Slide 1: ESG Presentation: Developing sustainable energy: Eni's Integrated Model
ESG Presentation Developing sustainable energy: Eni’s Integrated Model Paris, 30 September 2016 eni.com
Slide 2: Two main challenges for the future
Two main challenges for the future Maximising access to energy Fighting climate change 18 2°C Carbon Budget: 2,900 Gton CO2 +32% 16 2040 vs emitted until 2011 remaining Gtoe 2013 14 12 2013 2020 2025 2030 2035 2040 1.3 billion people without access to electricity under INDCs, carbon budget will be 2
Slide 3: Eni integrated model
Eni integrated model STRATEGIC GOAL Long term value creation for stakeholders Financial robustness Social & environmental sustainability Key Pillars Competences Risk & Compliance management Innovation Levers Co-operation model Operating model Path to decarbonization 2
Slide 4: Eni governance on risks and compliance
Eni governance on risks and compliance ENHANCED GOVERNANCE ON RISKS & ENI TOP RISKS COMPLIANCE ~20 top risks out of around 150 risks identified Nearly 80 indicators for top risks quarterly monitoring Board Control and Risk Committee/Board Price scenario, Climate change, Strategic Risks Stakeho
Slide 5: An integrated strategy for decarbonization
An integrated strategy for decarbonization Eni acknowledges the need to limit the temperature increase below 2°C carbon footprint commitment on low carbon portfolio reduction renewables Reduction of GHG emissions: Energy Solutions Department • Reduction of routine flaring • Minimise fugitive methane
Slide 6: Portfolio resilience is enhanced by gas and cost competitiveness
Portfolio resilience is enhanced by gas and cost competitiveness new projects 2P res | Bep $/boe oil price scenario | $/bbl 150 Eni oil price onshore scenario is lower than the deep IEA 2°C water $15 100 assumptions $30 Eni applies 50 carbon pricing sensitivity $ 40/ton in $30 real terms shallow
Slide 7: Cooperation & Development
COOPERATION & DEVELOPMENT 6
Slide 8: Long-term value creation - our flagship model
Long-term value creation - our flagship model BEING LOCAL PRODUCTION FOR DOMESTIC MARKET ACCESS TO ELECTRICITY ENERGY MIX ECONOMIC DIVERSIFICATION LOCAL DEVELOPMENT HEALTH AND EDUCATION CREATING A LONG TERM PARTNERSHIP FULL PARTNERSHIP Transfer of KNOW HOW UNINTERRUPTED PRESENCE 7
Slide 9: Providing energy to foster development
Providing energy to foster development Power generation Tunisia 4 gas power plants supplying: Pakistan 60% of power in Congo Algeria Libya 20% in Nigeria Egypt Off-grid power in Congo and Nigeria Ghana Access to energy for 18 million people Nigeria Venezuela Congo Mozambique Angola = existin
Slide 10: Development projects for local communities
Development projects for local communities Economic diversification Health care Access to water ≈ 550,000 people involved in ≈ 900,000 patients examined more than 1 mln vaccinations ≈130,000 people reached mainly agricultural projects mainly in mainly in Angola, Congo and in Congo, Kazakhstan, Congo
Slide 11: Empowering local workforce
Empowering local workforce 66% of 2015 total procurement spent on In the last 5 years, local employment* local suppliers increased by 21% * Direct Managed workforce – Consolidated and Unconsolidated Subsidiaries (excluding Italy) 10
Slide 12: Operating Model
OPERATING MODEL 11
Slide 13: Continuous improvement on environmental impact
Continuous improvement on environmental impact SAFETY FLARING DOWN Eni top performer Target: Zero routine since 2013 flaring by 2025 2015 vs 2014 Volume of flared gas: -37% TRIR -73% from 2007 UPSTREAM METHANE REINJECTION EMISSIONS OF PRODUCED WATER Target: -80% Target: 64% reduction by 2025 reinjec
Slide 14: Eni's unique exploration track record and model
