As part of our 'at-a-glance' guide to company global operational activity, we feature Eni.

Eni is a major integrated energy company, committed to growth in the activities of finding, producing, transporting, transforming and marketing oil and gas. The company operates in the oil and gas, electricity generation and sale, petrochemicals, oilfield services construction and engineering industries. Eni is active in 70 countries with a staff of about 79,000 employees. 

Eni engages in oil and natural gas exploration, field development and production, mainly in Italy, Algeria, Angola, Congo, Egypt, Ghana, Libya, Mozambique, Nigeria, Norway, Kazakhstan, the UK, the United States and Venezuela, overall in 46 countries.

In the fourth quarter of 2021, hydrocarbon production averaged 1.74 million boe/d (1.68 million boe/d in the full year of 2021).

Oil production was 852 kbbl/d, up 5% year-on-year (813 kbbl/d in the full year of 2021, down 4% compared to the full year of 2020). Production growth in Egypt and the progressive easing of OPEC+ production quotas were partly offset by price effects, the reduction in Nigeria and mature fields decline.

Natural gas production was 4,700 mmcf/d in the quarter, down 2% compared to the same period of 2021 (4,613 mmcf/d in the full year of 2021, down 2%). The impact of mature field declines and lower activity in Nigeria were partly offset by the ramp-ups at Zohr (Egypt) and Merakes (Indonesia), boosted by strong global demand.

Eni reported net proved reserves at December 31, 2021 of 6,905 milion boe.

In 2021, net additions of proved reserves were 337 million boe relating to new discoveries, extensions and revisions of previous estimates. These additions drove an all-sources reserve replacement ratio of 55%. 

The reserve life index was 10.8 years as of December 31, 2021.

History of oil in Italy

Oil has been used in Italy since ancient times; indeed, the very word petroleum comes from the medieval Latin petrae oleum, meaning ‘stone oil’. However, in the mid-19th century there was a big jump in supply due to the emergence of American drilling technology – and also in demand following the unification of Italy. Gas for public street-lighting was the main driver then, but at the beginning of the 20th century the search turned towards finding oil to fuel motor vehicles. 

The dominance of foreign companies

The First World War and the 1920s marked the beginning of the global oil era, with the big European and US companies consolidating their operations in North America, the Middle East, the Caucasus and even Italy. Although Italy was the first country in Europe to produce hydrocarbons, at this time the sector was dominated by foreign firms. Italian industry was not particularly advanced – especially the oil and energy sector, which was made up of small companies unable to withstand the competition. As a result, these big foreign corporations had a major influence on the country’s politics and economy.

First steps toward a national energy policy

The first attempt to create a national oil company came in the early years of the Fascist regime, with the foundation in 1926 of Agip (Azienda Generale Italiana Petroli). Although funding was chronically short, Agip managed to conduct initial exploration and extraction operations at home and abroad in Africa and the Middle East. While the discovery of a large natural gas field in the Po Valley dates back to those years, the imminent Second World War and Italy's relationship with Germany meant the discovery was kept secret, only becoming public knowledge once the war was over in 1945.

Eni's breakthrough

As Italy lay in ruins in the aftermath of the Second World War, the Allies demanded the break-up of Agip. The government handed the task to Enrico Mattei, but on realising the size and potential of the Po Valley gas field he decided instead to step up exploration activities. Following the field’s initial success, Mattei convinced the government to establish Italy's first major energy company – Eni (Ente Nazionale Idrocarburi) – in 1953 and it soon began distributing natural gas and fuel to households and companies. Italy finally had the energy company it needed to fully pursue its economic miracle, transforming it into the modern country that we know today. 

OVERVIEW OF OPERATIONS

ALGERIA

In March 2022 exploration activity yielded positive results with the HDLE oil and associated gas discovery in the Zemlet el Arbi concession (Eni’s interest 49%), in the Berkine North area.

During 2021 Eni and Sonatrach signed several agreements in the exploration and production, research and development as well as decarbonization initiatives. In particular: (i) upgrading exploration and development activities in the Berkine area, also planning for the construction of an oil and gas development hub in synergy with the existing MLE-CAFC facilities. In addition, in December 2021, a new PSA contract was signed for the southern part of the Berkine area (Eni’s interest 75%), near operated production assets; (ii) signed a Memorandum of Understanding to jointly develop initiatives in new technologies, renewable energies, hydrogen, CCUS project, biorefining, and other fields in line with Eni’s commitment to achieve carbon neutrality in 2050.

ANGOLA

Eni's work in Angola is concentrated in conventional and deep offshore, with a total developed and undeveloped area of 21,441 square kilometres. The Company's main asset in the country is Block 15/06 with the West Hub and East Hub projects, where over four years they have started eight fields.

