | ) | (441 | ) | (240 | ) | .. | |
| 747 | | - continuing operations | (201 | ) | (441 | ) | (240 | ) | .. | |
| 142 | | -
discontinued operations | | | | | | | | |

Non-GAAP measures 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 to manage exposure to movements in foreign currency exchange rates which impact industrial margins and translation of commercial payables and receivables. Accordingly also currency translation effects recorded through profit and loss are 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 Eni’s 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 management’s discussion and financial tables. Also, special items allow to allocate to future reporting periods gains and losses on re-measurement at fair value of certain non hedging commodity derivatives and exchange rate

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Group results for the year / Financial review Eni in 2014

derivatives relating to commercial exposures, lacking the criteria to be designed as hedges, 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 segment. 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 segment). 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, adjusted net profit to reported operating profit and reported net profit see tables below.

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

Operating profit	10,766		186		(2,229	)	(704	)	18		(246	)	(272	)	398		7,917
Exclusion
of inventory holding (gains) losses			(119	)	1,576		170								(167	)	1,460
Exclusion of special items:
- asset
impairments	692		25		284		96		420				14				1,531
- gains on disposal of assets	(76	)			(2	)	45		2				3				(28	)
- risk
provisions	(5	)	(42	)					25		5		7				(10	)
- environmental charges					111		27						41				179
-
provision for redundancy incentives	24		11		(6	)			5		(22	)	(3	)			9
- commodity derivatives	(28	)	(43	)	42		4		9								(16	)
- exchange
rate differences and derivatives	6		228		(9	)	4										229
- other	172		64		25		12				(2	)	32				303
Special
items of operating profit	785		243		445		188		461		(19	)	94				2,197
Adjusted operating profit	11,551		310		(208	)	(346	)	479		(265	)	(178	)	231		11,574
Net
finance (expense) income (a)	(287	)	7		(9	)	(3	)	(6	)	(542	)	(22	)			(862	)
Net income from investments (a)	323		49		67		(3	)	21		(156	)					301
Income
taxes (a)	(7,164	)	(176	)	3		75		(185	)	312				(79	)	(7,214	)
Tax rate (%)	61.8		48.1		..				37.4								65.5
Adjusted
net profit	4,423		190		(147	)	(277	)	309		(651	)	(200	)	152		3,799
of which attributable to:
-
non-controlling interest																	92
- Eni’s shareholders																	3,707
Net
profit attributable to Eni’s shareholders																	1,291
Exclusion of inventory holding (gains) losses																	1,008
Exclusion
of special items																	1,408
Adjusted net profit attributable to
Eni’s shareholders																	3,707

(a) Excluding special items.

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Group results for the year / Financial review Eni in 2014

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

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:
- asset
impairments	19		1,685		633		44						19				2,400
- gains on disposal of assets	(283	)	1		(9	)			107				(3	)			(187	)
- risk
provisions	7		292				4						31				334
- environmental charges			(1	)	93		61						52				205
-
provision 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				3,046
Adjusted operating profit	14,643		(638	)	(457	)	(386	)	(99	)	(332	)	(210	)	129		12,650
Net
finance (expense) income (a)	(264	)	14		(6	)	(2	)	(5	)	(571	)	4				(830	)
Net income from investments (a)	367		70		56				2		290		1				786
Income
taxes (a)	(8,796	)	301		175		50		(151	)	129				(90	)	(8,382	)
Tax rate (%)	59.7		..		..				..		41.5						66.5
Adjusted
net profit	5,950		(253	)	(232	)	(338	)	(253	)	(484	)	(205	)	39		4,224
of which attributable to:
-
non-controlling interest																	(206	)
- Eni’s shareholders																	4,430
Net
profit attributable to Eni’s shareholders																	5,160
Exclusion of inventory holding (gains) losses																	438
Exclusion
of special items																	(1,168	)
Adjusted net profit attributable to
Eni’s shareholders																	4,430

(a) Excluding special items.

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Group results for the year / Financial review Eni in 2014

| 2012 (euro
million) — Snam | Other activities | DISCONTINUED
OPERATIONS — Snam | Consolidation
adjustments | Total |
| --- | --- | --- | --- | --- |

Operating profit	18,470		(3,125	)	(1,264	)	(681	)	1,453		(341	)	1,679		(300	)	208		16,099		(1,679	)	788		(891	)	15,208
Exclusion
of inventory holding (gains) losses			163		(29	)	63										(214	)	(17	)							(17	)
Exclusion of special items:
- asset
impairments	550		2,443		846		112		25						2				3,978								3,978
- gains on disposal of assets	(542	)	(3	)	5		1		3				(22	)	(12	)			(570	)	22				22		(548	)
- risk
provisions	7		831		49		18				5				35				945								945
- environmental charges			(2	)	40								71		25				134		(71	)			(71	)	63
-
provision for redundancy incentives	6		5		19		14		7		11		2		2				66		(2	)			(2	)	64
- commodity derivatives	1						1		(3	)									(1	)							(1	)
- exchange
rate differences and derivatives	(9	)	(52	)	(8	)	(11	)											(80	)							(80	)
- other	54		138		53										26				271								271
Special
items of operating profit	67		3,360		1,004		135		32		16		51		78				4,743		(51	)			(51	)	4,692
Adjusted operating profit	18,537		398		(289	)	(483	)	1,485		(325	)	1,730		(222	)	(6	)	20,825		(1,730	)	788		(942	)	19,883
Net
finance (expense) income (a)	(264	)	11		(14	)	(3	)	(7	)	(867	)	(54	)	(24	)			(1,222	)	54				54		(1,168	)
Net income from investments (a)	436		233		43		2		46		99		38		(1	)			896		(38	)			(38	)	858
Income
taxes (a)	(11,283	)	(163	)	79		89		(413	)	116		(712	)			2		(12,285	)	712		(123	)	589		(11,696	)
Tax rate (%)	60.3		25.4		..				27.1				41.5						59.9								59.8
Adjusted
net profit	7,426		479		(181	)	(395	)	1,111		(977	)	1,002		(247	)	(4	)	8,214		(1,002	)	665		(337	)	7,877
of which attributable to:
-
non-controlling interest																			889						(142	)	747
- Eni’s shareholders																			7,325						(195	)	7,130
Net
profit attributable to Eni’s shareholders																			7,790						(3,590	)	4,200
Exclusion of inventory holding (gains) losses																			(23	)							(23	)
Exclusion
of special items																			(442	)					3,395		2,953
Adjusted net profit attributable to
Eni’s shareholders																			7,325						(195	)	7,130

(a) Excluding special items.

