What does the Eni strategy aim to achieve?
Over the past three years we have made significant progress in ensuring our company is even more robust. Eni has made its structure more efficient and as a result has succeeded in becoming an integrated oil and gas company. Since 2014, our strategy has seen us adopt a string of new measures, including strengthening our business by optimising investment and reducing costs. We have concentrated on our strategic upstream sector, both in terms of exploration and development, and accelerated the reorganisation of the mid-downstream sector. The 2017-20 plan will essentially allow us to speed up income generation by building a high-margin organic portfolio, thanks to the quality and standing of our conventional assets and the design-to-cost approach of our new operating model.
Specific actions to fulfil our strategy
We will continue to target high levels of income generation through sustainable growth in the upstream sector and improved cost efficiency; and by completing the restructuring of other sectors and managing a flexible portfolio.
Upstream
Our long-term organic growth is predominantly based on exploration. We integrate skills and assets as much as possible to minimise risks and optimise costs. We adopt a “design-to-cost” approach, with each decision based, from the outset, on the time required to bring resources to market and how the costs of developing resources can be optimised. Exploration, engineering, development and procurement are developed in parallel, allowing us to speed up start-up times, reduce costs and risks and hone our development plan.
Mid-downstream
We are increasingly integrating gas and power and upstream to make the most of our gas resources, with integration taking place throughout the value chain. We have restructured the gas and power and refining and marketing sectors to make them even more efficient and productive. We are converting conventional refineries into bio-refineries and applying innovative green chemistry solutions as part of an approach that respects the local area and the environment. We are increasing efficiency and maximising the return on our capital.
Financial strategy
Flexibility in our finances ensures the sustainability of our remuneration policy despite the low oil price and will allow us to grasp the opportunities that arise when the economic situation improves. We are adopting a new approach based on earlier cash-flow generation; our “dual exploration model” means we can increase our hydrocarbon reserves while at the same time take advantage of early monetisation by selling minority stakes to other players.
HSE and decarbonisation strategy
Our energy transition involves reducing the company’s climate-altering gas emissions and developing forms of renewable energy to guarantee access to safe and environmentally-friendly power. Gas is our bridge to a low-carbon future; we will continue to develop and expand our projects both in Italy and abroad. We have already approved six projects relating to renewables and are on the verge of approving another 20 or so around the world.
Dual exploration model
We are constantly renewing and diversifying our exploration portfolio. The great results of recent years in exploration are due to sustainable management of our activities. We decided to sell part of the interest in some recent gas discoveries while maintaining the role of operator in country. This strategy is a response to the “dual exploration model” and is in line with the 2017-20 asset disposal plan.
Our 2016 results
2016 saw the end of three years of radical change at Eni, allowing it to tackle one of the most challenging situations in the history of the oil and gas industry. The significant results achieved are producing renewed opportunities for growth.
Scenarios and perspectives
Production and sales forecasts, factors affecting our results, risk management and sensitivity, showing how we are working with the market to implement our strategy.