Azule Energy
In March 2022 bp and Eni signed an agreement to form a new 50/50 independent company, Azule Energy through the combination of the two companies’ Angolan businesses. 

Azule Energy is an international energy company, independently managed, with more than 200,000 barrels equivalent a day (boe/d) of net oil and gas production and 2 billion barrels equivalent of net resources. It is expected to be Angola’s largest producer, holding stakes in 16 licences, as well as participating in the Angola LNG joint venture. Azule Energy will also take over Eni’s stake in Solenova, a solar company jointly held with Sonangol.

Azule Energy has a strong pipeline of new projects starting up over the next few years, including the new Agogo and PAJ oil projects in Blocks 15/06 and 31 respectively. It will also develop the New Gas Consortium (NGC), the first non-associated gas project in the country, which will support the energy needs of Angola’s growing economy, its decarbonization path and strengthen its role as a global LNG player.  

Before the busines combination Eni was operator of Blocks 15/06 Cabinda North, Cabinda Centro, 1/14, 28 and soon NGC. In addition, Eni has a stake in the non-operated blocks 0 (Cabinda), 3/05, 3/05A, 14, 14 K/A-IMI, 15 and in Angola LNG.

bp was operator of Blocks 18 and 31 offshore Angola, and has non-operated stakes in blocks 15, 17, 20 and 29. The Company also had non-operated interests in NGC and Angola LNG. 

AUSTRALIA

Exploration and production activities in the country are concentrated offshore northern Australia. Eni have a 100% share in production licence WA-33-L, which contains the Blacktip gas field. With regard to the appraisal and development stages, the Company hold a 100% and 72.2% share respectively in the NT/RL8 and NT/RL7 areas, which contain the Blackwood and Evans Shoal gas fields, respectively.

The Blacktip gas field (Block WA-33-L) started-up in 2009 and produced approximately 36 bcf of year in 2019. The project is supported by an unmanned well head platform (WHP), which exports gas via a 108-kilometer long pipeline to an onshore treatment plant, Yelcherr Gas Plant (YGP) with a capacity of 42 bcf of year. Natural gas extracted from this field is sold under a 25-year contract to supply local Australian company, Power & Water Utility Co. Elsewhere in the country, Eni have a non-operating share in the Darwin LNG plant, which is connected to the gas and condensate field in Bayu-Undan, located in Timor Leste waters.

In May 2021, through their subsidiary Eni Australia, the Company signed with Santos a non-binding Memorandum of Understanding (MoU) to jointly seek cooperation opportunities in the following areas:

• optimisations, synergies and sharing of infrastructure between the Barossa Project and the Evans Shoal development, including the potential expansion of Darwin LNG and options to repurpose and extend the life of Bayu-Undan
• potential joint development of CO2 capture and storage or utilization (CCUS) facilities, serving not only assets owned by the two companies but open to any interested third-party - project in the Darwin area, with the long term objective of facilitating the creation of a CO2 management hub in the Northern Territory;
• potential collaboration in new Upstream development opportunities in relation to other offshore stranded resources located in northern Australia.

EGYPT

Eni has been present in Egypt since 1954, where it operates through the subsidiary IEOC. The company is currently the leading producer in the country with an equity production of around 360,000 barrels of oil equivalent per day. In line with the net-zero strategy by 2050, Eni is engaged in a series of initiatives aimed at decarbonizing the Egyptian energy sector, including the development of CCS plants, renewable energy plants, agro feedstock for bio refining and others.

The Great Nooros Area
In June 2016, Baltim South West was discovered, with BP and operator Eni both having a 50 per cent interest. It is located 10km north of the Nooros field, in the development lease (DL) area of Baltim South, and has enhanced the importance of the Great Nooros Area, which has overall potential of around three trillion cubic feet (Tcf) of gas; with two Tcf in the Nooros deposit and the remainder in Baltim South West. During 2019, the Baltim South West offshore project (Eni operator with a 50% interest) was completed with production start-up.

In July 2020 Eni drilled the first exploration well in the conventional Egyptian waters of the Nile Delta, on the prospect called Bashrush. The discovery, which further extends to the west the gas potential from the Great Nooros Area, is located 12 km North-West from the Nooros field and about 1 km west of the Baltim South West field, both already in production.

In January 2022, Eni was awarded five exploration licenses, of which four as operator in the Egyptian offshore and onshore, following the successful participation in the Egypt International Bid Round for Petroleum Exploration and Exploitation 2021. The licenses are in mining basins of great interest to Eni: offshore East Mediterranean, the Western Desert and the Gulf of Suez, for a total acreage of about 8,410 square kilometers.

In June 2021, Eni signed with the Egyptian General Petroleum Corporation (EGPC) and Lukoil a unitization agreement and extension of exploitation rights until 2036 of the Meleiha and the Meleiha Deep contractual areas. The agreement includes an option of additional extension term to 2041. 

