Mission
We are an energy company.
We concretely support a just energy transition,
with the objective of preserving our planet
and promoting an efficient and sustainable access to energy for all.
Our work is based on passion and innovation,
on our unique strengths and skills,
on the equal dignity of each person,
recognizing diversity as a key value for human development,
on the responsibility, integrity and transparency of our actions.
We believe in the value of long-term partnerships with the Countries
and communities where we operate, bringing long-lasting prosperity for all.
Global goals for a sustainable development
The 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable
Development Goals (SDGs) which represent the common targets of sustainable development on the
current complex social problems. These goals are an important reference for the international community
and Eni in managing activities in those Countries in which it operates.
Eni
Annual
Report
2022
Letter to shareholders
MANAGEMENT REPORT
Activities
Business model
Eni at a glance
Stakeholder engagement activity
Strategy
Integrated Risk Management
Governance
Operating review
Natural Resources
Exploration & Production
Global Gas & LNG Portfolio
Energy Evolution
Refining & Marketing and Chemicals
Plenitude & Power
Environmental activities
Financial review and other information
Financial review
Risk factors and uncertainties
Outlook
Consolidated Disclosure of Non-Financial Information
Other information
Glossary
4
6
8
10
16
18
24
30
42
44
72
78
80
90
96
100
126
151
152
232
233
Consolidated disclosure of Non-Financial Information
This Annual Report includes the consolidated Disclosure of Non-Financial Information (NFI), prepared in accordance with Legislative Decree No. 254/2016, relating to
the following topics: environment; social; people; human rights; anti-corruption. The disclosure on these topics and KPIs included in this report are defined in accordance
with the “Sustainability Reporting Standards” published by the Global Reporting Initiative (GRI Standards), for which NFI is subject to limited assurance. In addition, the
Task force on Climate-related Financial Disclosures (TCFD) recommendations and World Economic Forum (WEF) Core metrics were taken into account.
Integrated Annual Report
Eni’s 2022 Annual Report is prepared in accordance with principles included in the International Framework”, published by International Integrated Reporting Council
(IIRC). It is aimed at representing financial and sustainability performance, underlining the existing connections between competitive environment, group strategy,
business model, integrated risk management and a stringent corporate governance system.
The mission represents more explicitly the Eni’s path to face the global challenges, contributing to achieve the SDGs determined by the UN in order to clearly address the
actions to be implemented by all the involved players. This report has not been prepared in accordance with the EU Delegated Regulation 2019/815 (ESEF Regulation),
implementing the Transparency Directive. The Annual Report in ESEF format (only in Italian language) is published in the specific section of the Company’s website
(www.eni.com, Publications) and is available at the centralized storage mechanism authorized by Consob “1Info” – (www.1info.it).
CONSOLIDATED FINANCIAL STATEMENTS
Financial statements
Notes on consolidated financial statements
Supplemental oil and gas information
Management’s certification
ANNEX
Annex to the notes on consolidated financial statements as of December 31, 2022
Investments owned by Eni as of December 31, 2022
Changes in the scope of consolidation for 2022
Independent auditor’s report on the consolidated non-financial statement
Independent auditor’s report on the consolidated financial statements
236
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434
Disclaimer
This Annual Report contains certain forward-looking statements in particular under the section “Outlook” regarding capital expenditures, dividends, buy-back programs,
allocation of future cash flow from operations, financial structure evolution, future operating performance, targets of production and sale growth and the progress and
timing of projects. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may
occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the impact of the pandemic disease;
the timing of bringing new oil and gas fields on stream; management’s ability in carrying out industrial plans and in succeeding in commercial transactions; future levels
of industry product supply; demand and oil and natural gas pricing; operational problems; general macroeconomic conditions; political stability and economic growth in
relevant areas of the world; changes in laws and governmental regulations; development and use of new technology; changes in public expectations and other changes
in business conditions; the actions of competitors. “Eni” means the parent company Eni SpA and its consolidated subsidiaries.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT Letter to shareholders
Dear Shareholders,
2022 has been a challenging year for our company, engaged in
delivering fast and tangible solutions to the European energy crisis,
at the same time while managing the related risks and progressing
the transition to a sustainable development model in line with
the climate targets of the EU and the 2030 Agenda of the United
Nations. Russia’s military invasion of Ukraine has dramatically
highlighted the need of our society for secure and affordable energy.
The stability and security of energy supplies has altered at
least in the short-term the priority of energy agendas of States
and operators, balanced on the other hand by reaffirming and
indeed relaunching the decarbonization targets in the medium
and long-term, in the awareness that the climate emergency
needs quick actions.
We are confident that our distinctive strategy, leveraging on
available tools and technologies capable of immediately reducing
emissions and on the central role of gas in our portfolio, based on
its lower carbon footprint, will allow us to address in an effective
and practical manner the trilemma of environmental sustainability,
energy security and affordability, building upon the geographical
and technological diversification of energy sources.
We will work with all our Stakeholders and Partners to fulfil this
proposal.
In facing the unprecedented challenges posed by the 2022 operating
environment, our Company delivered excellent results thanks to
financial discipline and a constant focus on asset integrity and
made a significant contribution to the security of energy supplies to
Italy and Europe, boosting objectives of continuous development to
adapt to a dynamic energy landscape.
At the same time, we achieved a significant reduction in the
carbon footprint of our asset portfolio, thanks to an ever-growing
pipeline of renewable and biofuel projects.
Few months after the outbreak of the war, in a context of
uncertainty and volatility, we signed several agreements with
our long-standing partners to diversify gas supplies to Italy and
Europe with a view to fully replacing about 20 billion cubic meters
of Russian supplies by 2025, accelerating an ongoing program
of focusing on equity reserves.
We plan to increase production in Algeria and Egypt, freeing up
new export volumes that will be delivered to Europe through the
existing infrastructures (the Damietta terminal and Sea Corridor’s
TTPC/Transmed pipelines). We will invest to revitalize national
gas fields. In the medium term, new gas supplies will be fueled
by the gas project “A&E Structures” in Libya, recently signed
off. LNG equity projects will be the other strategic leg for the
security and geographical diversification of supplies. The Congo
project is designed to monetize Marine XII block’s reserves, with
expected to start-up in 2023. We entered the Qatar North Field
East project, the largest in the world, with a 3% interest and
growing contributions are expected from the likes of Nigeria,
Angola, Indonesia. Finally, Mozambique, the new frontier of world
scale LNG projects, has entered the stage thanks to the historic
milestone of the start of the Coral South field and FLNG vessel,
built and commissioned in just 5 years and in line with scheduled
times and costs, despite the pandemic disruptions.
In a period of extreme market volatility, without requesting any
financial aid from the State, Eni successfully preserved the
robustness of its balance sheet by proactively managing the
significant financial risks arisen in connection with the war
in Ukraine. To accomplish this, we strengthened our liquidity
reserves, restructured hedging activities to reduce the risk of
outsized margin calls and rescheduled sale commitments to
account possible interruptions in Russian gas flows.
ENI ANNUAL REPORT 2022 2022 marked a year of substantial progress in our transition
strategy, founded on the pillars of proprietary technologies, the
satellite model and stakeholder alliances.
Proprietary
traditional
technologies matured within our
businesses are one of the drivers of our decarbonization path.
The Ecofining refining technology has been successfully applied
to upgrade our sites of Gela and Venice, converting them into
biorefineries. Gas reservoir and storage technologies are being
used to develop, in synergy with depleted fields, effective
solutions for CO2 underground storage. A first deployment
is planned in UK to build the Hynet storage hub, which will
leverage Eni’s depleted Liverpool Bay fields, to start storing
CO2 in 2025, with a target capacity of 10 million tonnes/year
from 2030. In 2024, a CCS pilot project is expected to start-up
off Ravenna, Italy, in joint venture with Snam, to evaluate the
feasibility of a large high potential CCS hub, that will leverage
Eni’s depleted fields and infrastructures in the area.
Break-through technologies are key to Eni’s long-term success,
among them is the magnetic confinement fusion, a potentially
inexhaustible, safe, and zero-emission source of energy,
expected to change the future energy paradigm. Commonwealth
Fusion System, a spin-out of the MIT, of which we are the leading
shareholder, is engaged in building, and commissioning a pilot
plant to test the net production of energy from magnetic fusion.
Eni’s satellite business model allows us to enhance the value of
our assets, while freeing up additional resources for investment
in the energy transition. In Energy Evolution group of businesses,
this model foresees the creation of dedicated entities, engaged
in the progressive reduction and zeroing of Scope 3 emissions,
capable of unlocking their intrinsic value by means of a sale of
minority stakes or listing on the market. These entities will be
able to access specialized capital markets, while still benefitting
from Eni’s technologies, know-how and services, so to allow
the Group to optimize its financial structure. While Plenitude
has the goal of supplying 100% decarbonized products, at
the beginning of 2023 Eni Sustainable Mobility was set up to
offer increasingly decarbonized solutions/products to people
on the move, leveraging the strong marketing network and
biorefineries vertically integrated with our agri-business.
This model has been applied to selected E&P geographies, by
pursuing business combinations resulting in equity-accounted
entities where investments will be self-financed, allowing Eni to
freeing additional resources to pursue secure and sustainable
energy. Following the success of the Vår Energi transaction
through its listing at the Norway exchange and entry of new
investors, in August Azule Energy, the JV combining Eni and bp
asset in Angola, started operations as the largest independent
Angolan O&G producer to deliver real value to its shareholders
through the development of organic projects, such as Agogo
and the New Gas Consortium to extract value from non-
associated gas, and the maximization of operating synergies.
Looking forward, we expect to replicate this model in other E&P
geographies.
Our decarbonization strategy relies on the production of
advanced biofuels from waste or feedstock not in competition
with the food chain, as palm oil has been phased-out as
feedstock for Eni’s biorefineries from October 2022. This
growth will leverage on integration with our agri-business. In
July 2022, we started our agricultural business in Kenya, the
first one on this field. Africa will increasingly become part of a
vertically integrated supply chain of our biorefineries, supplying
bio-oil from raw materials grown in unproductive land, with
important, positive effects on local employment and income. In
2022, a first cargo of vegetable oil has been shipped to Eni’s
plants, with higher emission savings compared to the European
standards provided for by the Renewable Energy Directive. We
intend to apply this model to other African Countries, such as
Congo, Mozambique, Angola, the Ivory Coast, Rwanda and
then to Kazakhstan, where feasibility studies are underway,
as well as to Italy in cooperation with Bonifiche Ferraresi.
The Agri-business embodies the fundamental pillars of Eni’s
sustainability: decarbonisation, circular economy, local content.
With the manufacture of SAF, Sustainable Aviation Fuels, Eni
is contributing to decarbonize the air transport thanks to the
production at the Taranto and Livorno refineries. In 2024,
production of Biojet will start in Gela and Venice with an
expected capacity of 0.2 million tons by 2026.
Sustainability is an integral part of our financial strategy. With
the adoption in 2020 of a Sustainability-Linked Framework, the
Company intends to cover 25% of total gross debt with financial
instruments indexed to sustainability targets by 2025.
In February 2023, Eni successfully finalized the placement of its
first sustainability-linked bond among the retail public in Italy for
a total amount of €2 billion, with orders five times higher than the
initially offered amount.
Thanks to the growing commitment to transparency and the
business model set up by Eni to create sustainable value in
the long-term, in 2022, Eni has been confirmed or improved
its excellent ranking in the main ESG ratings of the financial
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
markets: MSCI ESG, Sustainalytics ESG Risk Rating, ISS
ESG, Bloomberg New Energy Finance Oil & Gas Transition
Score, Moody’s ESG Communications, CDP Climate Change,
Transition Pathway Initiative and confirmed for the sixteenth
consecutive year in the FTSE4Good Developed specialized
stock market index. Finally, Eni has been included in the MIB®
ESG index of Borsa Italiana, a new index dedicated to blue chips
excelling in ESG performance. Referring to gender equality,
Eni has been included for the second consecutive year in the
Bloomberg Gender Equality Index 2023 and in the Top 100 of
the Equileap Gender Equality Ranking.
Cyprus, Algeria, Egypt, Angola, and the United Arab Emirates.
Plenitude delivered against its operating and financial targets
with a proforma EBITDA exceeding €0.6 billion and a renewable
capacity of over 2 GW.
Versalis affected by competitive pressures in the commodity
segments is implementing a transformation of the business
towards a more sustainable and competitive portfolio of
products, strengthening its partnership with Novamont to
develop green chemicals and progressing the conversion of the
Porto Marghera hub, thanks to the agreement with Forever Plast
for the mechanical recycling of plastic waste.
Against the backdrop of a supportive commodity pricing
environment, 2022 results were driven by financial discipline
and cost control, operational effectiveness and sound risk
management of the price volatility and supply shortages.
Adjusted operating profit of €20.4 billion, more than double
the 2021 result, was fueled by the excellent performance of
E&P (+€7 billion), able to capture the upside of the oil scenario,
GGP (+€1.5 billion), thanks to the continuous optimization of
the gas and LNG diversified portfolio, and R&M (+€2.2 billion)
which, in a tight market of refined products, leveraging on
plant availability and output optimization as well as efficiency
measures to address the rise in plant utility expenses, reported
a record performance.
Adjusted net profit was €13.3 billion, approximately tripling
the 2021 result, thanks also to better contribution of our
equity-accounted entities. Operating performance generated
a robust cash flow of €20.4 billion, net of €8.5 billion of taxes
paid, including the payment of extraordinary contributions on
energy’s profits for over €1 billion.
After funding organic investments of €8.2 billion, working
capital needs and replenishment of gas storage, we earned a
discretionary cash flow of €12.8 billion, that was utilized to finance
net acquisitions, to remunerate shareholders with €5.4 billion (€3
billion dividends and an accelerated buy-back program of €2.4
billion) and to reduce net financial debt by €2 billion, bringing
leverage to an all-time low of 0.13. Portfolio transactions related
mainly to acquisitions intended to accelerate the growth of
Plenitude, assets for the diversification of gas supplies, including
the FLNG Tango for the Congo project and a 3% interest in the
NFE project in Qatar, as well as the capital increase for the
relaunch of Saipem, highly appreciated by the market.
Exploration confirmed its streak of excellent performances
with the discovery of around 750 million boe of new resources,
at a competitive unit cost of less than 2 $/boe, thanks to the
contribution of the Baleine appraisal and new discoveries in
Strategy and targets
leveraging the
Eni four-year plan for the period ’23-’26 identifies industrial
programs and initiatives aimed at consolidating the transition
strategy by means of: (a)
integration of
technologies and new business models to offer decarbonised
products to customers and to guarantee energy security and
affordability through the geographical diversification of sources,
and (b) ensuring cash flow and economic returns. At the Brent
scenario of 85 $/bbl in 2023 and 80 $/bbl in the long-term, we
expect to invest €37 billion in the four-year plan, of which about
25% is allocated to low carbon projects.
Our strategic guidelines in the E&P segment are to maximize cash
generation by focusing on highly profitable projects, to deploy our
fast-track model of reserves development and to reduce direct
emissions. The main planned developments comprise the gas
initiatives in Congo, Libya, Egypt, Italy and the Middle East, as well
as the giant Baleine oil discovery off the Ivory Coast. As result of
those planned projects and of maintaining the plateau at legacy
assets, Eni expects a CAGR of 3-4% in production over the 4-year
plan period, which will be achieved organically and by gradually
increasing the proportion of gas in our portfolio to 60% by 2030.
Eni reaffirms its commitment to exploration as a driver of growth
and of support to energy security. We expect to invest around
€0.5 billion on average per year, focusing on gas initiatives, and
mature/near-field areas such as North Africa, West Africa and
the UAE.
The profitability of the GGP business will be underpinned by
maximizing the value of the integrated gas and LNG equity
projects and by portfolio flexibilities. Contracted LNG volumes are
expected to exceed 18 million tonnes/y by 2026 compared to 9
million tonnes/y in 2022.
We expect a significant growth in the biofuel segment, by
ENI ANNUAL REPORT 2022 accelerating the build-up of new capacity to reach over 3 MTPA
by 2025 driven by initiatives in Italy (a biorefinery in Livorno),
Malaysia and the US, with a production of biojet up to 0.2 million
tonnes by 2026.
The development of vertical integration in the agri-hub supply
chain will make available over 700,000 tonnes of bio-oil by 2026,
driving margin stability.
Plenitude will continue its growth program with the aim of reaching
a renewable installed capacity of more than 7 GW by 2026, a
customer base of up to over 11 million and expanding its network
of charging points for electric vehicles to over 30,000 units.
We confirm our 2050 carbon neutrality targets for Scope 1, 2
and 3 emissions with a target reduction of 35% by 2030 and 80%
by 2040 compared to the 2018 baseline and achieving net-zero
emissions by 2035 for Scope 1 and 2 emissions.
Against the backdrop of an uncertain and volatile scenario,
we moved expeditiously and with ingenuity to identify several
initiatives to address the need for energy security and for the
diversification of supplies, while making strong progress on the
decarbonization of our products and industrial processes. The
’23-’26 plan will build on those drivers.
The financial discipline in the capital projects selection, a
continuous focus on cost control and careful management of
the market risk will underpin the planned industrial actions of
the ’23-’26 period driving strong cash generation to self-finance
growth and to deliver industry-leading returns to shareholders
through our new dividend and share buy-back program. We
will seek to retain a solid financial structure with a leverage of
10-20% and adequate flexibility in the event of sudden shifts
in the scenario.
Our stakeholders will benefit from a more sustainable Eni thanks
to our strong industrial franchise designated to ensure reliable and
affordable access to energy, to reduce emissions, to promote new
business models accelerating the transition of our customers,
while upholding our core values in terms of respect of human
rights along our entire value chain, of local content and of circular
economy, as well as the human and professional growth of our
people, by enhancing the contribution of each individual, and
leveraging on inclusion, motivation and estimation.
Rome, March 16, 2023
On behalf of the Board of Directors
Lucia Calvosa
Chairman
Claudio Descalzi
Chief Executive Officer and General Manager
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT MANAGEMENT
REPORT
Activities
Business Model
Eni at a glance
Stakeholder engagement activities
Strategy
Integrated Risk Management
Governance
Operating review
Natural Resources
Exploration & Production
Global Gas & LNG Portfolio
Energy Evolution
Refining & Marketing and Chemicals
Plenitude & Power
Environmental activities
Financial review and other information
Financial review
Risk factor and uncertainties
Outlook
Consolidated Disclosure of Non-Financial Information
Other information
Glossary
6
8
10
16
18
24
30
42
44
72
78
80
90
96
100
126
151
152
232
233
6
Activities
32,188
our employees
62
countries where
we operate
OUR VALUE CHAIN
Eni is a global energy company with a high technological content, engaged in the entire value chain: from
the exploration, development and extraction of oil and natural gas, to the generation of electricity from
cogeneration and renewable sources, traditional and biorefining and chemical, and the development of
circular economy processes. Eni extends its reach to end markets, marketing gas, power and products
to local markets and to retail and business customers also offering services of energy efficiency and
sustainable mobility. Consolidated expertise, geographical and technological diversification of energy
sources, alliances for development, as well as new business and financial model are Eni levers to meet
each of the essential pillars of the energy trilemma, achieving environmental sustainability side-by-side with
energy security and affordability, while also maintaining a strong focus on value creation for shareholders.
Along this path, Eni is committed to become a leading company in the production and sale of decarbonized
energy products, increasingly customer-oriented.
Eni’s strategy to reach Carbon Neutrality by 2050 leverages on an industrial transformation to be
implemented by strengthening available and economically sustainable technologies such as:
DEVELOPMENT OF
AGROBIOFEEDSTOCK
SUPPLY CHAIN
PURCHASE OF
BIO AND RENEWABLE
RAW MATERIALS,
WASTE AND RESIDUES
PURCHASE OF GAS
FROM THIRD PARTIES
OIL & GAS PRODUCTION
PRODUCTION FROM
RENEWABLE SOURCES
EXPLORATION
AND DEVELOPMENT
THIRD PARTY INDUSTRY
TRADING
& SHIPPING
TRANSMISSION
NETWORK
CARBON OFFSETS
REMEDIATION,
WATER AND WASTE
INTO DEVELOPMENT
TRADITIONAL AND
BIOREFINING
AND PETROCHEMICALS
ELECTRICITY GENERATION
CO2
CAPTURE, STORAGE
AND USE OF CO²
PRODUCTS
SERVICES
FUEL
BIOFUEL
FOOD
SERVICES
LUBRICANTS
SUSTAINABLE MOBILITY
TRADITIONAL AND
BIOREFINING AND
PETROCHEMICALS
E-MOBILITY
ENERGY EFFICIENCY
RETAIL
MARKETS
BUSINESS
MARKETS
OIL & GAS
PHOTOVOLTAIC
HOST
COUNTRIES
NETWORK SERVICES
CO2
CCUS
ELECTRICITY
ENI ANNUAL REPORT 2022 7
• Progressive growth of the gas component as a bridge energy source in the transition, flanked by
investments to reduce emissions;
• Bioenergy through the development of biomethane and biofuels, by increasing feedstocks of bio
and renewable raw materials, waste and residues and of an integrated agribio-feedstock production
chain not in competition with food production;
• Renewables through increased capacity and integration with the retail business;
• Carbon Capture Storage (CCS) through the development of hubs for the storage of the CO2 from
hard-to-abate emissions generated by Eni’s and third parties’ industrial plants;
• Progressive increase in the production of new energy carriers, including hydrogen.
The scale use of these solutions together with research into breakthrough technologies, such as magnetic
confinement fusion, can support the revolution of the energy sector. Residual emissions, i.e. those that
cannot be reduced due to technical and economic constraints, will be offset through high quality carbon
offsets, mainly deriving from Natural Climate Solutions.
