Eni

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Eni S.p.A. (BIT: ENI, NYSE: E) is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros (US$138 billion), as of July 24, 2008.[2] The Italian government owns a 30% golden share in the company, 20% held through the state Treasury and 10% held through the Cassa depositi e prestiti.
Contents [hide]
1 History
1.1 1950s–1960s
2 Current operations
2.1 Exploration and production
2.2 Natural gas
2.3 Power
2.4 Engineering and construction
3 Split proposal
4 Controversies
5 Subsidiaries
6 Notes
7 Bibliography
8 External links
[edit]History

[edit]1950s–1960s
Despite initial postwar plans to break up Agip, administrator Enrico Mattei converted it to a state monopoly, renamed Eni. The name derives from the initials of the company's original full title Ente Nazionale Idrocarburi, but is no longer used as an acronym. The Italian Government authorized its establishment on February 10, 1953 in order to implement a national energy strategy based on the concentration of all the activities in the energy sector into one group. Eni was to supply energy to Italy and contribute to the country's industrial development.
The head of Eni, Mattei, a center left politician, had developed cooperation with communist countries, and the import of oil from the Soviet Union became an important part of Eni's operations. At the same time, Eni was involved in a series of high profile political corruption scandals.
[edit]Current operations

[edit]Exploration and production
Its crude oil production comes primarily from Libya, Egypt, Nigeria, the Congo, the North Sea, and Angola, with smaller amounts of crude oil production in Tunisia and in the United States. Eni's China production began in 1992, although it currently amounts to only 1 percent of Eni's total crude oil production.
In 2007, oil and natural gas production for the full year averaged 1.74 millions boe per day, making Eni Europe's third largest refiner, after Royal Dutch Shell and Total S.A..
Eni carried out several hydrocarbon discoveries in recent years; the main discoveries were made in: Angola, Brazil, Congo, Egypt, Indonesia, Nigeria, Norway, Pakistan, Scotland, the Gulf of Mexico and Alaska. In 2007, a total of 81 new exploratory wells were drilled (43.5 of which represented Eni's share). Moreover, the company acquired oil and gas assets in the Gulf of Mexico from Dominion Resources and in onshore Congo from Maurel & Prom with total expenditures amounting to €4.52 billion.
In January 2010 a consortium led by Eni was awarded a license to develop the Zubair field, one of the largest oil fields in Iraq.[3]
[edit]Natural gas
Eni operates in the supply, transport, distribution and sale of natural gas. Gas sales reached 99 billion cubic meters in 2007. In June 2008 the company bought a 57% stake in Distrigas, a Belgian company that supplies natural gas to industries, resellers and electricity producers.[4] In March 2009 it bought the remaining 43%.[5]
In December 2010, Eni entered into the shale gas exploration market by acquiring Minsk Energy Resources owning three licences in the Polish Baltic basin.[6]
[edit]Power
Eni's electricity generation sites in Italy, as of January 2010, are the following:
Natural Gas Power Plants
Brindisi - 1321 MW
Ferrara - 61 MW
Ferrera Erbognone - 1030 MW
Livorno - 199 MW
Mantova - 836 MW
Ravenna - 972 MW
Taranto - 300 MW
Photovoltaic Power Plants
Nettuno - 30 MW
[edit]Engineering and construction
Eni operates in engineering, oilfield services and construction both offshore and onshore through Saipem, a subsidiary listed on the Italian Stock Exchange (Eni's interest is 43%).
[edit]Split proposal

Activist asset manager Knight Vinke, which owns 1% of the outstanding shares of the company, in October 2009 has begun pressing Eni's management to operate a spin off of Eni’s gas activities. In its opinion this would solve the undervaluation of the company and release up to 50 billion euros ($70bn) of hidden value.[7]
[edit]Controversies

