Overview

Italy
In detail:

  • the production and exploration of oil and gas in the country
  • electricity generation at the main power stations across Italy
  • the retail distribution of petroleum products, proprietary refineries in the country and the Green Refinery (the conversion into a bio-refinery)
  • Eni offices and contacts in Italy

Exploration & Production

Eni has been operating in Italy since 1926. In 2016, Eni’s oil and gas production amounted to 133 kboe/d. Eni’s activities in Italy are deployed in the Adriatic and Ionian Sea, the Central Southern Apennines, mainland and offshore Sicily and the Po Valley, on a total developed and undeveloped acreage of 20,818 square kilometres (16,767 square kilometres net to Eni).

Eni’s exploration and development activities in Italy are regulated by concession contracts (50 operated onshore and 64 operated offshore) and exploration licenses (12 onshore and 9 offshore).

 

Adriatic and Ionian Sea

Production Fields in the Adriatic and Ionian Sea accounted for 52% of Eni’s domestic production in 2016, mainly gas. Main operated fields are Barbara, Cervia/Arianna, Annamaria, Luna, Angela-Angelina, Hera Lacinia, Bonaccia and Porto Garibaldi. Production is operated by means of 72 fixed platforms (3 of these are manned) installed on the main fields, to which satellite fields are linked by underwater infrastructures. Production is carried by sealine to the mainland where it is input in the national gas network. The system is subject continuously to rigorous safety control, maintenance activities and production optimization.

Development Development activities concerned:

  • maintenance and production optimization, mainly at the Barbara, Cervia/Arianna and Morena fields;
  • start-up of the Clara NW development project.

 

Central Southern Apennines

Production Eni is the operator of the Val d’Agri concession (Eni’s interest 60.77%) in the Basilicata Region in Southern Italy. Production from the Monte Alpi, Monte Enoc and Cerro Falcone fields is  treated by the Viggiano oil center.

On August 12, 2016 the activity of the Val d’Agri Oil Centre in Viggiano gradually restarted following notification by the Italian Public Prosecutor of Potenza that has definitively repealed the plant seizure and by the National Mining Office for Hydrocarbons and Earth Resources of the Ministry of Economic Development that has authorized the plant’s operation. The resumption of production is a result of the completion in June 2016 of certain plant upgrading, which do not alter the plant set up, authorized by the in-charge department of the Italian Ministry of Economic Development in order to address the alleged environmental crimes issued by the public prosecutor.

 

Development The development plan is progressing in line with the commitments agreed with the Basilicata Region, particularly in 2016:

  • the Environmental Monitoring Plan is being implemented. This project
  • represents a benchmark in terms of environmental protection;
  • programs to support culture, enhancement of agricultural activities and socio-economic development in the area are in progress.

 

Sicily

Production Eni operates 12 production concessions onshore and 3 offshore. The main fields are Gela, Ragusa, Tresauro, Giaurone, Fiumetto and Prezioso, which in 2015 accounted for approximately 11% of Eni’s production in Italy.

Following the Memorandum of Understanding for the Gela area, signed with the Ministry of Economic Development in November 2014, Eni started preparatory study on the Argo Cluster offshore development project.

 

 

Gas & Power

Natural gas supply

The basic demand for Eni’s natural gas in Italy is predominantly catered for by supplies coming from abroad, mainly from Russia, Algeria, the North Sea and Libya.  

Marketing in Italy and Europe

Eni operates in a liberalized market where energy customers are allowed to choose the gas supplier and, according to their specific needs, to evaluate the quality of services and offers. Overall Eni supplies approximately 9 million clients in Italy and Europe.

Households, professionals, small and medium-sized enterprises and public bodies located all over Italy are approximately 7.8 million. In a trading environment characterized by a slight recover in demand (up by 0.4% in the Italian market and up by 7.3% in the European Union compared to the previous year), and a still depressed market characterized by an increased competitive pressure, Eni carried out a number of initiatives, – such as renegotiation of supply contracts, efficiency and optimization actions – in order to preserve the business profitability in a weak demand scenario.

Domestic sales amounted to 38.43 billion cubic meters, stable compared to 2015.

 

Power generation

Eni’s power generation sites are located in Ferrera Erbognone, Ravenna, Mantova, Brindisi, Ferrara and Bolgiano.

In 2016, power generation was 21.78 TWh, up by 1.09 TWh or 5.3% from 2015, mainly due to increasing demand. As of December 31, 2016, installed operational capacity of EniPower’s power plants was 4.7 GW (4.9 GW as of December 31, 2015). Electricity trading (15.27 TWh) reported an increase of 7.6% due to the optimization of inflows and outflows of power. In 2016, power sales of 37.05 TWh were directed to the free market (74%), the Italian power exchange (15%), industrial sites (9%) and others (2%). Compared to 2015, power sales were up by 2.17 TWh or 6.2%, due to higher volumes sold to wholesalers (up by 2.10 TWh) and middle market (up by 0.96 TWh), partially offset by lower volumes sold to small and medium-sized enterprises and large customers.

