COMPANY

Production of Hydrocarbons

Oil and natural gas production for the full year 2008 averaged the record level of 1,797 kboe/d, an increase of 61 kboe/d, or 3.5%, from a year earlier.
This improvement mainly benefited from the assets acquired in the Gulf of Mexico, Congo and Turkmenistan (up 62 kboe/d), as well as continuing production ramp-up in Angola, Congo, Egypt, Pakistan and Venezuela.
These positives were partially offset by mature field declines as well as planned and unplanned facility downtime in the North Sea and hurricane-related impacts in the Gulf of Mexico (down 11 kboe/d). Higher oil prices resulted in lower volume entitlements in Eni's PSAs and similar contractual schemes, down approximately 37 kboe/d. When excluding the impact of lower entitlements in PSAs, production was up 5.6%.

The share of oil and natural gas produced outside Italy was 89% (88% in the full year 2007).

Production of liquids
Production of natural gas

Liquids production by geographic area Production of liquids amounted to 1,026 kbbl/d and was up 0.6% from a year ago. The most significant increases
were registered in:

the Gulf of Mexico, Congo and Turkmenistan due to the contribution of acquired assets;
Angola due to the start-up of the Mondo and Saxi/Batuque fields in the development area of former Block 15 (Eni's interest 20%); and
Venezuela due to the start-up of the Corocoro field (Eni's interest 26%). Production decreases were reported in the North Sea and Italy due to planned and unplanned facility downtime and mature field declines. In addition, volume entitlements associated with high oil prices were reported in the Company's PSAs.

Natural gas production by geographical area Production of natural gas for the full year was 4,424 mmcf/d and increased by 310 mmcf/d, or 7.8%, from a year ago. The improvement was driven by growth in the Gulf of Mexico, due to the contribution of acquired assets, and Pakistan due to production ramp-up of the Zamzama field (Eni's interest 17.25%) and start-up of the Badhra field (Eni operator with a 40% interest). Production decreased in Italy and the United Kingdom due to mature field declines.
Oil and gas production sold amounted to 632 mmboe. The 25.5 mmboe difference over production (657.5 mmboe) reflected volumes of natural gas consumed in operations (17.9 mmboe).
Approximately 53% of liquids production sold (370.2 mmbbl) was destined to Eni's Refining & Marketing division; about 32% of natural gas production sold (1,503 bcf) was destined to Eni's Gas & Power division.