REMEDIATION,
WATER AND WASTE
INTO DEVELOPMENT
TRADITIONAL AND
BIOREFINING
AND PETROCHEMICALS
ELECTRICITY GENERATION
CO2
CAPTURE, STORAGE
AND USE OF CO²
PRODUCTS
SERVICES
FUEL
BIOFUEL
FOOD
SERVICES
LUBRICANTS
SUSTAINABLE MOBILITY
TRADITIONAL AND
BIOREFINING AND
PETROCHEMICALS
E-MOBILITY
ENERGY EFFICIENCY
RETAIL
MARKETS
BUSINESS
MARKETS
OIL & GAS
PHOTOVOLTAIC
HOST
COUNTRIES
NETWORK SERVICES
CO2
CCUS
ELECTRICITY
DEVELOPMENT OF
AGROBIOFEEDSTOCK
SUPPLY CHAIN
PURCHASE OF
BIO AND RENEWABLE
RAW MATERIALS,
WASTE AND RESIDUES
PURCHASE OF GAS
FROM THIRD PARTIES
OIL & GAS PRODUCTION
PRODUCTION FROM
RENEWABLE SOURCES
EXPLORATION
AND DEVELOPMENT
THIRD PARTY INDUSTRY
TRADING
& SHIPPING
TRANSMISSION
NETWORK
CARBON OFFSETS
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 8
Business Model
We are an
integrated
energy company
supporting a
socially fair
energy transition
that through
concrete and
economically
sustainable
solutions, aims
to face the crucial
challenges of
our time:
combating
climate change
and giving
access to energy
in an efficient
and sustainable
way for all
Our business model is aimed at creating long-term value for all stakeholders through a strong presence
along the entire energy value chain. The core is represented by our mission1, inspired by the United Nations
2030 Agenda, whose foundations are embodied in our distinctive approach, which permeates all activities.
Eni is committed to fulfilling the essential pillars of the energy system trilemma, pursuing environmental
sustainability together with energy security and affordability.
These goals leverage the diversified geographical presence and a diversified mix of energy sources, which,
together with a portfolio of new technologies and their fast-track development, will create a diversified
energy mix for energy transition and to support energy security, progressing in the value creation and
breakthrough opportunities, while recognising the essential role of partnerships and alliances with
stakeholders to ensure active involvement in the transformation of energy system.
Our agile and innovative business model leverages proprietary technologies at the base of traditional
businesses for the development of a satellite model of creating dedicated entities capable of independently
accessing capital markets to fund their growth and to reveal the real value of each business.
This integrated business model is supported by a Corporate Governance system2 inspired by the principles
of transparency and integrity, an integrated risk management process3 ensuring, through the assessment
and analysis of the risks and opportunities of the reference scenario, informed and strategic decisions, as
well as materiality analysis4 to examine the most significant impacts generated by Eni on the economy,
environment and people, including those on human rights.
The operation of the business model is focused on the best possible use of all the resources (inputs)of
the group and on their transformation into outcomes, through the implementation of its strategy, while
contributing to the achievement of the Sustainable Development Goals (SDGs) of the 2030 Agenda.
Eni also organically integrates its business plan with the principles of environmental and social sustainability,
deploying its actions along three levers:
OPERATIONAL EXCELLENCE: Eni’s business is aimed to operational excellence through the continuo-
us commitment in the enhancement, health and safety of people, assets integrity, environmental pro-
tection, respect for human rights, resilience and diversification of activities and financial soundness.
These elements allow Eni to seize the opportunities deriving from the possible developments in the
energy market and to progress its transformation path.
CARBON NEUTRALITY BY 2050: Eni’s business model envisages a decarbonization path towards car-
bon neutrality by 2050 based on an approach oriented to emissions generated throughout the life cycle
of energy products. This path, achieved through existing technologies, will allow Eni to totally reduce its
carbon footprint, both in terms of net emissions and in terms of net carbon intensity. In this context gas
figure as a bridge energy source in transition.
ALLIANCES FOR THE PROMOTION OF DEVELOPMENT: Eni is committed to reduce energy poverty
in the countries where it operates through the development of infrastructures linked to traditional bu-
siness but also to the new frontiers of renewables with the aim of generating value in the long-term by
transferring its know-how and skills to local partners (so called “Dual Flag” approach). In these coun-
tries, Eni promotes initiatives to support local communities accessing to energy, to diversify economy,
training and health of community, access to water and sanitation, and protection of the territory, in
collaboration with international players and in line with the National Development Plans and the United
Nations 2030 Agenda.
(1) See the dedicated section of this Report.
(2) See chapter “Governance”.
(3) See chapter “Integrated Risk Management”
(4) See the “Consolidated Non-Financial Statement”, section “Material topics for Eni”.
ENI ANNUAL REPORT 2022 9
OUTPUT (*)
-8%
Net GHG Lifecycle
Emissions
(Scope 1+2+3)
0.41 TRIR
(recordable injuries
/hours worked)
2.3 GW
renewable
capacity
Sustainable
biofuels
€5.4 bln
shareholders
remuneration
13%
leverage
access of
120 thousand
people to health
services
€8.5 bln
taxes paid
~750 mln boe
new resources
R
I
S
K
€20.4 bln
organic chash flow
VALUE CREATION FOR STAKEHOLDERS
Through an integrated presence all along the energy value chain
OPERATIONAL
EXCELLENCE
CARBON
NEUTRALITY
BY 2050
ALLIANCES
FOR DEVELOPMENT
Approach to lead the
transformation
Products and processes
decarbonization
Value creation shared
with host countris
STRATEGY AND TARGET
E G R A T ED VALUE CHAIN
T
I N
NATURAL
RESOURCES
ENERGY
EVOLUTION
E
C
N
A
N
R
E
V
O
G
E
T
A
R
O
P
R
PROPRIETARY
TECHNOLOGIES AND
BREAKTHROUGH
O
C
MISSION
SATELLITE
MODEL
GEOGRAPHICAL
AND ENERGY SOURCES
DIVERSIFICATION
M
A
N
A
G
E
M
E
N
T
FINANCIAL DI S C I P L I N
E
INPUT (*)
516.5 mln
total GJ energy
consumption
over 32,000
employees
over 300,000 km2
oil & gas exploration/
development licences
Gas/LNG
portfolio
flexibility
10.1 mln
customers (pod)
€67 bln
capital employed
~8,000
licences
€76.4 mln
investments for
local development
€8.2 bln
net capex
(*) In 2022, unless stated otherwise.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
10
Eni at a glance
“In 2022, Eni was not only engaged
in progressing its sustainable energy
transition goals, but also in ensuring
the security and stability of energy
supplies to Italy and Europe, building
up a diversified geographic mix
of energy sources. The Company
delivered
excellent financial and
operating results while contributing
to the stability of energy supplies to
Italy and Europe and progressing its
decarbonization plans. During the year,
we were able to finalize agreements
and activities to fully replace Russian
gas by 2025, leveraging our strong
relationships with producing states and
fast-track development approach to
ramp-up volumes from Algeria, Egypt,
Mozambique, Congo and Qatar. The
recently signed deal with Libya's NOC
on the A&E Structures development
and
off
Cyprus, Egypt and Norway will further
integrated supply
strengthen our
diversification. This prompt reaction
to the gas crisis and the integration
with the E&P activities were important
driver of the performance of our GGP
business, which was able to ensure its
supply commitments through different
sources.”
exploration
successes
Claudio Descalzi
CEO Eni
FINANCIAL
HIGHLIGHTS
SATELLITE
BUSINESS MODEL
In a favorable market environment,
2022
results were supported
by financial discipline and cost
control, operational effectiveness
risk management
and strict
arising from price volatility and
supply shortages.
€13.3 bln
adjusted net profit
€20.4 bln
adjusted CFFO
27%
of CFFO
shareholders remuneration
€7 bln
net financial debt
13%
leverage
In 2022, significant progress was
made
in pursuing our distinctive
satellite model of creating dedicated
entities capable of
independently
accessing capital markets to fund their
growth and to reveal the real value of
each business (Plenitude, Sustainable
Mobility, Vår Energi, Azule Energy).
These entities will continue to benefit
from Eni's technologies, know-how and
services, at the same time allowing
the Group to optimize its financial
structure.
SUSTAINABLE MOBILITY
AZULE ENERGY
PLENITUDE
VÅR ENERGI
ENI ANNUAL REPORT 2022 11
OPERATIONAL
EXCELLENCE
CARBON
NEUTRALITY BY 2050
Despite the volatility of the energy scenario, we
achieved excellent operating performance, thus
progressing towards our strategic objectives.
SDGs: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
50%
13.1 k
Russian gas replacement
EV charging points
750 mln/boe
new discovered resources
90%
reuse of fresh water
TRIR 0.41%
In 2022, Eni continued its commitment to reduce GHG
emissions.
Eni Sustainable Mobility was established to pursue
the plan to eliminate customers’ emissions, by offering
solutions for an increasingly decarbonized mobility to
customers in Italy and Europe.
SDGs: 7 9 12 13 15 17
2.3 GW
Group renewable installed
capacity: doubled vs. 2021
66 gCO2eq./MJ
-0,4% Net Carbon Intensity vs. 2021
30 mln ton CO2
-11% vs. 2021
Net carbon footprint Eni
(Scope 1 + 2)
1.1 mln tonn/y
biorefinery capacity
Signed several agreements in the field of sustainability
and innovation, relying on our strong partnerships
with host countries and our accelerated development
model, to promote the process of energy transition and
decarbonization of our activities.
SDGs: 1 2 3 4 5 6 7 8 9 10 13 15 17
€76.4 mln
local development investment
120,000 people
accessing to health services
ALLIANCES FOR
DEVELOPMENT
Strengthened collaborations with leading universities and expanded the innovation ecosystem
through Eni Next, the venture capital focused on high-potential start-ups, and Eniverse, aimed at
scaling proprietary technologies for new business opportunities. Through CFS, MIT spin-off, we
are progressing in the development of magnetic confinement fusion, through the construction
of SPARC, the experimental plant designed to generate net energy, targeted for 2025 start-up.
In March 2023, the installation of the world's first ISWEC (Inertial Sea Wave Energy Converter)
device connected to the electricity grid of an island, locates off the coast of Pantelleria. This plant
will produce offshore renewable energy converting power generation from wave energy.
TECHNOLOGICAL
INNOVATION
SDGs: 7 9 12 13 17
ACCELERATING OUR
R&D INVESTMENTS:
~8,000 patents
+400 projects
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 12
Profile of the year
• In 2022 the Group delivered strong results with an adjusted EBIT of €20.4 billion, doubling the
amount of the FY 2021, driven by an excellent performance of the E&P, GGP and R&M businesses.
• FY 2022 adjusted net profit attributable to Eni shareholders was €13.3 billion and, compared
with FY 2021, was €9 billion higher due to a strong operating performance and higher results of
equity-accounted entities.
• FY 2022 net profit attributable to Eni shareholders was €13.9 billion and, compared with FY
2021, was driven by an improved underlying performance benefitting from a favorable trading
environment, partly offset by lower net special gains mainly due to inventory evaluation.
• Shareholders remuneration: in September and November, Eni paid the first and the second
quarterly instalment of the 2022 dividend of €0.22 per share each, amounting to €1.47 billion.
The third instalment of €0.22 per share will be paid to shareholders on March 22, 2023, being the
ex-dividend date March 20, 2023.
• In November, Eni completed the announced buy-back program of €2.4 billion, repurchasing
195.55 million shares withdrawn from the market (equal to 5.48% of the share capital), at the
average price of €12.27 per share.
• Net borrowings ex-IFRS 16 as of December 31, 2022, were €7 billion, down by €2 billion compared
to December 31, 2021, and Group leverage stood at 0.13, versus 0.20 as of December 31, 2021.
• In January 2023, Eni successfully placed the first sustainability-linked bond among the retail
public in Italy for a total amount of €2 billion. Orders for over €10 billion were received compared
to €1 billion initially offered. The offering was closed in advance in just 5 days.
Advancing satellite model
In 2022 significant progresses were made in the development of our distinctive satellite model, through
the set-up of dedicated entities focused on specific scopes, capable of independently accessing capital
markets to fund their growth and to reveal the real value of each business. These entities will continue to
benefit from Eni's technologies, know-how and services, while allowing the Group to optimize its financial
structure: Plenitude and Sustainable Mobility in the Energy Evolution business Group. Azule Energy and
Vår Energi in the Natural Resources business Group were established with the aim of developing new
hydrocarbon reserves to support energy security, remunerating shareholders with stable dividend flows
and tend to grow and independently financing the related investments, allowing the Group to have
additional resources for the optimization of investments in the decarbonized energy portfolio.
Operational milestones
• In FY 2022 around 750 million boe of new resources were added to the reserve base continuing
the delivery of outstanding exploration performance. Several discoveries were made close to
existing assets and facilities as part of our fast-track development model in Algeria, Egypt and
Abu Dhabi.
• Eni signed relevant agreements for the development of Carbon Capture and Storage projects:
with Snam to jointly develop and manage the Ravenna Carbon Capture and Storage (CCS)
Project, with the National Oil Corporation of Libya (NOC) for the development of the large gas
reserves of A&E Structures, offshore Tripoli, comprising the construction of an onshore Carbon
Capture and Storage (CCS) hub.
• As part of the development of the biorefining business, Eni signed definitive agreements with PBF
to partner in a 50-50 joint venture, St. Bernard Renewables LLC (SBR), for the biorefinery currently
under construction in Louisiana (US). The biorefinery start-up is expected in the first half of 2023,
with a target processing capacity of about 1.1 million tonnes/year of raw materials to produce
mainly HVO Diesel.
• Signed significant agreements with strategic partners for the development of joint initiatives
in the field of sustainability and innovation, to foster the energy transition process and
decarbonisation of its activities, also leveraging joint development innovative initiatives in the
fields of agriculture, the protection of forest ecosystems, health and technologies, promoting both
agricultural initiatives for the cultivation of oil plants to feed Eni's biorefineries for the production
of biofuels and initiatives for the generation of carbon credits and supporting the development of
infrastructure and services for health and education of local communities.
ENI ANNUAL REPORT 2022 13
AVERAGE BRENT DATED PRICE ($/BL)
AVERAGE EUR/USD EXCHANGE RATE
101.19
70.73
41.67
120
100
80
60
40
20
0
1.20
1.15
1.10
1.05
1.00
0.95
1.183
1.142
1.053
2020
2021
2022
2020
2021
2022
STANDARD ENI REFINING MARGIN (SERM) ($/BL)
PSV (€/KMC)
10
8
6
4
2
0
-2
1.7
2020
-0.9
2021
8.5
1,400
1,200
1,000
800
600
400
200
0
487
112
1,294
2022
2020
2021
2022
ADJUSTED NET PROFIT (€ BLN)
LEVERAGE AND NET BORROWINGS
14
12
10
8
6
4
2
0
-2
7.1
2.9
4.3
13.3
-0.8
35
30
25
20
15
10
5
0
31
25
24
20
13
15.1
11.5
11.6
9.0
7.0
2012
2019
2020
2021
2022
16
14
12
10
8
6
4
2
0
2012
2019
2020
2021
2022
Net borrowings (€ bln)
Leverage (%)
ROBUST CASH GENERATION (€ BLN)
SHAREHOLDERS REMUNERATION (€ BLN)
20.4
BUY-BACK
DIVIDEND
25
20
15
10
5
0
EXTRAORDINARY
TAXES
2.0
2022
2021
2020
1.3
5.4
3.5
Organic
cash
flow
Working
capital
Dividend
and
buy-back
Net
capex
Net
Portfolio
Other
Net
borrowings
reduction
0
1
2
3
4
5
6
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 14
FINANCIAL
HIGHLIGHTS
Sales from operations
Operating profit (loss)
Adjusted operating profit (loss)(a)
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Adjusted net profit (loss)(a)(b)
Net profit (loss)(b)
Net cash flow from operating activities
Capital expenditure(c)
of which: exploration
2022
2021
2020
(€ million)
132,512
17,510
20,386
16,411
2,063
1,929
615
13,301
13,887
17,460
8,056
708
5,238
3,077
3,009
76,575
12,341
9,664
9,293
580
152
476
4,330
5,821
12,861
5,234
391
3,364
3,055
2,358
43,987
(3,275)
1,898
1,547
326
6
465
(758)
(8,635)
4,822
4,644
283
3,077
1,286
1,965
152,130
137,765
109,648
55,230
7,026
11,977
67,207
50,910
672
9,302
7,486
13.3
44,519
8,987
14,324
58,843
48,014
(823)
9,815
5,474
12.2
37,493
11,568
16,586
54,079
45,252
796
8,786
2,284
8.6
(€)
($)
(€)
($)
(€)
($)
(%)
(€ per share)
(%)
(number)
2022
2021
2020
3.95
8.32
3.78
7.96
5.01
10.55
22.0
13
22
18
18.9
1.3
145.8
43.0
0.88
16.2
6.5
1.60
3.78
1.19
2.81
3.61
8.54
8.4
20
32
24
15.7
1.3
89.8
83.7
0.86
52.4
7.1
(2.42)
(5.53)
(0.21)
(0.48)
1.35
3.08
(0.6)
31
44
31
(3.1)
1.4
29.1
174.1
0.36
(34.1)
4.2
2022
8,689
870
2021
9,409
847
2020
9,815
700
13,132
13,072
11,471
2,794
6,703
2,464
6,897
2,092
7,417
32,188
32,689
31,495
development of hydrocarbon reserves
Dividend to Eni's shareholders pertaining to the year(d)
Cash dividend to Eni's shareholders
Total assets at year end
Shareholders' equity including non-controlling interests at year end
Net borrowings at year end before IFRS 16
Net borrowings at year end after IFRS 16
Net capital employed at year end
of which: Exploration & Production
Global Gas & LNG Portfolio (GGP)
Refining & Marketing and Chemicals
Plenitude & Power
Share price at year end
(€)
Weighted average number of shares outstanding
(million)
3,483.6
3,566.0
3,572.5
Market capitalization(e)
(€ billion)
48
44
31
(a) Non-GAAP measures.
(b) Attributable to Eni's
shareholders.
(c) Includes reverse factoring
operations in 2022.
(d) The amount of dividend for the
year 2022 is based on the Board's
proposal.
(e) Number of outstanding shares
by reference price at year end.
SUMMARY
FINANCIAL
DATA
Net profit (loss)
- per share(a)
- per ADR(a)(b)
Adjusted net profit (loss)
- per share(a)
- per ADR(a)(b)
Cash flow
- per share(a)
- per ADR(a)(b)
Adjusted Return on average capital employed (ROACE)
(a) Fully diluted. Ratio of net profit/
cash flow and average number of
shares outstanding in the period.
Dollar amounts are converted on
the basis of the average EUR/USD
exchange rate quoted by Reuters
(WMR) for the period presented.
(b) One American Depositary
Receipt (ADR) is equal to two Eni
ordinary shares.
(c) Ratio of dividend for the period
and the average price of Eni shares
as recorded in December.
Leverage before IFRS 16
Leverage after IFRS 16
Gearing
Coverage
Current ratio
Debt coverage
Net Debt/EBITDA adjusted
Dividend pertaining to the year
Total Share Return (TSR)
Dividend yield(c)
EMPLOYEES
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Corporate and other activities
Group
ENI ANNUAL REPORT 2022
15
R&D expenditure
First patent filing application
(€ million)
(number)
164
23
177
30
157
25
2022
2021
2020
INNOVATION
TRIR (Total Recordable Injury Rate)
employees
contractors
(total recordable
injuries/worked hours)
x 1,000,000
2022
2021
2020
0.41
0.29
0.47
0.34
0.40
0.32
0.36
0.37
0.35
HEALTH,
SAFETY AND
ENVIRONMENT(a)
Direct GHG emissions (Scope 1)
(mmtonnes CO2eq.)
39.39
40.08
37.76
Indirect GHG emissions (Scope 2)
0.79
0.81
0.73
Indirect GHG emissions (Scope 3) other than those due
to purchases from other companies(b)
Net GHG Lifecycle Emissions (Scope 1+2+3)(c)
Net Carbon Intensity (Scope 1+2+3)(c)
(gCO2eq./MJ)
Net carbon footprint upstream (Scope 1+2)(c)
(mmtonnes CO2eq.)
Net carbon footprint Eni (Scope 1+2)(c)
Direct GHG emissions (Scope 1)/operated hydrocarbon
gross production (upstream)
164
419
66
9.9
29.9
176
456
67
11.0
33.6
185
439
68
11.4
33.0
(tonnes CO2eq./kboe)
20.64
20.19
19.98
Carbon efficiency index Group
32.67
31.95
31.64
Direct methane emissions (Scope 1)
(ktonnes CH4)
Volumes of hydrocarbon sent to routine flaring (upstream)
(billion Sm3)
Total volume of oil spills (> 1 barrel)
(barrels)
of which: due to sabotage
operational
Freshwater withdrawals
Re-injected production water
EXPLORATION & PRODUCTION
Hydrocarbon production
Net proved reserves of hydrocarbons
Reserve life index
Organic reserve replacement ratio
Profit per boe(a)(c)
Opex per boe(b)
Finding & Development cost per boe(c)
GLOBAL GAS & LNG PORTFOLIO
Natural gas sales
of which: Italy
outside Italy
LNG sales
(million m3)
(%)
(kboe/d)
(mmboe)
(years)
(%)
($/boe)
(bcm)
REFINING & MARKETING AND CHEMICALS
Biorefineries capacity
Sold production of biofuels
Average biorefineries utilization rate
Retail market share in Italy
(mmtonnes/year)
(ktonnes)
(%)
Retail sales of petroleum products in Europe
(mmtonnes)
Service stations in Europe at year end
Average throughput of service stations in Europe
Average oil refineries utilization rate
Production of petrochemical products
Average petrochemical plant utilization rate
PLENITUDE & POWER
Renewable installed capacity
Energy production from renewable sources
Retail and business gas sales
Retail and business power sales
EV charging points
Thermoelectric production
Power sales in the open market
(number)
(kliters)
(%)
(ktonnes)
(%)
(MW)
(GWh)
(bcm)
(TWh)
(thousand)
(TWh)
49.6
1.1
6.139
5,253
886
131
59
54.5
1.2
4,408
3,053
1,355
125
58
55.9
1.0
6,824
5,866
958
113
53
(a) KPIs refer to 100% of the
operated assets, where not
indicated.
(b) GHG Protocol Category 11–
Corporate Value Chain (Scope
3) Standard. Estimated on the
basis of the upstream production
(Eni's share) in line with IPIECA
methodologies.
(c) KPIs are calculated on an
equity bases.
2022
2021
2020
OPERATING
DATA
1,610
6,614
11.3
47
9.8
8.4
1,682
6,628
10.8
55
4.8
7.5
1,733
6,905
10.9
43
3.8
6.5
24.3
20.4
17.6
60.52
30.67
29.85
9.4
1.1
428
53
21.7
7.50
5,243
1,587
79
6,775
59
2.198
2.553
6,84
18,77
13,1
21,37
22,37
70.45
36.88
33.57
10.9
1.1
585
65
22.2
7.23
5,314
1,521
76
64.99
37.30
27.69
9.5
1.1
622
63
23.2
6.61
5,369
1,390
69
8,476
8,073
66
65
1.137
986
7,85
16,49
6,2
22,31
28,54
335
340
7,68
12,49
3,4
20,95
25,34
(a) Related to consolidated
subsidiaries.
(b) Includes Eni's share in joint
ventures and equity-accounted
entities.
