Eni S.p.a. · MIL:ENI
Eni — Barclays Energy Conference 2011
20 slides from Eni's conference presentation, Sep 7, 2011
Slide 1: Barclays Energy Conference
Barclays Energy Conference Claudio Descalzi, COO E&P New York, 7 September 2011 eni.com
Slide 2: eni: our main divisions and targets
eni: our main divisions and targets Capital employed 2010 E&P: growth accelerating over the plan period E&P ~46% >3% CAGR 2011-2014 G&P SRG ~ 33% G&P: medium-term recovery opportunity R&M/Chem. ~12% €4.2bn adj proforma ebitda by 2014 E&C Saipem ~9% R&M: enhanced efficiency in Others difficult ma
Slide 3: update on Libya
update on Libya National Transitional Council (NTC) has been recognized as new government of Libya Existing contracts confirmed Consolidated relationship with NTC Currently defining plan to resume production 3
Slide 4: Exploration & Production focus
Exploration & Production focus eni.com
Slide 5: enhanced asset base: the foundation of long-term growth
enhanced asset base: the foundation of long-term growth 2010 total resources* By category 13% 7% Bln boe 31 Others 6% Onshore Offshore 41% Deepwater Arctic 33% By area 2P reserves Other reserves/ 21% 19% North Africa resources America Europe Brent 14% 79 Other ($/boe) 20% Central Asia/Russia Life In
Slide 6: 2011-2014: accelerating growth
2011-2014: accelerating growth CAGR 2011-14 Production sensitivity CAGR >3% ~3% >2,050 1,815 >2.5% 2% 2010 2014 80$ 90$ 100$ $/bl 79.5 70 price scenario 2011-14: 70$/bbl flat 6
Slide 7: longer term growth: promising exploration portfolio
longer term growth: promising exploration portfolio Capex 2011-14 Barents Sea Alaska ~ 3.6 Bln € 30% North Africa Middle East frontier & new basins Gulf of Mexico Pakistan Pacific Area India Venezuela 40% Ghana/Togo Mozambique Indonesia proven basins Gabon & plays RDC/Angola Australia Sub-Saharan 30
Slide 8: excellent exploration performance
excellent exploration performance Main discoveries H1 Skrugard: new potential hub in Barents Sea Jangkrik: substantial upside in Indonesia Sankofa and Gye Nyame: significant gas discoveries in Ghana Additional resources in new giants (Perla, Block 15/06) Key prospects H2 Mozambique: ex
Slide 9: strategic position in unconventionals
strategic position in unconventionals Exploration drivers Eastern Europe gas shales Low entry costs China gas shales Profitable gas market Barnett Shale North Africa Pakistan gas/oil shales Developed tight gas infrastructures Congo Indonesia tar sands CBM Technology transfer from US market G
Slide 10: 2011-2014: a strong pipeline of new start-ups
2011-2014: a strong pipeline of new start-ups Production @ 2014 15 major projects for growth 2014 equity 630 kboe/d Fields Country Op. FID Start-up prod. (kboed) Nikaitchuq USA √ √ √ 22 MLE Algeria √ √ 2011 15 Others 10% CAFC Algeria √ √ 2012 18 El Merk Algeria √ 2012 15 FID 23% Kashagan E
Slide 11: H1 2011: good progress on main projects
H1 2011: good progress on main projects Venezuela Russia Angola Bl. 15/06 Perla Junin 5 Perla Sambursgkoye Sangos & Ngoma Defined main terms of GSA Main terms of GSA agreed Project sanctioned agreement with Gazprom Confirmed start up in Confirmed FID Q3 2011 Confirmed FID H2 2011 and 201
Slide 12: low decline rate
low decline rate 4-year plan production Production optimization 20% of total 4Y plan capex 1,300 actions in 4Y plan ~ 500 infilling & workover ~ 800 facilities’ upgrading Reducing decline rate ~ 220 kboed @ 2014 Value generation 2010 2011 2012 2013 2014 IRR >40% payback < 24 months Productio
Slide 13: new production increasingly operated…
new production increasingly operated… Operated production Mboed Competences & know how 12% 4.4 Cost efficiency HSE rules 2.8 2.5 Technical standards 1.1 1.2 1.4 2009 2010 - 2014 Improved performance & risk management equity 100% CAGR 13
Slide 14: … and focused on giant projects
… and focused on giant projects Contribution from new giants Main start-ups kboed 900 Goliat Nikaitchuq Russian projects Jasmine West Franklin Kashagan 600 Val d’Agri ph.2 Burun Ph.2 Appaloosa CAFC/MLE Zubair El Merk Junin 5 & Perla Congo gas Indonesia gas 300 Bl. 15/06 Kitan Kizomba Sat ph.1 ALNG 0
Slide 15: short time-to-market crucial for returns
short time-to-market crucial for returns Time-to-market of resources Australia – Kitan discovered in 2008-2010 2.5 years Discovery date: 2008 Start-up: 2011 Venezuela – Perla 27% 3 years 52% Discovery date: 2010 Start-up: 2013 21% Angola – Block 15/06 Mpungi-1 Cabaca North-1 (2010) (2009) Nzanza-1 (
Slide 16: high-return capex plan
high-return capex plan Capex 2011-2014 IRR Bln € +4.3% Production optimization 39.1 IRR: >40% 37.4 Payback below 24 months 1.8 2.1 3.6 3.6 PSA ~65% 20% 31.7 33.7 80% Growth projects IRR: ~23% New projects breakeven 2010-13 2011-14 at 45$/bl Development Exploration Other 16
Slide 17: confirmed leadership in efficiency
confirmed leadership in efficiency Opex F&D cost $/boe $/boe 10 10 35 9 9 30 8 28.8 8 28.9 25 77 7 20 66 19.3 5.7 15 55 5.4 4.8 10 44 3 5 3 06-08 07-09 08-10 11-14 06-08 07-09 08-10 eni Benchmark group* * XOM, CVX, COP, BP, RDS, TOT, eni. (no RDS for 2010) 17
Slide 18: leading cash generation and value
leading cash generation and value Cash Flow eni 2P NPV/boe by region $/boe $/boe 35 35 12 Avg @ 100$ 11.5$/boe @ 100 $/bbl 3030 8 Avg. @ 70$ 7.5 $/boe 26.6 26.7 26.7 @ 70 $/bbl 2525 4 20 20 0 06-08 07-09 08-10 11-14 North Africa West Africa OECD Other Brent 78 77 79 avg ($/boe) 15 eni Benchmark grou
Slide 19: E&P operating model
E&P operating model Assets Actions Goals Giants Time to market Long term Conventional growth Production Profitability Balanced optimization exploration Operatorship Technology 19
Slide 20: H1 2011 – good progress on strategic goals
H1 2011 – good progress on strategic goals NORWAY NORWAY Ekofisk South Skrugard ALASKA Eldfisk II Nikaitchuq Asgard SS Compression NORWAY PL 226B PL 608 UK Culzean UKRAINE KAZAKHSTAN Karachaganak 4th train GOM Appaloosa ITALY Capparuccia CHINA GOM Petrochina MoU Hadrian North Sinopec MoU GHANA Sanko