Eni Targets Annual Production Growth Rate of 3% to 2015

Paolo Scaroni, CEO of Eni, has presented the company's 2009-2012 strategic plan to the financial community. In spite of the uncertain and volatile energy markets, Eni confirms its strategy of delivering hydrocarbon production and reserve growth, based on a solid portfolio of quality projects. Eni will also strengthen its leadership in the European gas market and maintain a dividend yield amongst the highest in the sector.

Exploration & Production

Eni confirms its strategy of delivering production growth, with an average annual rate of 3.5% for the 2009-2012 period. This growth strategy is based on organic development plans carried out with a reserve replacement ratio of 130%. Beyond the 4-year plan, Eni expects to maintain robust production growth with an average annual growth rate of 3% up to 2015.

In 2012, hydrocarbon production will exceed 2 million boe/day, based on a $55 per barrel price scenario. In 2009, hydrocarbon production will exceed 1.8 million boe/day, based on a $43 per barrel price scenario.

Production growth will be focused on three main strategic areas: Africa, OECD Countries and Central Asia/Russia. More than 90% of production and investments to 2012 will be concentrated in these areas.

Eni will maintain a steady growth, even in lower oil price conditions, thanks to its focus on conventional activities and to the quality of its portfolio, which is located largely in low cost production areas and is based upon giant projects with economy of scale benefits.

In the next four years, more than 0.5 million boe/day of new production will come on stream, 85% of which is related to projects which will be profitable even under an oil price scenario below $45 per barrel.

Investment Plan and Efficiency Program

In the 2009-2012 plan, Eni will invest €48.8 billion, slightly less than in the 2008-2011 plan. Investments in Exploration & Production are estimated at €34 billion and will sustain the production growth over the next four years and beyond.

With regard to the efficiency, Eni doubled the program launched in 2006, after having achieved almost 1 billion in cost reductions by the end of 2008. The new plan will enable Eni to double costs reduction to about €2 billion by 2012, both in real terms and versus the 2005 baseline.