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, in the Irish Sea and in some areas East and West of the Shetland Islands over a gross acreage of 5,445 square kilometers (1,239 net to Eni). In 2007 Eni's net production of oil and gas averaged 124 kboe/d.
Exploration and production activities in the United Kingdom are regulated by concession contracts.
In the medium term, production is expected to decrease due to mature field declines.

BRITISH SECTION OF THE NORTH SEA

Production
Eni holds interests in 12 production areas. The main fields are Elgin/Franklin (Eni's interest 21.87%), the J-Block (Eni's interest 33%), the Flotta Catchment Area (Eni's interest 20%), Andrew (Eni's interest 16.2%) and Farragon (Eni's interest 30%) which in 2007 accounted for 58% of Eni's production in the United Kingdom.
In 2007 production started at the Blane (Eni's interest 18%) and West Franklin (Eni's interest 21.87%). The Blane field was linked to existing production facilities with a peak production of 21 kboe/d (approximately 4 net to Eni) already reached. The West Franklin field was linked to the production facilities of the nearby Elgin Franklin field and is expected to peak at 20 kboe/d (4 net to Eni) in the second half of 2008 with the scheduled start-up of a second development well.
Other actions in the year concerned optimization of producing fields, in particular MacCulloch, Elgin/Franklin and J-Block through the drilling of additional wells and workover actions for supporting production levels.
Development Ongoing pre-development activities at the Burghely (Eni's interest 21.92%)and Suilven (Eni's interest 8.75%) discoveries aim to assessing their economic viability.

Exploration
Eni holds interests in 32 exploration blocks ranging from 3 to 66%, in 3 of these Eni is operator. Exploration activity is intense aimed at appraising residual mineral potential. Appraisal performed on the recent Jasmine discovery in the J-Block.

IRISH SEA

Production
Eni holds a 53.9% interest in 6 production fields in the Liverpool Bay area (Douglas, Hamilton and Lennox and their extensions) which in 2007 accounted for 24% of Eni's production in UK. Oil and gas volumes are collected at the Douglas hub. Facilities upgrading is underway.

SHETLAND ISLANDS

Production
Main fields are Ninian (Eni's interest 12.94%) and Magnus (Eni's interest 5%) which in 2007 accounted for 4 of Eni's production in the United Kingdom. In 2007 maintenance and optimization actions were performed with the drilling of infilling wells.

Development
Pre-development activities are underway on the Lagan (Eni's interest 20%), Tormore (Eni's interest 22.5%) and Mariner (Eni's interest 8.89%) discoveries to appraise their economic viability.

Exploration
Eni holds interests in 7 exploration blocks ranging from 20 to 38%, where an intense exploration campaign is underway. Exploration activity was successful with the Tormore discovery, at a depth of 610 meters, which yielded 32 mmcf/d of gas and 2,200 bbl/d of condensates. Production is expected to start through synergies with the adjoining Laggan discovery.