(c) Three-year average.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
16
Stakeholder engagement
activities
considers
stakeholder
Eni
engagement a key fundamental
and strategic
lever to pursue a
just, responsible and sustainable
transition. Participation supports
maximising the
long-term value
creation for both the company and
its stakeholders while
reducing
corporate risks. Also in line with
the Code of Ethics, Eni maintains
relations based on principles such
as fairness, legality, transparency,
for human
respect
traceability,
rights,
inclusion, gender equality
and protection of the environment
and communities. Participation in
and sharing of company choices,
objectives and results foster solid
relationships and mutual trust and
are even a vital component of the
materiality process. In 2022, about
3,000 stakeholders were engaged in
the materiality analysis that steers
corporate strategy and guides the
definition of the Strategic Plan. The
continuous dialogue that touches
all corporate functions with different
involvement and
roles,
responsibilities allows to understand
the expectations and needs of Eni’s
stakeholders, present in 62 countries
with very different characteristics
and contexts. To support
the
relationship with local stakeholders,
Eni uses the company’s “Stakeholder
(SMS)
Management
application, which maps some 5,300
stakeholders and which allows
constant and timely management of
grievances and requests.
levels of
System”
CATEGORIES
ENI’S PEOPLE AND NATIONAL
AND INTERNATIONAL UNIONS
RELEVANT THEMES
Combating climate change
Health and safety of workers
Innovation
Development of human capital
Diversity, inclusion and work-life balance
Reduction of environmental impacts
FINANCIAL COMMUNITY
LOCAL COMMUNITIES
AND COMMUNITY BASED
ORGANISATIONS
CONTRACTORS, SUPPLIERS
AND COMMERCIAL PARTNERS
Economic and financial strategy and performance(*)
Combating climate change
Reduction of environmental impacts
Protection of human rights
Transparency, anti-corruption and tax strategy
Circular economy
Local development
Transparency, anti-corruption and tax strategy
Reduction of environmental impacts
Access to energy
Responsible supply chain management
Protection of human rights
Health and safety of workers
Combating climate change
Protection of human rights
Development of human capital
Diversity, inclusion and work-life balance
Digitalisation and Cyber security
CUSTOMERS
AND CONSUMERS
NATIONAL, EUROPEAN
AND INTERNATIONAL
INSTITUTIONS
UNIVERSITIES,
RESEARCH CENTRES
AND INNOVATION HUBS
VOLUNTARY ADVOCACY
AND CATEGORY
ORGANIZATIONS
AND INDUSTRY
ASSOCIATIONS
Customer relations
Innovation
Reduction of environmental impacts
Combating climate change
Circular economy
Digitalisation and Cyber security
Combating climate change
Reduction of environmental impacts
Access to energy
Circular economy
Innovation
Energy Security(*)
Combating climate change
Innovation
Reduction of environmental impacts
Local development
Circular economy
Protection of human rights
Development of human capital
Circular economy
Reduction of environmental impacts
Health and safety of workers
Innovation
Combating climate change
Local development
Combating climate change
Circular economy
Access to energy
Innovation
Health and safety of workers
(*) Corporate functions indicated the topics with an
asterisk as prominent in the interaction with the
stakeholder of reference. The topics reported
the materiality analysis, not
emerged
necessarily in the order presented. Each function
highlighted six out of the sixteen material topics.
from
ORGANISATIONS FOR
DEVELOPMENT COOPERATION
2022 MAIN ENGAGEMENT ACTIVITIES
THE YEAR IN NUMBERS
• Professional and training paths on emerging skills related to business strategies and entrepreneurship development.
• Training initiatives to support inclusion and recognition of the value of all kinds of diversity.
• Climate analysis to collect employees’ opinions about the company.
• International initiatives to support team building, mobility and training to foster internationality.
• Finalisation and/or signing of agreements with trade unions, including the one for Smart Working in Italy and gradual extension abroad, for Eni people’s
well-being initiatives, the 2022-2023 expansion contract and renewal of the sector’s collective bargaining agreements.
• Capital Markets Day (2022-25 strategic plan and long-term plan to 2050) and virtual Roadshow on the main financial exchanges.
• Roadshows with investors and proxy advisors on executive remuneration.
• Conference call on the quarterly results.
• Participation of Top Management in thematic conferences organised by banks.
• Participation in theme conferences and ongoing engagement with institutional investors and leading ESG rating agencies.
meetings/calls with investors
• Listening to consumers, customers and involving CAs for product insights, service evaluation and monitoring to improve satisfaction, quality and corporate
at Open-es
• Consult with local authorities and communities for new exploration activities and/or the development of new business projects and local development
• Consult with communities and other stakeholders in countries where impact studies were conducted, including Social and Human Rights Impact
projects.
Assessments.
• Manage requests and grievances from local communities.
• Regular communication on project progress and workshops on Local Content opportunities.
• Awareness-raising campaigns in local communities on health issues and the use of improved cookstoves.
• Awareness-raising initiatives and supplier involvement in thematic webinars, workshops, and educational and informational events to foster widespread
• Expansion of the Open-es community, strengthening the initiative with more development tools and services, and providing a training program open to all
sustainability awareness throughout the supply chain.
companies on ESG priority topics.
• Human Rights Due Diligence: extending the application of the risk-based model to prevent and mitigate risks in the entire supply chain.
• Basket bond - Sustainable Energy program, an innovative finance instrument addressing Eni’s suppliers and the energy chain, to provide access to financial
resources for projects aimed at sustainable development.
• Meetings and workshops with Presidents, General Secretaries and Energy Managers of national and local Consumer Associations (CAs) on energy transition
• Territorial meetings with regional Consumer Associations of the National Council of Consumers and Users and sponsoring of the CAs initiatives on various
issues and business initiatives.
sustainability topics.
positioning.
• Presentation to the CA of results, objectives and future strategies for developing and implementing customer centricity.
• Participation in joint commissions, meetings and round tables with local, national, European and international institutions and organisations on business,
geopolitical and energy scenarios, including decarbonization, agribusiness, sustainable development, etc.
• Representation of Eni’s position on energy transition and decarbonization in public events and the main international multilateral fora (e.g. G20, B20, COP27).
• Institutional engagement and dialogue within the context of partnerships and memberships with national, European and international think tanks and
associations and with international bodies and/or European institutions on energy transition, environment and sustainable mobility.
• Presentation of projects, visits by associations and national institutional and political delegations at industrial plants, operational sites and research centres.
• Research agreements with the Universities of Milan - Bicocca and Pisa, and ENEA for energy transition and decarbonization.
• Continuation of cooperation activities with a) Politecnico di Milano and Torino; Universities of Bologna, Naples, Pavia, Padua, and Pisa; MIT, CNR, INSTM
Consortium, ENEA and INGV; b) with CNR for four joint research centres for environmental and economic development. Training collaborations with: LUISS
University, IULM University, Rome Tre University, and University of Florence.
• Establishment of a Joint Laboratory with the University of Bologna for new energy transition technologies.
• Participation as a founding member within the PNRR in four National Research Centres and two Innovation Ecosystems.
• Present in major national and international innovation hubs, agreements with innovation brokers, start-up incubators and accelerators.
• Membership and participation in OGCI, IETA, WEF, IPIECA, IOGP, WBCSD, UN GLOBAL COMPACT, EITI, The Council for Inclusive Capitalism, Energy Compact
• Conferences, debates, events and training initiatives on sustainability topics; development of guidelines and sharing of best practices, capacity building for
and collaborations with international human rights institutions.
carbon credit generation and use.
• Meetings with regional and professional business associations for the Sustainable Supply Chain and energy topics, and supporting lines of business by
verifying common positions and decarbonization studies.
• Collaboration agreement with Confindustria for the 4th Circular Economy Best Performer Competition and the 2nd Circular Bootcamp.
• Consolidate the development activities conducted in Countries with cooperation organisations through collaboration/partnership agreements. Agreements
were signed with UNIDO and UNESCO; national cooperation bodies and agencies such as AICS, EGPC, the Nabeul Governorate (Tunisia) and SETAB; civil
society organisations (CSO); and private sector organisations such as Centro Cardiologico Monzino IRCCS, CNH Industrial and Iveco Group.
• Collaborations continued with UNDP, USAID; financial institutions such as World Bank, CDP and Standard Bank; ministries of health of host Countries; and civil
social-economic development
society organisations (CSO).
79%
Eni climate analysis
participation rate
>600
investors met
360
and agencies
1,200
people involved in Social
and Human Rights Impact
Assessment
751
local communities mapped
(including indigenous)
341
handled
requests and grievances
>10,000
companies participating
>500
Consumer Association
representatives met
~200
disbursed
university scholarships
55
scholarships funded/
co-funded for PhDs
24
launched
joint research projects
>100
incubated/accelerated
innovative start-ups
30
agreements signed for
and health initiatives
ENI ANNUAL REPORT 2022 17
CATEGORIES
RELEVANT THEMES
2022 MAIN ENGAGEMENT ACTIVITIES
THE YEAR IN NUMBERS
ENI’S PEOPLE AND NATIONAL
AND INTERNATIONAL UNIONS
FINANCIAL COMMUNITY
LOCAL COMMUNITIES
AND COMMUNITY BASED
ORGANISATIONS
CONTRACTORS, SUPPLIERS
AND COMMERCIAL PARTNERS
CUSTOMERS
AND CONSUMERS
NATIONAL, EUROPEAN
AND INTERNATIONAL
INSTITUTIONS
UNIVERSITIES,
RESEARCH CENTRES
AND INNOVATION HUBS
VOLUNTARY ADVOCACY
AND CATEGORY
ORGANIZATIONS
AND INDUSTRY
ASSOCIATIONS
ORGANISATIONS FOR
DEVELOPMENT COOPERATION
Combating climate change
Health and safety of workers
Innovation
Development of human capital
Diversity, inclusion and work-life balance
Reduction of environmental impacts
Economic and financial strategy and performance(*)
Combating climate change
Reduction of environmental impacts
Protection of human rights
Transparency, anti-corruption and tax strategy
Circular economy
Local development
Transparency, anti-corruption and tax strategy
Reduction of environmental impacts
Access to energy
Responsible supply chain management
Protection of human rights
Health and safety of workers
Combating climate change
Protection of human rights
Development of human capital
Diversity, inclusion and work-life balance
Digitalisation and Cyber security
Customer relations
Innovation
Reduction of environmental impacts
Combating climate change
Circular economy
Digitalisation and Cyber security
Combating climate change
Reduction of environmental impacts
Access to energy
Circular economy
Innovation
Energy Security(*)
Combating climate change
Innovation
Reduction of environmental impacts
Local development
Circular economy
Protection of human rights
Development of human capital
Circular economy
Reduction of environmental impacts
Health and safety of workers
Innovation
Combating climate change
Local development
Combating climate change
Circular economy
Access to energy
Innovation
Health and safety of workers
• Professional and training paths on emerging skills related to business strategies and entrepreneurship development.
• Training initiatives to support inclusion and recognition of the value of all kinds of diversity.
• Climate analysis to collect employees’ opinions about the company.
• International initiatives to support team building, mobility and training to foster internationality.
• Finalisation and/or signing of agreements with trade unions, including the one for Smart Working in Italy and gradual extension abroad, for Eni people’s
79%
Eni climate analysis
participation rate
well-being initiatives, the 2022-2023 expansion contract and renewal of the sector’s collective bargaining agreements.
• Capital Markets Day (2022-25 strategic plan and long-term plan to 2050) and virtual Roadshow on the main financial exchanges.
• Roadshows with investors and proxy advisors on executive remuneration.
• Conference call on the quarterly results.
• Participation of Top Management in thematic conferences organised by banks.
• Participation in theme conferences and ongoing engagement with institutional investors and leading ESG rating agencies.
• Consult with local authorities and communities for new exploration activities and/or the development of new business projects and local development
projects.
• Consult with communities and other stakeholders in countries where impact studies were conducted, including Social and Human Rights Impact
Assessments.
• Manage requests and grievances from local communities.
• Regular communication on project progress and workshops on Local Content opportunities.
• Awareness-raising campaigns in local communities on health issues and the use of improved cookstoves.
• Awareness-raising initiatives and supplier involvement in thematic webinars, workshops, and educational and informational events to foster widespread
sustainability awareness throughout the supply chain.
• Expansion of the Open-es community, strengthening the initiative with more development tools and services, and providing a training program open to all
companies on ESG priority topics.
• Human Rights Due Diligence: extending the application of the risk-based model to prevent and mitigate risks in the entire supply chain.
• Basket bond - Sustainable Energy program, an innovative finance instrument addressing Eni’s suppliers and the energy chain, to provide access to financial
resources for projects aimed at sustainable development.
• Meetings and workshops with Presidents, General Secretaries and Energy Managers of national and local Consumer Associations (CAs) on energy transition
issues and business initiatives.
• Territorial meetings with regional Consumer Associations of the National Council of Consumers and Users and sponsoring of the CAs initiatives on various
sustainability topics.
• Listening to consumers, customers and involving CAs for product insights, service evaluation and monitoring to improve satisfaction, quality and corporate
positioning.
• Presentation to the CA of results, objectives and future strategies for developing and implementing customer centricity.
• Participation in joint commissions, meetings and round tables with local, national, European and international institutions and organisations on business,
geopolitical and energy scenarios, including decarbonization, agribusiness, sustainable development, etc.
• Representation of Eni’s position on energy transition and decarbonization in public events and the main international multilateral fora (e.g. G20, B20, COP27).
• Institutional engagement and dialogue within the context of partnerships and memberships with national, European and international think tanks and
associations and with international bodies and/or European institutions on energy transition, environment and sustainable mobility.
• Presentation of projects, visits by associations and national institutional and political delegations at industrial plants, operational sites and research centres.
• Research agreements with the Universities of Milan - Bicocca and Pisa, and ENEA for energy transition and decarbonization.
• Continuation of cooperation activities with a) Politecnico di Milano and Torino; Universities of Bologna, Naples, Pavia, Padua, and Pisa; MIT, CNR, INSTM
Consortium, ENEA and INGV; b) with CNR for four joint research centres for environmental and economic development. Training collaborations with: LUISS
University, IULM University, Rome Tre University, and University of Florence.
• Establishment of a Joint Laboratory with the University of Bologna for new energy transition technologies.
• Participation as a founding member within the PNRR in four National Research Centres and two Innovation Ecosystems.
• Present in major national and international innovation hubs, agreements with innovation brokers, start-up incubators and accelerators.
• Membership and participation in OGCI, IETA, WEF, IPIECA, IOGP, WBCSD, UN GLOBAL COMPACT, EITI, The Council for Inclusive Capitalism, Energy Compact
and collaborations with international human rights institutions.
• Conferences, debates, events and training initiatives on sustainability topics; development of guidelines and sharing of best practices, capacity building for
carbon credit generation and use.
• Meetings with regional and professional business associations for the Sustainable Supply Chain and energy topics, and supporting lines of business by
verifying common positions and decarbonization studies.
• Collaboration agreement with Confindustria for the 4th Circular Economy Best Performer Competition and the 2nd Circular Bootcamp.
>600
investors met
360
meetings/calls with investors
and agencies
1,200
people involved in Social
and Human Rights Impact
Assessment
751
local communities mapped
(including indigenous)
341
requests and grievances
handled
>10,000
companies participating
at Open-es
>500
Consumer Association
representatives met
~200
university scholarships
disbursed
55
scholarships funded/
co-funded for PhDs
24
joint research projects
launched
>100
incubated/accelerated
innovative start-ups
• Consolidate the development activities conducted in Countries with cooperation organisations through collaboration/partnership agreements. Agreements
were signed with UNIDO and UNESCO; national cooperation bodies and agencies such as AICS, EGPC, the Nabeul Governorate (Tunisia) and SETAB; civil
society organisations (CSO); and private sector organisations such as Centro Cardiologico Monzino IRCCS, CNH Industrial and Iveco Group.
• Collaborations continued with UNDP, USAID; financial institutions such as World Bank, CDP and Standard Bank; ministries of health of host Countries; and civil
society organisations (CSO).
30
agreements signed for
social-economic development
and health initiatives
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 18
Strategy
“The Plan confirms the strength and effectiveness of our strategy. In 2014 we undertook an
industrial and financial transformation path which progressively enabled us to create value
even in difficult scenarios, delivering security of supplies and environmental sustainability. We
have been focusing our exploration and production strategy mainly on gas, leveraging our own
production and diversifying our investments across different countries. This has enabled us to
put in place our Plan aimed at replacing 20 billion cubic meters of Russian gas by 2025. We have
been transforming our downstream platform and invested in technology to create and grow our
transition businesses aiming at net zero Scope 1, 2 and 3 emissions. This enables us today to
fully confirm our decarbonization targets despite the current energy security scenario and the
need to respond to a strong demand for traditional sources. Today we can clearly outline how
the Company will be in 2030: our Upstream operations will no longer produce net emissions; our
hydrocarbon production will be composed mainly by gas; our biofuel capacity will exceed 5 million
CONFIRMING OUR
PATH TO
REDUCE GHG
EMISSIONS
NEW
ENERGY
SOLUTION
Net zero GHG lifecycle emissions
(Scope 1, 2 and 3) by 2050
Net GHG Lifecycle Emissions
(Scope 1, 2 and 3) vs. 2018:
-35% by 2030
-80% by 2040
Eni Net Carbon Footprint
(Scope 1 and 2)
Net zero emission by 2035
Net Carbon Footprint Upstream
(Scope 1 and 2)
-65% by 2025 (vs. 2018)
Net Zero emission by 2030
Plenitude
over 15 mln customers and
15 GW of renewable
capacity by 2030
Biorefinery
capacity at over
5 mln tonn/y from 2030
Magnetic fusion
expected
first commercial plant
by the next ten years
CAPEX
foreseen a growing share
of capex for new energy solutions:
30% by 2026
70% by 2030
until 85% by 2040
ENI ANNUAL REPORT 2022 19
tonnes per year; our renewable energy capacity will be more than 15 GW. And our investments
in the most revolutionary technology linked to the energy transition – the magnetic confinement
fusion – will be about to result in the first industrial plant.
Finally, we have deeply strengthened the Company from a financial point of view through
optimization and rationalization of expenditures, and this allows us today to present our strong
financial goals: a significant CFFO generated both from our traditional activities and with the
contribution of transition-related businesses; a satellite business model which allows us
to enhance the value of our businesses while freeing up additional resources for investment
in transition; and a very low debt level. Our financial robustness enables us today to create
increasing value for our shareholders and to enhance the remuneration policy.”
FINANCIAL
DISCIPLINE
4Y CAPEX
€37 bln
in 2023 around €9.5 bln
Internal Rate of Return
of new upstream projects
~25% at Eni scenario
Cash flow from operations
ante working capital
>€69 bln in the 4Y plan
at Eni scenario;
in 2023 >€17 bln
ROACE
13% on average in the 4Y plan
at 2023 constant scenario
Claudio Descalzi, Eni CEO
VALUE CREATION
FOR OUR
SHAREHOLDERS
Distribution of about
25-30% of CFFO ante working capital
through a combination of dividends
and buy-back
Annual dividend
€0.94 per share for the FY 2023
(+7% vs. 2022)
Dividend payment
expected in four equal quarterly tranches:
September and November 2023,
March and May 2024
Buy-back program
of €2.2 bln in 2023
(2x vs. 2022 policy @ 85 $/bl);
in conditions exceeding our scenario,
distribution of 35% of incremental CFFO to a
maximum threshold of buy-back equal to €3.5 bln
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 20
2023-2026 STRATEGIC PLAN
The 2023-2026 strategic plan builds on Eni’s track-record of operating and financial performance and
focusses on:
• energy security and affordability through geographical and technological diversification;
• emissions reduction;
• leveraging technology for today and for breakthrough opportunities;
• advancing satellite model, focused on the capability of independently accessing capital markets to
fund the growth and to reveal the real value of each businesses;
• delivering value for our shareholders.
GROUP STRATEGY
Eni’s financial strength enables the execution of its business strategy, provides flexibility across the
cycle and delivers return to its investors.
The 2023-2026 plan foresees:
• 2023 CFFO before working capital at replacement cost of over €17 billion, and over €69 billion along
the plan period. At a constant scenario, 2026 CFFO will be over 25% above 2023, driven by E&P, positive
contributions from all the business segments and growth from the main transition businesses of
Plenitude and Sustainable Mobility;
• Average ROACE at 13% over 2023-2026 at a constant 2023 scenario, +7 percentage points vs. 2010-
2019 average, confirming the profitability of Eni’s capital;
• 2023 Capex will be around €9.5 billion and €37 billion over the plan period. This represents +15% in
USD terms versus the outlook provided last year adjusted for inflation, reflecting new, high-quality
opportunities and acceleration or increase in scale of existing projects in the Upstream. These
projects deliver significant value and continue to do so well after the end of the Plan. Low and zero
carbon spending will be around 25% of the total capex;
• Over the 4-year plan, based on our scenario, Eni will generate organic FCF before working capital of
more than €32 billion;
• Leverage in the range of 10-20% over the plan period, confirming Eni capital and cost discipline, as
well as the quality of the Company’s portfolio.
NATURAL RESOURCES
EXPLORATION & PRODUCTION
Eni’s Upstream strategy envisages, in line with the target of carbon footprint reduction, the maximization of
returns and cash generation by leveraging excellence in exploration, fast track projects and the high quality of
our portfolio, confirmed by low technical costs and from high cash flow per barrel, at the top of the industry.
The evolution of the production mix envisages the progressive increase of the gas component up to
60% by 2030.
ENI ANNUAL REPORT 2022 21
Scope 1 and 2 net emissions of upstream activities are calculated considering equity production and
are expected to zeroing by 2030, leveraging on the energy efficiency and on Natural Climate Solutions
projects which will allow to net the residual emissions. Another driver to target Group decarbonization
goals is represented by capture and storage of CO2 projects.
The 2023-2026 plan foresees:
• Upstream free cash flow organic (pre working capital) per barrel increasing by 20% in 2026 compared
to 2023, at constant scenario;
• production growing at average of 3-4% over the 4-year plan period leveraging on ramp-ups and start-
ups of the period;
• upstream capex in the range of €6 and €6.5 billion per year in the 4Y 2023-2026;
• further development of integrated activities with the Global Gas & LNG Portfolio segment to extract
value from equity gas;
• the valorization and razionalitation of exploration portfolio targeting 2.2 billion boe of new resources
at around $1.50 of exploration cost, of which 60% of discoveries to be gas. Exploration will be focused
(about 90%) in areas close to near-field producing assets and existing infrastructures;
• through CCS initiatives, 30 MPTA of carbon gross volume stored by 2030;
• agri-feedstock: over 700,000 tonnes in 2026 supplying Eni’s biorefineries.
