Eni, Petrobras in Love All Over Again in South American MoU

On the sidelines of the World Petroleum Congress in Madrid, Eni CEO Paolo Scaroni and Josè Sergio Gabrielli, Chairman of Brazil's Petrobras, today signed the renewal of the Memorandum of Understanding (MoU) for the joint evaluation of integrated, strategic initiatives both in the upstream and downstream sectors. The initial agreement was signed in Brazil in early 2007.

With this agreement, Eni and Petrobras confirm their will to strengthen their mutual cooperation through a renewed and broadened partnership. The evaluation of joint initiatives for the production and refining of oil will be carried out, with Eni providing its exclusive Eni Slurry Technology (EST), which allows the deep conversion of residues and heavy oils, typical of those produced in Brazil. Joint feasibility studies will also be undertaken to produce and market renewable fuels in Brazil and other countries, with a specific focus on the social and environmental sustainability of the projects.
With respect to the MoU signed in March 2007, the agreement will also include a joint study of the possible options for the valorisation of the natural gas reserves discovered by Eni offshore of Brazil, particularly in the Santos oil basin, a promising exploration area which was recently awarded to Eni and where the "Belmonte 1" discovery well was made in 2005.
Brazil has proven oil reserves of around 11.5 billion barrels and proven natural gas reserves of approximately 320 billion cubic meters. Hydrocarbon production, currently about 2 million barrels of oil a day and about 12 billion cubic meters of natural gas a year, will continue to grow due to encouraging exploration results, particularly offshore.
Eni is present in Brazil in four offshore exploration blocks. Moreover, Eni was awarded a 30-year concession in 1999 for the distribution of natural gas in the north-western area of São Paulo State. Over the years, Saipem and Snamprogetti have jointly contributed to the building of numerous facilities in the oil sector, such as the refineries in Belo Horizonte, Porto Alegre and São José dos Campos and of some floating production systems for the oil industry.