ENI Underscores Portfolio Developments for Q2 2008

Eni has issued an update of its second quarter portfolio developments. 

The Company has defined a cooperation agreement with the Republic of Congo for the extraction of unconventional oil from the Tchikatanga and Tchikatanga-Makola oil sands deposits. The two deposits that cover acreage of approximately 1,790 square kilometers are deemed to contain significant amount of resources based on a recent survey.

Eni plans to monetize the heavy oil by applying its EST (Eni Slurry Technology) proprietary technology intended to convert entirely the heavy barrel into high-quality light products.

Eni has signed a memorandum of understanding with the British company Tullow Oil Ltd to purchase a 52% stake and the operatorship of fields in the Hewett Unit and relevant facilities. Eni aims to upgrade certain depleted fields in the area so as to achieve a gas storage facility with a 5 bcmcapacity to support seasonal upswings in gas demand in the UK. Once completed, it will be the largest storage site in the UK. This transaction is expected to close by the end of 2008.

The Company also signed a strategic agreement with the Venezuelan State oil company PDVSA for the definition of a plan to develop a field located in the Orinoco oil belt, with a gross acreage of 670 square kilometers. This block is deemed to contain significant amounts of heavy oil according to a recent survey. Eni plans to monetize the heavy oil using the EST (Eni Slurry Technology).

Eni has renewed the partnership with the Brazilian oil company Petrobras to implement joint projects targeting
crude oil production and processing, production and marketing of bio-fuels and joint assessment of options to
monetize gas reserves that were found by Eni offshore Brazil.

The Company has finalized a strategic oil deal with the Libyan national oil company based on the framework agreement of October 2007. This deal effective from January 1, 2008, extends the terms of Eni titles in Libya until 2042 and 2047 for oil and gas properties respectively. It also targets a number of industrial initiatives designed to monetize the large reserve base, particularly through the implementation of important gas projects.

Eni signed a memorandum of understanding with the state-owned company Qatar Petroleum International to
target joint investment opportunities in the exploration and production of oil and gas.

The Company has also made a cash offer to acquire up to 20% of the share capital of Hindustan Oil Exploration Ltd pursuant to the acquisition of Burren Energy Plc, resulting in the indirect acquisition of 27.17% of the share capital of the target company. This Company is listed on the main Indian stockmarkets. Although the formal offer process is not yet completed, the outcome is likely to be positive and Eni believes that it should be able to increase its interest to 47.17%.

Eni signed an agreement to purchase a 17% stake in the share capital of Gaz de Bordeaux Energie Services SAS. Also Eni’s associate Altergaz (Eni's interest being 38%) intends to purchase a stake of a similar size. The two partners plans to support the development of the target company by supplying it with up to 250mmcm/y for
ten years to expand sales to residential, commercial and industrial customers.

The Company started-up the Oooguruk (Eni 30%), Mondo (Eni 20%) and Corocoro (Eni 26%) fields in Alaska, Angola and Venezuela, respectively. Completed the upgrading of facilities at the operated Bhit gas field in Pakistan (Eni 40%) leading to the start-up of the satellite Badhra field.

Eni Sanctioned the development plan of the operated Nikaitchuq oilfield in Alaska (Eni 100%). Production start-up is expected by the end of 2009.

Eni approved the Kitan oilfield development area by the Timor Sea Designated Authority pursuant to the
declaration of commercial discovery that was made by Eni. The discovery is located in lease 06-105 in the
Joint Petroleum Development Area 170 kilometers off the Timor Leste coast and 500 kilometers off the
Australian coast.

The Company granted the West Timor exploration lease that covers an area of 4,075 square kilometers onshore and offshore Indonesia, and successfully bid for 32 exploration leases offshore the Gulf of Mexico close to certain of Eni’s producing fields as well as 18 exploration leases in Alaska.

Continued exploration success:

  • In the UK, a gas and condensates discovery wasmade near the recent Jasmine discovery (Eni 33%). Joint development of these two structures is being assessed in combination with existing facilities. The oil and gas Kinnoul discovery (Eni 16.67%) is planned to be developed in synergy with the production facilities of Andrewn (Eni 16.21%);
  • In Norway, the operated Afrodite and participated Gamma gas discoveries weremade (Eni 45% and 17% respectively) and the operated Marulk discovery (Eni 20%) was successfully appraised;
  • In Egypt offshore the Nile delta, the important Satis gas discovery (Eni 50%) will support supplies to the planned capacity expansion at the Damietta liquefaction facility;
  • In the Gulf of Mexico, a number of oil discoveries weremade with the Kodiak well (Eni 25%), that will be developed through the facilities of the operated Devil’s Tower platform, and the operated Appaloosa/Aransas and the participated Stones-3 wells (Eni 100% and 15% respectively);
  • Offshore Angola, the oil discovery Sangos 1 in the operated Block 15/06 (Eni 35%) was declared of commercial interest;
  • Offshore Sicily (Italy), the operated gas discovery Cassiopea 1 (Eni 60%) wasmade yielding excellent results.
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