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Group results for the year / Financial review Eni in 2014

Breakdown of special items

2012 (euro million) 2013 2014

| 4,743 — 3,978 | | Special items of operating profit — - asset
impairment | 3,046 — 2,400 | | 2,197 — 1,531 | |
| --- | --- | --- | --- | --- | --- | --- |
| (570 | ) | - gains on disposal of assets | (187 | ) | (28 | ) |
| 945 | | - risk
provisions | 334 | | (10 | ) |
| 134 | | - environmental charges | 205 | | 179 | |
| 66 | | -
provision for redundancy incentives | 270 | | 9 | |
| (1 | ) | - commodity derivatives | 315 | | (16 | ) |
| (80 | ) | -
exchange rate differences and derivatives | (195 | ) | 229 | |
| 271 | | - other | (96 | ) | 303 | |
| 203 | | Net
finance (income) expense | 179 | | 203 | |
| | | of which: | | | | |
| 80 | | -
exchange rate differences and derivatives | 195 | | (229 | ) |
| (5,373 | ) | Net income from investments | (5,299 | ) | (189 | ) |
| | | of which: | | | | |
| (2,354 | ) | gains on disposal
of assets | (3,599 | ) | (159 | ) |
| | | of
which: | | | | |
| | | divestment
of the 28.57% of Eni’s interest in Eni East Africa | (3,359 | ) | | |
| (311 | ) | Galp | (98 | ) | (96 | ) |
| (2,019 | ) | Snam | (75 | ) | | |
| | | South
Stream | | | (54 | ) |
| (3,151 | ) | gains on
investment revaluation | (1,682 | ) | | |
| | | of
which: | | | | |
| (1,700 | ) | Galp | | | | |
| (1,451 | ) | Snam | | | | |
| | | Artic
Russia | (1,682 | ) | | |
| 191 | | impairments
of equity investments | 11 | | (38 | ) |
| (15 | ) | Income taxes | 901 | | (270 | ) |
| | | of
which: | | | | |
| 803 | | - impairment of
deferred tax assets of Italian subsidiaries | 954 | | 976 | |
| | | -
other tax profit | | | (824 | ) |
| | | - deferred tax
adjustment on PSAs | 490 | | 69 | |
| 147 | | -
re-allocation of tax impact on intercompany dividends and
other special items | 64 | | (12 | ) |
| (965 | ) | - taxes on
special items of operating profit | (607 | ) | (479 | ) |
| (442 | ) | Total
special items of net profit | (1,173 | ) | 1,941 | |
| | | pertaining to: | | | | |
| | | -
non-controlling interest | (5 | ) | 533 | |
| (442 | ) | - Eni's
shareholders | (1,168 | ) | 1,408 | |

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Group results for the year / Financial review Eni in 2014

| 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 Eni’s 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 the proportion of net borrowings to shareholders’ equity (leverage) intended to evaluate whether Eni’s financing structure is sound and well-balanced.

(euro million) December 31, 2013 December 31, 2014 Change

| Fixed assets — Property,
plant and equipment | 63,763 | | 71,962 | | 8,199 | |
| --- | --- | --- | --- | --- | --- | --- |
| Inventories - Compulsory stock | 2,573 | | 1,581 | | (992 | ) |
| Intangible
assets | 3,876 | | 3,645 | | (231 | ) |
| Equity-accounted investments and other
investments | 6,180 | | 5,130 | | (1,050 | ) |
| Receivables
and securities held for operating purposes | 1,339 | | 1,861 | | 522 | |
| Net payables related to capital expenditure | (1,255 | ) | (1,971 | ) | (716 | ) |
| | 76,476 | | 82,208 | | 5,732 | |
| Net working capital | | | | | | |
| Inventories | 7,939 | | 7,555 | | (384 | ) |
| Trade receivables | 21,212 | | 19,709 | | (1,503 | ) |
| Trade
payables | (15,584 | ) | (15,015 | ) | 569 | |
| Tax payables and provisions for net deferred tax
liabilities | (3,062 | ) | (1,865 | ) | 1,197 | |
| Provisions | (13,120 | ) | (15,898 | ) | (2,778 | ) |
| Other current assets and liabilities | 1,274 | | 222 | | (1,052 | ) |
| | (1,341 | ) | (5,292 | ) | (3,951 | ) |
| Provisions for employee post-retirement
benefits | (1,279 | ) | (1,313 | ) | (34 | ) |
| Assets
held for sale including related liabilities | 2,156 | | 291 | | (1,865 | ) |
| CAPITAL EMPLOYED, NET | 76,012 | | 75,894 | | (118 | ) |
| Eni
shareholders' equity | 58,210 | | 59,754 | | 1,544 | |
| Non-controlling interest | 2,839 | | 2,455 | | (384 | ) |
| Shareholders’
equity | 61,049 | | 62,209 | | 1,160 | |
| Net borrowings | 14,963 | | 13,685 | | (1,278 | ) |
| TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY | 76,012 | | 75,894 | | (118 | ) |

