Key medium-term targets announced to investors

Maintain strong production growth Ensure medium to long-term business sustainability by focusing on reserve replacement Develop new projects to fuel future growth Develop the LNG business Capture the upstream cost reduction

In the Exploration & Production division our strategy of delivering industry-leading growth leveraging on high quality assets is focused on conventional activities and is located largely in three low cost areas (Africa, OECD Countries and Central Asia/Russia), where we develop giant projects with scale benefits, leveraging also on our long term relations with producing countries.

We target an average annual production increase of 3.5% in the 2009-2012 plan and expect to maintain robust production growth of 3% a year in the following three years to 2015. In 2012, production is targeted to exceed 2.05 mmb/d.

Access to new reserves guaranteed by our intense exploration activity, the monetization of our resource base from assets held in core areas such as the Caspian Sea, West Africa, North Africa and the Gulf of Mexico will allow us to target a reserve replacement ratio of 130% in the medium term, under a long term price scenario of $57 per barrel.

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Production and reserve replacement ratio

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Strengthen leading market share in Europe leveraging on Distrigas acquisition Preserve the leading position in the Italian gas market Develop the LNG business Improve flexibility and efficiency

Eni’s Gas & Power activities comprise all phases of the gas value chain: supply, transport, distribution, marketing and LNG operations, resulting in a fully integrated business model. The main feature of the Gas & Power division is its ability to generate substantial earnings and cash flow.

In the short term, the worsening of the energy scenario and increasing competitive pressure on the domestic market will be dampened by the contribution of regulated businesses and growth in European markets. In the medium term our strategy is to further strengthen our leadership in the European gas market, leveraging on the synergies expected from the acquisition of Distrigas and on our unique competitive position, thanks to our large and diversified gas supply portfolio and our direct access to a vast infrastructure system and customer base.

We will grow our international gas sales by an average of 7% a year, reaching total gas sales of 124 bcm, including upstream sales, by 2012 along with a cumulated EBITDA of €20 billion in the 2009-2012 period.

Our integration with upstream activities allows us to monetize equity gas reserves and to seize opportunities in the natural gas and LNG markets.

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Natural Gas Sales 2008-2012

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REFINING & MARKETING: Improving Profitability

Selective upgrade of the refining system with focused capex Market share growth in Italy Enhanced operational efficiency

In the Refining & Marketing segment Eni is leader in Italy and holds solid positions in the marketing of refined products in selected European countries. Our strategy focuses on the selective strengthening of our refining system, the improvement of quality standards in our marketing activities, and the  widespread increase in operating efficiency. Overall, we target a €400 million EBIT increase by 2012, excluding scenario effects.

In refining, we will increase our conversion index to 65% and achieve a middle distillate yield of 45%, more than double the yield in gasoline thanks to three new hydrocrackers coming on stream in our most competitive refineries in addition to the application of our proprietary EST Technology.

In marketing, we target an Italian market share increase to 32% through plant upgrading, loyalty programs and enhanced non-oil service formats. In Europe, Eni's growth strategy will continue to be selective, focusing on those markets where it can leverage on scale, supply and logistic synergies and brand awareness also through selective acquisitions.

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Eni's Refining System and Main Supply Flows

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Over the next four years, we plan to invest €48.8 billion in our businesses to support continued organic growth. Our investment program remains broadly unchanged with respect to the previous industrial plan for the following reasons:

• adoption of prudent price assumptions in making investment decisions;
• a high-quality portfolio with a low break-even price;
• expectations of a decrease in oilfield service rates and purchase costs of materials and support equipment as a consequence of the current economic downturn;
• high exposure to regulated activities in the Italian gas sector (11% of the total investment program) which bear preset rates of return and are not influenced by market conditions.