GGP
In the plan period, GGP will continue the strategy of maximizing returns by leveraging a more diversified
and flexible portfolio and on a higher equity component.
The 2023-2026 foresees:
• the fully replacement of Russian gas volumes by 2025, leveraging on the strong relationships with
producing countries and its fast-track development approach to ramp-up volumes from Algeria,
Egypt, Mozambique, Congo LNG, and Qatar;
• the growth of contractual LNG volumes, expected to exceed 18 MTPA by 2026 (9 MTPA in 2022);
• the generation of 4-year adjusted Ebit totalling over €4 billion, of which an amount between
€1.7-€2.2 billion in 2023.
ENERGY EVOLUTION
REFINING & MARKETING
The Refining & Marketing strategy is focused on the development of alternative energy carriers and
mobility and personal services on the one hand, and on the progress of the transformation of traditional
refining assets in the energy transition path.
An important contributor to this better outlook is the growth of Eni Sustainable Mobility,
incorporated at the beginning of this year, combining biorefining, biomethane and the sale of
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 22
mobility products and targeted to evolve into a multi-service, multi-energy company, generating
and unlocking new value.
The 2023-2026 plan foresees:
• accelerating targeted biorefining capacity: over 3 MTPA by 2025 versus 2 MTPA previously, and more
than 5 MTPA by 2030, supported by recently announced initiatives in Italy, Malaysia and the US;
• vertical integration as a unique element of biorefining strategy;
• a network of over 5,000 sales points in Europe to market and distribute new energy carriers, as
electricity and, in perspective, hydrogen. Eni plans to add around 300 new stations over the plan
period;
• the transformation of the industrial set-up through the conversion of the production circuit, developing
circular economy initiatives leveraging on innovative technologies;
• Sustainable Mobility EBITDA of €1.5 billion by 2026, growing at average of 20% CAGR versus 2023,
contributing to the raised expectations for the Downstream.
VERSALIS
Versalis will move into sustainable profitability over the course of the Plan, thanks to the transformation
to a structurally more sustainable and competitive business mix.
It will continue its transformation into a fully specialized and sustainable chemical company.
The 2023-2026 plan foresses:
• the growth in target markets with investments in its compounding platform and in new technologies;
• developing circular economy initiatives and complementary recycling processes.
PLENITUDE
The main Plenitude strategic guidelines for the medium/long-term foresee the synergic development
of installed capacity for energy production from renewable sources with a target of over 15 GW by
2030 and of the retail customer portfolio up to exceed 15 million supply contracts by 2030 through the
selection of growing areas in the renewable business linked to the presence of our customers.
The 2023-2026 plan foresees:
• the delivery of over 7 GW of installed capacity by 2026, supported by a strong pipeline of over 11 GW
of projects and opportunities;
• the growth of customer portfolio targeting over 11 million customers by 2026 leveraging on
international development and increasing power customer portfolio;
• the development of the E-Mobility market targeting to more than double its network of EV charging
points to over 30,000 by the end of the plan period;
• having delivered its target of over €600 million in pro-forma EBITDA in 2022, the Company expects to
triple this figure to €1.8 billion by 2026.
ENI ANNUAL REPORT 2022 23
POWER
The 2023-2026 strategic plan for the Power business foresees:
• results maximization thanks to power plant flexibility and efficiency;
• detection and development of new low carbon technological solutions.
OTHER ESG TARGETS1
Health and safety
Guarantee constant and continuous attention to people, protecting their safety and health.
Human capital
Manage the impact of the energy transition on employees and communities with a view to Just Transition;
develop professional skills for the new businesses; promote the strengthening of gender equality and the
enhancement of diversity (+3 percentage points of female presence by 2030 vs. 2020); further develop
innovative and agile working solutions by enhancing the welfare solutions and work-life balance.
Environment
Ensure constant and continuous attention to the efficient use of natural resources, in compliance with
the highest technical and management standards.
Human rights, transparency and integrity
Ensure maximum attention to integrity, transparency, equal dignity of people and respect for human
rights. Continue to involve suppliers in the energy transition process.
Local development
Implement 75 Local Development Projects in the countries where we operate with an overall commitment
of €326 million (Eni’s share) in the four-year period 2023-2026, improving living conditions for 932
thousand beneficiaries through energy access initiatives, education, water, economic diversification
and health.
(1) For more details see the section “Responsible and Sustainable Approach” of the Eni’s Consolidated Disclosure of Non-
Financial Information.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
24
Integrated Risk Management
The Integrated Risk
Management (IRM)
process is aimed
at ensuring that
management takes
risk-informed decisions,
with adequate
consideration of
actual and prospective
risks, including short,
medium and
long-term ones,
within the framework
of an organic and
comprehensive vision
INTEGRATED RISK MANAGEMENT MODEL
The IRM Model is based on a system of methodologies and skills that leverages on criteria
that ensure consistency of the evaluations (data quality, objectivity of the detection and
quantification of the mitigation actions) in order to improve the effectiveness of the analyses,
ensure an adequate support for the main decision making processes (definition of the
Strategic Plan) and guarantee the disclosure to the administration and control structures.
The IRM Model is characterized by a structured approach, based on international best
practices and considering the guidelines of the Internal Control and Risk Management
System (see page 39), that is structured on three control levels.
Risk Governance attributes a central role to the Board of Directors (BoD) which defines the
nature and level of risk in line with strategic targets, including in evaluation process all the
elements that can be relevant in a view of the Company’s sustainable success.
The BoD, with the support of the Control and Risk Committee, outlines the guidelines for
risk management, so as to ensure that the main corporate risks are properly identified and
adequately assessed, managed and monitored, determining the degree of compatibility with
company management consistent with the strategic targets. For this purpose, Eni’s CEO,
through the IRM process, presents every three months a review of the Eni’s main risks to the
Board of Directors. The analysis is based on the scope of the work and risks specific of each
business area and processes aiming at defining an Integrated Risk Management policy; the
CEO also ensures the evolution of the IRM process consistently with business dynamics
BOARD OF DIRECTORS
CHAIRMAN
231 SUPERVISORY
BODY
BOARD OF
STATUTORY AUDITORS
CONTROL AND RISK
COMMITTEE
CEO(a)
COMPLIANCE COMMITTEE
RISK COMMITTEE
FIRST LEVEL
OF CONTROL
SECOND LEVEL OF CONTROL
RISK
OWNER
Process Owner
Compliance/
Governance
Functions
identified in the
Compliance/
Governance
models
Financial
Reporting Officer
Process Owner
core business
and business
support
processes
Dedicated/
non-exclusively-
dedicated functions
(if any)
Risk specialist
Planning
and control
THIRD LEVEL
OF CONTROL
INTERNAL
AUDIT(C)
Integrated Compliance
Integrated Risk Management
Compliance Objectives(b)
Strategic, Operating and Reporting Objectives
(a) In charge of establishing and maintaining of the ICRMS.
(b) Including objectives on the reliability of financial reporting.
(c) The Internal Audit Director reports hierarchically to the Board and, on its behalf, to the Chairman, without prejudice to its functional reporting to the Control and Risk Committee and to the CEO,
and without prejudice to the provisions concerning the appointment, revocation, remuneration and allocation of resources.
ENI ANNUAL REPORT 2022 25
and the regulatory environment. Furthermore, the Risk Committee, chaired by the CEO, holds the role of
consulting body for the latter with regards to major risks. For this purpose, the Risk Committee evaluates
and expresses opinions, at the instance of CEO, related to the main results of the IRM process.
INTEGRATED RISK MANAGEMENT PROCESS
The IRM process ensures the detection, consolidation and analysis of all Eni’s risks and supports the
BoD to verify the compatibility of the risk profile with the strategic targets, also in a medium/long-term
approach. The IRM supports management in the decision-making process by strengthening awareness
of the risk profile and the associated mitigations. The process, regulated by the “Management System
Guideline (MSG) Integrated Risk Management” is continuous, dynamic and includes the following
sub-processes: (i) Risk governance, methodologies and tools (ii) Risk Strategy, (iii) Integrated Rrisk
Management, (iv) Risk knowledge, training and communication.
The IRM process starts from the specialist contribution to the elaboration of the Strategic Plan
provided on the basis of the overall risk management activity, with particular reference to the
definition of the de-risking areas, the analysis of the risk profile underlying the Plan proposal and the
identification of the main actions with effective de-risking of the strategic company’s top risks. The
results of the activities are presented to the Administrative and Control structures in times consistent
with the Strategic Planning process.
The “Integrated Risk Management” sub-process includes: periodic risk assessment and monitoring
cycles (Integrated Risk Assessment) in order to understand the risks taken on the basis of the strategic
targets and the initiatives defined to achieve them; contract risk management and analysis aimed at
the best allocation of the contractual responsibilities with the supplier and their adequate management
in the operational phase; integrated analysis of existing risks in the Countries of presence or potential
interest (ICR) which represents a reference for risk strategy, risk assessment and project risk analysis
activities; support to the decision-making process for the authorization of investment projects and main
transactions (Integrated Project Risk Management and M&A).
The risks are assessed with quantitative and qualitative tools considering both the likelihood of occurrence
and the impacts that would occur in a defined time horizon when the risk occurs.
The assessment is expressed following an inherent and a residual level (taking into account the
effectiveness of the mitigation actions) and allows to measure the impact with respect to the achievement
of the objectives of the Strategic Plan and for the whole life as regards the business. The risks are
represented on the basis of the likelihood of occurrence and the impact on matrices that allow their
comparison and classification by relevance. Risks with economic/financial impact are also analyzed in
an integrated perspective on the basis of quantitative models that allow to define on a statistical basis
the distribution of risk flows or to simulate the aggregate impact of risks in the face of hypothetical future
scenarios (what if analysis or stress test).
In 2022, two assessment sessions were performed: the Annual Risk Profile Assessment performed in
the first half of the year, involving 134 companies in 45 Countries and the Interim Top Risk Assessment
performed in the second half of the year, relating to the update of the evaluation and treatment of Eni’s
top risks and the main business risks.
The two assessment results were submitted to Eni’s management and control bodies in July and
December 2022. In addition, three monitoring processes were performed on Eni’s top risks.
The monitoring of such risks and the relevant treatment plans allow to analyze the risks evolution
(through update of appropriate indicators) and the progress in the implementation of specific treatment
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 26
measures decided by management. The top risks monitoring results were submitted to the management
and control bodies in March, July and October 2022.
The risk knowledge, training and communication sub-process is aimed at increasing the diffusion of
the culture of risk, at strengthening a common language among the resources that operate in the risk
management area across the different Eni businesses as well as sharing information and experiences,
also through the development of a community of practice.
Eni’s top risks portfolio consists of 19 risks classified in: (i) external risks, (ii) strategic risks and, finally,
(iii) operational risks (see Targets, risks and treatment measures on the following pages).
IRM – Integrated Risk Management
Risk-based process
1 RISK GOVERNANCE, METHODOLOGIES AND INSTRUMENTS
2 RISK STRATEGY
3 INTEGRATED RISK MANAGEMENT
4 RISK KNOWLEDGE, TRAINING AND COMMUNICATION
TARGETS, MAIN RISKS AND TREATMENT MEASURES
STRATEGIC RISK
SCENARIO
MAIN RISK
EVENTS
Commodities price scenario, overview of the risk of unfavorable fluctuations in the prices of Brent, Gas and
other commodities compared to planning assumptions.
TREATMENT
MEASURES
• Focus on portfolio resilience and flexibility through: cash generation of traditional businesses, growth of new
businesses, portfolio optimization and investment maneuver;
• optimization of the gas contract portfolio through price revision processes and flexibility of physical withdrawals;
• active strategy of portfolio hedging in relation to the market conditions and the geopolitical context evolution;
• optimization of traditional business industrial structures;
• enhancement of biorefining capacity through conversion of traditional refining productive assets and selective
partnerships in projects in differentiated geographical areas;
• specialization of the chemical portfolio towards higher value-added products and markets; chemical
development from renewable/bio and recycling feedstocks;
• maximization of value from power services market and initiatives to promote the decarbonisation of power
generation;
• maximization of synergies between the renewable capacity under development and power customer portfolio
(integrated energy management and hedging with customer portfolio) and further revenues securitization
through participation in auctions and signing of PPA.
CONTRACTION
IN DEMAND/
COMPETITIVE
ENVIRONMENT
MAIN RISK
EVENTS
TREATMENT
MEASURES
Contraction in demand/competitive environment, relating to the market demand and supply imbalance or
an increase in competitiveness leading to: (i) reduction of sale volumes, (ii) increase difficulties in defending
customer base/develop growth initiatives, (iii) generate adverse dynamics in the prices of finished products,
(iv) reduction of demand.
• Development of the Gas and LNG portfolio with an increasing equity share from Upstream/GGP integrated
initiatives;
• optimization initiatives of Gas and LNG portfolio;
• active strategy of portfolio hedging in relation to the market conditions and the geopolitical context evolution;
• growth in the sustainable mobility business and selective development of Premium stations;
• differentiation of the chemical portfolio towards higher value-added products and extension of the downstream
chain towards compounding;
• development of chemical platforms from renewables and recycling;
• organic growth of retail gas and power customers with progressive integration with renewable energy
generation capacity and with the development of distributed generation and energy efficiency services;
• consolidation of the market position in the renewables business, in particular in the countries of retail presence
through the development of the pipeline of acquired projects, with a particular focus on Spain and Italy.
Eni’s target:
COMPANY PROFITABILITY
CORPORATE REPUTATION
RELATIONSHIP WITH STAKEHOLDERS, LOCAL DEVELOPMENT
ENI ANNUAL REPORT 2022 27
CLIMATE
CHANGE
MAIN RISK
EVENTS
TREATMENT
MEASURES
Climate change, referred to the possibility of change in scenario/climatic conditions which may generate phisical
risks and connected to energy transition (legislative, market, technological and reputational risks) on Eni’s
businesses in the short, medium and long-term.
• Structured governance with the central role of the Board in managing main issues connected with climate change,
presence of specific committees;
• medium and long-term plan to 2050, which combines business development guidelines for progressive industrial
transformation with ambitious targets for reducing GHG emissions associated with energy products sold by Eni,
as well as offsetting emissions;
• four-year plan with provision for each business of operational actions to support and implement the industrial
transformation shown in the medium and long-term plan;
• assessment of the resilience of the portfolio through stress tests based on low carbon scenarios;
• flexibility of strategy and investments;
• diversification with the development of new low carbon business/products;
• key role of low carbon research and technological development;
• short-term and long-term management incentive plans that include objectives related to the “climate strategy”
consistent with the guidelines defined in the Strategic Plan;
• leadership in disclosure and adherence to international initiatives;
• monitoring of jurisprudential trends in climate change.
EXTERNAL RISK
COMMERCIAL
COMMERCIAL
CREDIT RISK
CREDIT RISK
MAIN RISK
EVENTS
Commercial credit risk, referring to the possible non-fulfilment of the obligations assumed by a counterparty,
with impacts on the economic and financial situation and the achievement of company’s targets.
TREATMENT
MEASURES
• Centralised credit model and operative coordination in multi-business customer management;
• risk-mitigating management actions: guarantees, factoring, insurance coverage;
• systematic monitoring of entrusted counterparties’ risk indicators and timely alerting mechanisms.
BIOLOGICAL
BIOLOGICAL
MAIN RISK
EVENTS
Risk related to the spread of pandemics and epidemics with potential impacts on people, health infrastructures
and business.
TREATMENT
MEASURES
• Eni Crisis Unit’s constant guidance and monitoring to align, coordinate and identify response actions;
• preparation and implementation of a plan to react to health emergencies (Medical Emergency Response Plan
- MERP) to be adopted by all Eni subsidiaries and employers. The plan is also aimed at defining a business
continuity plan;
• adherence to the national vaccine campaign, also through the establishment of extraordinary vaccine centers
in the Company’s sites;
• technical-scientific direction activity carried out by the central functions to define prevention and treatment
measures to be declined and implemented at the business level.
GEOPOLITICAL
GEOPOLITICAL
MAIN RISK
EVENTS
Geopolitical, impact of geopolitical issues on strategic actions and business operations.
TREATMENT
MEASURES
• Geographical diversification of gas supply portfolio;
• institutional activities with national and international players in order to overcome crisis situations;
• continuous monitoring of the environment, mainly focused on the critical political/institutional developments
and regulatory aspects which can potentially affect the business;
• enhancement of Eni’s presence leveraging on sustainability’s initiatives, with particular focus on the economic
and social issues of Countries where the Company operates.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 28
COUNTRY
COUNTRY
MAIN RISK
EVENTS
Political and social instability, related to both political and social instability (in the countries where the Group
operates) and criminal/bunkering events against Eni and its subsidiaries, with potential repercussions in terms of
lower production, project delays, potential damage to people and assets.
Global security risk, relates to actions or fraudulent events which may negatively affect people and material and
immaterial assets.
Credit & Financing Risk, related to the financial stress of the partners and delays in credit proceeds and recovery
of the incurred costs.
TREATMENT
MEASURES
• Geographical diversification of portfolio through disposals and targeted and synergic acquisitions aimed at
reduce the overall risk profile;
• close cooperation with local authorities;
• mitigation actions for security risks through specific projects and programs for some more sensitive areas/sites
• presence of a security risk management system supported by analysis of country and site specific preventive
measures and implementation of emergency plans aimed at maximum safety of people and management of
activities and assets;
• signing of country-specific repayment plans using already tested contractual and/or financial instruments;
• request for sovereign guarantees and letters of credit to protect credit positions.
ENERGY SECTOR
ENERGY SECTOR
REGULATION
REGULATION
MAIN RISK
EVENTS
Energy sector regulation, impacts on the operations and competitiveness of the businesses associated with the
evolution of the energy sector regulation.
TREATMENT
MEASURES
• Monitoring of legislative and regulatory evolution; advocacy within the institutional processes of definition of
new directives or regulations targeted to decarbonisation and energy security;
• definition of strategic and operative actions in line with regulatory evolution:
- increase in the capacity of biorefineries and diversification of feedstock and products (phase out of palm oil,
agri-biofeedstock, Biojet production, biomethane development);
- chemical development from renewable sources and development of the advanced mechanical recycling and
technologies for chemical recycling;
- supply to retail customers of energy efficiency services, distributed generation development and synergies
with the renewable business.
RELATIONSHIPS
RELATIONSHIPS
WITH LOCAL
WITH LOCAL
STAKEHOLDERS
STAKEHOLDERS
MAIN RISK
EVENTS
TREATMENT
MEASURES
Relationships with local stakeholders of the energy industry.
• Integration of targets and sustainability projects (i.e. Community Investment) within the Strategic Plan and
the management incentive program;
• continuous dialogue with stakeholders to disclose the Eni’s sustainable approach, also through social and
local development projects and local content valorization;
• collaboration agreements with national and international organizations towards Public Private Partnership
(FAO, UNDP, UNESCO, UNIDO);
• respect and promotion of Human Rights through the implementation of the Human Rights Management
Model, impact analysis and the integration of Human Rights perspective in the business processes.
PERMITTING
PERMITTING
MAIN RISK
EVENTS
Permitting, relating to the occurrence of possible delays or failure to issue authorizations, renewals or permits by
the Public Administration with impacts on project times and costs as well as repercussions in social, environmental
and image and reputation terms.
TREATMENT
MEASURES
• Constant dialogue with the Institutions also with the aim of legislative proposal;
• hearings in parliamentary committees;
• continuous involvement from the early stages of the authorities and stakeholders on project’s targets and
progress;
• transfer and sharing of know-how with the bodies involved, also through greater involvement of technical bodies;
• supervision and monitoring of sectoral authorization procedures with the competent Local Authorities;
• visits/inspections of representatives of the institutions to the sites;
• start-up of Eni’s central platform functional to the management of the Permitting and Environmental Compliance
process of the operating sites.
Eni’s target:
COMPANY PROFITABILITY
CORPORATE REPUTATION
RELATIONSHIP WITH STAKEHOLDERS, LOCAL DEVELOPMENT
ENI ANNUAL REPORT 2022 29
OPERATIONAL RISK
ACCIDENTS
ACCIDENTS
MAIN RISK
EVENTS
Blowout risks and other accidents affecting the upstream assets, refineries and petrochemical plants, as
well as the transportation of hydrocarbons and derivatives by sea and land (i.e. fires, explosions, etc.) with
damages on people and assets and impacts on company profitability and reputation.
TREATMENT
MEASURES
• Insurance coverage;
• careful prevention action (application of new technologies) and real time monitoring for wells;
• proactive monitoring of incidental events with identification of weak signals in the Process Safety field and
completion of the actions resulting from Audit and Risk Assessment related to Process Safety issues;
• technological and operational improvements and continuous implementation of the Asset Integrity
Management system to prevent accidents together with the increase in plant reliability;
• vetting: management and coordination of activities relevant to assessment, inspection and technical
selection of ships, the assignment of a rating to operators;
• standard contractual specifications in maritime transport;
• Contract Risk Management (Pre/Post award);
• continuous training activities.
CYBER SECURITY
CYBER SECURITY
MAIN RISK
EVENTS
Cyber Security & Industrial espionage, refers to cyber attacks aimed at compromising information (ICT)
and industrial (ICS) systems, as well as the subtraction of Eni’s sensitive data.
TREATMENT
MEASURES
• Centralized governance model of Cyber Security, with units dedicated to cyber intelligence and prevention,
monitoring and management of cyber attacks;
• strengthening of Cyber Security Operation infrastructures and services;
• strengthening of safeguards for foreign subsidiaries and industrial sites;
• increased detection capacity by implementing specific IoC (Compromise Indicators) from institutional
sources and Cyber Threat Intelligence providers;
• promotion of the corporate culture in the Cyber Security also through targeted initiatives (phishing
simulation);
• raising of the monitoring level of security events.
INVESTIGATIONS
INVESTIGATIONS
AND HSE
AND HSE
PROCEEDINGS
PROCEEDINGS
MAIN RISK
EVENTS
Environmental, health and safety proceedings may trigger impacts on company profitability (costs for
remediation activities and/or plant implementation), operating activities and corporate reputation.
TREATMENT
MEASURES
• Specialist assistance for Eni SpA and the Italian and foreign unlisted subsidiaries;
• continuous monitoring of regulatory developments and constant evaluation of the adequacy of existing
presidium and control models;
• enhancement of the process of assigning and managing assignments to external professionals through
new methods aimed at ensuring transparency and traceability;
• monitoring of relations with the Public Administration and definition of routes for the management of
relevant problems and for the development of the territory;
• continuous monitoring of the efficacy and efficiency of reclamation activities;
• focused communications;
• collaboration with stakeholders and the Public Administration (e.g. Ministries, Higher Institute of Health,
Universities).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 30
Governance
Integrity and
transparency are
the principles
that have inspired
Eni in designing
its corporate
governance
system, a key
pillar of the
Company’s
business model
The governance system, flanking our business strategy, is intended to support the relationship of
trust between Eni and its stakeholders and to help achieve business goals, creating sustainable value
for the long-term.
