The increase in certain reserves
Proved undeveloped reserves as of December 31, 2016 totaled 3,215 mmboe. At year-end, proved undeveloped reserves of liquids amounted to 1,165 mmbbl, mainly concentrated in Africa and Asia. Proved undeveloped reserves of natural gas amounted to 11,184 bcf, mainly located in Africa and Americas. Proved undeveloped reserves of consolidated subsidiaries amounted to 1,040 mmbbl of liquids and 9,218 bcf of natural gas. In 2016, total proved undeveloped reserves increased by 348 mmboe mainly due to:
- extensions and discoveries (up by 873 mmboe), in particular in Egypt due to final investment decision sanctioned for the Zohr discovery;
- revisions of previous estimates (up by 121 mmboe) mainly reported in Congo and Iraq;
- reclassification to proved developed reserves (down by 646 mmboe) mainly reported in Kazakhstan, Venezuela and Congo . During 2016, Eni converted 646 mmboe of proved undeveloped reserves to proved developed reserves due to the progress of development activities, production start-ups and project revisions. The main reclassifications to proved developed reserves related to the following fields/projects: Kashagan (Kazakhstan), Perla (Venezuela), Litchendjili (Congo), Zubair (Iraq) and Goliat (Norway).
In 2016, capital expenditure amounted to approximately €7.5 billion and was made to progress the development of proved undeveloped reserves. Reserves that remain proved undeveloped for five or more years are a result of several factors that affect the timing of the projects development and execution, such as the complex nature of the development project in adverse and remote locations, physical limitations of infrastructures or plant capacity and contractual limitations that establish production levels. Of the proved undeveloped reserves that have been reported for five or more years, the largest are related to forthcoming development phases of the Kashagan project:
- in Kazakhstan (approximately 0.2 bboe),
- certain assets in Venezuela (approximately 0.4 bboe),
- in Iraq (approximately 0.2 bboe,
- as well as to certain Libyan gas fields (approximately 0.5 bboe) where development completion and production start-ups are planned according to the delivery obligations set forth in a long-term gas supply agreement currently in force. In order to secure fulfillment of the contractual delivery quantities in Libya, Eni will implement phased production start-up from the relevant fields which are expected to be put in production over the next several years.