The summarized Group balance sheet was affected by a sharp movement in the EUR/USD exchange rate which determined an increase in net capital employed, net borrowings and total equity of euro 5,145 million, euro 137 million and euro 5,008 million respectively following translation of the financial statements of US-denominated subsidiaries reflecting a 12% appreciation of the US dollar (1 EUR = 1.214 USD at December 31, 2014 compared to 1.379 at December 31, 2013). Fixed assets amounted to euro 82,208 million, representing an increase of euro 5,732 million from December 31, 2013. The increase was attributable to favorable currency movements, capital expenditure (euro 12,240 million), upward revisions of the previous decommissioning provisions in the Exploration & Production segment mainly combine with a benign interest rate environment allowing an increase of euro 2,112 million. These increases were partly offset by the depreciation, depletion, amortization and impairment charges (euro 11,499 million), the reduction in the line item "Equity-accounted investments and other investments" (down by euro 1,051 million) due to the divestment of Eni’s interest in Galp and the fair value evaluation of the residual interest, the sale of other interests (South Stream and EnBw), as well as the decrease in the compulsory inventories reflecting lower commodity prices (euro 992 million). Net working capital (negative euro 5,292 million) reported a decrease of euro 3,951 million. This reflected lower "Other current assets and liabilities" (down by euro 1,052 million) following the reduction of net receivables vs. joint venture partners in the Exploration & Production segment, and decreased deferred costs related to pre-paid gas volumes provided by take-or-pay obligations due to volume makeup in the year as a result of contract renegotiations. Also lower inventories of crude oil and products (down by euro 384 million) were recorded due to the alignment to current prices. The balance of trade receivables and trade payables declined by euro 934 million mainly in the Exploration & Production segment. Finally, lower tax payables and provisions for deferred taxes were recorded due to the recognition of the above mentioned tax gain on Libyan tax by the parent company Eni SpA, net of the amount already collected in the fourth quarter, and as taxes paid were larger than those accrued in the full year due to a lowered taxable profit. These were partly offset by the write-off of deferred tax assets of Italian subsidiaries for euro 976 million.

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Group results for the year / Financial review Eni in 2014

Shareholders’ equity including non-controlling interest was euro 62,209 million, representing an increase of euro 1,160 million from December 31, 2013. This was due to comprehensive income for the year (euro 5,598 million) as a result of net profit (euro 850 million), positive foreign currency effects (euro 5,008 million), net of negative changes in the cash flow hedge reserve (euro 167 million), and of the reversal of the fair-value reserve recorded in equity on Galp interest due to the divestment. This addition to equity was partly offset by dividend payments to Eni’s shareholders and other changes of euro 4,438 million (dividend to Eni’s shareholders of euro 4,006 million, of which euro 2,020 million related to the interim dividend for fiscal year 2014, share repurchases amounting to euro 380 million and dividends paid to non-controlling interest). Net borrowings and leverage Eni evaluates its financial condition by reference to net borrowings , which is calculated as total finance debt less: cash, cash equivalents and certain very liquid investments not related to operations, including among others non-operating financing receivables and securities not related to operations. Non-operating financing receivables consist of amounts due to Eni’s financing subsidiaries from banks and other financing institutions and amounts due to other subsidiaries from banks for investing purposes and deposits in escrow. Securities not related to operations consist primarily of government and corporate securities. Leverage is a measure used by management to assess the Company’s 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 benchmark analysis with industry standards.

(euro million) December 31, 2013 December 31, 2014 Change

| Total debt: — -
short-term debt | 25,560 — 4,685 | | 25,891 — 6,575 | | 331 — 1,890 | |
| --- | --- | --- | --- | --- | --- | --- |
| - long-term debt | 20,875 | | 19,316 | | (1,559 | ) |
| Cash and
cash equivalents | (5,431 | ) | (6,614 | ) | (1,183 | ) |
| Securities held for trading and other securities
held for non-operating purposes | (5,037 | ) | (5,037 | ) | | |
| Financing
receivables for non-operating purposes | (129 | ) | (555 | ) | (426 | ) |
| Net borrowings | 14,963 | | 13,685 | | (1,278 | ) |
| Shareholders'
equity including non-controlling interest | 61,049 | | 62,209 | | 1,160 | |
| Leverage | 0.25 | | 0.22 | | (0.03 | ) |

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Group results for the year / Financial review Eni in 2014

| Summarized Group cash flow statement and Change in net borrowings

Eni’s summarized Group cash flow statement derives from the statutory statement of cash flows. It enables investors to understand the link 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 from the beginning of the period to the end of period. The measure enabling such a link is represented by the free cash flow which is the cash in excess of capital expenditure needs. 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.

2012 (euro million) 2013 2014 Change

4,947		Net profit - continuing operations	4,959		850		(4,109	)
		Adjustments
to reconcile net profit to net cash provided by operating
activities:
11,501		- depreciation, depletion and amortization and
other non-monetary items	9,723		12,131		2,408
(875	)	- net
gains on disposal of assets	(3,770	)	(95	)	3,675
11,962		- dividends, interests, taxes and other changes	9,174		6,655		(2,519	)
(3,281	)	Changes in
working capital related to operations	456		2,668		2,212
(11,702	)	Dividends received, taxes paid, interest (paid)
received during the period	(9,516	)	(7,099	)	2,417
12,552		Net
cash provided by operating activities - continuing
operations	11,026		15,110		4,084
15		Net cash provided by operating activities -
discontinued operations
12,567		Net
cash provided by operating activities	11,026		15,110		4,084
(12,805	)	Capital expenditure - continuing operations	(12,800	)	(12,240	)	560
(756	)	Capital
expenditure - discontinued operations
(13,561	)	Capital expenditure	(12,800	)	(12,240	)	560
(569	)	Investments
and purchase of consolidated subsidiaries and businesses	(317	)	(408	)	(91	)
6,025		Disposals	6,360		3,684		(2,676	)
(193	)	Other cash
flow related to capital expenditure, investments and
disposals	(243	)	435		678
4,269		Free cash flow	4,026		6,581		2,555
(79	)	Borrowings
(repayment) of debt related to financing activities	(3,981	)	(414	)	3,567
5,814		Changes in short and long-term financial debt	1,715		(628	)	(2,343	)
(3,743	)	Dividends
paid and changes in non-controlling interests and
reserves	(4,225	)	(4,434	)	(209	)
(16	)	Effect of changes in consolidation and exchange
differences	(40	)	78		118
6,245		NET
CASH FLOW	(2,505	)	1,183		3,688