Eni is committed to building a Corporate Governance system1 founded on excellence in our open
dialogue with the market and all stakeholders.
Starting from January 1st, 2021, Eni applies the recommendations of the 2020 Corporate Governance
Code, which Eni’s Board of Directors adopted on December 23, 2020.The Corporate Governance
Code identifies “sustainable success” as the objective that must guide the action of the management
body and which takes the form of creating long-term value for shareholders, taking into account
the interests of other relevant stakeholders. Eni, however, has been considering the interest of
stakeholders other than shareholders as one of the necessary elements Directors must evaluate
in making informed decisions since 2006. This approach is implemented in particular in the list
of powers that the Board of Directors has decided to reserve to itself exclusively, recently updated
on January 26, 2023 with the aim of further consolidating its duties in line with the Corporate
Governance Code, with the best national and international practices and with the Company and
Group’s transformation resulting from the transition process undertaken.
Eni is committed to building a Corporate Governance system founded on excellence in our open
dialogue with the market and all stakeholders. It is part of our efforts to ensure the effective exercise
of shareholders’ rights. In 2022 Eni continued to pursue a dialogue with the market on matters of
governance and to seize the opportunities deriving from studies and experience at the international
level, in spite of the complications associated with the health emergency which prevented more
immediate contacts, in particular with reference to the shareholders’ meeting. Shareholders were
granted all legal rights and additional information tools were provided in order to allow the greatest
possible involvement. The policy for managing dialogue with investors, approved on March 8, 2022
by Eni’s Board of Directors, upon the proposal of the Chairman and in agreement with the Chief
Executive Officer, was also adopted.
In line with the principles defined by the Board of Directors, Eni is committed to creating a Corporate
Governance system inspired by criteria of excellence, also participating in initiatives to improve it. In
particular, the various initiatives in 2022 included participating in working groups for in-depth analysis
of topics subject to European legislation such as corporate sustainability reporting and sustainability
due diligence, as well as in-depth studies on Say on Climate. In particular, in the occasion of the
Shareholders’ Meeting on May 11, 2022, in continuity with the previous year, a message was
published by the Chairman and the Chief Executive Officer about the climate transition, which asked
shareholders to express, through the designated representative, their opinions on the climate strategy
outlined in the document.
(1) For more detailed information on the Eni Corporate Governance system, please see the Corporate Governance and Shareholding
Structure Report drafted in accordance with Article 123-bis of Legislative Decree no. 58/1998 and published on the Company’s website in
the Governance section.
ENI ANNUAL REPORT 2022 31
THE ENI CORPORATE GOVERNANCE
Eni Corporate Governance model
Eni’s Corporate Governance structure is based on the traditional Italian model, which – without prejudice
to the role of the Shareholders’ Meeting – assigns the management of the Company to the Board of
Directors, supervisory functions to the Board of Statutory Auditors and statutory auditing to the Audit Firm.
Appointment and composition of corporate bodies
Eni’s Board of Directors and Board of Statutory Auditors, and their respective Chairmen, are elected by
the Shareholders’ Meeting. To ensure the presence of Directors and Statutory Auditors selected by non-
controlling shareholders a slate voting mechanism is used.
Eni’s Board of Directors and Board of Statutory Auditors2, whose term runs from May 2020 until the
Shareholders’ Meeting called to approve the 2022 financial statements, are made up of 9 and 5 members,
respectively. Three directors and two Standing Statutory Auditors, including the Chairman of the Board of
Statutory Auditors, were elected by non-controlling shareholders, thereby giving minority shareholders
(i.e. shareholders other than the controlling shareholder) a larger number of representatives than that
provided for under law. In deciding the composition of the Board of Directors, the Shareholders’ Meeting
was able to take account of the guidelines provided to investors by the previous Board with regard
to diversity, professionalism, experience and competence, also with reference to corporate strategies,
the Company’s transformation and energy transition. The outcome was a balanced and diversified
Board of Directors, as also confirmed by the results of the self-assessments conducted annually by the
Board, which showed a positive opinion on the professionalism within the Board in terms of knowledge,
experience and skills3 and on the individual contribution made by Directors to the Board in relation to
sustainability, ESG and the energy transition, topics that characterised the Board’s work for its entire
mandate. There was unanimous recognition of the effort and commitment of the entire Board to the
energy transition, climate change, sustainability and ESG, and within its role of strategic guidance and
monitoring in relation to the transition process undertaken. Significant support also came from the
Board Committees, especially from the Sustainability and Scenarios Committee due to its specific
functions, in terms of quality and depth of discussion about ESG topics and sustainability, as well as
topics related to the energy transition and climate change.
In 2020 the Board of Statutory Auditors had also prepared a shareholders’ advice providing indications
on the composition of the body in relation to the tasks it was called upon to perform. The composition of
the Board of Directors and of the Board of Statutory Auditors is also more diversified in gender terms, in
accordance with the provisions of applicable law and the By-laws. The latter was promptly amended to
be compliant with the law in February 2020 in view of the renewal of the corporate bodies. In particular,
for 6 consecutive terms the management and control bodies shall be composed of at least 2/5 of the
less represented gender. Furthermore, based on the assessments most recently carried out on February
22, 2023, the number of independent directors on the Board of Directors (74 of the 9 serving, of whom 8
are non-executive Director including the Chairwoman) remains greater than the number provided for in
the By-laws and by Corporate Governance Code. In light of the upcoming renewal in 2023 during approval
of the financial statements ended as at December 31, 2022 and, as recommended by the Corporate
(2) Following the resignation of a Standing Statutory Auditor on September 1st, 2020, replaced by an Alternate Statutory Auditor, the
Shareholders’ Meeting of May 12, 2021 appointed a Statutory Auditor and an alternate Auditor for the duration of the term of the
Board of Statutory Auditors in office, to restore full membership of the Board of Statutory Auditors.
(3) In particular, the Chief Executive Officer and Director Vermeir possess solid experience and expertise in the Company’s business
sector; Director Litvack, the current Chairman of the Sustainability and Scenarios Committee, on ESG topics.
(4) Independence as defined by applicable law, to which the Eni By-laws refer, and by the Corporate Governance Code.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 32
Governance Code, the Board of Directors, supported by the Nomination Committee and taking into
account the results of the self-assessment, with the support of the same independent external consultant
that assisted the Board in the self-assessment, including in order to take into account the perspective of
external stakeholders (filtered by the experience of that consultant), the best practices of reference and
the indications of the leading proxy advisors and the organisations of reference (in particular the Italian
Corporate Governance Committee), has expressed its guidelines for shareholders on the quantitative
and qualitative composition it considers to be optimal. The guidelines highlighted in particular the central
role of sustainability, ESG and energy transition expertise, also underlining the importance of ensuring
that Eni’s directors have knowledge of topics related to sustainability and climate and environment risk
control, operated in managerial or business roles and acquired in industrial contexts comparable to
those in which the Company operates. Similarly, the Board of Statutory Auditors expressed guidelines for
shareholders on its own quantitative and qualitative composition considered to be optimal.
COMPOSITION OF THE BOARD OF DIRECTORS
Gender diversity
Slate
67%
33%
Independence(a)
78%
Age(b)
78%
5 male
56%
4 female
44%
Majority 6
Minority 3
22%
Independent 7
Non-independent 2
22%
30-50 years 2
> 50 years 7
(a) Independence as defined by applicable law and Corporate Governance Code.
(b) Figures at December 31, 2022.
The structure of the Board of Directors
The Board of Directors appointed a Chief Executive Officer on May 14, 2020 and established four
internal committees with advisory and recommendation functions: the Control and Risk Committee , the
Remuneration Committee , the Nomination Committee and the Sustainability and Scenarios Committee.
The Committees report, through their Chairmen, on the main issues they address at each meeting of the
Board of Directors.
The Board of Directors also retained the Chairman’s major role in internal controls, with specific regard
to the Internal Audit unit. In agreement with the Chief Executive Officer, the Chairman proposes the
appointment, revocation and remuneration of its Head and the resources available to it, without prejudice
to the support to the Board of the Control and Risks Committee and the Nomination Committee, to the
extent of their competences, and having heard the Board of Statutory Auditors, and also directly manages
relations with the unit on behalf of the Board of Directors (without prejudice to the unit’s functional reporting
to the Control and Risk Committee and the Chief Executive Officer, in charge of the Internal Control and
Risk Management System). The Chairman is also involved in the appointment of the primary Eni officers
responsible for internal controls and risk management, including the officer in charge of preparing
financial reports, the members of the Watch Structure, the Head of Integrated Risk Management and
the Head of Integrated Compliance. Finally, the Board of Directors, acting on a recommendation of the
Chairman, appoints the Secretary, charged with providing assistance and advice to the Chairman, the
Board of Directors and the individual directors . In view of this role, the Secretary, who reports to the Board
(5) As regards the composition of the Control and Risk Committee, Eni requires that at least two members shall have appropriate
knowledge and experience with accounting, financial or risk management issues, exceeding the provision of the 2018 Corporate
Governance Code, in force at the time of the appointment, confirmed by the new Corporate Governance Code, which recommends only
one such member. In this regard, on May 14, 2020 the Eni Board of Directors determined that 2 of the 4 members of the Committee,
including the Chairman, have the appropriate experience.
(6) In line with the Recommendation of the 2018 Corporate Governance Code, in force at the time of the appointment, confirmed by
the new Corporate Governance Code, the Rules of the Remuneration Committee require that at least one member shall have adequate
knowledge and experience in finance or compensation policies. These qualifications are assessed by the Board of Directors at the time
of appointment. In this regard, on May 14, 2020 the Eni Board of Directors determined that all three members of the Committee have the
appropriate expertise and experience. The level of expertise and experience of the Committee members therefore exceeds that provided
for in the Committee Rules and Corporate Governance Code.
(7) The Charter of the Board Secretary and Board Counsel, attached to the Rules of the Board of Directors, is available on the Eni website,
in the Governance section.
ENI ANNUAL REPORT 2022 33
of Directors and, on its behalf, to the Chairman, must also meet professional requirements, as provided
for in the Corporate Governance Code, while the Chairman oversees his independence.
The following chart summarises the Company’s Corporate Governance structure as at December 31, 2022:
COMPANY’S CORPORATE GOVERNANCE STRUCTURE AS OF DECEMBER 31, 2022
BOARD OF DIRECTORS
CHAIRMAN(*)
Lucia Calvosa(b)
CHIEF EXECUTIVE OFFICER (CEO)
Claudio Descalzi(a)
DIRECTORS (NON-EXECUTIVE)
Ada Lucia De Cesaris(b)
C
Filippo Giansante(d)
Pietro A. Guindani(c)
C
Karina A. Litvack(c)
Emanuele Piccinno(b)
Nathalie Tocci(b)
Raphael Louis L. Vermeir(c)(e)
C
C
CONTROL AND RISK
COMMITTEE
NOMINATION
COMMITTEE
SUSTAINABILITY
AND SCENARIOS COMMITTEE
REMUNERATION
COMMITTEE
C
CHAIRMAN
ENI SPA
SHAREHOLDERS'
MEETING
BOARD OF STATUTORY AUDITORS
(Audit Committee SOA)
INTERNAL
AUDIT DIRECTOR
Gianfranco Cariola
BOARD SECRETARY
AND COUNSEL
Luca Franceschini(g)
CHAIRMAN
Rosalba Casiraghi(c)
STANDING
STATUTORY
AUDITORS(**)
Enrico Maria Bignami(c)
Marcella Caradonna(f)
Giovanna Ceribelli(b)
Marco Seracini(b)
AUDIT FIRM
PwC SpA
MAGISTRATE OF THE COURT
OF AUDITORS
Manuela Arrigucci
CHIEF OPERATING OFFICERS
231 SUPERVISORY BODY
Guido Brusco(h)
(Natural Resources)
Giuseppe Ricci
(Energy Evolution)
Attilio Befera (Chairman)(i)
Antonella Alfonsi(i)
Ugo Lecis(i)
Rosalba Casiraghi(l)
Gianfranco Cariola(m)
OFFICER IN CHARGE OF PREPARING
FINANCIAL REPORTS
Francesco Esposito
(a) Member appointed from the majority list.
(b) Member appointed from the majority list, independent pursuant to law and Corporate Governance Code.
(c) Member appointed from the minority list, independent pursuant to law and Corporate Governance Code.
(d) Member appointed from the majority list, non-executive.
(e) From April 29, 2021 he's lead independent director.
(f) Member appointed on May 12, 2021 on the proposal of the Ministry of Economy and Finance, independent pursuant to law and Corporate Governance Code.
(g) Also Integrated Compliance Director.
(h) From February 7, 2022. Until February 6, 2022, the Chief Operating Officer Natural Resources was Alessandro Puliti.
(i) External member.
(l) Chairman of the Board of Statutory Auditors.
(m) Internal Audit Director.
(*) Non-executive.
(**) Alternate Statutory Auditors:
- Roberto Maglio, member appointed on May 12, 2021 on the proposal of the Ministry of Economy and Finance;
- Claudia Mezzabotta, member appointed from the minority list.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
34
The following is a chart setting out the current macro-organizational structure of Eni SpA as at
December 31, 2022:
MACRO-ORGANIZATIONAL STRUCTURE OF ENI SPA AS OF DECEMBER 31, 2022
BOARD OF DIRECTORS
CHAIRMAN’S
OFFICE
LUCIA CALVOSA
Chairman of the Board
CLAUDIO DESCALZI
Chief Executive Officer
OFFICE OF THE CEO
LUCA FRANCESCHINI
GIANFRANCO CARIOLA
Board Secretary
and Counsel(a)
Internal Audit
Director(b)
ROBERTO ULISSI
LUCA FRANCESCHINI
Corporate Affairs
and Governance
Director
Integrated Compliance
Director
GRAZIA FIMIANI
Integrated Risk
Management
Director
STEFANO SPERONI
Legal Affairs and
Commercial Negotiations
Director
CLAUDIO GRANATA
FRANCESCA ZARRI
LAPO PISTELLI
ERIKA MANDRAFFINO
Human Capital &
Procurement Coordination
Director
Technology,
R&D & Digital
Director
Public Affairs
Director
External Communication
Director
GUIDO BRUSCO
FRANCESCO GATTEI
GIUSEPPE RICCI
Natural Resources
Chief Operating Officer(c)
Chief Financial
Officer
Energy Evolution
Chief Operating Officer
Deputy CRISTIAN SIGNORETTO
Deputy UMBERTO CARRARA
(a) The Board Secretary and Counsel reports hierarchically and functionally to the Board of Directors and, on its behalf, to the Chairman.
(b) The Internal Audit Director reports hierarchically to the Board and, on its behalf, to the Chairman, without prejudice to its functional reporting to the Control and Risk Committee and to the CEO, and without prejudice to
the provisions concerning the appointment, revocation, remuneration and allocation of resources.
(c) Since February 7, 2022. Until February 6, 2022 the Chief Operating Officer was Alessandro Puliti.
ENI ANNUAL REPORT 2022
35
Decision making
The Board of Directors entrusts the management of the Company to the Chief Executive Officer,
while retaining key strategic, operational and organizational powers for itself, especially as regards
governance, sustainability8, internal control and risk management.
Organizational arrangements
In recent years, the Board of Directors has devoted special attention to the Company’s organizational
arrangements, including a number of important measures being taken with regard to the Internal
Control and Risk Management System and compliance. More specifically, the Board decided that the
Integrated Risk Management function reports directly to the Chief Executive Officer and created an
Integrated Compliance function, also reporting to the Chief Executive Officer, separate from the Legal
unit. Furthermore, in June 2020, the Board redefined the organizational structure of the Company with
the establishment of two General Departments (Energy Evolution and Natural Resources), launching
a new structure consistent with the corporate mission and functional to the achievement of strategic
objectives.
Among the Board of Directors’ most important duties is the appointment of people to key management
and control positions in the Company, such as the officer in charge of preparing financial reports, the
Head of Internal Audit, the members of the Watch Structure. In performing these duties, the Board of
Directors is supported by the Nomination Committee.
Reporting flows
In order for the Board of Directors to perform its duties as effectively as possible, the Directors must be
in a position to assess the decisions they are called upon to make, possessing appropriate expertise
and information. The current members of the Board of Directors, who have a diversified range of skills
and experience, including on the international stage, are well qualified to conduct comprehensive
assessments of the variety of issues they face from multiple perspectives. The directors also receive
timely complete briefings on the issues on the agenda of the meetings of the Board of Directors. To
ensure this operates smoothly, Board meetings are governed by specific procedures that establish
deadlines for providing members with documentation and the Chairman ensures that each Director
can contribute effectively to Board discussions. The same documentation is provided to the Statutory
Auditors. In addition to meeting to perform the duties assigned to the Board of Statutory Auditors by
Italian law, including in its capacity as the “Internal Control and Audit Committee”, and by US law in its
capacity as the “Audit Committee”, the Statutory Auditors also participate in the meetings of the Board
of Directors and, also through individual members, at meetings of the Control and Risk Committee
thus ensuring the timely exchange of key information for the performance of their respective duties.
The Chairman, in agreement with the Chief Executive Officer supported by the Secretary of the Board,
ensures that the executives of the Company and of the Group companies responsible for the relevant
corporate functions connected with the items to be discussed attend the Board meetings, also at the
request of individual directors, to provide appropriate in-depth information on the items on the agenda.
Finally, the adequacy and timeliness of reporting flows towards the Board of Directors is subject to
periodic review by the same Board as part of the annual self-assessment process (see next section).
Board Review and ongoing training
On an annual basis, the Board of Directors conducts a self-assessment (the Board Review)9, for
which benchmarking against national and international best practices and an examination of Board
dynamics are essential elements, also with a view to provide shareholders with guidelines on the
most appropriate professional profiles for members of the Board. Following the Board Review, the
Board of Directors develops an action plan, if necessary, to improve the functioning of the Board
and its Committees.
(8) For more information concerning non-financial disclosures, please see the section of the Report on the Consolidated Disclosure of
Non-Financial Information (NFI), pursuant to Legislative Decree No. 254/2016.
(9) For more information on the Board Review process, see the section devoted to that process in the 2022 Corporate Governance and
Shareholding Structure Report.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 36
With reference to financial year 2022, the Board Review was carried out through questionnaires and
interviews that specifically looked at: (i) the size, functioning and composition of the Board and the
Committees, also taking into account elements such as professional characteristics, experience,
including in management, and diversity, including gender, of its members, as well as their seniority
in office; (ii) the strategic and Plan monitoring role, including ESG issues and the Internal Control and
Risk Management System. The Board Review for 2022 concluded at the meeting on February 22, 2023
with the presentation of the results of the process by the consultant. Confirming the positive elements
already emerged from previous board reviews, the presentation highlighted in particular a positive
evolution in: the mix of knowledge, experience and expertise acquired in relation to the businesses,
scenarios, the Plan’s strategic and monitoring role, the sectors in which the Company operates and
associated risks; the effective supporting role of the BoD in the process of energy diversification,
transition and security, topics that characterised the Board’s work for its entire mandate, in addition
to the commitment and time spent on ESG issues, sustainability and the energy transition and on the
adequate adoption of ESG principles into the Company’s policies; the functioning of the BoD in terms
of individual commitment dedicated to the role and in terms of efficacy of the joint proceedings,
considered balanced, competent and contributing, also by virtue of the effective consultation and
investigation support from the Board Committees; the role performed by the Chairman of the Board
in ensuring the correct function of the Board and the organisation of board meetings, in particular
for the timeliness, completeness and quality of the documentation made available; the role and
actions of the Chief Executive Officer, recognised for his excellent capacity for vision, innovation and
entrepreneurship, significant authority in leading the company, and managerial skills, including in
light of the important steps taken in the process launched for the overall and transformative energy
transition; the role of the Committees, leadership of the Chairmen and contribution made to the Board,
also recognised by the time and attention dedicated to them within the Board, as well as induction
activities, in terms of both scope and quality of the topics addressed. In the year 2022 it was decided
not to carry out the final peer review.
The Board of Statutory Auditors also conducted its own self-assessment in 2022.
For a number of years now, Eni has supported the Board of Directors and the Board of Statutory Auditors
with an induction programme, which involves the presentation of the activities and organization of Eni
by top management. Following the appointment of the Board of Directors and the Board of Statutory
Auditors, multiple induction sessions were held, open to Directors and Statutory Auditors, during
meetings of the Board of Directors, Board of Statutory Auditors and Board Committees, on topics
within the remit of the committees. In particular, the issues addressed during the mandate include
those relating to the corporate structure and its business model, Eni’s mission and decarbonisation
path, Eni’s positioning compared to its peers in terms of decarbonisation objectives and strategies, the
inclusion of climate-related risks and climate scenarios in the financial information, the transition in
emerging countries, the classification of sustainable economic activities based on the EU Taxonomy,
climate change, the environmental and social sustainability of Eni’s activities, human rights, governance,
compliance, the Internal Control and Risk Management System, accounting and tax issues, the new
responsibilities of directors on financial reporting according to the European Single Electronic Format –
ESEF – for annual financial reports, remuneration policy, human capital, the succession plan, as well as
internal regulations on transactions with related parties, cyber security and business strategies pursued
by the Company in the most important sectors.
With particular reference to induction and onboarding activities, also considering the positive assessment
emerging from the Board Review, the Board recommends that, in the next mandate, ongoing training
activities for the benefit of directors, especially on issues relating to the implementation and updating
of the strategic and energy transition plan.
The governance of sustainability
Eni’s governance structure reflects the Company’s willingness to integrate sustainability, including in the
form of “sustainable success” as outlined in the Corporate Governance Code, into its business model.
A central role is reserved for the Board of Directors, upon the proposal of the Chief Executive Officer, in
the definition of the strategic guidelines and objectives of the Company and the Group, pursuing their
ENI ANNUAL REPORT 2022 37
sustainable success and monitoring their implementation. In detail, a central theme in which the Board
of Directors plays a key role is the process of energy transition to a low carbon future10.
In this regard, the Board Review for 2022, carried out with the support of an independent external
consultant and completed in February 202311, provided extremely positive opinions on the mix of
knowledge, experience and expertise acquired and the commitment and time spent on ESG issues,
sustainability and the energy transition and on the adequate adoption of ESG principles into the
Company’s policies, as well as on the effective supporting role of the BoD in the process of energy
diversification, transition and security, topics that characterised the Board’s work for its entire mandate.
