COMPANY

HIGHLIGHTS

Strategies

To maximize the efficiency in all business areas with the aim in particular to maintain top execution and security standards, optimize the utilization rate of the fleet, preserve competitive supply costs and increase structure flexibility in order to mitigate the effects of negative business cycles
To consolidate the Company's competitive position in large offshore and onshore projects for the development of hydrocarbon fields strengthening at the same time its market share in the strategic segments of deepwater, FPSO, heavy crude upgrading and gas monetization
To promote local content in terms of employment of local contractors and assets in strategic countries where large projects are carried out supporting the development of delocalized logistic hubs and construction yards when requested by clients in order to achieve a long-term consolidation of its market position in those countries
To leverage on the capacity to execute internally more phases of large projects on an EPC and EPIC basis, pursuing better control of costs and terms of execution adapting with flexibility to clients' needs, thus expanding the Company's value proposition
To complete the expansion and revamping program of its construction and drilling fleet in order to confirm the company's leading position in the segment of complex projects with high profitability

Engineering & Construction

Eni operates in engineering, construction and drilling both offshore and onshore for the Oil & Gas industry through Saipem, a subsidiary listed on the Italian Stock Exchange (Eni's interest is 43%). Saipem boasts a leading position in the relevant market leveraging on technological and operational skills mainly in frontier areas, harsh environments and complex projects, as well as on engineering and project management capabilities and ownership or availability of necessary technologies and also on its integration with Snamprogetti.

In spite of a weaker scenario in the oil industry worldwide and the uncertainty of the changed economic context, Saipem plans to continue consolidating its leadership on Onshore and Offshore markets, completing the expansion of its construction and drilling fleet.

Orders acquired
Orders backlog
Capital expenditures

Order acquired at period end Orders acquired amounted to €13,860 million, up €2,015 million from 2007 (+17%), in particular in offshore and onshore activities.

Order backlog at period end Orders backlog was €19,105 million at December 31, 2008 (€15,390 million at December 31, 2007), related in particular to projects in North Africa (26%), West Africa (21%) and America (13%).

Capital expenditures in the Engineering & Construction division (€2,027 million) mainly regarded the start up of the construction of the deepwater field development ship FDS 2 as well as the ongoing construction of the pipelayer, the semisubmersible platforms Scarabeo 8 and 9 and the deepwater drilling ship Saipem 12000.
In 2008, the construction of the FPSO vessel Gimboa and of the jack-up Perro Negro 7 has been completed.