Change in net borrowings

2012 (euro million) 2013 2014 Change

| 4,269 — (2 | ) | Free cash flow — Net
borrowings of acquired companies | 4,026 — (21 | ) | 6,581 — (19 | ) | 2,555 — 2 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 12,446 | | Net borrowings of divested companies | (23 | ) | | | 23 | |
| (345 | ) | Exchange
differences on net borrowings and other changes | 349 | | (850 | ) | (1,199 | ) |
| (3,743 | ) | Dividends paid and changes in non-controlling
interest and reserves | (4,225 | ) | (4,434 | ) | (209 | ) |
| 12,625 | | CHANGE
IN NET BORROWINGS | 106 | | 1,278 | | 1,172 | |

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Group results for the year / Financial review Eni in 2014

| Consolidated profit and loss account — 2012 | (euro
million) | 2013 | 2014 |
| --- | --- | --- | --- |

| 127,109 | | REVENUES — Net sales
from operations | 114,697 | | 109,847 | |
| --- | --- | --- | --- | --- | --- | --- |
| 1,548 | | Other income and revenues | 1,387 | | 1,101 | |
| 128,657 | | | 116,084 | | 110,948 | |
| | | OPERATING EXPENSES | | | | |
| 95,034 | | Purchases,
service and other | 90,003 | | 86,340 | |
| 4,640 | | Payroll and related costs | 5,301 | | 5,337 | |
| (158 | ) | OTHER
OPERATING (EXPENSE) INCOME | (71 | ) | 145 | |
| 13,617 | | DEPRECIATION, DEPLETION, AMORTIZATION AND
IMPAIRMENTS | 11,821 | | 11,499 | |
| 15,208 | | OPERATING
PROFIT | 8,888 | | 7,917 | |
| | | FINANCE INCOME (EXPENSE) | | | | |
| 7,208 | | Finance
income | 5,732 | | 6,459 | |
| (8,327 | ) | Finance expense | (6,653 | ) | (7,710 | ) |
| | | Finance
income (expense) from financial instruments held for
trading, net | 4 | | 24 | |
| (252 | ) | Derivative financial instruments | (92 | ) | 162 | |
| (1,371 | ) | | (1,009 | ) | (1,065 | ) |
| | | INCOME (EXPENSE) FROM INVESTMENTS | | | | |
| 186 | | Share of
profit (loss) of equity-accounted investments | 222 | | 121 | |
| 2,603 | | Other gain (loss) from investments | 5,863 | | 369 | |
| | | - of
which gain on the divestment of the 28.57% stake in Eni
East Africa | 3,359 | | | |
| 2,789 | | | 6,085 | | 490 | |
| 16,626 | | PROFIT
BEFORE INCOME TAXES | 13,964 | | 7,342 | |
| (11,679 | ) | Income taxes | (9,005 | ) | (6,492 | ) |
| 4,947 | | Net
profit - continuing operations | 4,959 | | 850 | |
| 3,732 | | Net profit (loss) - discontinued operations | | | | |
| 8,679 | | Net
profit | 4,959 | | 850 | |
| | | Attributable
to: | | | | |
| | | Eni’s shareholders | | | | |
| 4,200 | | -
continuing operations | 5,160 | | 1,291 | |
| 3,590 | | - discontinued operations | | | | |
| 7,790 | | | 5,160 | | 1,291 | |
| | | Non-controlling interest | | | | |
| 747 | | -
continuing operations | (201 | ) | (441 | ) |
| 142 | | - discontinued operations | | | | |
| 889 | | | (201 | ) | (441 | ) |

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Contents

Group results for the year / Financial review Eni in 2014

| Consolidated balance sheet — (euro
million) | December
31, 2013 | December 31, 2014 |
| --- | --- | --- |

ASSETS
Current
assets
Cash and cash equivalents	5,431		6,614
Other
financial activities held for trading	5,004		5,024
Other financial assets held for trading or
available for sale	235		257
Trade and
other receivables	28,890		28,601
Inventories	7,939		7,555
Current
tax assets	802		762
Other current tax assets	835		1,209
Other
current assets	1,325		4,385
	50,461		54,407
Non-current
assets
Property, plant and equipment	63,763		71,962
Inventory
- Compulsory stock	2,573		1,581
Intangible assets	3,876		3,645
Equity-accounted
investments	3,153		3,115
Other investments	3,027		2,015
Other
financial assets	858		1,022
Deferred tax assets	4,658		5,231
Other
non-current receivables	3,676		2,773
	85,584		91,344
Assets
held for sale	2,296		456
TOTAL ASSETS	138,341		146,207
LIABILITIES
AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term
debt	2,553		2,716
Current portion of long-term debt	2,132		3,859
Trade and
other payables	23,701		23,703
Income taxes payables	755		534
Other
taxes payables	2,291		1,873
Other current liabilities	1,437		4,489
	32,869		37,174
Non-current liabilities
Long-term
debt	20,875		19,316
Provisions for contingencies	13,120		15,898
Provisions
for employee benefits	1,279		1,313
Deferred tax liabilities	6,750		7,847
Other
non-current liabilities	2,259		2,285
	44,283		46,659
Liabilities
directly associated with assets held for sale	140		165
TOTAL LIABILITIES	77,292		83,998
SHAREHOLDERS’
EQUITY
Non-controlling interest	2,839		2,455
Eni
shareholders’ equity
Share capital	4,005		4,005
Reserves
related to the fair value of cash flow hedging
derivatives net of tax effect	(154	)	(284	)
Other reserves	51,393		57,343
Treasury
shares	(201	)	(581	)
Interim dividend	(1,993	)	(2,020	)
Net profit	5,160		1,291
Total Eni shareholders’ equity	58,210		59,754
TOTAL
SHAREHOLDERS’ EQUITY	61,049		62,209
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY	138,341		146,207