Western Desert discoveries
In December 2020, Eni reported a new oil discovery, in Meleiha Concession, in the Western Desert. The discovery was achieved through the Arcadia 9 well, drilled on the Arcadia South structure, which is located 1.5 km south of the main Arcadia field already in production. The well encountered 85 feet of oil column in the Cretaceous sandstones of the Alam El Bueib 3G formation. The well has been drilled close to existing production facilities and is tied-in to production, with a stabilized rate of 5,500 barrels of oil per day.

In April 2022, Eni announced new oil and gas discoveries, adding approximately 8,500 barrels/day of oil equivalent. 

GHANA

Offshore Cape Three Points (OCTP) is an integrated project for developing fields of oil and non-associated gas. It is the only non-associated gas development project entirely dedicated to the domestic market in sub-Saharan Africa. Eni are an operator with 44.44% of the permit, which is governed by a concession agreement. The block, which has reserves of about 40 billion m3 of non-associated gas and 500 million barrels of oil, is located about 60 kilometres off the coast of western Ghana. The Sankofa and Gye Nyame fields are developed through wells and systems on the seabed, and linked through pipelines to the floating production, storage and offloading (FPSO) unit John Agyekum Kufuor.

Eni began production in OCTP in May 2017, just two and a half years after the project was approved. The Company also have a share of 42.47% in the offshore exploration licence Cape Three Points Block 4, where in 2019 they drilled the exploratory well Akoma - 1X, finding sizeable gas and associated condensate resources. This discovery presents more potential for oil and gas and will be subject to a campaign of drilling. 

INDONESIA

Operations in Indonesia began in 1968, when Eni signed the first agreement with the country. In 2001, the Company returned to the territory, and currently operate in the Exploration & Production and Global Gas & LNG sectors.

Eni currently hold participating interests in twelve Production Sharing Contractors (PSCs), nine of which as the operator in deep water areas with active exploration and development programs. The PSCs are spread from western (Krueng Mane, Aceh) to eastern part of Indonesia (Arguni I, West Papua), and also from the northern (Ambalat, North Kalimantan) to the southern border of Indonesia (West Timor, Offshore Timor Sea I, East Nusa Tenggara). 

Jangkrik
Hydrocarbon production in Indonesia mainly occurs in the Muara Bakau exploration block (55 per cent Eni-owned), with 10 subsea wells operating in the Jangkrik gas field and connected to the Floating Production Unit (FPU). The fields within the Muara Bakau exploration block, in the offshore Kutei Basin, are at a depth of about 400 metres and 70km from the East Kalimantan coast.

On 22 June 2017, Eni sent the first shipment of Liquefied Natural Gas (LNG) produced by the field – a consignment of 22,500m³ from the liquefaction plant in Bontang, East Kalimantan, headed for Bali.

Merakes Project
In April 2021, Eni started gas production from Merakes Project. Merakes gas will be partially sold to the domestic market and will also contribute to the extension of the life of the Bontang LNG facility. In June of that year the Company drilled and tested the Maha 2 appraisal well, located in West Ganal block offshore Kalimantan. The gas field is located 16 km South-East of Jangkrik FPU. The development plan will most likely foresee a sub-sea completion and a tie-in to Jangkrik FPU. The proximity of Maha field to the existing infrastructures will allow Eni to maximize the synergies and reduce time and costs of future subsea developments. Moreover, through their subsidiary Eni Indonesia, in June 2021 a Memorandum of Understanding was signed with SKK Migas for cooperation on exploration activities.

IRAQ

In 2021, development activities comprised the execution of an additional development phase of the ERP (Enhanced Redevelopment Plan) at the Zubair field (Eni’s interest 41.56%), which will allow to achieve a production plateau of 700 kbbl/d. The production capacity and main facilities to treat the production plateau target have already been installed; the field reserves will be progressively put into production by drilling additional productive wells over the next few years.

ITALY

Eni carry out Upstream activities in our three centres of excellence – Basilicata, Ravenna and Gela. 

Gela
In Sicily, EniMed manages the production and processing of liquid and gaseous hydrocarbons. Eni's has had a presence there since the mid-1950s, with the discovery of the giant oil field at Gela and with the so-called minor ones at Pontedirillo and Cammarata Pozzillo. In the same period the gas fields of Gagliano and Bronte were discovered. In 1966, the Ragusa field was acquired and more recently, in the 1980s, the Perla and Prezioso offshore fields were discovered and put into production. EniMed's operational activity in Sicily for the exploration and production of hydrocarbons is managed by the Gela Management Centre, which oversees the operations of 4 Oil Plants, 3 Onshore Platforms and 3 Gas Plants.

