Eni to Invest $3B in Congo, to Explore Tar Sands

Eni, which in the four-year period from 2008-2011, will invest $3 billion in Congo, generating an expected equity production of 150 million boe. Eni has developed its operations in the country thanks to close collaboration with the Congolese authorities. This close relationship has resulted in the new agreements signed May 19, 2008.

Eni launched a new model of cooperation in Congo. The Eni model combines the traditional activities of hydrocarbon exploration and production with sustainability and important initiatives with unconventional and renewable sources.

Throughout the shared program with Eni, the Republic of Congo will maximize its own potential as a major energy producing country and become a benchmark in Africa in the tar sands and biofuels field, as a further benefit of food farming development.

Eni has reached agreement for the exploration and exploitation of non-conventional oil in tar sands in Tchikatanga and Tchikatanga-Makola, two areas covering a total of 1790 square km which show enormous potential. According to preliminary studies undertaken on a 100 square km area, recoverable reserves are estimated at between 2,5 billion barrels unrisked and 500 million barrels risked.

The agreement will allow Eni to consolidate its unique skills in tar sands taking advantage of proprietary Eni Slurry Technology (EST) for improvement of the quality of heavy oils.

The project will also benefit from synergies resulting from the close proximity of the M'Boundi oilfield. Gas associated with oil production in this area can also be used to supply the EST plant and enrich the heavy oil, while achieving the goal of reducing atmospheric emissions under the Kyoto protocol.