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Group results for the year / Financial review Eni in 2014

| Consolidated statement of cash flow — 2012 | (euro
million) | 2013 | 2014 |
| --- | --- | --- | --- |

4,947		Net profit of the year - continuing operations	4,959		850
		Adjustments
to reconcile net profit to net cash provided by operating
activities:
9,645		Depreciation and amortization	9,421		9,970
3,972		Impairments
of tangible and intangible assets, net	2,400		1,529
(186	)	Share of (profit) loss of equity-accounted
investments	(222	)	(121	)
(875	)	Gain on
disposal of assets, net	(3,770	)	(95	)
(431	)	Dividend income	(400	)	(385	)
(94	)	Interest
income	(142	)	(171	)
808		Interest expense	711		719
11,679		Income
taxes	9,005		6,492
(1,947	)	Other changes	(1,882	)	744
		Changes in
working capital:
(1,402	)	- inventories	350		1,524
(3,161	)	- trade
receivables	(1,379	)	2,344
2,014		- trade payables	703		(1,253	)
329		-
provisions for contingencies	59		(187	)
(1,061	)	- other assets and liabilities	723		240
(3,281	)	Cash flow
from changes in working capital	456		2,668
17		Net change in the provisions for employee
benefits	6		9
930		Dividends
received	630		612
79		Interest received	97		112
(829	)	Interest
paid	(942	)	(882	)
(11,882	)	Income taxes paid, net of tax receivables
received	(9,301	)	(6,941	)
12,552		Net
cash provided by operating activities - continuing
operations	11,026		15,110
15		Net cash provided by operating activities -
discontinued operations
12,567		Net
cash provided by operating activities	11,026		15,110
		Investing activities:
(11,267	)	-
tangible assets	(10,913	)	(10,685	)
(2,294	)	- intangible assets	(1,887	)	(1,555	)
(178	)	-
consolidated subsidiaries and businesses	(25	)	(36	)
(391	)	- investments	(292	)	(372	)
(17	)	-
securities	(5,048	)	(77	)
(1,542	)	- financing receivables	(978	)	(1,289	)
54		-
change in payables and receivables in relation to
investing activities and capitalized depreciation	50		669
(15,635	)	Cash flow from investing activities	(19,093	)	(13,345	)
		Disposals:
1,240		- tangible assets	514		97
61		-
intangible assets	16		8
3,521		- consolidated subsidiaries and businesses	3,401
1,203		-
investments	2,429		3,579
54		- securities	36		57
1,431		-
financing receivables	1,561		506
(252	)	- change in payables and receivables in
relation to disposals	155		155
7,258		Cash flow
from disposals	8,112		4,402
(8,377	)	Net cash used in investing activities	(10,981	)	(8,943	)
10,506		Proceeds
from long-term debt	5,418		1,916
(3,961	)	Repayments of long-term debt	(4,720	)	(2,751	)
(731	)	Increase
(decrease) in short-term debt	1,017		207
5,814			1,715		(628	)
		Net
capital contributions by non-controlling interest	1		1
		Sale of treasury shares
29		Net
acquisition of treasury shares different from Eni SpA	1
604		Acquisition of additional interests in
consolidated subsidiaries	(28	)
(3,840	)	Dividends
paid to Eni’s shareholders	(3,949	)	(4,006	)
(536	)	Dividends paid to non-controlling interest	(250	)	(49	)
		Acquisition
of treasury shares			(380	)
2,071		Net cash used in financing activities	(2,510	)	(5,062	)
(93	)	- of
which with related parties	119		(99	)
(4	)	Effect of change in consolidation
(inclusion/exclusion of significant/insignificant
subsidiaries)	2		2
(12	)	Effect of
exchange rate changes on cash and cash equivalents and
other changes	(42	)	76
6,245		Net cash flow of the year	(2,505	)	1,183
1,691		Cash
and cash equivalents - beginning of the year	7,936		5,431
7,936		Cash and cash equivalents - end of the year	5,431		6,614

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Directors and officers Eni in 2014

• 34 -

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Directors and officers Eni in 2014

Remuneration * The Eni Remuneration Policy is defined consistently with the recommendations of the Borsa Italiana Code as transposed in the Eni Code. It is approved by the Board of Directors following a proposal by the Compensation Committee, entirely made up of non-executive, independent Directors, and it is defined in accordance with the governance model adopted by the Company and with the recommendations of the Corporate Governance Code. This Policy aims to align the interests of management with the prime objective of creating sustainable value for shareholders over the medium-long term, in accordance with the guidelines defined in the Strategic Plan of the Company. The table describes the main elements of the approved 2015 Guidelines for the remuneration of the Chief Executive Officer, of the Chief Operating Officers of Eni’s Divisions and other Managers with strategic responsibilities (MSR).

Remuneration Policy 2015 — Component	Purpose and characteristics	Conditions for the implementation	Values