Refining & Marketing and Chemicals

Retail sales in Italy

Eni is a leader in the Italian retail market of refined products with a 24.3% market share, down by 0.2 percentage points from 2015.

In 2016, retail sales in Italy were 5.93 mmtonnes with a decrease compared to 2015 (about 30 ktonnes from 2015 or 0.5%) due to a reduction in volumes marketed in Eni’s highway segment, partially offset by a slight increase in volumes marketed in Eni’s owned stations. Average gasoline and gasoil throughputs (1,551 kliters) decreased by approximately 20 kliters from 2015. As of December 31, 2016, Eni’s retail network in Italy consisted of 4,396 service

stations, lower by 24 units from December 31, 2015 (4,420 service stations), resulting from the release of low throughput stations (27 units), offset by positive balance of acquisitions/releases of lease concessions (3 units).

Wholesale business

Eni markets gasoline and other fuels on the wholesale market in Italy, including diesel fuel for automotive use and for heating purposes, for agricultural vehicles and for vessels and fuel oil.

Major customers are resellers, manufacturing industries, service companies, public utilities and transporters, as well as final users (transporters,  condominiums, farmers, fishers, etc.). Eni provides its customers a wide range of products covering all market requirements leveraging on its expertise on fuels’ manufacturing.

Customer care and product distribution are supported by a widespread commercial and logistical organization presence all over Italy and articulated in local marketing offices and a network of agents and dealers.

Wholesale sales in Italy amounted to 8.16 mmtonnes, up by approximately 0.32 mmtonnes or 4.1% from the previous year, mainly due to higher volumes marketed of jet fuel, gasoil and fuel oil partly offset by lower sales of bunkering.

Supplies of feedstock to the petrochemical industry (1.02 mmtonnes) decreased by 12,8% due to lower productions of virgin naphtha compared to 2015.

 

Refining System

Eni’s refining system in Italy is composed by three wholly-owned refineries (Sannazzaro, Livorno and Taranto) and a 50% interest in the Milazzo refinery. Each of Eni’s refineries in Italy has operating and strategic features that aim at maximizing the value associated to the asset structure, the geographic location with respect to end markets, the integration with Eni’s other activities.

Eni’s 100% owned refineries have a balanced capacity of 19.4 mmtonnes (equal to 388 kbbl/d), with a 49% conversion index.

In 2016, Eni’s refineries throughputs in Italy and outside Italy were 24.52 mmtonnes down by 7.2 % from 2015 or 1.89 mmtonnes.

Moreover, Eni in Italy has converted the former refinery in Venice in a green refinery (the first example in the world of transformation in biorefinery) and initiated the green project conversion in the industrial site of the former refinery in Gela.

 

Logistics

Eni is a leading operator in the Italian oil and refined products storage and transportation business. It owns an integrated infrastructure consisting of 17 directly managed depots and a network of oil and refined products pipelines. Eni logistic model is organized in three hubs (southern, central and northern Italy). These hubs manage the product flows in order to guarantee high safety and technical standards, as well as cost effectiveness. Eni is also in joint venture with seven Italian operators (Sigemi, Petrolig, Petroven, Petra, Seram, Disma and Toscopetrol) to optimize its logistic footprint and increase efficiency. Since the beginning of 2017 Petrolig joint venture ends.

Eni transports oil and refined products: (i) by sea through spot and long-term contracts of tanker ships; and (ii) through a proprietary pipeline network extending approximately 1,462 kilometers.

Secondary distribution to retail and wholesale markets is outsourced to independent tanker trucks owners.

 

Oxygenates

Eni, through its subsidiary Ecofuel (100% Eni’s share), sells approximately 1 mmtonnes/y of oxygenates, mainly ethers (approximately 3% of world demand), and methanol. About 80% of oxygenates are produced in Eni’s plants in Italy (Ravenna), in Saudi Arabia (in joint venture with Sabic) and Venezuela (in joint venture with Pequiven) and the remaining 20% is purchased.

Offices and contacts

Roma
Piazzale Mattei, 1
00144
Tel. +39 06 59 82 1
Fax +39 06 59 82 21 41

Milano
Piazza Ezio Vanoni, 1
20097 San Donato Milanese (MI)
Tel. +39 02 52 01
Fax +39 06 59 82 21 41

Exploration & Production
Via Emilia, 1 20097 San Donato Milanese (MI)
Tel. +39 02 52 01

Gas & Power
Piazza Ezio Vanoni, 1 20097
San Donato Milanese (MI)
Tel. +39 02 52 01

Refining & Marketing
Via Laurentina, 449
00142 Roma
Tel. +39 06 59 88 1
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