Val d'Agri
Eni are operators of the Val d’Agri concession with 61%, while the remaining share belongs to Shell. The Centro Olio Val d’Agri di Viggiano (COVA) has a daily processing capacity of 104,000 barrels (approx. 16,500 m3?of oil) and 4,660,000 Sm³?of associated gas. The Company extract crude oil from the 24 wells currently in production in the Val d’Agri concession from the Monte Alpi, Monte Enoc and Cerro Falcone fields. The crude oil is sent to the COVA for a first processing and then, through an oil pipeline, to the refinery in Taranto. 

Ravenna
Eni's commitment to the development and maintenance of gas assets has resulted in a major investment plan for the Central Northern District (DICS) of Ravenna. The plan has seen over 1.1 billion euros invested over the last three years. In the next few years an offshore decommissioning plan will also begin. This involves taking down an initial batch of nine offshore facilities. The plan should begin in 2023 or 2024.

Leveraging Carbon Capture and Storage (CCS) technology, Eni are aiming to build one their biggest centres in the world for CO2 storage off the coast of Ravenna.

The Ravenna District represents an ideal environment in which to develop the CCUS model, similar to other European projects currently at various stages of their development:

• Eni's natural gas production assets in the Adriatic offshore are characterised by depleted or depleting fields that can be converted quickly and safely
• It has existing infrastructures both on land and at sea that are currently serving the fields in production and that will operate in synergy with the new CCS developments since a small part will be reused, allowing for a reduction in both the cost of and the time frame for implementation and moreover eliminating the need to use or commit new areas or land resources
• Its location is favourable in terms of transport and connecting infrastructure (presence of a large industrial port, land connections with the railway line and the national gas network) and the presence of a developed industrial system and culture
• It has specific technical skills and knowledge of the subsoil acquired over decades of mining activity, which can be effectively converted for the purposes of decarbonization and the energy transition

The development strategy foresees a gradual growth of the Ravenna Hub that will begin by 2023 with an first experimental program aimed at facilitating national regulatory enabling and will continue with an industrial phase that will be launched by 2027 with an initial storage capacity of 4 million tonnes/year (MTPA) of captured CO2, of which 1 million will stem from Eni's activities and the remaining from third parties.

CCS
Within Eni’s long-term strategy to minimize carbon footprint, a program was launched to build a hub for the capture and storage of CO2 (Carbon Capture and Storage - CCS) in depleted fields off the coast of Ravenna which will be designed to store 500 million tonnes of CO2. The development program includes a pilot project with expected start-up in 2023, following all necessary authorizations. The development on an industrial scale is expected in the next phase. The planned activities will benefit on the expected synergies on development cost leveraging on the offshore infrastructure of depleted fields and in addition to be significant impacted on the technology and competence areas

KAZAKHSTAN

Eni has been present in Kazakhstan since 1992. The company is a joint operator of the Karachaganak field and is an equity partner in various projects in the Northern Caspian Sea, including the giant Kashagan field. In 2018, Eni became a joint operator in the exploration block Isatay and Abay, with the state company KazMunayGas. 

Kashagan
The development activities of the Kashagan field (Eni’s interest 16.81%) concerned the phased expansion program of production capacity. The first development phase envisages increasing the production capacity up to 450 kbbl/d by upgrading the existing associated gas compression handling. The ongoing activities, sanctioned in 2020, mainly concerned: increasing gas reinjection capacity by means of upgrading the existing facilities; and delivering a part of gas volumes to a new onshore treatment unit operated by a third party, currently under construction.

As of December 31, 2021, Eni’s proved reserves booked for the Kashagan field amounted to 633 mmboe.

Renewable
Eni launched its first renewables project in Kazakhstan in March 2020 through the commercial operation of the 48 MW Badamsha Wind Farm located in the Aktobe Region, with an annual power generation of about 195 GWh with an overall CO2 saving of 170,000 tons per year. The company is now executing the second phase of the project, with a 48 MW of additional capacity. In March 2021, Eni, through its local subsidiary Arm Wind LLP, inaugurated construction work on a 50 MW photovoltaic plant in the South of the country.

LIBYA

Eni hold 11 mining licences (4 exploration permits and 7 production permits), regulated by Exploration and Production Sharing Agreements (EPSA). Exploration and development activities in the country are grouped into 6 contract areas with a 100% Working Interest (WI) in the exploration phase and 50% in the development phase. Onshore the Company are present in area A, B with the Bu-Attifel field, in area E with the El Feel field (Eni 33.3% WI), KNOC 16.6% WI and in areas F and D with the Wafa field. Eni's offshore activities are concentrated in Area C, with the Bouri oil field, and Area D with Bahr Essalam. 