| Fixed
remuneration | -
Values the expertise, experience and contribution
required by the assigned role | -
Setting of the remuneration levels through benchmarks
consistent with the characteristics of Eni and the
assigned roles | -
CEO/GM: euro 1,350,000 per year - MSR: remuneration set based on the assigned role with
possible adjustments in relation to annual competitive
positioning (median market values) settings |
| --- | --- | --- | --- |
| AVI
- Annual Variable Incentive | -
Promotes the achievement of the annual budget targets,
also defined in terms of sustainability in the medium to
long term - Beneficiaries: all
managerial resources | 2015
CEO/GM targets: 1. Economic and financial results (25%) - EBT - Free cash flow 2. Operating results and sustainability of economic
results (25%) - Hydrocarbon production - Reserve replacement rate 3. Environmental sustainability and human capital (25%) - CO 2 emissions - accident frequency rate 4. Efficiency and financial strength (25%) - ROACE - Debt/EBITDA - MSR targets: business and individual targets base on
those of the CEO/GM and the assigned responsibilities - Incentives paid on the basis of the results achieved in
the previous year and evaluated according to a
performance scale 70÷130 points (1) , with a
minimum threshold for the incentive equal to an overall
performance of 85 points - Clawback in cases of manifestly wrong or fraudulently
altered data and violation of laws and regulations, of
the Code of Ethics or of Company rules | -
CEO/GM: level of target incentive equal to 100% of the
fixed remuneration (min 85% and max 130%) - MSR: levels of incentive targets
differentiated according to the assigned role, up to a
maximum of 60% of the fixed remuneration |
| DMI
- Deferred Monetary Incentive | -
Promotes the achievement of annual targets and
profitability growth of the business in the long term - Beneficiaries: managerial resources who have
achieved their annual targets | -
Target gate: achieving the performance level required for
the payment of the annual bonus - EBT performance measured relative to the value of the
Planned EBT - Incentives assigned, in the event of achievement of
individual targets, based on the EBT results achieved in
the previous year, rated on a performance scale of
70÷130 (1) - Incentives paid as a variable percentage between
zero and 170% of the assigned amounts, according to the
average of the EBT annual results achieved during the
vesting period, rated on an annual performance scale of
70÷170 (1) - Three-year vesting - Clawback in cases of manifestly wrong or fraudulently
altered data and violation of laws and regulations, of
the Code of Ethics or of Company rules | -
CEO/GM: incentive to be assigned for targets equal to
49.2% of the fixed remuneration (min 34.4% and max 64%) - MSR: incentives awarded based on targets
differentiated according to the assigned role, up to a
maximum of 40% of the fixed remuneration |
| LTMI
- Long Term Monetary Incentive | -
Promotes the alignment with shareholder interests and the
sustainability of value creation in the long term - Beneficiaries: Managerial Resources Critical
for the Business (4) | -
Performance measured in terms of variation of the TSR
parameters (2) (60%) and Net Present Value of
proved reserves(40%), compared to the variation achieved
by the companies of a peer group of reference (Exxon,
Chevron, Shell, BP, Total, Repsol) - Incentives paid as a percentage varying between zero
and 130% of the amounts assigned, according to the
average of the annual positioning achieved during the
vesting period (3) - Three-year vesting - Clawback in cases of manifestly wrong or fraudulently
altered data and violation of laws and regulations, of
the Code of Ethics or of Company rules | -
CEO/GM: incentive to be assigned for targets equal to
100% of the fixed remuneration -
MSR: incentives awarded based on targets differentiated
according to the assigned role, up to a maximum of 75% of
the fixed remuneration |
| Benefits | -
Supplementing the salary package following a total reward
logic by means of predominantly social security and
welfare benefits - Beneficiaries:
all managerial resources | -
Conditions defined by the national collective labor
agreements and the complementary company agreements
applicable to senior managers | -
Supplementary pension - Supplementary health care - Insurance coverage - Car for business and personal use |
| Severance
Payments | -
Severance payments to protect the Company also from
potential competitive risks | -
CEO/GM: additional severance indemnity: non-renewal of
the mandate or early termination of the same, except for
termination with just cause and resignations not caused
by a reduction of powers; non-competition agreement:
activated at the discretion of the BoD at the time of
termination of the employment relationship (5) | -
CEO/GM: supplementary severance indemnities: equal to two
years’ annual fixed remuneration (euro 2,700,000);
consideration of the non-competition agreement (in case
of exercise of the option): ranging from a minimum of
euro 1,500,000 to a maximum of euro 2,250,000, depending
on the average annual performance achieved in the
previous three years |

(1) Performance rated below the minimum threshold (70 points) is considered equal to zero. (2) The Total Shareholder Return measures the overall return of a stock investment, taking into consideration both the price change and the dividends paid and reinvested in the same stock, in a specific period. The Net Present Value of proved reserves represents the present value of the future cash flows of proved reserves, net of future production and development costs and related taxes. It is calculated on the basis of standard references defined by the Securities Exchange Commission on the basis of the data published by oil companies in the official documentation (Form 10-K and Form 20-F). (3) The minimum incentive threshold involves reaching 5 th place for both indicators in at least one year of the three-year vesting period. (4) The executives of Eni and its subsidiaries identified during the annual implementation of the Plan among those who occupy the positions that are most directly responsible for the business performance or that are of strategic interest and who, at the date of assignment, are employees and/or in service at Eni SpA and its subsidiaries, including Eni Managers with strategic responsibilities. (5) A consideration of euro 500,000 is provided for the BoD’s stock option.

(*) For detailed information on Eni’s remuneration policy and compensation see the "Remuneration Report 2015" available on Eni’s website under the sections "Governance" and "Investor relations".

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Directors and officers Eni in 2014

The following table lists the individual remunerations to the Directors, Statutory Auditors, General Managers and, in aggregate, to the other Managers with strategic responsibilities. The remunerations received from subsidiaries and/or affiliates, except those waived or paid to the Company, are shown separately. All parties who filled these roles during the period are included, even if they only held office for a fraction of the year.

| Variable
non-equity remuneration | Benefits in
kind |
| --- | --- |
| Bonuses and
other incentives | Profit sharing |

| Board
of Directors — Giuseppe Recchi | Chairman | 01.01 - 05.08 | 05.2014 | 272 | 342 | 4 | | 618 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Emma
Marcegaglia | Chairman | 05.08 - 12.31 | 05.2017 | 154 | | | | 154 | |
| Paolo Scaroni | CEO and General Manager | 01.01 - 05.08 | 05.2014 | 505 | 2,696 | 8 | | 3,209 | 8,361 |
| Claudio
Descalzi | CEO and General Manager | 05.09 - 12.31 | 05.2017 | 874 | | 9 | 500 | 1,383 | |
| | COO Division E&P (**) | 01.01 - 05.08 | | 273 | 1,218 | 4 | 479 | 1,974 | |
| | | | Total | 1,147 | 1,218 | 13 | 979 | 3,357 | |
| Former Directors | | 01.01 - 05.08 | 05.2014 | 246 | 98 | | | 344 | |
| Directors
in charge | | 05.08 - 12.31 | 05.2017 | 404 | 265 | | | 669 | |
| Board of Statutory Auditors | | | | 384 | | | | 384 | |
| Chief
Operating Officers | | | | | | | | | |
| Angelo Fanelli | Division R&M | 01.01 - 06.30 | | 300 | 396 | 7 | | 703 | |

| Other
executives with strategic responsibilities (***) | 5,945 | | 5,777 | 161 | 120 | 12,003 | 4,990 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Remuneration from
subsidiaries and associates | 737 | | 115 | 261 | 47 | 1,160 | |
| Total | 6,682 | | 5,892 | 422 | 167 | 13,163 | 4,990 |
| | 10,094 | 363 | 10,544 | 454 | 1,146 | 22,601 | 13,351 |