Furthermore, with a view to pursuing sustainable success, Eni’s Board of Directors, in line with the 2020
Corporate Governance Code, promotes dialogue with shareholders and other stakeholders relevant to
the Company. In particular, as already indicated, the Board, upon proposal of the Chairman in agreement
with the Chief Executive Officer, has adopted the policy for managing dialogue with shareholders, also in
order to ensure an orderly and consistent communication.
Another central issue of interest for the Board of Directors is respect for Human Rights. Eni continued
to implement its Declaration on Respect for Human Rights approved by Eni’s BoD in December 2018; in
particular, the management model was updated in order to ensure the performance of the due diligence
process according to the United Nations Guiding Principles on Business and Human Rights (UNGP).
Eni’s Board of Directors has a central role in the internal control and risk management system, within
which the economic and environmental impacts and the impacts on people of the Company’s activities
are also important. Particular reference is made to the role of the Board of Directors: when approving
business transactions reserved to it which also include the outcomes of the risk analysis and any
assessments of the ESG impacts associated with the transaction; when approving the strategic
plan which also includes the assessment of the associated risks and ESG impacts; when promoting
dialogue with shareholders and stakeholders and the related information flows; in the quarterly review
of the main risks, including relevant ESG risks; when defining the guidelines on the management and
control of financial risks when establishing the Sustainability and Scenarios Committee with the task
of supporting it with sustainability issues; when establishing the Control and Risk Committee with
the task of supporting it with issues related to the internal control and risk management system
(ICRMS); when approving and reviewing the regulatory instruments used to monitor risks and when
receiving information flows (such as regulatory instruments on transactions involving the interests of
the directors and statutory auditors and transactions with related parties, anti-corruption and internal
audits, as well as the ICRMS guidelines).
In its strategic guidance role, the Board also approves the Company’s Management, Supervision and
Control Model for Health, Safety and Environment, Security and Public Safety Risks, and its substantial
amendments; it conducts an annual evaluation of the HSE Report prepared by the Head of the competent
Company function and included in the flows relating to the ICRMS adequacy assessment.
For these issues, the Board also receives support from the Board Committees, within their respective
remit, by virtue of their preparatory, advisory and consultative functions.
In particular:
• Eni’s Control and Risk Committee assesses the suitability of periodic financial and non-financial
information to correctly represent, among other things, the impacts of the Company’s activities,
(10) For further information on the role of the Board of Directors in the process of energy transition and the pursuit of sustainable
success, see the section of this Report relating to the Consolidated Non-Financial Statement, pursuant to Legislative Decree no.
254/2016.
(11) In the wake of the outcomes of the self-assessment relating to the final year of the Board’s mandate, also relating to the topics
of climate change and the just transition combined with the requirements for energy security and the continuation of the Board’s
role in relation to this challenge, the outgoing Board expressed its guidelines for shareholders on the composition of the future
Board. The guidelines highlighted the possibility for the presence within the Board to be appointed, among others, of professional
figures who hold expertise and experience relating to sustainability issues, operated in managerial or business roles and acquired
in industrial contexts comparable to those in which Eni operates, and of international experience and knowledge of the energy
markets and the socio-political realities and countries in which the Company operates, and “soft skills” including, in particular, the
ability to analyse, define priorities and make decisions.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 38
and examines the content of periodic non-financial information relevant for the purposes of
the Internal Control and Risk Management System. To this end, it meets frequently with the
competent company management for such issues, analysing, among other things: (i) the main
issues with a view to drafting the annual and half-yearly financial reports as well as their essential
connotations and the contents of the Consolidated Non-Financial Statement; (ii) the main results
achieved by Eni in health, safety and environment, and the initiatives developed for the continuous
improvement of the related performance, including through use of new technologies; (iii) security
and cyber security issues; (iv) activities to protect asset integrity; (v) climate change risk and
specific associated aspects;
• the Sustainability and Scenarios Committee mainly examines the scenarios and topics associated
with sustainability, such as human rights (including the review of the HSE Report), health, well-being
and safety of people and communities, energy sustainability and climate change; environment and
efficiency in the use of resources; integrity and transparency. To this end, it receives information
from the managers of the company functions involved in said processes, who may be invited to
attend the Committee meetings.
The Sustainability and Scenarios Committee also coordinates with the Control and Risk Committee in
assessing the suitability of periodic financial and non-financial information, to correctly represent the
business model, Company strategies, the impact of its activity and performance achieved.
THE MAIN SUSTAINABILITY ISSUES ADDRESSED BY THE BOARD IN 2022
2022 Financial sustainability
strategy and sustainability
reporting
2021 Sustainability
Report: “Eni For”
Four-year and long-term Plan
(including non-financial targets)
Update of the UK “Modern Slavery Act”
and Australian “Modern Slavery Act”
statement
2021 Financial Statements,
including the consolidated
Non-Financial Statement
The Remuneration Report,
including sustainability targets
in the definition of performance plans
2021 HSE Report
The Chief Executive Officer and the Chief Operating Officers, in exercising their delegated powers, for
the implementation of the strategies defined by the Board, are responsible for the management of
the aforesaid risks with the support of the specialist company functions responsible, in particular, for
sustainable development, health, safety, environment and human resources.
Thanks to the growing commitment to transparency and to the business model built by Eni in recent
years to create long-term sustainable value, Eni’s stock has achieved the top positions in the most
popular ESG ratings and confirmed its presence in the main ESG indices12.
In particular, in 2022 Eni was confirmed in the MIB® ESG index of Borsa Italiana, the listed index of
blue chips for Italy dedicated to ESG best practice launched by Euronext and operated by Moody’s
ESG Solutions. Furthermore, Eni was included for the second year in a row in Bloomberg’s Gender
Equality Index (GEI), a market cap-weighted index that monitors the performance of listed companies
committed to the continuous improvement of gender equality. The index, which includes 484 companies
in 45 countries and regions, measures gender equality based on five pillars: female leadership and
(12) For timely updates on ESG indices and ratings of relevance to the financial markets, please refer to the Shareholder Relations
page of the 2022 Corporate Governance and Shareholding Structure Report and to the Investor Relations page of the site.
ENI ANNUAL REPORT 2022 39
talent pipeline; equal pay and gender pay parity; inclusive culture; anti-sexual harassment policies, and
integration of the perspective of gender in all areas of activity (e.g. support for external initiatives,
customers, supply chain, etc.).
The Sustainability and Scenarios Committee
In performing its duties in the field of sustainability, the Board is supported by the Sustainability and
Scenarios Committee, established for the first time in 2014 by the Board itself, which provides advice
and recommendations on scenario and sustainability issues. The Committee plays a key role in
addressing the sustainability issues integrated into the Company’s business model13.
Remuneration Policy
Eni’s Remuneration Policy is defined in line with the corporate governance model adopted by the Company
and with the recommendations of the Corporate Governance Code, providing that remuneration of
Directors, members of the Board of Statutory Auditors, General Managers and other Managers with
strategic responsibilities is functional to the pursuit of the sustainable success of the Company, taking
into account the need to dispose, retain and motivate people with competence and professionalism
required by the position held in the Company (Principle XV of the Corporate Governance Code).
For this purpose, the remuneration of Eni’s top management is established with due consideration
given to market benchmarks for similar positions in national and international companies similar, also in
relation to the reference sector and company size.
The Remuneration Policy of Directors and top management also contributes to the company’s strategy,
through incentive plans connected to the fulfilment of preset, measurable and complementary targets
that fully represent the essential priorities of the Company, in line with the Strategic Plan and the
expectations of shareholders and other stakeholders, in order to promote a strong focus on results and
combine the operating, economic and financial soundness with social and environmental sustainability,
coherently with the long-term nature of the business and the related risk profiles. The Policy defined for
the next term 2023-2026 provides the confirmation:
• in the Short-Term Plan of Incentive of Short Term with deferral, of a target related to environmental
sustainability and human capital (weight 25%), focused on safety and reduction of GHG emission
intensity (Scope 1 + Scope 2), as well as, from 2021, a specific target related to the increase of
renewables installed apacity (weight 12.5%);
• the 2023-2025 Long-Term Equity Incentive Plan includes a target related to environmental
sustainability and energy transition (overall weight 35%), articulated on a series of goals linked to the
processes of decarbonization and energy transition and to the circular economy.
The Remuneration Policy described in the first section of the Remuneration Report, available on the
Company’s website www.eni.com, is prepared taking into account the orientations of shareholders
and institutional investors, through the implementation annual engagement plans. is presented for
a binding vote at the Shareholders’ Meeting, with the adence required by its duration and in any
case at least every three years or in the event of changes to it14. The results of the hareholders’
meeting are reported in the Summary of the mentioned relation.
Internal Control and Risk Management System15
Eni has adopted an integrated and comprehensive Internal Control and Risk Management System at
different levels of the organizational and corporate structure, based on a set of rules, procedures and
organizational structures aimed at allowing an effective identification, measurement, management
and monitoring of the main risks, in order to contribute to the sustainable success of the Company.
(13) For more information on the Committee activities in 2022, please see the relevant section in the 2022 Corporate Governance
and Shareholding Structure Report.
(14) In accordance with Art. 123 ter, paragraph 3 bis of the Italian Decree Law No. 58/98.
(15) For more information, please see the 2022 Corporate Governance and Shareholding Structure Report.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 40
The Internal Control and Risk Management System is also based on Eni’s Code of Ethics, which sets
out the rules of conduct for the appropriate management of the Company’s business and which must
be complied with by all the members of the Board, as well as of the other corporate bodies and all other
third parties working with or in name or for the interest of Eni.
Furthermore, Eni has adopted rules for the integrated governance of the Internal Control and Risk
Management System, the guidelines of which were approved by the Board. Furthermore, on adopting
the new Corporate Governance Code, Eni’s Board of Directors established various actions and
application and improvement methods to comply with the recommendations on the ICRMS, already
generally accepted as in line with the best practices of Corporate Governance16.
In this respect, in order to strengthen the integration between strategic planning and internal controls and
risk management, upon the proposal of the Chief Executive Officer and with the support of the Control and
Risks Committee, the Board of Directors has called for the definition of specific annual guidelines for the
ICRMS, that exceed the ICRMS model contained in internal regulations, as part of the Strategic plan, in line
with the strategies of the company. It was also envisaged that the implementation of specific guidelines of
the ICRMS is subject to periodic monitoring on the basis of a report by the Chief Executive Officer.
Eni has also equipped itself with a reference model for Integrated Compliance, which together with
Model 231 and the Code of Ethics, is aimed at ensuring that all Eni personnel who are contributing to the
achievement of business objectives operate in full compliance with the rules of integrity and applicable
laws and regulations in an increasingly complex national and international regulatory framework,
defining a comprehensive process, developed using a risk-based approach, for managing activities to
prevent non-compliance.
With this in mind, risk assessment methodologies were developed aimed at modulating controls,
calibrating monitoring activities and planning training and communication activities based on the
compliance risk underlying the various cases, to maximize their effectiveness and efficiency. The
Integrated Compliance process was designed to stimulate integration between those who work in the
business activities and the corporate functions that oversee the various compliance risks, both internal
or external to the Integrated Compliance unit.
Furthermore, acting on the proposal of the Chief Executive Officer, having obtained a favourable
opinion from the Control and Risk Committee, the Board of Directors of Eni approved the internal rules
concerning the Market Information Abuse (Issuers). These, by updating the previous Eni rules for the
aspects relating to “issuers”, incorporate the amendments introduced by Regulation No. 596/2014/
EU of April 16, 2014 and the associated implementing rules, as well as the national regulations, taking
account of Italian and foreign institutional guidelines on the matter.
The updated internal rules lay down principles of conduct for the protection of confidentiality of
corporate information in general, to promote maximum compliance, as also required by Eni’s Code
of Ethics and corporate security measures. Eni recognizes that information is a strategic asset to be
managed in such a way as to ensure the protection of the interests of the Company, shareholders and
the market.
In order to ensure the protection of corporate assets, of the interests of shareholders and the market,
as well as the transparency and integrity of conduct, Eni has adopted — in compliance with Consob
regulatory provisions — internal rules on transactions involving the interests of directors and statutory
auditors and transactions with related parties. These rules were most recently updated in 2021 by the
Board of Directors, with the unanimous and favourable opinion of the Control and Risks Committee,
with the aim of ensuring regulatory compliance, but also taking into account the experience gained, as
well as the indications of the Board Committees and supervisory bodies.
As regards the prevention and reduction of conflicts of interest, in addition to the regulatory instrument
for transactions involving the interests of directors and statutory auditors and transactions with
related parties, the Company’s Code of Ethics also requires Eni employees to promote the company’s
interests by making objective decisions and avoiding situations in which conflicts of interest could
arise, intervening as envisaged by said Code.
(16) For more information, please see the 2022 Corporate Governance Report.
ENI ANNUAL REPORT 2022 41
Furthermore, the regulations on the function and organisation of the Board of Directors, most recently
approved at the meeting on December 16, 2021, state, in line with the provisions of Art. 2391 of the
Italian Civil Code, that before each item on the Board meeting’s agenda is discussed, each director and
statutory auditor must disclose whether they hold any personal interest or interest on behalf of third-
parties in relation to the matters or issues to be discussed, clarifying their nature, terms, origin and
extent. The aforesaid regulations also state that, during Board resolutions, directors holding an interest
in issues to be deliberated upon do not normally take part in the discussion and resolution, leaving the
meeting room.
An integral part of the Eni internal control system is the internal control system over financial reporting,
the objective of which is to provide reasonable certainty of the reliability of financial reporting and
the ability of the financial report preparation process to generate such reporting in compliance with
generally accepted international accounting standards.
Eni’s CEO, Chief Financial Officer (CFO) and Head of Accounting and Financial Statements and budget
manager, in his capacity as officer in charge of preparing financial reports, are responsible for planning,
establishing and maintaining the internal control system over financial reporting. A central role in
the Company’s Internal Control and Risk Management System is played by the Board of Statutory
Auditors, which in addition to the supervisory and control functions provided for in the Consolidated
Law on Financial Intermediation, also monitors the financial reporting process and the effectiveness
of the internal control and risk management systems, consistent with the provisions of the Corporate
Governance Code, including in its capacity as the “Internal Control and Audit Committee” pursuant to
Italian law and as the “Audit Committee” under US law. The responsibilities assigned and the regulatory
and reporting instruments defined as part of Eni’s Internal Control and Risk Management System, in
particular for the purposes of assessing its adequacy and efficacy, also make it possible to identify the
“critical concerns”, understood as any complaints with potential impacts on the company’s stakeholders.
Of the ICRMS instruments, since 2006, Eni has adopted rules governing receipt, analysis and processing
of reports (so-called whistleblowing), including those transmitted in confidential or anonymous form, to
Eni SpA and to its subsidiaries in Italy and abroad. The rules allow anyone (employees or third parties)
to report facts relating to the ICRMS and concerning behaviours in violation of the Code of Ethics, laws,
regulations, provisions of the Authorities, or internal regulations, that may cause damage or prejudice,
even if only in terms of image, to Eni. The rules (published on the Company’s website) define roles and
responsibilities related to the investigations and information flows in relation to the Chairman of the
Board of Directors, the Chief Executive Officer and the Audit Firm, among other parties.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT Operating Review
NATURALRESOURCES Exploration & Production
Global Gas & LNG Portfolio
44
Exploration & Production
~750 mmboe
discovered resources
at unit exploration cost <2 $/boe
Advancing satellite model
completed the IPO of Vår Energi
and started operations at the jv Azule Energy
First biofeedstock cargoes
from agri-hub in Kenya
start-up is expected in 2023 in Congo,
Mozambique and Ivory Coast
Ravenna CCS project
FID for phase 1 sanctioned
by the Eni and Snam jv formed
ENI ANNUAL REPORT 2022 45
KEY PERFORMANCE INDICATORS
2022
2021
2020
Total recordable injury rate (TRIR)(a)
(total recordable injuries/worked hours) X 1,000,000
of which: employees
contractors
Profit per boe(b)(c)
Opex per boe(d)
Cash flow per boe
Finding & Development cost per boe(c)(d)
Average hydrocarbon realization
Production of hydrocarbons(d)
Net proved reserves of hydrocarbons
Reserves life index
Organic reserves replacement ratio
Employees at year end
of which: outside Italy
Direct GHG emissions (Scope 1)(e)
GHG emissions (Scope 1)/operated hydrocarbon gross
production(a)(e)
Methane emission intensity(a) (m³CH4/m³ gas sold)
Volumes of hydrocarbon sent to routine flaring(a)
Net carbon footprint upstream (Scope 1+2)(f)
Operational oil spills (>1 barrel)(f)
Re-injected production water(a)
($/boe)
(kboe/d)
(mmboe)
(years)
(%)
(number)
(mmtonnes CO2eq.)
(tonnes CO2eq./kboe)
(%)
(billion Sm³)
(mmtonnes CO2eq.)
(barrels)
(%)
0.35
0.12
0.42
9.8
8.4
29.6
24.3
73.98
1,610
6,614
11.3
47
8,689
5,497
21.5
20.6
0.08
1.1
9.9
845
59
0.25
0.09
0.30
4.8
7.5
20.6
20.4
51.49
1,682
6,628
10.8
55
9,409
6,045
22.3
20.2
0.09
1.2
11.0
436
58
0.28
0.18
0.31
3.8
6.5
9.8
17.6
28.92
1,733
6,905
10.9
43
9,815
6,123
21.1
20.0
0.09
1.0
11.4
882
53
(a) Calculated on 100% operated assets.
(b) Related to consolidated subsidiaries.
(c) Three-year average.
(d) Includes Eni's share of equity-accounted entities.
(e) Hydrocarbon gross production from fields fully operated by Eni (Eni’s interest 100%) amounting to 980 mmboe, 1,041 mmboe and 1,009 mmboe in 2022, 2021 and
2020, respectively.
(f) Calculated on equity bases and included carbon sink.
PERFORMANCE OF THE YEAR
• Total recordable injury rate (TRIR) of the workforce amounted to 0.35, an increase compared to 2021 driven by higher injury
events occurred to the employees and contractors.
• Direct GHG emissions (Scope 1) of the operated assets reported a decrease of 3% from 2021 mainly due to lower annual
production and faring emissions reduction.
• Direct GHG emissions (Scope 1)/operated hydrocarbon gross production was 20.6 tons of CO2eq./kboe, a slight increase
compared to 2021.
• Methane emission intensity was substiantially unchanged from 2021. Eni has committed to keeping upstream methane
intensity below 0.2%.
• Net carbon footprint upstream (GHG emissions Scope 1 + Scope 2 accounted for on an equity basis net
of carbon sink) improved compared to 2021.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
46
• Volumes of hydrocarbon sent to routing flaring reported a reduction of 9% compared to 2021,
mainly due to the launch of flaring down projects in Nigeria and a gas valorization initiative in Egypt.
• Operational oil spills increased from 2021 due to a minor event in Egypt, almost half of the product
was recovered.
• Re-injected production water was substantially unchanged from 2021.
• Hydrocarbon production was 1.610 million boe/d, down by 4% from 2021 due to unplanned
outages and force majeure. These negatives were partially offset by the start-up of the Coral
project in Mozambique and the Amoca project in Mexico as well as higher activity in Algeria and
the United States.
• Net proved reserves at December 31, 2022 amounted to 6.6 bboe based on a reference Brent price
of 101 $/barrel. The all-sources replacement ratio was 98%. The reserves life index was 11.3 years
(10.8 years in 2021).
DECARBONIZATION INITIATIVES
• The projects of the CO2 geological capture and sequestration using depleted offshore fields
as well as reusing in other production cycle are a key drivers of Eni transition strategy. In
particular:
- signed an agreement with Snam to jointly develop and manage the Ravenna Carbon Capture and
Storage (CCS) Project, which is intended to gather data to support the planned construction of
a large CCS hub, which will leverage Eni's depleted offshore fields in the area. The project Phase
1 is ongoing and from 2024 is expected to begin capturing 25 ktons/year of CO2 emitted from
Eni's natural gas treatment plant in Casalborsetti (Ravenna), to be subsequently transported and
injected into a nearby depleted gas field. By 2026, Phase 2 will start the industrial scale up with a
storage injection of up to 4 million tons/year;
- submitted to the UK authorities an application for carbon storage license for the Hewett depleted
field in the UK Southern North Sea, for the development of a CCS project aimed at decarbonising
the Bacton and Thames Estuary area. In addition, the set-up of the Bacton Thames Net Zero
initiative was announced with the aim to decarbonise energy-intensive and hard-to-abate
industrial businesses in the area.
• Progressed Eni's initiatives within the Natural Climate Solutions, such as projects focusing on the
forest's protection, conservation and sustainable management, mainly in developing Countries,
by means of the REDD+ project scheme which was designed by the United Nations as well as
the application of technological solutions in different areas to progressively maximize the carbon
removal component:
- finalized agreements for the future projects development in Ivory Coast, Kenya and Mozambique
where feasibility studies are ongoing. In addition, an agreement was signed with the Rwanda
Development Board and the non-profit tech start-up Rainforest Connection in Rwanda to testing
the application of artificial intelligence technologies in the forest protection and conservation;
- launched projects to support the distribution of improved cookstoves (ICS) in the energy poverty
areas. In particular, in Ivory Coast over 300,000 people will benefit from an ongoing program of
ICS distribution.
• Signed agreements with the government of Mozambique, Benin and Rwanda, in addition to
the ones already finalized with the government of Kenya, Congo, Angola, Kazakhstan and Ivory
Coast for biofuel projects through the set-up of integrated agri-biofeedstock value chains to
supply renewable feedstock to Eni's biorefineries, without impacting the local food chain and to
decarbonize the local energy mix:
- Delivered the first cargoes of vegetable oil produced from Kenya to the Eni's biorefinery in Gela.
Development program in the County is expected to scale up to 20,000 tons in 2023. Other ongoing
initiatives concerned projects in Congo, Mozambique and Ivory Coast, with start-up in 2023;
- signed agreement with Bonifiche Ferraresi to evaluate the agribusiness development initiatives
in Italy, through the cultivation of oilseeds to be used as feedstocks for biofuels production in
degraded, abandoned, or polluted areas, without impacting the food chain.
ENI ANNUAL REPORT 2022 47
• Construction start-up of a second 10 MW photovoltaic plant in partnership with Sonatrach in the
Bir Rebaa North production complex, South-Eastern Algeria, to decarbonize upstream activities.
Another photovoltaic plant is planned at the Menzel Ledjmet East Project (MLE) production complex,
with construction expected to begin in 2023.
• Start-up of photovoltaic plant in Tataouine, Southern Tunisia, built by a joint venture between Eni
and ETAP (Entreprise Tunisienne d'Activités Pétrolières) by means of the linkage to the national grid.