The Central Energy Italian Gas Holding scandal in 2005 involved Eni and Gazprom [8]
In 2009, the European Commission filed formal antitrust charges against Eni. The commission believes that Eni has conspired to keep competitors from using its gas pipelines.[9]
In 2009 again, according to the WikiLeaks cables, US ambassador Lanier told Washington that bribery allegations were made in Uganda by Eni which at the time was in competition for oil assets in the country against Tullow Oil. The bribes were taken by the newly appointed Ugandan prime minister, Amama Mbabazi. [10]
[edit]Subsidiaries

AGIP - (Azienda Generale Italiana Petroli - General Italian Oil Company) is an Italian automotive gasoline and diesel retailer.
AGI (100% owned) - Agenzia Giornalistica Italia (Italian Journalist Agency) is one of the main Italian news agencies.
Distrigas (100% owned) - a natural gas company based in Belgium
Polimeri Europa (100% owned) - Polimeri Europa is a petrochemical company that manages the production and marketing of petrochemical products such as olefines, aromatics and intermediates (base chemicals) , styrenes, elastomers and polyethylene, being also able to count on a range of proprietary technologies, advanced plant facilities and a broad-based distribution network.
Saipem (43% owned) - Saipem is an oil and gas industry contractor. Saipem has contracted for designing and constructing several pipelines, including Blue Stream, Greenstream, Nord Stream and South Stream.
Snam Rete Gas (50% owned) - Snam Rete Gas (BIT: SRG) owns Italy's largest natural gas pipeline system and is one of the twoLNG operators in Italy.
Eni UK - carries out operations in the British section of the North Sea, in the Irish Sea and off the coast of the Shetland Islands. Has been present in UK since 1964. In 2006 Eni UK's average net production of hydrocarbons was more than 141,000 boe/d.[11]
Eni India is expected to start drilling at a deepwater block 2, near Andaman and Nicobar Islands in Q2 of 2011 as it has received 2 year extension for the completion of drilling program. The program was delayed due to various environmental issues and scarcity of oil rigs. ENI India had won this block in 2005 and partners with ONGC and GAIL India.[12]
[edit]Notes

^ a b c d e f "Annual Report 2010". Eni. Retrieved 30 April 2011.
^ "Complete Financial Data on the Security ENI - Borsa Italiana". Retrieved 2008-07-25.
^ "Eni, Occidental Petroleum and KOGAS sign the technical service contract with Iraq's South Oil Company and Missan Oil Company to redevelop Zubair field". Eni. 22 Jan 2010.
^ "Publigas, Eni reach agreement on Distrigas sale". Forbes. 2008-06-26. Retrieved 2008-07-25.
^ Eni completes the acquisition of Distrigas (Press release). Eni. May 6, 2009. Retrieved 7 January 2010.
^ "Eni enters European shale play". Upstream Online (NHST Media Group). 2010-12-10. Retrieved 2010-12-11.
^ "Letter to Eni CEO". Knight Vinke Asset Management. Retrieved 23 January 2010.
^ The Putin and Pals Project. Kommersant. Dec. 24, 2005
^ EU hits Italian energy group ENI with antitrust charges
^ "Uganda names bribes-claim minister new PM". Reuters. 2011-05-24.
^ "Eni starts production at the Blane oil field offshore UK". Milan: Eni. 2007-09-12. Retrieved 2010-04-19.
^ "ENI India to start drilling in Q2 of 2011". Kolkata: The Economic Times. 2010-10-26. Retrieved 2010-10-26.
[edit]Bibliography

(en) Marcello Boldrini, Mattei, Rome, Colombo, 1969
(it) Marcello Colitti, Energia e sviluppo in Italia, Bari, De Donato, 1979
(en) Paul H. Frankel, Oil and Power Policy, New York - Washington, Praeger, 1966
(en) Pier Paolo Pasolini, Petrolio, various
(it) Nico Perrone, Enrico Mattei, Bologna, Il mulino, 2001 ISBN 8-81507-913-0