In October 2018, Eni signed a letter of intent (LOI) with the Libyan National Oil Corporation and BP, which set in motion the process of assigning a 42.5% interest to Eni and BP's EPSA operatorship in Libya, with the aim of relaunching exploration and development activities and promoting favourable conditions for investment in Libya.

MEXICO

Since 2015, E&P activities have been concentrated in the country's offshore.

Eni hold a 100% interest in the Area 1 operating licence, where activities for the development of the Amoca, Miztón and Tecoalli discoveries are underway. In 2019, the company started early production of the Miztón field, the first step in the development of an oil hub with resources in place estimated at 2.1 billion equivalent barrels. Start-up began less than two and a half years from drilling the first well and less than a year from the approval of the development plan. In addition, Eni operate in Areas 10 (Eni's interest 80%), 14 (Eni's interest 60%) and 7 (Eni's interest 45%), located in the Sureste basin. In 2018 Eni signed agreements to swap participating interests with Lukoil, assigning 20% of Eni's share in Area 10 licences and acquiring 40% of Area 12, operated by Lukoil. Also in 2018, the company were assigned licences for Area 24, with a share of 65%, and Area 28, with a share of 75%, both as operator.

In February 2020, Eni announced a new oil discovery on the Saasken Exploration Prospect in Block 10, located in the mid-deep water of the Cuenca Salina in the Sureste Basin. Saasken-1 NFW is the sixth consecutive successful well drilled by Eni offshore Mexico. According to preliminary estimates, the new discovery may contain between 200 and 300 million barrels of oil in place.

In August 2021, Eni reported an oil discovery on the Sayulita Exploration Prospect in Block 10, located approximately 70 kilometers off the coast and just 15 km away from the previous oil discovery of Saasken. An intensive data collection has been carried out on the well and the data acquired indicates a production capacity for the well of up to 3,000 barrels of oil per day.

In February 2022, Miamte Floating Production, Storage and Offloading (FPSO) started hydrocarbon production at the Miztón field, within the Development Project in Area 1. Following the first hydrocarbon introduction into the FPSO and two more platform start-ups in Amoca and Tecoalli fields, production will ramp up until the full field development is completed by 2024. The FPSO has an oil treatment capacity of 90 kbopd and gas treatment capacity of 75MMscfd.

MOZAMBIQUE

Mozambique is one of the most promising countries on the African continent for the energy sector. Eni have been operating in the country since 2006, currently in the Exploration & Production sector.

In 2006 Eni acquired an operator's share in Area 4, in the offshore basin of Rovuma, where in 2011 and 2014 the company discovered supergiant resources of natural gas in the fields Coral, Mamba and Agulha, estimated to hold 2,400 billion cubic metres of gas. Coral South is the first deep-water gas development project in Mozambique. At the fifth round of bidding, Eni strengthened its presence in the country by acquiring the offshore licence A5-A, effective from January 2019. Eni has a 34% operator's share in the block. In May 2019, the company also secured exploration and development rights to the offshore blocks A5-B, Z5-C and Z5-D, in the deep waters of the Angoche and Zambezi basins, with a share of 10%.

In May 2019, the Mozambique Government approved the Rovuma LNG project development plan for the production, liquefaction and marketing of natural gas from three Mamba complex fields located in Area 4, two of which straddle with Area 1. Eni plan to develop a part of these reserves with an independent but coordinated plan with TotalEnergies, the operator of the Area 1, to which a part of the non-straddling reserves will be added. Finally, the company will build two onshore trains powered by 24 subsea wells for the processing and liquefaction of gas, and the storage and export of LNG with a total capacity of approximately 7.6 million tonnes a year each. Activities for the marketing of LNG are expected to start-up in 2024.

The development activities of Area 4 offshore (Eni’s interest 25%) covers the Coral South gas project, operated by Eni, and the gas discoveries of Mamba Complex where Eni is expected to coordinate the upstream development and production phase and ExxonMobil the construction and operation phase of natural gas liquefaction facilities onshore. For activities related to the approved Coral South project, Eni have built the Coral-Sul FLNG, a floating facility for the treatment, liquefaction, storage and export of gas with a capacity of around 3.4 million tonnes of LNG per year, fed by 6 subsea wells.

NIGERIA

Eni have had a presence in Nigeria since 1962, when the Nigerian Agip Oil Co (NAOC) was founded, and currently operate in the country’s Exploration & Production sector.

Development activities concerned: (i) production optimization programs also with work-over activities at the operated OMLs 60, 61, 62 and 63 blocks (Eni’s interest 20%), the Kolo Creek gas field in the OML 28 block (Eni’s interest 5%), the Forkados Yokri oil field in the OML 43 Block (Eni’s interest 5%) and at the OML 118 block (Eni’s interest 12.5%); and (ii) drilling of four oil wells in the OML 79, 35 and 36 blocks (Eni’s interest 5%) and of six gas wells in the OML 21 and 22 blocks (Eni’s interest 5%) as well as in the Assa North and Enhwe fields.

