In 2012 Eni reported liquids and gas production for the full year of 1,701 kboe/d. This was calculated assuming a natural gas conversion factor to barrel equivalent which was updated to 5,492 cubic feet of gas equal 1 barrel of oil from July 1, 2012. On a comparable basis, i.e. when excluding the effect of updating the gas conversion factor, production reported an increase of 7% for the full year.
The performance was driven by an ongoing recovery in Libyan production and continuing field start-up and ramp-up mainly in Russia and Australia as well as increased production in Iraq. These positives were partly offset by the temporary shutdown of the Elgin/Franklin field (Eni’s interest 21.87%) in the UK due to a gas leak, losses in Nigeria due to force majeure and mature field declines. The share of oil and natural gas produced outside Italy was 89% (88% in 2011).
Estimated net proved reserves at December 31, 2012 was an eight-year record at 7.17 bboe based on a reference Brent price of $111 per barrel. The organic reserves replacement ratio was 147% with a reserves life index of 11.5 years (12.3 years in 2011). All sources reserves replacement ratio was 107%.
In Exploration & Production, Eni confirms its strategy of organic growth focused on exploration and reserve replacement as major drivers for value creation. Growth will be fuelled by new productionadditions in Eni’s core areas (North and Sub-Saharan Africa, Venezuela, Barents Sea, Yamal Peninsula, Kazakhstan, Iraq and the Far East) leveraging Eni’s vast knowledge of reservoirs and geological basins, technical and producing synergies, as well as established partnerships with producing Countries.
Average production growth is expected at a rate of more than 4% in the 2013-2016 period, supported by the development of core areas (Sub-Saharan Africa, and in particular Mozambique, Venezuela, Barents Sea, Yamal Peninsula in Russia, Kazakhstan, Iraq and Indonesia).
Growth will be associated to increased profitability and risk management reducing time to market (more than 90% of the discoveries made in 2008-2012 will reach production within 8 years from their discovery) and retaining large volumes of operated production, in order to directly manage schedules and budget costs of development projects. Technological innovation and the application of proprietary technologies will allow to reach cost efficiency and acquire key competences for supporting increasing production and recovery rates, developing drilling techniques to be applied in complex environments, marginal areas and deep and ultra-deep waters.
This growth strategy will be supported by the mitigation of operational, political, Country and environmental risks. Eni confirms its commitment to improving the safety of employees and contractors, strengthening the tools for management, training and control, and ensuring asset integrity and process security.
Environmental impact targets include the containment of accidental oil spills from 2.9 boe/mmboe to 2.4 boe/mmboe by 2016, an over 30% reduction in GHG emission rates in the E&P segment for each thousand of tepof gross operated priduction by 2015 as compared to 2010 deploying flaring down policies especially in Africa and energy efficiency programs. Projects for production water reinjection will lead to a rate of reinjection of 65% of total water produced by 2016
Last updated on 21/05/13