() The term of office expires with the Shareholders’ Meeting approving the Financial Statements for the year ending December 31, 2016. () The position of COO E&P Division has been covered ad interim from May 9 to June 30, 2014 without any remuneration. (**) Managers who were permanent members of the Company's Management Committee, during the course of the year together with the Chief Executive Officer and Division Chief Operating Officers, or who reported directly to the Chief Executive Officer (twenty managers).

In particular: - the column " Fixed Remuneration " reports the fixed remuneration and fixed salary from employment due for the year, gross of the social security contribution and tax expenses to be paid by the employee; it excludes attendance fees, as these are not provided for. Any indemnities or payments with reference to the employment relationship are indicated separately; - the " Committee membership remuneration " column reports the compensation due to the Directors for participation in the Committees established by the Board; - the column " Variable non-equity remuneration " under the item "Bonuses and other incentives" shows the incentives paid during the year due to rights vested following the assessment and approval of the related performance results by the relevant corporate bodies, in accordance with that specified, in greater detail, in the Table "Monetary incentive plans for Directors, General Managers, and other Managers with strategic responsibilities"; the column "Profit sharing" does not show any figures since there are no provisions for profit sharing; - the " Non-monetary benefits " column reports the value of the fringe benefits awarded; - the " Other remuneration " column reports any other remuneration deriving from other services provided; - the " Fair value of equity remunerations " column reports the relevant fair value for the year related to the existing stock option plans, estimated in accordance with international accounting standards, which assign the related cost in the vesting period; and - the " Severance indemnities for end of office or termination of employment " column reports the indemnities accrued, even if not yet paid, for the terminations which occurred during the course of the financial year in question, or in relation to the end of the mandate and/or employment.

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Directors and officers Eni in 2014

| Bonus for the year | | | Bonus for previous years | | Other
bonuses |
| --- | --- | --- | --- | --- | --- |
| payable/paid | deferred | deferral period | no longer
payable | payable/paid (1) | still deferred |

| Giuseppe
Recchi — Paolo Scaroni | Chairman until 05.08.2014 — Chief
Executive Officer and General Manager until 05.08.2014 | 342 — 1,831 | 551 | three-year | 2,447 | 865 | 6,189 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Claudio
Descalzi | Chief Executive Officer and General Manager
since 05.09.2014 | | 1,350 | three-year | | | | |
| | COO
E&P Division until 05.08.2014 | 879 | 378 | | 363 | 339 | 1,868 | |
| Angelo Fanelli | COO
R&M Division until 06.30.2014 | 396 | | | | | 985 | |
| Other
Managers with strategic responsibilities (2) | | 3,168 | 4,587 | | 3,074 | 2,464 | 8,000 | 260 |
| | | 6,616 | 6,866 | | 5,884 | 3,668 | 17,042 | 260 |

(1) Payment relating to the Deferred Monetary Incentive awarded in 2011. (2) Managers who were permanent members of the Company's Management Committee, during the course of the year together with the Chief Executive Officer and Division Chief Operating Officers, or who reported directly to the Chief Executive Officer (twenty managers).

Overall remuneration of key management personnel Remuneration of persons responsible of key positions in planning, direction and control functions of Eni Group companies, including executive and non-executive Directors, Chief Operating Officers and other Managers with strategic responsibilities in charge at December 31, 2014, amounted to euro 43 million, as described in the following table. Pay-mix The 2015 Remuneration Policy Guidelines lead to a remuneration mix in line with the managerial role held, with greater weight placed upon the variable component, in particular in the long term, for roles characterized by a greater impact on Company results, as highlighted in the Pay-mix diagram below, calculated by considering the value of short and long-term incentives offered for results within the target values.

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Investor information Eni in 2014

Investor information

Eni share performance in 2014 In accordance with Article 5 of the By-laws, the Company’s share capital amounts to euro 4,005,358,876.00, fully-paid, and is represented by 3,634,185,330 ordinary registered shares without indication of par value. In the last session of 2014, the Eni share price, quoted on the Italian Stock Exchange, was euro 14.51, down by 17 percentage points from the price quoted at the end of 2013 (euro 17.49). The Italian Stock Exchange is the primary market where the Eni share is traded. During the year the FTSE/MIB index, the basket including the 40 most important shares listed on the Italian Stock Exchange, was barely unchanged (up by 0.2 percentage points). At the end of 2014, the Eni ADR listed on the NYSE was $34.91, down 28.1% compared to the price registered in the last session of 2013 ($48.49). One ADR is equal to two Eni ordinary shares. In the same period the S&P 500 index increased by 11.4 percentage points. Eni market capitalization at the end of 2014 was euro 52.4 billion (euro 63.4 billion at the end of 2013), confirming Eni as the first company for market capitalization listed on the Italian Stock Exchange. Shares traded during the year totaled almost 4.4 billion, with a daily average of shares traded of 17.2 million (15.4 million in 2013). The total trade value of Eni shares amounted to approximately euro 77 billion (euro 68 billion in 2013), equal to a daily average of euro 304 million.