Eni’s unique exploration track record and model Cumulative discovered resources | bln boe Discoveries vs production 2008-15 | bln boe yearly additions 1.4 Discoveries cumulative 2008-15 Discoveries / production ratio 10.5 peers* average: 0.3x 2.4 0.4 0.3 0.4 0.4 0.2 1.0 *peers = BP, CVX, RDS, REP, T
Slide 15: Exploration risk evaluation
Exploration risk evaluation Petroleum System Modelling Exploration Basin Temperature Source Rock Generation Migration Risk Geometry & Pressure Geochemistry & Expulsion & Trapping Evaluation HC Migration Paths Gas filling probability map Histogram of filling probability Green Data Center 7,700 physic
Slide 16: Workflows: faster time-to-market from reserves to resources
Workflows: faster time-to-market from reserves to resources Conventional project schedule Strong interfunctional integration from exploration to start-up Working in parallel rather than sequentially Risk reduction through reservoir uncertainties quantification Phased/fast track project schedul
Slide 17: Knowledge management
Our development model Phaseable development Knowledge management People & Processes Design-to-cost approach Strict control on execution Integration with commissioning and operations A simpler and manageable operating model 16
Slide 18: Marine XII and Nooros: examples of our integrated approach
Marine XII and Nooros: examples of our integrated approach Marine XII Nooros Dev/Prod areas Exploration area 130 Nenè Marine kboed Litchendjili Marine 70 Minsala Marine Minsala kboed Equity production (kboed) Nenè 78 July Sept July Oct Marine XII 150 2015 2015 2016 2016 17
Slide 19: Minimising our operational risks
Minimising our operational risks Competences Processes Training Organization model Know how Best Practices & Procedure Safety culture Rig Inspections OPERATIONAL RISKS MSG Operations Technologies Real Time Monitoring Automatic Additional Well Barriers Drilling Casing Downhole New Eni
Slide 20: Focus: our Arctic operations
Focus: our Arctic operations Our policy Offshore production activity limited to all-year-round ice-free conditions Safety for people Protecting Arctic environment Our drivers Technologies and competencies Oil Spill Prevention Working together with local communities Specific risk mitigations: Goliat
Slide 21: Path to Decarbonisation
PATH TO DECARBONISATION 20
Slide 22: The role of gas in the energy transition process
The role of gas in the energy transition process IEA scenario Role of gas Wind & 2030 Gas Coal Oil Solar 20% 18% 26% Environmental impact 29% 1% 2015 4% Emissions - Costs 52% 50% Reliability Other (Biomass + Hydro + Nuke) - - Wind & Solar O&G Security of supply Coal 21
Slide 23: GHG reduction targets
GHG reduction targets GHG emissions | tCO2 eq/toe Flaring Main projects: Nigeria, Congo, Libya -2%/y down GHG reductions: -5 Mton CO2 -3.5%/y -4%/y Methane Monitoring/control campaigns in 50 sites fugitives GHG reductions: -2 Mton CO2 Energy Initiatives in existing sites & new plants effic
Slide 24: Energy Solutions business model
Energy Solutions business model Competitive skills Global presence and large portfolio of industrial assets Know-how in managing complex and hybrid projects Excellence in R&D Multiple and flexible financial levers Brownfields Greenfields asset transition new cooperation model 23
Slide 25: Energy Solutions: map of activities
Energy Solutions: map of activities Ongoing Projects 220 MWp of capacity installed in Italy by 2022 Reclaim and convert existing industrial areas in Italy implementing large-scale renewables energy plants 160 MWp of capacity installed abroad by 2018 Integrating renewable with oil & gas assets 6 FIDs
Slide 26: Eni's new mission
Eni’s new mission We are an energy company We are working to build a future where everyone can access energy efficiently and sustainably Our work is based on passion and innovation, on our unique strengths and skills, on the quality of our people and in recognising that diversity across all aspects