Overview

In detail:

  • performance data for 2018 in the Exploration & Production sector
  • the 2018 capital expenditure table in the Exploration & Production sector

Performance of the year

Total recordable injury rate (TRIR) was 0.30, a level that is in the lowest range of the industry average; confirming Eni’s commitment to awareness and dissemination of the safety culture, achieving a reduction of 46% compared to 2014. Emissions from flaring were down by 8% from 2017 due to the achievement of the zero flaring configuration in the Burun field in Turkmenistan and the reduction of emergency flaring. This result confirms that we are well on track on our longterm target of zero routine flaring in 2025. In 2018, capital expenditure of flaring down projects was €39 million, in particular in Nigeria and Libya. Upstream GHG intensity index was positive with a reduction of 6% from 2017 and 20% from 2014. We achieved these results leveraging on the reduction of emissions from flaring, the gas production of the Zohr field in Egypt and the Jangkrik field in Indonesia as well as an increase production of Goliat field in Norway, which is an asset with lower intensity emission than the upstream average. This performance is in line with the target of 43% reduction in 2025 compared to 2014.  Water reinjection was 60% in 2018, leveraging on the ongoing programs in certain operational plants, in particular in Egypt and Ecuador. In 2018, the E&P segment recorded the best result of the last four years, with an adjusted operating profit more than doubled compared to 2017. This performance reflected more than proportionally strong trend registered in hydrocarbons price scenario in the first ten months of 2018 (a rise of 31% in price of the Brent market benchmark in dollar term) and production growth, which was boosted by a larger weight of barrels with a higher profit per boe.  Oil and natural gas production was a record level of 1.851 million boe/d, up by 2.5% from 2017 net of price effects. Start-ups and ramp-ups added more than 300 kboe/d to the production level of 2018. Net proved reserves at December 31, 2018 amounted to 7.15 bboe based on a reference Brent price of $71.4 per barrel. The all sources replacement ratio was 124%, 100% of organic replacement ratio (105% net of price effects); 131% three-year average organic replacement ratio. The reserves life index was 10.6 years (10.5 years in 2017).

Capital Expenditure

Capital expenditure

(€ million)

2018

2017

2016

Change

% Ch.

Acquisition of proved and unproved properties

869

5

2

864

..

Egypt

 

 

2

 

 

Sub-Saharan Africa

 

5

 

(5)

..

Rest of Asia

869

 

 

869

..

Exploration

463

442

417

21

4.8

Italy

1

5

 

(4)

(80.0)

Rest of Europe

52

186

11

(134)

(72.0)

North Africa

20

55

42

(35)

(63.6)

Egypt

80

70

270

10

14.3

Sub-Saharan Africa

22

25

30

(3)

(12.0)

Kazakhstan

 

3

 

(3)

(100.0)

Rest of Asia

140

20

57

120

..

Americas

146

76

7

70

92.1

Australia and Oceania

2

2

 

 

 

Development

6,506

7,236

7,770

(730)

(10.1)

Italy

380

260

407

120

46.2

Rest of Europe

600

399

590

201

50.4

North Africa

525

626

747

(101)

(16.1)

Egypt

2,205

3,030

1,700

(825)

(27.2)

Sub-Saharan Africa

1,635

1,852

2,176

(217)

(11.7)

Kazakhstan

193

197

707

(4)

(2.0)

Rest of Asia

550

666

1,213

(116)

(17.4)

Americas

381

195

220

186

95.4

Australia and Oceania

37

11

10

26

..

Other expenditure

63

56

65

7

12.5

TOTAL

7,901

7,739

8,254

162

2.1



Capital expenditure of the Exploration & Production segment (€7,901 million) concerned mainly development of oil and gas reserves (€6,506 million) directed mainly outside Italy, in particular in Egypt, Ghana, Norway, Libya, Nigeria, Congo and Iraq. Development expenditure in Italy in particular concerned sidetrack and workover activities in mature fields. Acquisition of proved and unproved properties of €869 million concerned the entry bonuses in the Concession Agreement of the Lower Zakum and Umm Shaif and Nasr producing fields as well as in the Ghasha offshore concession, in the United Arab Emirates. Exploration expenditure (€463 million) concerned mainly the United States, Egypt, Mexico, the United Arab Emirates and Indonesia. In 2018 overall expenditure in R&D amounted to €96 million (€83 million in 2017). A total of 10 new patents applications were filed.

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