| Share
information — 2012 | 2013 | 2014 |
| --- | --- | --- |

| Market
quotations for common stock on the Mercato Telematico
Azionario (MTA) — High | (euro) | 18.70 | 19.48 | 20.41 |
| --- | --- | --- | --- | --- |
| Low | | 15.25 | 15.29 | 23.29 |
| Average daily close | | 17.18 | 17.57 | 17.83 |
| Year-end
close | | 18.34 | 17.49 | 14.51 |
| Market quotations for ADR on the New York Stock
Exchange | | | | |
| High | (US$) | 49.44 | 52.12 | 55.30 |
| Low | | 36.85 | 40.39 | 32.81 |
| Average
daily close | | 44.24 | 46.68 | 47.37 |
| Year-end close | | 49.14 | 48.49 | 34.91 |
| Average
daily traded volumes | (million of shares) | 15.63 | 15.44 | 17.21 |
| Value of traded volumes | (euro million) | 267.0 | 271.4 | 304.0 |

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Investor information Eni in 2014

| Summary
financial data — 2012 | 2013 | 2014 |
| --- | --- | --- |

Net profit — - per share (a)	(euro)	1.16	1.42	0.36
- per
ADR (a) (b)	(US$)	2.98	3.77	0.96
Adjusted net profit
- per
share (a)	(euro)	1.97	1.22	1.03
- per ADR (a) (b)	(US$)	5.06	3.24	2.74
Leverage		0.47	0.25	0.22
Coverage		11.3	8.8	7.4
Current
ratio		1.4	1.5	1.5
Debt coverage		83.4	73.7	110.4
Dividend
pertaining to the year	(euro per share)	1.08	1.10	1.12
Pay-out	(%)	50	77	311
Dividend
yield (c)	(%)	5.9	6.5	7.6
TSR		22.0	1.3	(11.9	)

(a) Fully diluted. Ratio of net profit and average number of shares outstanding in the year. Dollar amounts are converted on the basis of the average EUR/USD exchange rate quoted by ECB for the year presented. (b) One American Depositary Receipt (ADR) is equal two Eni ordinary shares. (c) Ratio of dividend for the period and the average price of Eni shares as recorded in December.

| Dividends Management intends to propose to the Annual Shareholders’ Meeting scheduled on May 13, 2015, the distribution of a dividend of euro 1.12 per share for fiscal year 2014, of which euro 0.56 was already paid as interim dividend in September 2014. Total cash outlay for the 2014 dividend is expected at approximately euro 4.01 billion (including euro 1.99 billion already paid in September 2014) if the Annual Shareholders’ Meeting approves the annual dividend. In future years, management expects to continue paying interim dividends for each fiscal year, with the balance to the full-year dividend to be paid in each following year. Eni intends to continue paying interim dividends in the future. Holders of ADRs receive their dividends in US dollars. The rate of exchange used to determine the amount in dollars is equal to the official rate recorded on the date of dividend payment in Italy (May 22, 2014). On ADR payment date, Bank of New York Mellon pays the dividend less the amount of any withholding tax under Italian law (currently 27%) to all Depository Trust Company Participants, representing payment of Eni SpA’s gross dividend. By submitting to Bank of New York Mellon certain required documents with respect to each dividend payment, US holders of ADRs will enable the Italian Depositary bank and Bank of New York Mellon as ADR Depositary to pay the dividend at the reduced withholding tax rate of 15%. US shareholders can obtain relevant documents, as well as a complete instruction packet to benefit from this tax relief by contacting Bank of New York Mellon at 201-680-6825.

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Investor information Eni in 2014

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Eni Shareholders approve 2014 Financial Statements at Annual Meeting

• 2014 net profit euro 4.45 billion
• Total dividend per share for 2014 of euro 1.12
• Remuneration Report approved

Rome, May 13, 2015 - The Ordinary Meeting of Eni’s Shareholders, held today, resolved the following:

| • | to approve the financial
statements at December 31, 2014 of Eni SpA which report a
net profit amounting to euro 4,454,704,262.21; |
| --- | --- |
| • | to allocate the net profit
for the period of euro 4,454,704,262.21, of which euro
2,435,016,587.73 remains following the distribution of
the 2014 interim dividend of 0.56 euro per share, resolved by the
Board of Directors on September 17, 2014, as follows: |

| - | the amount of euro
32,908,326.92 to the reserve required by Article 6,
paragraph 1, letter a) of Legislative Decree No. 38 of
February 28, 2005; |
| --- | --- |
| - | to shareholders a dividend
of euro 0.56 per share owned and outstanding at the
ex-dividend date, excluding treasury shares on that date,
thus completing payment of the dividend for the financial
year 2014. The total dividend per share for the financial
year 2014 therefore amounts to euro 1.12 per
share; |
| - | the payment of the balance
of the 2014 dividend of euro 0.56, on May 20, 2015, with
an ex-dividend date of May 18, 2015 and a record date of
May 19, 2015. |

In addition, Eni’s Shareholders Meeting resolved in favor of the first section of the Remuneration report, pursuant to Article 123- ter of the Legislative Decree 58/1998.

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

ufficio.stampa@eni.com segreteriasocietaria.azionisti@eni.com investor.relations@eni.com

Web site: www.eni.com

Table of Contents

Table of Contents

Eni: investigation into OPL 245 case, audit conducted by independent US law firm did not find evidence of illegal conduct

San Donato Milanese (Milan), May 31, 2015 - Regarding the pending preliminary investigation by the Italian authorities into the OPL 245 case, Eni informs that an audit conducted by an independent US law firm on behalf of Eni’s board of statutory auditors and watch structure, did not find evidence of illegal conduct in relation to Eni and Shell’s 2011 transaction with the Nigerian government for the acquisition of the OPL 245 license in Nigeria. The audits examined the documents and information available to the company or otherwise received or acquired following the start of the investigation. The final report of this audit was made available to the judiciary with whom Eni is co-operating in full. This press release is issued at the request of Consob, pursuant to Article 114 paragraph 5 of the TUF.

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

ufficio.stampa@eni.com segreteriasocietaria.azionisti@eni.com investor.relations@eni.com

Web site: www.eni.com