The plant, with an installed capacity of 10 MW, is expected to supply over 20 GWh of renewable
electricity per year under a 20-year Power Purchase Agreement.
EXPLORATION
• In 2022 around 750 million boe of new resources were added to the reserve base at competitive
cost of lower 2 $/barrel continuing the delivery of outstanding exploration performance:
- several discoveries were made close to existing assets and facilities as part of our fast-track
development model in Algeria, Egypt and Abu Dhabi;
- important reserve additions were made with the appraisal wells of the offshore Ndungu oilfield in
Angola and of the offshore Baleine oilfield in the Ivory Coast, allowing us to significantly raise the
estimated hydrocarbons in place in both cases. The XF-002 in the UAE and the Cronos off Cyprus gas
discoveries also significantly contributed to the year's results. The later success of Zeus in Cyprus,
still in evaluation at the end of the year and of Nargis in Egypt in January 2023, further confirmed the
potential of the East Mediterranean area.
• Reloading exploration portfolio with the addition of approximately 18,900 square kilometers with
the entry in Qatar as well as new leases in Algeria, Egypt, Norway and Ivory Coast.
• In 2022 exploration expenses were €605 million (€558 million in 2021) and included the write-off of
unsuccessful wells amounting to €385 million (€364 million in 2021), which also related to the write-
off of unproved exploration rights, if any, associated to projects with negative outcome. In particular,
exploration and appraisal activities comprised write-offs of unsuccessful exploration wells costs for €365
million mainly in Libya, Egypt, Ivory Coast, Vietnam and Kenya. Write-offs of €13 million are related to
exploration licenses due mainly to exiting from marginal areas. In addition, 103 exploratory drilled wells
are in progress at year-end (50.6 net to Eni).
DEVELOPMENT
• In 2022, significant progress was made in pursuing Eni's distinctive satellite model of creating
independent entities focused on defined areas. In upstream business these entities will continue to
bring new volumes to the market for energy security, while freeing additional capital and delivering
dividends that allow the Group to optimize investments in its decarbonized energy portfolio:
- Azule Energy, the JV combining Eni and bp asset in Angola, started operations as the largest independent
Angolan O&G producer to pursue growth opportunities and deliver real value to its shareholders;
- Completed with the equity fund HitecVision the listing of Vår Energi on the Oslo stock exchange,
the largest O&G IPO in Europe in 15 years, placing an interest of 16.2% of the investee's share
capital.
• Achieved production start-up of the following projects:
- in Algeria, with fast-track development of two gas fields as part of the new Berkine South contract,
just six months from the closing, and then, the HDLE/HDLS project, in the Zemlet el Arbi concession
in the Berkine North Basin, just six months after the discovery;
- in Mozambique with the Coral start-up, in the ultra-deep waters of the Rovuma Basin, marking a
milestone in the worldwide LNG business thanks to our ability to deliver the project on time and on
budget notwithstanding the pandemic disruptions, while launching the Country as a new relevant
LNG hub;
- in Mexico, with the start-up of the Miamte FPSO in the Miztón field and of the Amoca WHP-1
platform, within the full field development of the Area 1 license.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 48
• Within the Congo LNG project to exploit Eni's gas reserves in block Marine XII and support the
security of gas supplies to Europe, a turn-key contract was signed to build, install and commission
a Floating Liquefied Natural Gas (FLNG) vessel with a capacity of 2.4 million tonnes/year, which
will pair the Tango FLNG vessel purchased earlier to speed up Eni's development plans. LNG
production is expected to reach a plateau capacity of 3 million tonnes/year in 2025.
• Closed the acquisition of a 3% interest in the giant North Field East LNG project in Qatar. Production
start-up is expected by the end of 2025 and development program include the most advanced
technologies and processes to minimize overall carbon footprint.
• Signed an agreement with the National Oil Corporation of Libya (NOC) for the development of the
large gas reserves of A&E Structures, offshore Tripoli. Production start-up is expected in 2026 with
volumes destined both to the domestic market and to Europe via the existing Greenstream offshore
pipeline leveraging on synergies with the Mellitah Complex. The project includes construction of an
onshore Carbon Capture and Storage (CCS) hub.
• Farmed out to QatarEnergy a 30% interest in offshore exploration Blocks 4 and 9, in Lebanon,
operated by TotalEnergies. Eni will retain a 35% interest in the venture.
• Development expenditure amounted to €5.2 billion, in particular in Egypt, Ivory Coast, Congo, the
United Arab Emirates, Mexico, Iraq, Italy and Algeria.
• In 2022, overall R&D expenditure amounted to €50 million (€65 million in 2021).
Reserves
Overview
The Company has adopted comprehensive classification criteria for the estimate of proved, proved
developed and proved undeveloped oil & gas reserves in accordance with applicable U.S. Securities
and Exchange Commission (SEC) regulations, as provided for in Regulation S-X, Rule 4-10. Proved
oil & gas reserves are those quantities of liquids (including condensates and natural gas liquids) and
natural gas which, by analysis of geoscience and engineering data, can be estimated with reasonable
certainty to be economically producible from a given date forward, from known reservoirs, under
existing economic conditions, operating methods, and government regulations prior to the time
at which contracts providing the right to operate expire, unless evidence indicates that renewal is
reasonably certain.
Oil and natural gas prices used in the estimate of proved reserves are obtained from the official survey
published by Platt’s Marketwire, except when their calculation derives from existing contractual
conditions. Prices are calculated as the unweighted arithmetic average of the first-day-of- the-month
price for each month within the 12-month period prior to the end of the reporting period. Prices
include consideration of changes in existing prices provided only by contractual arrangements.
Engineering estimates of the Company’s oil & gas reserves are inherently uncertain. Although
authoritative guidelines exist regarding engineering criteria that have to be met before estimated oil
& gas reserves can be designated as “proved”, the accuracy of any reserves estimate is a function
of the quality of available data and engineering and geological interpretation and evaluation.
Consequently, the estimated proved reserves of oil and natural gas may be subject to future revision
and upward and downward revisions may be made to the initial booking of reserves due to analysis
of new information.
Proved reserves to which Eni is entitled under concession contracts are determined by applying
Eni’s equity interest to total proved reserves of the contractual area, until expiration of the relevant
mineral right. Eni’s proved reserves entitlements at PSAs are calculated so that the sale of production
entitlements cover expenses incurred by the Group for field development (Cost Oil) and recognize a
share of profit set contractually (Profit Oil). A similar scheme applies to service contracts.
Reserves governance
Eni retains rigorous control over the process of booking proved reserves, through a centralized
model of reserves governance. The Reserves Department of the Exploration & Production segment
is in charge of: (i) ensuring the periodic certification process of proved reserves; (ii) updating the
ENI ANNUAL REPORT 2022 49
Company’s guidelines on reserves evaluation and classification and the internal procedures; and
(iii) providing training of staff involved in the process of reserves estimation.
Company guidelines have been reviewed by DeGolyer and MacNaughton (D&M), an independent
petroleum engineering company, which stated that those guidelines comply with the SEC rules1.
D&M has also stated that the Company guidelines provide reasonable interpretation of facts and
circumstances in line with generally accepted practices in the industry whenever SEC rules may be
less precise. When participating in exploration and production activities operated by other entities,
Eni estimates its share of proved reserves on the basis of the above guidelines.
The process for estimating reserves, as described in the internal procedure, involves the following
roles and responsibilities: (i) the business unit managers (geographic units) and Local Reserves
Evaluators (LRE) are in charge with estimating and classifying gross reserves including assessing
production profiles, capital expenditure, operating expenses and costs related to asset retirement
obligations; (ii) the petroleum engineering department and the operations unit at the head office
verify the production profiles of such properties where significant changes have occurred and
operating expenses, respectively; (iii) geographic area managers verify the commercial conditions
and the progress of the projects; (iv) the Planning and Control Department provides the economic
evaluation of reserves; and (v) the Reserves Department, through the Headquarter Reserves
Evaluators (HRE), provides independent reviews of fairness and correctness of classifications
carried out by the above-mentioned units and aggregates worldwide reserves data.
The head of the Reserves Department attended the La Sapienza University of Rome and received
a degree in Environmental Engineering and received a Master’s in petroleum engineering from
Imperial College of London. He has 20 years of experience in evaluating reserves.
Staff involved in the reserves evaluation process fulfils the professional qualifications requested
by the role and complies with the required level of independence, objectivity and confidentiality in
accordance with professional ethics. Reserves Evaluators qualifications comply with international
standards defined by the Society of Petroleum Engineers.
Reserves independent evaluation
Eni has its proved reserves audited on a rotational basis by independent oil engineering companies2.
The description of qualifications of the persons primarily responsible for the reserves audit is
included in the third-party audit report. In the preparation of their reports, independent evaluators
rely upon information furnished by Eni, without independent verification, with respect to property
interests, production, current costs of operations and development, sales agreements, prices and
other factual information and data that were accepted as represented by the independent evaluators.
These data, equally used by Eni in its internal process, include logs, directional surveys, core and PVT
(Pressure Volume Temperature) analysis, maps, oil/gas/water production/injection data of wells,
reservoir studies, technical analysis relevant to field performance, development plans, future capital
and operating costs.
In order to calculate the net present value of Eni’s equity reserves, actual prices applicable to
hydrocarbon sales, price adjustments required by applicable contractual arrangements and other
pertinent information are provided by Eni to third-party evaluators. In 20223, Ryder Scott Company
and Sproule provided an independent evaluation of approximately 27% of Eni’s total proved reserves
at December 31, 20224, confirming, as in previous years, the reasonableness of Eni internal evaluation.
In the 2020-2022 three-year period, 90% of Eni total proved reserves were subject to an independent
evaluation. As at December 31, 2022, the Nené and Litchendjili fields in Congo were the main Eni
assets, which did not undergo an independent evaluation in the last three years.
(1) The reports of independent engineers are available on Eni website eni.com section Publications/Integrated Annual Report 2016.
(2) For the past three years we have availed ourselves of the independent certification service of DeGolyer and MacNaughton, Ryder
Scott, Société Générale de Surveillance and Sproule.
(3) The reports of independent engineers are available on Eni website eni.com section Publications/Annual Report 2022.
(4) Includes Eni's share of proved reserves of equity-accounted entities.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 50
MOVEMENTS IN NET PROVED RESERVES
Eni’s net proved reserves were determined taking into account Eni’s share of proved reserves of equity
accounted entities. Movements in Eni’s 2022 proved reserves were as follows:
Estimated net proved reserves at December 31, 2021
5,571
1,057
(mmboe)
Consolidated
subsidiaries
Equity-accounted
entities
Extensions, discoveries , revisions of previous estimates
and improved recovery, excluding price effect
Price effect
Reserve additions, total
Portfolio
Production of the year
Estimated net proved reserves at December 31, 2022
Reserves replacement ratio, all sources
(%)
89
(28)
223
(6)
312
(34)
61
(206)
(493)
4,933
217
502
(95)
1,681
Total
6,628
278
296
(588)
6,614
98
Net proved reserves as of December 31, 2022 were 6,614 mmboe, of which 4,493 mmboe of consolidated
subsidiaries. Net additions to proved reserves were 278 mmboe and derived from: (i) revisions of previous
estimates were positive for 88 mmboe (including the effect of an updating of the gas conversion factor
of 30 mmboe) and mainly derived from the Nené field in Congo and the E Structure fields in Libya partly
offset by negative changes in some fields in Nigeria. Revisions also included net negative price effects of
34 mmboe due to an increase in oil price environment where the Brent reference price used in the reserve
estimation process was 101 $/barrel in 2022, much higher than the 69 $/barrel used in 2021. This price
effect was determined to the recovery of volumes reserves which were previously uneconomic in the
2021 scenario more than offset by net lower reserves entitlements under PSA contracts. Revisions of
previous estimates were positive in Azule and Vår Energi for 74 mmboe and 66 mmboe, respectively; (ii)
extensions and discoveries were up by 179 mmboe, mainly due to the final investment decision made for
the Baleine project in Ivory Coast as well as the Bashrush project in Egypt. In Azule new discoveries were
54 mmboe while in Vår Energi were up by 7 mmboe and mainly related to Blåbjørn, Verdande and Halten
East fields; and (iii) improved recovery of 11 mmboe mainly related to the Mizton project in Mexico and
Azule activities.
Portfolio transactions were positive for 296 mmboe and mainly related to: (i) the purchase of 3% interest
in the North Field East LNG project in Qatar; (ii) the purchase of the BHP asset in Algeria and other minor
assets in Italy and the United States; (iii) sales of 16.2% stake in our associates Vår Energi following the
process of listing the investee at the local stock exchange; (iv) the disposal of our production assets in
Pakistan and our interest in the OML 11 block in Nigeria; and (v) the business combination between Eni
and bp, leading to the creation of Azule Energy, an equity-accounted joint venture (Eni’s interest 50%).
The organic5 and all sources reserves replacement ratio was 47% and 98%, respectively. The reserves life
index was 11.3 years (10.8 years in 2021).
For further information, please see the additional information on Oil & Gas producing activities required
by the SEC in the notes to the consolidated financial statements.
(5) Organic ratio of changes in proved reserves for the year resulting from revisions of previously reported reserves, improved recovery,
extensions and discoveries, to production for the year. All sources ratio includes sales or purchases of minerals in place. A ratio higher
than 100% indicates that more proved reserves were added than produced in a year. The Reserves Replacement Ratio is not an indica-
tor of future production because the ultimate development and production of reserves is subject to a number of risks and uncertainties.
These include the risks associated with the successful completion of large-scale projects, including addressing ongoing regulatory
issues and completion of infrastructure, as well as changes in oil and gas prices, political risks and geological and environmental risks.
ENI ANNUAL REPORT 2022 ESTIMATED NET PROVED HYDROCARBONS RESERVES
51
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
243
199
44
73
68
5
798
434
364
1,110
1022
88
1,352
799
553
1,182
1093
89
879
424
455
256
162
94
91
60
31
i
s
d
u
q
L
i
)
l
b
b
m
m
(
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2022
188
139
49
36
32
4
364
201
163
167
135
32
367
212
155
644
585
59
433
231
202
234
171
63
1
1
869
695
174
223
214
9
2,323
670
1,653
3,881
2,732
1,149
2,341
1,306
1,035
1,560
1,560
1,281
796
485
264
195
69
408
223
185
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
352
271
81
78
73
5
806
329
477
904
655
249
813
460
353
941
881
60
675
383
292
285
207
78
79
43
36
i
s
d
u
q
L
i
)
l
b
b
m
m
(
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2021
197
146
51
34
34
393
225
168
210
164
46
589
435
154
710
641
69
476
262
214
237
164
73
1
1
918
729
189
247
242
5
2,272
781
1,491
4,152
3,656
496
2,953
1,759
1,194
1,705
1,705
1,522
971
551
274
210
64
428
266
162
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
369
283
86
81
80
1
820
373
447
992
852
140
1,145
766
379
1,032
963
69
762
445
317
288
203
85
82
51
31
)
l
b
b
m
m
(
i
s
d
u
q
L
i
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
178
146
32
34
31
3
383
243
140
227
172
55
624
469
155
805
716
89
579
297
282
224
143
81
1
1
2020
348
280
68
208
194
14
2,201
1,014
1,187
4,692
4,511
181
3,864
1,751
2,113
2,003
2,003
1,589
674
915
175
109
66
474
315
159
2,434
1,707
727
13,150
8,391
4,759
4,933
3,302
1,631
2,847
2,072
775
14,471
10,319
4,152
5,571
4,016
1,555
3,055
2,218
837
15,554
10,851
4,703
5,984
4,261
1,723
350
173
177
8
8
235
135
100
100
100
27
27
720
343
377
646
444
202
9
9
1,562
1,070
492
1,490
1,490
1,355
1,355
5,062
2,878
2,184
473
257
216
9
9
531
338
193
383
383
285
285
1,681
889
792
6,614
4,191
2,423
378
175
203
9
9
21
9
12
6
6
414
199
215
654
457
197
10
10
1,285
165
1,120
1,460
1,460
3,409
2,092
1,317
3,261
2,271
990
17,880
12,411
5,469
502
261
241
10
10
263
39
224
282
282
1.057
592
465
6.628
4.608
2.020
400
176
224
12
12
18
15
3
30
30
460
233
227
510
415
95
14
14
364
170
194
44.149
44.149
69.307
61.114
8.193
496
254
242
14
14
87
47
40
324
324
921
639
282
3,515
2,451
1,064
509.741
368.376
141.365
6,905
4,900
2,005
Consolidated subsidiaries
Italy
Developed
Undeveloped
Rest of Europe
Developed
Undeveloped
North Africa
Developed
Undeveloped
Egypt
Developed
Undeveloped
Sub-Saharan Africa
Developed
Undeveloped
Kazakhstan
Developed
Undeveloped
Rest of Asia
Developed
Undeveloped
Americas
Developed
Undeveloped
Australia and Oceania
Developed
Undeveloped
Total consolidated subsidiaries
Developed
Undeveloped
Equity-accounted entities
Rest of Europe
Developed
Undeveloped
North Africa
Developed
Undeveloped
Sub-Saharan Africa
Developed
Undeveloped
Rest of Asia
Developed
Undeveloped
Americas
Developed
Undeveloped
Total equity-accounted entities
Developed
Undeveloped
Total including equity-accounted entities
Developed
Undeveloped
3,154
2,050
1,104
18,212
11,269
6,943
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
52
Proved undeveloped reserves
Proved undeveloped reserves as of December 31, 2022 totaled 2,423 mmboe. At year-end, proved
undeveloped reserves of liquids amounted to 1,104 mmbbl and of natural gas amounted to 6,943
bcf, mainly concentrated in Africa and Asia. Proved undeveloped reserves of consolidated subsidiaries
amounted to 727 mmbbl of liquids and 4,759 bcf of natural gas. The table below provide a summary of
changes in total proved undeveloped reserves for 2022.
Proved undeveloped reserves as of December 31, 2021
Additions
Extensions and discoveries
Revisions of previous estimates
Improved recovery
Portfolio
Proved undeveloped reserves as of December 31, 2022
(mmboe)
2,020
(317)
152
227
4
337
2,423
During 2022, Eni matured 317 mmboe of proved undeveloped reserves to proved developed
reserves due to progress in development activities, production start-ups and project revisions. The
main reclassifications to proved developed reserves related to the following fields/projects: Coral in
Mozambique, Kashagan in Kazakhstan and Amoca in Mexico.
For further information, please see the additional information on Oil & Gas producing activities required
by the SEC in the notes to the consolidated financial statements.
In 2022, capital expenditure amounted to approximately €7.1 billion to progress the development of
PUDs.
Reserves that remain proved undeveloped for five or more years are a result of several factors that
affect the timing of the projects development and execution, such as the complexity of development
project in adverse and remote locations, physical limitations of infrastructures or plant capacity and
contractual limitations that establish production levels. The Company estimates that 0.6 bboe of
proved undeveloped reserves have remained undeveloped for five years or more at the balance sheet
date and increased from 2021. The proved undeveloped reserves that have remained undeveloped
for five years or more at the balance sheet date mainly related to: (i) certain Libyan gas fields (0.4
bboe) where development completion and production start-ups are planned according to the delivery
obligations set forth in a long-term gas supply agreement currently in force; (ii) Johan Castberg project
for Vår Energi, the development of which is ongoing and first oil is expected in the last quarter of 2024
(0.1 bboe); and (iii) other fields in Italy and Iraq (0.1 bboe) where development activities are in progress.
Delivery commitments
Eni, through consolidated subsidiaries and equity-accounted entities, sells crude oil and natural gas
from its producing operations under a variety of contractual obligations. Some of these contracts,
mostly relating to natural gas, specify the delivery of fixed and determinable quantities.
Eni is contractually committed under existing contracts or agreements to deliver in the next three
years mainly natural gas to third parties for a total of approximately 576 mmboe from producing
assets located mainly in Algeria, Australia, Egypt, Ghana, Indonesia, Kazakhstan, Libya, Nigeria,
Norway and Venezuela.
The sales contracts contain a mix of fixed and variable pricing formulas that are generally indexed
to the market price for crude oil, natural gas or other petroleum products. Management believes
it can satisfy these contracts from quantities available mainly from production of the Company's
proved developed reserves and supplies from third parties based on existing contracts. Production is
expected to account for approximately 99% of delivery commitments.
Eni has met all contractual delivery commitments as of December 31, 2022.
ENI ANNUAL REPORT 2022 Proved undeveloped reserves as of December 31, 2021
Additions
Extensions and discoveries
Revisions of previous estimates
Improved recovery
Portfolio
Proved undeveloped reserves as of December 31, 2022
(mmboe)
2,020
(317)
152
227
4
337
2,423
53
Oil and gas production
In 2022 hydrocarbon production averaged 1.610 million boe/d, down by 4.3% compared to 2021.
The decrease was due to planned and unplanned outages in Kazakhstan, local issues in Nigeria,
lower production in Norway and Egypt as well as mature fields decline. Production was supported by
the start-up of the Coral project in Mozambique and the Amoca project in Mexico, higher activity in
Algeria, also following the business acquisition, and in the United States as well as the progressive
easing of OPEC+ production quotas (particularly in the United Arab Emirates).
Liquid production was 751 kbbl/d, down 7.6% compared to 2021. The reduction in Kazakhstan,
Norway and Nigeria as well as mature fields decline was partly offset by production growth in Algeria,
Mexico and in the United States as well as the progressive easing of OPEC+ production quotas.
Natural gas production was 4,523 mmcf/d, down 2.3% compared to 2021. Lower production in
Norway, Nigeria and Egypt as well as mature fields decline was partly offset by production growth in
Algeria and Mozambique.