NORWAY

In December 2018, Eni completed the merger between companies Point Resources AS and Eni Norge AS, 100% owned by HitecVision and Eni, respectively. The resulting creation of Vår Energi has enabled the company to strengthen their operational structure in the country. In September 2019, the company acquired ExxonMobil's upstream assets in over 20 production fields.

In June 2021 Eni announced:

• a new oil discovery in production licence 554 in the North Sea in the Garantiana West prospect, drilled with the semi-submersible drilling rig West Hercules. The well has been formation tested with robust results and a maximum production rate of 1,2 KSm3 oil and 3,8 KSm3 gas per day.
• a new oil and gas discovery in production license PL027 in the Southern North Sea, with the dual branch exploration wildcat Prince 25/8-20 S, King 25/8-20 B.

Eni, through Vår Energi, will participate in a total of 10 new licenses as a result of the “Awards in Predefined Areas 2021” (APA) by the Ministry of Petroleum and Energy of Norway (MPE), announced in January 2022.

REPUBLIC OF THE CONGO

In October 2021, Eni signed a Memorandum of Understanding with the Country’s authorities for joint development of the circular economy and decarbonization projects, in particular by promoting agricultural initiatives for the cultivation of oil plants to be used as feedstock for Eni’s biorefineries, without impacting the local food chain. 

In addition, during 2021: (i) Eni relinquished the Loango II (Enis’ interest 42.5%) and Zatchi II (Eni’s interest 55.25%) production assets, effective from 1 January 2022, in line with Eni’s strategy of production portfolio rationalization; and (ii) the PSA contract of the Marine XII production block (Eni operator with a 65% interest) was amended to include a new tax regime dedicated to LNG projects. Ongoing studies provides for a fast-track development project to monetize the associated and non-associated gas in the area both for the domestic power generation and LNG export, also targeting to support zero routine flaring. The export project consists of two modular and in phases LNG liquefaction plants with a capacity of approximately 2 million tonnes/year at plateau. Start-up is expected in 2023.

Other development activities included the additional development phase of the Nené-Banga production field in the Marine XII block with a construction of a new production platform. Start-up is expected in the second half of 2022.

UNITED ARAB EMIRATES

In 2022 exploration activities yielded positive results in the operated Block 2 (Eni’s interest 70%) with the XF-002 well, in offshore Abu Dhabi. Drilling activities are ongoing, and upon completion expected in the second quarter of 2022 the size of the discovery will be evaluated.

In April 2021, Eni was awarded the operatorship of the Exploration Block 7 onshore Ras Al Khaimah with a 90% participating interest. Existing gas treatment facilities in the area with spare capacity will ensure to put in production any discoveries with shortly time-to-market.

In 2021, production start-up was achieved from the Mahani field located in the onshore Concession Area B (Eni’s interest 50%) in the Emirate of Sharjah, just one year after Mahani 1 exploration well discovery and two years after signing the concession agreement. Development activities, sanctioned with the final investment decision, provide the progressive ramp-up with the tie-back of two additional productive wells.

During the year two development projects were sanctioned: the Dalma Gas Development in the offshore Gasha concession (Eni’s interest 25%) and the Umm Shaif Long-Term Development Phase 1 in the Umm Shaif concession (Eni’s interest 10%).

UNITED KINGDOM

In January 2021, Eni was awarded a 100% interest and operatorship in the exploration license P2511 in the North Sea and later a 50% farm-out agreement was finalized.

In July 2021, Eni finalized the acquisition of 100% interest in the Conwy production field located in the Liverpool Bay area, near existing production facilities. This acquisition currently increases the production in the Country by leveraging on the operational synergies while in the next years during the abandonment phase this asset could be included in possible transitions to CO2 storage projects.

Energy Transition

Northern Endurance Partnership (NEP)
In October 2020, bp, Eni, Equinor, National Grid, Shell and Total formed ‎a new partnership, the Northern Endurance Partnership (NEP), to develop offshore carbon dioxide ‎‎(CO2) transport and storage infrastructure in the UK North Sea, with bp as operator. This ‎infrastructure will serve the proposed Net Zero Teesside (NZT) and Zero Carbon Humber (ZCH) ‎projects that aim to establish decarbonized industrial clusters in Teesside and Humberside.‎

NZT and ZCH are at-scale decarbonization projects that will kick start decarbonization of industry and ‎power in two of the UK’s largest industrial clusters. Both projects aim to be commissioned by 2026 ‎with realistic pathways to achieve net zero as early as 2030 through a combination of carbon capture, ‎hydrogen and fuel-switching. If successful, NEP linked to NZT and ZCH will allow decarbonization of ‎nearly 50% of the UK’s industrial emissions.‎

