Eni CEO Shake-up Puts Saipem on Block in Exploration Gambit

Descalzi, former head of the E&P division, faces growing investor calls to address Eni's over-reliance on a handful of unstable producers in places such as Egypt and Libya. Oil theft also put the brakes on output in Nigeria, analysts say.

In the second quarter Eni said its adjusted net profit was 0.87 billion euros, below a Reuters analyst sounding of eight analysts of 1.012 billion euros ($1.36 billion).

The positive impact from gas contract renegotiations, especially with Russia's Gazprom, and a better performance from Saipem helped offset weakness at the exploration and production division.

The E&P division saw a drop in operating profit to 2.981 billion euro, Eni said, while confirming it expected hydrocarbon output for the year to be substantially in line with 2013.

($1 = 0.7465 Euros)

(Reporting by Stephen Jewkes and Oleg Vukmanovic Editing by Jeremy Gaunt and Robin Pomeroy)