SUSTAINABILITY

Transparency

The increasing integration of the concept of transparency in its system of management led Eni to adhere in 2005, to the Extractive Industries Transparency Initiative (EITI) launched in 2003 by the British government following the commitments undertaken at the World Summit on Sustainable Development in Johannesburg.

Participation in the EITI
The iniziative in Congo
Operating data

The initiative aims to make transparent the payments made by extracting companies to the governments of the countries that own mineral resources and is aimed at both the extractive companies and governments. The former are expected to make public the total and type of payments that are made to governments/state-owned companies; while governments are asked to ensure adequate accounting of oil revenues and the use to which they are put.

Eni, in addition to promoting the implementation of the initiative in the countries in which it operates where the local governments have already adhered to the EITI, is committed to playing, in cooperation with the Ministry of Foreign Affairs, a role as facilitator in those countries of relevant interest to the company where governments, while displaying interest in the initiative, have still not formally signed up to it.

Eni's commitment to transparency as a tool in governance is strengthened also by an interest in the Partnering Against Corruption Initiative (PACI) promoted by the Wold Economic Forum for the application of the Business Principles for Countering Bribery of Transparency International. Of note in this context, is the adhesion of Eni Oil do Brasil to the Zero Tolerance Initiative (ZTI)

As for Kazakhstan, Eni, through the KPO (the Karachaganak project) and KCO (the Kashagan project) consortia, published operating data for 2006.
In Nigeria, through NAOC, the company publishes the data concerning royalties, profit taxes and gas fees for the period 2006-2008

In East Timor , where production has not yet commenced, the local government has developed guidelines for the EITI which, starting from the reporting principles, identifies and formalises the requirements of the initiative itself. Eni Australia, that operates in the country, is part of the Multistakeholder Working Group which since 2007 has elaborated a Working Plan for the implementation of the initiative. The Working Group is supported in the validation process (2010) by an independent auditor.

For contracts recently signed in Gabon, Eni has requested and obtained express reference to the EITI in the management of contributions that will be made for various purposes, as outlined in the contract.

In Congo, with a view to implementing the initiative in the country in 2006, a presidential decree was issued that foresaw the creation of an Executive Committee, of which Eni has been a member since the beginning. In order to become a permanent member of the EITI and pass the validation process (in 2010) Congo, in February 2008, developed and approved an Action Plan (2008-2010) that:

makes public and accessible the state's revenues from petroleum production and mining (the oil sector accounts for more than 80% of the state's income) and, in general, all revenues received by the state from companies operating in the extraction sector;
foresees independent auditing and certification of state accounts and those of the government bodies and, in general, companies operating in the country;
will produce a reconciliation by an independent body of the state's revenues with the payments made by oil companies;
will promote active involvement in civil society;
will raise finance for the implementation of the Plan.

Payments made to the Nigerian Government pertaining to oil activities

(million dollars)	2006	2007	2008	Tot. ‘99-‘08
Royalties	290	223	301	1,984
Profit Taxes	774	382	666	4,282
Gas flaring fees	2	1	1	21.72
Total	1,066	606	969	6,287

Payments made in 2008 to the Kazakh Government pertaining to the Karachaganak project

	Million tenge	Million dollars
Total taxes	2,291.48	252.20
Profit oil (portion of profit for the Kazakh Government))	-	9.01
Total fees	1,485.97	-
Customs payments	514.50	-
Total	4,291.95	344.21