NEP has submitted a bid for funding through Phase 2 of the UK government’s Industrial ‎Decarbonisation Challenge, aiming to accelerate the development of an offshore pipeline network to ‎transport captured CO2 emissions from both NZT and ZCH to offshore geological storage beneath the ‎UK North Sea.‎

The £170 million Industrial Decarbonisation Challenge is part of the £4.7bn Industrial Strategy ‎Challenge Fund set up by the UK government to address the biggest industrial and societal challenges ‎using research and development based in the UK. NEP’s application for funding is an important step ‎towards enabling the development of integrated offshore carbon storage for NZT and ZCH in the UK ‎Southern North Sea.‎

bp will lead the Northern Endurance Partnership as operator and the team progressing the project ‎will draw on expertise from across all the partners.‎

UK Dogger Bank (A and B) 2.4 GW project
In December 2020, Eni entered the UK offshore wind market for electricity production through the acquisition of a 20% stake from Equinor and SSE Renewables of the Dogger Bank (A and B) project.

The project involves the installation of 190 state-of-the-art turbines situated approximately 80 miles from the British coast. Each turbine has a capacity of 13 MW for a total capacity of 2.4 GW. At full capacity, Dogger Bank (3.6 GW) will be the world’s largest project of its kind, generating around 5% of UK demand for renewable electricity and supplying energy to approximately 6 million British families.

The construction of the Dogger Bank (A and B) is expected to cost a total of £6 billion and will take place in two stages, with the first to be completed by 2023, and the second by 2024.

This acquisition sees Eni enter the Northern Europe offshore wind market, one of the most promising and stable in the world, with two partners that have extensive experience in the sector, and with whom it will be able to enhance its own expertise in the construction and operation of offshore wind farms for future projects in other areas as well.

By entering the Dogger Bank (A and B) project, Eni adds 480 MW of renewable energy to its 2025 target of 5GW of installed capacity from renewable sources, while it will additionally be able to explore potential synergies with the retail business.

Dogger Bank C
In February 2022, Eni officially joined the Dogger Bank C project partnership after both SSE Renewables and Equinor completed agreements to sell a 10% interest each in the third phase of the wind farm to the company.  

Located off the north-east coast of England, Dogger Bank Wind Farm is being built in three 1.2GW phases and will be the largest offshore wind farm in the world when operational, with an overall capacity of 3.6GW. Dogger Bank C, which won a CfD in the 2019 auction, is around 560km² in size and at its closest point is 196km from shore. The third phase project is being developed on a different timescale to the first two phases, Dogger Bank A and B, which are being constructed at the same time. Dogger Bank C will connect to the National Grid at the existing Lackenby Substation in Teesside. 

With Eni joining SSE Renewables and Equinor across all three phases of this world-leading project, Dogger Bank Wind Farm now has the benefit of a consistent combination of equity partners across all of its three phases, enabling further synergies during both construction and operations. SSE Renewables will continue to lead on the development and construction of Dogger Bank Wind Farm, and Equinor will operate the asset on completion.  

ScotWind
In July 2021, Red Rock Power and Eni formed a new 50/50 partnership as they prepare to make a joint bid with the support of transmission company, Transmission Investment in the forthcoming ScotWind offshore leasing round. The companies will also consider future renewable opportunities in Scotland and combine their wind farm development and offshore expertise, harnessing a common desire to support the net zero transition.

The partnership’s future offshore wind projects in particular would prioritise maximising opportunities for local supply chain growth, the development and deployment of new technologies, and contributing to the decarbonisation of the North Sea and the transfer of skills this will generate.

Eni is continuing to expand its renewables portfolio as its works towards delivering 60 GW installed capacity by 2050. It made its first step in the offshore wind sector by acquiring a 20 per cent stake in the Dogger Bank Offshore Wind project in December 2020 and owns and operates a number of solar and onshore wind projects inside and outside Europe. Moreover Eni, the University of Strathclyde and Eni Corporate University have recently signed a Memorandum of Understanding (MoU) to develop and deliver a programme to help professionals and workforces working in the oil and gas sector in Scotland to transfer their skills to the renewable energy technologies, creating high value Scottish jobs.

Transmission Investment will bring to the ScotWind bid partnership its extensive expertise in grid infrastructure, a key area of focus for UK offshore wind and for ScotWind. With an industry leading track record in the acquisition and management of GB offshore wind farms connections, and offshore wind generation and interconnector sector development experience, Transmission Investment is well placed to contribute to the expansion of the Scottish electricity sector in general, and Scottish offshore wind in particular.

UNITED STATES

In the Gulf of Mexico Eni have shares in 62 exploration and development blocks overall, deep and at normal levels offshore, in 26 of which they are operators. The main operated fields are Allegheny, Appaloosa (100%), Pegasus (85%), Longhorn, Devils Tower and Triton (75%). Other shares are in Europa (32%), Medusa (25%), Lucius (8.5%), K2 (13.4%), Frontrunner (37.5%), Heidelberg (12.5%) and St. Malo (1.25%). In Texas onshore production is provided essentially by the Alliance area (27.5%, not as an operator), in the Fort Worth basin, which contains non-conventional or shale gas reserves. In Alaska Eni have shares in 166 exploration and development blocks. In 2018 the Company secured 124 new exploration licences with a share of 100%. The licences are in the Eastern North Slope of the area, which has high mineral potential and lies near existing production facilities. In early 2019 Eni made an agreement to acquire the remaining 70% of the production field Oooguruk. The main fields currently are Nikaitchuq and Oooguruk, of which Eni are the 100% operator.

Plenitude
In February 2022, Plenitude, through its US based controlled entity Eni New Energy US Inc, expanded its portfolio of renewable capacity in the United States, through the acquisition of a portfolio of two assets in Texas for additional 466 MW, developed by global renewable energy developer BayWa r.e. Novis Renewables LLC led the two transactions for Eni New Energy US, Inc. Eni New Energy US Inc. acquired around 266 MW Corazon I Solar plant, located in Webb County, Texas (US), which is equipped with bifacial PV modules and one axis tracker, and began operations in August 2021. It will produce more than 500 GWh each year, equivalent to eliminating over 250kt of CO2 emissions annually into the atmosphere. In the same location, Eni New Energy US Inc also acquired around 200 MW/400 MWh Guajillo storage project, which is in its advanced stage of development and is expected to reach an operational stage before the end of 2023. The Guajillo storage project will use the same interconnection facilities as Corazon I and will support the local network by storing energy when renewable generation is high and delivering it during periods of peak consumption.

VENEZUELA

Exploration, production and development operations are concentrated in the offshores of the Gulf of Venezuela, the Gulf of Paria and the Orinoco Petroleum Belt. Production is provided by the Perla gas field (Eni's interest 50%), located in the Gulf of Venezuela, the Junin 5 oil field (Eni's interest 40%), located in the Orinoco Belt and the Corocoro oil field (Eni's interest 26%), located in the Gulf of Paria. Finally, we have 19.5% interest in the Petrolera Güiria block for the exploration of oil resources and a 40% interest in the Gulf of Paria West block and Punta Pescador, in the eastern offshore of the country, for the exploration of natural gas resources.

RENEWABLE ENERGY 

As of December 31, 2021, the installed capacity from renewable sources is 1.14 GW, more than threefold increase compared to 31 December 2020 (0.33 GW). At the end of the year, with the finalization of the announced deals, renewable capacity (either installed or under construction) was over 2 GW.

In 2021, Eni demonstrated strong acceleration in the build-up of renewable generation capacity, leveraging targeted tuck-in acquisitions that can be quickly integrated into Eni’s portfolio:

• In Spain, finalized in October the acquisition from Azora Capital of 9 renewable energy projects consisting of 3 wind facilities in operation and 1 under construction for a total of 234 MW and 5 photovoltaic projects at an advanced stage of development for about 0.9 GW.
• Finalized in October the acquisition of Dhamma Energy Group, owner of a pipeline of photovoltaic projects in France/Spain with a target installed capacity of about 3 GW, and installations already
• in operation or under construction with a capacity of approximately 120 MW.
• In January 2022, acquired the Greek company Solar Konzept Greece “SKGR”, owner of a portfolio of photovoltaic plants in Greece with a pipeline of projects 
• In February 2022, finalized the agreement with Equinor and SSE Renewables for the acquisition of the
• 20% interest in Dogger Bank C project worth (1.2 GW), the third phase of the largest offshore wind
• farm in the world (3.6 GW) currently under construction in the UK North Sea. Production will start in
• different stages in the 2023-2025 period.
• Signed a collaboration agreement between Plenitude and Copenhagen Infrastructure Partners (CIP), as part of the competition for allocation of marine concessions for the offshore wind farm development in Polonia and for the subsequent participation in incentive mechanisms (contract-fordifference), which will be auctioned between 2025 and 2027.
• Finalized the acquisition of 100% of Be Power Spa, whose subsidiary Be Charge is the second Italian operator for installing and operating EV charging columns with over 6,000 charging points.
• Signed agreements with Enel X and Be Charge in order to activate grid interoperability, allowing access to the widest national charging network of about 20,000 charging points.targeting about 800 MW, which will form the basis for further development of the renewable portfolio in the country.

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