Oil and gas production sold amounted to 532 mmboe. The 56 mmboe difference over production
(588 mmboe) mainly reflected volumes of natural gas consumed in operations (45 mmboe), changes
in inventory levels and other variations. Approximately 63% of liquids production sold (270 mmbbl)
was destined to Eni’s Refining & Marketing business. About 16% of natural gas production sold
(1,381 bcf) was destined to Eni’s Global Gas & LNG Portfolio segment.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 54
ANNUAL OIL AND NATURAL GAS PRODUCTION(a)(b)(c)
Consolidated subsidiaries
Italy
Rest of Europe
United Kingdom
North Africa
Algeria
Libya
Tunisia
Egypt
Sub-Saharan Africa
Angola
Congo
Ghana
Nigeria
Kazakhstan
Rest of Asia
China
Indonesia
Iraq
Pakistan
Timor Leste
Turkmenistan
United Arab Emirates
Americas
Mexico
United States
Australia and Oceania
Australia
Equity-accounted entities
Angola
Mozambique
Norway
Tunisia
Venezuela
i
s
d
u
q
L
i
)
l
b
b
m
m
(
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2022
13
7
7
45
23
21
1
28
51
19
15
6
11
32
28
6
2
20
22
5
17
88
46
46
273
63
207
3
516
175
10
72
31
62
73
185
118
30
21
7
2
7
30
7
23
19
19
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
30
16
16
96
35
60
1
126
84
21
28
12
23
46
64
23
11
4
2
2
22
27
6
21
4
4
i
s
d
u
q
L
i
)
l
b
b
m
m
(
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2021
13
7
7
45
20
24
1
30
73
33
16
8
16
37
29
9
1
2
17
19
4
15
92
43
43
263
60
198
5
538
179
20
49
31
79
85
189
117
26
22
16
2
6
26
5
21
31
31
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
30
15
15
95
31
62
2
131
106
37
25
13
31
53
65
23
14
4
3
3
18
25
6
19
6
6
)
l
b
b
m
m
(
i
s
d
u
q
L
i
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
17
8
8
41
19
21
1
24
80
33
18
9
20
40
32
11
1
3
17
21
4
17
2020
116
58
58
278
56
218
4
440
249
22
48
32
147
103
170
91
28
28
17
2
4
36
4
32
33
33
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
39
19
19
93
30
61
2
106
127
37
27
15
48
60
64
17
17
5
4
3
18
28
5
23
6
6
226
1,405
493
253
1,446
526
263
1,483
542
13
33
1
1
48
31
12
108
1
94
246
19
3
53
1
19
95
1
41
1
1
44
31
118
1
88
238
7
63
1
17
88
1
42
1
1
45
36
134
1
77
248
8
68
1
15
92
Total
274
1,651
588
297
1,684
614
308
1,731
634
(a) Includes Eni's share of equity-accounted equities.
(b) Includes volumes of hydrocarbons consumed in operations (45, 42 and 45 mmboe in 2022, 2021 and 2020, respectively).
(c) Effective January 1st, 2022, the conversion rate of natural gas from cubic feet to boe has been updated to 1 barrel of oil = 5,263 cubic feet of gas (it was 1 barrel of oil = 5,310 cubic feet of gas).
The effect of this update on production expressed in boe was approximately 3 mmboe for the full year of 2022. Other per-boe indicators were only marginally affected by the update (e.g. realized
prices, costs per boe) and also negligible was the impact on depletion charges. Other oil companies may use different conversion rates.
ENI ANNUAL REPORT 2022
DAILY OIL AND NATURAL GAS PRODUCTION(a)(b)(c)
)
l
b
b
m
m
(
i
s
d
u
q
L
i
Consolidated subsidiaries
Italy
Rest of Europe
United Kingdom
North Africa
Algeria
Libya
Tunisia
Egypt
36
20
20
122
62
58
2
77
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2022
242.0
125.0
125.0
748.6
171.5
567.0
10.1
1,413.2
Sub-Saharan Africa
139
481.0
Angola
Congo
Ghana
Nigeria
Kazakhstan
Rest of Asia
China
Indonesia
Iraq
Pakistan
Timor Leste
Turkmenistan
United Arab Emirates
Americas
Mexico
United States
Australia and Oceania
Australia
Equity-accounted entities
Angola
Mozambique
Norway
Tunisia
Venezuela
55
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
107
52
52
255
81
168
6
291
345
100
73
41
131
163
176
1
48
45
15
10
9
48
75
14
61
17
17
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
82
44
44
264
95
165
4
346
230
57
78
32
63
126
174
1
62
31
11
4
5
60
74
17
57
10
10
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2021
251.0
119.3
119.3
720.1
165.1
541.7
13.3
1,474.8
)
l
b
b
m
m
(
i
s
d
u
q
L
i
36
19
19
124
54
67
3
82
198
489.5
91
44
20
43
102
80
1
1
24
1
6
47
53
11
42
53.9
135.5
83.8
216.3
233.0
516.5
321.2
70.7
59.8
42.5
6.3
16.0
73.0
14.8
58.2
85.0
85.0
s
n
o
b
r
a
c
o
r
d
y
H
)
e
o
b
m
m
(
83
41
41
259
85
168
6
360
291
101
70
36
84
146
177
1
61
37
11
9
7
51
67
14
53
16
16
)
l
b
b
m
m
(
i
s
d
u
q
L
i
s
a
g
l
a
r
u
t
a
N
)
f
c
b
(
2020
316.6
159.1
159.1
758.4
152.5
594.4
11.5
1,203.0
47
23
23
112
53
56
3
64
218
679.0
89
49
24
56
110
88
1
1
31
2
7
46
57
12
45
58.2
131.1
87.6
402.1
282.2
465.0
248.5
76.3
76.8
46.8
6.2
10.4
97.1
10.9
86.2
91.0
91.0
52
40
16
31
88
78
1
1
15
1
4
56
59
14
45
27.4
197.8
85.6
170.2
198.6
507.2
323.5
82.1
56.2
19.0
6.4
20.0
80.7
18.1
62.6
52.3
619
3,848.6
1,350
694
3,962.2
1,440
719
4,051.4
1,481
36
89
3
4
132
84.6
32.4
295.3
2.9
259.2
674.4
53
6
145
3
53
260
3
85.8
19
4
98.8
23
111
322.7
3
2
119
3.2
239.2
650.9
172
3
48
242
116
365.0
2
2
124
2.9
211.0
677.7
185
2
42
252
Total
751
4,523.0
1,610
813
4,613.1
1,682
843
4,729.1
1,733
(a) Includes Eni's share of equity-accounted equities.
(b) Includes volumes of hdrocarbons consumed in operations (124, 116 and 124 kboe/d in 2022, 2021 and 2020, respectively).
(c) Effective January 1st, 2022, the conversion rate of natural gas from cubic feet to boe has been updated to 1 barrel of oil = 5,263 cubic feet of gas (it was 1 barrel of oil = 5,310 cubic feet of gas).
The effect on production has been 8 kboe/d in the full year 2022.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
56
Productive wells
In 2022, oil and gas productive wells were 8,200 (2,680.3 of which represented Eni's share). In parti-
cular, oil productive wells were 6,792 (2,063.4 of which represented Eni's share); natural gas producti-
ve wells amounted to 1,408 (616.9 of which represented Eni's share). The following table shows the
number of productive wells in the year indicated by the Group and its equity-accounted entities in
accordance with the requirements of FASB Extractive Activities Oil and Gas (Topic 932).
PRODUCTIVE WELLS(a)
Italy
Rest of Europe
North Africa
Egypt
Sub-Saharan Africa
Kazakhstan
Rest of Asia
Americas
Australia and Oceania
(number)
2022
Oil wells
Natural gas wells
Gross
156.0
635.0
627.0
1,253.0
2,639.0
209.0
1,004.0
269.0
Net
130.0
105.0
263.8
533.5
480.1
57.2
349.4
144.4
Gross
331.0
223.0
138.0
145.0
175.0
1.0
108.0
285.0
2.0
Net
292.4
49.1
74.9
44.7
26.1
0.3
45.6
81.8
2.0
6,792.0
2,063.4
1,408.0
616.9
(a) Includes 1,089 gross (306.4 net to Eni) multiple completion wells (more than one producing into the same well bore). Productive wells are producing
wells and wells capable of production. One or more completions in the same bore hole are counted as one well.
Drilling activities
Exploration
In 2022, a total of 40 new exploratory wells were drilled (18.9 of which represented Eni's share), as
compared to 31exploratory wells drilled in 2021 (17.4 of which represent Eni's share) and 28 explora-
tory wells drilled in 2020 (13.8 of which represented Eni's share).
The following tables show the number of net productive, dry and in progress exploratory wells in the
years indicated by the Group and its equity-accounted entities in accordance with the requirements
of FASB Extractive Activities - Oil and Gas (Topic 932). The overall commercial success rate was 45%
(44% net to Eni) as compared to 54% (49% net to Eni) in 2021 and 28% (30% net to Eni) in 2020.
EXPLORATORY WELL ACTIVITY
Net wells completed(a)
Wells in progress
at Dec. 31(b)
2022
2021
2020
2022
(number)
productive
dryc)
productive
dry(c)
productive
dry(c)
gross
Italy
Rest of Europe
North Africa
Egypt
Sub-Saharan Africa
Kazakhstan
Rest of Asia
Americas
Australia and Oceania
0.4
1.0
4.4
3.7
0.7
1.2
4.0
4.3
2.4
1.0
0.1
5.0
1.1
0.7
0.3
5.0
0.4
1.0
0.7
0.8
0.5
0.7
0.1
0.8
0.4
1.5
1.5
0.9
1.1
0.9
0.6
26.0
9.0
12.0
39.0
13.0
3.0
1.0
net
6.7
6.0
10.3
19.7
5.7
1.9
0.3
10.2
12.9
7.0
7.4
2.9
6.9
103.0
50.6
(a) Includes number of wells in Eni's share.
(b) Includes temporary suspended wells pending further evaluation.
(c) A dry well is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas sufficient quantities to justify
completion as an oil or gas well.
ENI ANNUAL REPORT 2022
57
Development
In 2022, a total of 187 development wells were drilled (71.1 of which represented Eni's share) as
compared to 154 development wells drilled in 2021 (47.7 of which represented Eni's share) and
182 development wells drilled in 2020 (57.4 of which represented Eni's share). The drilling of 40
development wells (13.5 of which represented Eni's share) is currently underway.
The following tables show the number of net productive, dry and in progress development wells
in the years indicated by the Group and its equity-accounted entities in accordance with the
requirements of FASB Extractive Activities - Oil and Gas (Topic 932).
DEVELOPMENT WELL ACTIVITY
Net wells completed(a)
Wells in progress
at Dec. 31
2022
2021
2020
2022
(units)
productive
dry(b)
productive
dry(b)
productive
dry(b)
gross
Italy
Rest of Europe
North Africa
Egypt
Sub-Saharan Africa
Kazakhstan
Rest of Asia
Americas
Australia and Oceania
0.5
1.0
4.6
5.7
19.9
8.5
0.6
22.1
8.2
0.8
4.8
2.5
17.0
3.8
14.9
3.9
2.8
4.3
23.2
1.2
0.3
23.2
2.0
0.4
8.0
1.0
5.0
17.0
8.0
1.0
net
3.7
0.5
2.3
3.0
3.9
0.1
70.6
0.5
46.9
0.8
57.0
0.4
40.0
13.5
(a) Includes number of wells in Eni's share.
(b) A dry well is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas sufficient quantities to justify
completion as an oil or gas well.
Acreage
In 2022, Eni performed its operations in thirty-seven Countries located in five continents. As of De-
cember 31, 2022, Eni’s mineral right portfolio consisted of 752 exclusive or shared rights of explora-
tion and development activities for a total acreage of 308,550 square kilometers net to Eni (335,501
square kilometers net to Eni as of December 31, 2021), of which 643 square kilometers related to the
CCUS activities in Norway and the United Kingdom. Developed acreage was 27,262 square kilometers
and undeveloped acreage was 281,288 square kilometers net to Eni.
In 2022, main changes derived from: (i) the entry in Qatar and new leases were purchased or awarded
in Algeria, Egypt, Norway, and Ivory Coast as well as the CCUS project in Norway for a total increase
in acreage of approximately 18,900 square kilometers; (ii) relinquishment for the year related mainly
to South Africa, Myanmar, Bahrain, Greenland, Ireland, Pakistan, Italy, Mozambique and Montenegro
covering an acreage of approximately 39,650 square kilometers; (iii) interest increases were reported
mainly in Vietnam, Algeria and Congo for a total acreage of approximately 1,450 square kilometers;
and (iv) partial relinquishment was reported mainly in Angola, Indonesia and Norway for approxima-
tely 7,700 square kilometers.
The gross undeveloped acreages that will expire in the next three years are related to exploration lea-
ses, blocks, concessions in: (i) Rest of Europe, in particular in Albania and Cyprus; (ii) Rest of Asia, in
particular in Oman, Vietnam, Indonesia, Russia and United Arab Emirates; (iii) North Africa, in particu-
lar in Morocco and Libya; (iv) Sub-Saharan Africa, in particular in Kenya, Ivory Coast and Mozambique;
and (v) Americas, in particular in Mexico. In most cases extension or renewal options are contractually
defined and may or may not be exercised depending on the results of the studies and the planned
activities. Management believes that a significant amount of acreage will be maintained following
extension or renewal.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
58
OIL AND NATURAL GAS INTERESTS
December 31, 2021
December 31, 2022
EUROPE
Italy
Rest of Europe
Albania
Cyprus
Greenland
Montenegro
Norway
United Kingdom
Other Countries
AFRICA
North Africa
Algeria
Libya
Morocco
Tunisia
Egypt
Sub-Saharan Africa
Angola
Congo
Gabon
Ghana
Ivory Coast
Kenya
Mozambique
Nigeria
South Africa
ASIA
Kazakhstan
Rest of Asia
Bahrain
China
Indonesia
Iraq
Lebanon
Myanmar
Oman
Pakistan
Qatar
Russia
Timor Leste
Turkmenistan
United Arab Emirates
Vietnam
Other Countries
AMERICAS
Mexico
United States
Venezuela
Other Countries
AUSTRALIA AND OCEANIA
Australia
Total
)
a
(
e
g
a
e
r
c
a
t
e
n
l
a
t
o
T
39,858
12,118
27,740
587
13,988
1,909
614
7,272
1,487
1,883
128,186
27,775
4,765
13,294
7,529
2,187
6,776
93,635
10,810
1,306
2,931
495
3,385
41,892
4,171
6,374
22,271
155,482
1,947
153,535
2,858
10
14,184
446
1,461
4,113
58,955
1,072
17,975
1,928
180
18,771
28,338
3,244
9,270
3,106
751
1,066
4,347
2,705
2,705
t
s
e
r
e
t
n
I
f
o
r
e
b
m
u
N
302
113
189
1
7
147
34
293
81
54
14
1
12
55
157
82
19
3
3
6
6
8
30
55
7
48
3
13
1
2
3
1
2
4
1
12
5
1
98
10
76
6
6
4
4
l
d
e
p
o
e
v
e
d
s
s
o
r
G
)
b
(
)
a
(
e
g
a
e
r
c
a
s
s
o
r
G
l
d
e
p
o
e
v
e
d
n
u
)
a
(
e
g
a
e
r
c
a
s
s
o
r
g
l
a
t
o
T
)
a
(
e
g
a
e
r
c
a
l
d
e
p
o
e
v
e
d
t
e
N
)
b
(
)
a
(
e
g
a
e
r
c
a
l
d
e
p
o
e
v
e
d
n
u
t
e
N
)
a
(
e
g
a
e
r
c
a
)
a
(
e
g
a
e
r
c
a
t
e
n
l
a
t
o
T
14,635
7,993
6,642
54,096
4,966
49,130
587
68,731
12,959
55,772
587
8,137
6,698
1,439
25,495
4,186
21,309
587
33,632
10,884
22,748
587
25,474
25,474
13,988
13,988
5,723
919
21,789
1,280
27,512
2,199
815
624
5,871
863
6,686
1,487
51,139
16,820
11,561
1,963
3,296
5,022
29,297
10,863
971
226
719
16,518
232,739
104,546
283,878
121,366
6,915
78,085
16,730
2,816
15,179
18,476
80,048
16,730
6,112
20,201
113,014
142,311
30,544
41,407
1,320
2,931
930
4,523
50,677
13,883
8,206
2,291
2,931
1,156
4,523
50,677
14,602
24,724
14,207
103,189
117,396
7,773
5,332
958
1,483
1,789
4,645
907
586
100
35,307
3,388
23,686
7,529
704
5,314
43,080
8,720
24,644
7,529
2,187
7,103
62,568
67,213
5,609
713
2,931
395
4,000
6,516
1,299
2,931
495
4,000
41,892
41,892
180
2,872
3,688
3,340
3,868
6,212
10,926
256,816
267,742
3,238
142,347
145,585
2,391
8,535
62
3,770
1,074
412
200
3,017
2,230
34
935
1,261
728
728
3,853
6,244
442
1,505
1,947
252,963
261,498
2,796
140,842
143,638
62
14,465
18,235
3,653
1,074
3,653
10
1,787
446
10
10,319
12,106
1,461
446
1,461
102,016
102,016
58,955
58,955
1,206
53,930
2,200
29,603
31,290
14,600
14,570
5,436
280
1,543
7,311
2,608
2,608
1,206
53,930
2,612
200
32,620
31,290
14,600
16,800
5,470
1,215
2,804
7,311
3,336
3,336
38
17,975
1,806
18,411
28,633
3,244
8,140
3,073
139
569
4,359
2,117
2,117
38
17,975
1,928
180
18,662
28,633
3,244
9,186
3,107
654
1,066
4,359
2,751
2,751
122
180
251
1,046
34
515
497
634
634
335,501
752
79,658
560,829
640,487
27,262
281,288
308,550
(a) Square kilometers.
(b) Developed acreage refers to those leases in which at least a portion of the area is in production or encompasses proved developed reserves.
ENI ANNUAL REPORT 2022
59
MAIN PRODUCING ASSETS (GROUP SHARE IN %) AND THE YEAR IN WHICH ENI STARTED OPERATIONS
Italy
(1926) Operated
Adriatic
and Ionian Sea
Barbara (100%), Annamaria (100%), Clara NW (51%), Hera Lacinia (100%) and
Bonaccia (100%)
Basilicata Region
Val d'Agri (61%)
Sicily
Gela (100%), Tresauro (75%), Giaurone (100%), Fiumetto (100%), Prezioso (100%)
and Bronte (100%)
Rest of europe
Norway(a)
(1965) Operated
Goliat (41%), Marulk (12.62%), Balder & Ringhorne (56.77%) and Ringhorne East (44.14%)
Non-operated
Åsgard (15.41% ), Mikkel (30.51%), Great Ekofisk Area (7.81%), Snorre (11.70%), Ormen Lange (4.00%),
Statfjord Unit (13.47%), Statfjord Satellites East (9.17%), Statfjord Satellites North (15.77%), Statfjord
Satellites Sygna (13.25%) and Grane (17.86%)
United Kingdom (1964) Operated
Liverpool Bay (100%)
Non-operated
Elgin/Franklin (21.87%), Glenelg (8%), J Block (33%), Jasmine (33%) and Jade (7%)
North africa
Algeria(b)
(1981) Operated
Sif Fatima II (49%), Zemlet El Arbi (49%), Ourhoud II (49%), Blocks 403a/d (from 65% to 100%), Block ROM
North (35%), Blocks 401a/402a (55%), Block 403 (50%), Block 405b (75%) and Berkine South (75%).
Non-operated
Block 404 (12.25%) and Block 208 (12.25%)
Libya(b)
(1959) Non-operated
Onshore contract
areas
Area A (former concession 82 - 50%), Area B (former concession 100/ Bu-Attifel and
Block NC 125 - 50%), Area E (El-Feel - 33.3%) and Area D (Block NC 169 - 50%)
Offshore contract
areas
Area C (Bouri - 50%) and Area D (Blocco NC 41 - 50%)
Tunisia
(1961) Operated
Maamoura (49%), Baraka (49%), Adam (25%) and Oued Zar (50%)
Non-operated
MLD (50%) and El Borma (50%)
Egypt(b)(c)
(1954) Operated
Shorouk (Zohr - 50%), Nile Delta (Abu Madi West/Nidoco - 75%), Sinai (Belayim Land, Belayim Marine and
Abu Rudeis - 100%), Meleiha (76%), North Port Said (Port Fouad - 100%), Temsah (Tuna, Temsah and Denise
- 50%), Southwest Meleiha (100%) and Baltim (50%).
Sub-Saharan
Africa
Non-operated
Ras el Barr (Ha'py and Seth - 50%) and South Ghara (25%)
Angola(d)
(1980) Operated
Block 31 (13.33%), Block 18 (23%) and Block 15/06 (18.42%)
Non-operated
Block 17 (7.9%), Block 15 (21%), Block 0 (4.90%), Block 3 and 3/05-A (6%), Block 14 (10%) and Block 14K/A
IMI (5%).
Congo
(1968) Operated
Néné-Banga Marine and Litchendjili (Block Marine XII, 65%), Ikalou (85%), Djambala (50%), Foukanda (58%),
Mwafi (58%), Kitina (52%), Awa Paloukou (90%) and M’Boundi (83%)
Non-operated
Yanga Sendji (29.75%) and Likouala (35%)
Ghana
(2009) Operated
Offshore Cape Three Points (44.44%)
Mozambique
(2006) Operated
Area 4 (25%)
Nigeria
(1962) Operated
OMLs 60, 61, 62 and 63 (20%) and OML 125 (100%)
Non-operated(e) OML 118 (12.5%)
Kazakhstan(b)
(1992) Operated(f)
Karachaganak (29.25%)
Non-operated
Kashagan (16.81%)
Rest of Asia
Indonesia
(2001) Operated
Jangkrik (55%) and Merakes (65%)
Iraq
(2009) Non-operated(g) Zubair (41.56%)
Turkmenistan
(2008) Operated
Burun (90%)
United Arab
Emirates
(2018) Non-operated
Lower Zakum (5%), Umm Shaif and Nasr (10%) and Area B - Sharjah (50%)
Americas
Mexico
(2019) Operated
Area 1 (100%)
United States
(1968) Operated
Gulf of Mexico
Allegheny (100%), Appaloosa (100%), Pegasus (100%), Longhorn (75%), Devils
Towers (100%) and Triton (100%)
Alaska
Nikaitchuq (100%) and Oooguruk (100%)
Non-operated
Gulf of Mexico
Europa (32%), Medusa (25%), Lucius (14.45%), K2 (13.4%), Frontrunner (37.5%) and
Heidelberg (12.5%)
Venezuela
(1998) Non-operated
Perla (50%), Corocoro (26%) and Junin 5 (40%)
Texas
Alliance area (27.5%)
(a) Assets held by the Vår Energi associate (Eni's interest 63.1%).
(b) In certain extractive initiatives, Eni and the host Country agree to assign the operatorship of a given initiative to an incorporated joint venture, a so‐called operating company. The operating
company in its capacity as the operator is responsible of managing extractive operations. Those operating companies are not controlled by Eni.
(c) Eni’s working interests (and not participating interests) are reported. This include Eni’s share of costs incurred on behalf of the first party accordingly to the terms of PSAs inforce in the
Country.
(d) Assets held through Azule Energy, an equity accounted joint venture (Eni's interest 50%).
(e) As partners of SPDC JV, Eni holds a 5% interest in 16 onshore blocks and in 1 conventional offshore block and with a 12.86% in 2 conventional offshore blocks.
(f) Eni and Shell are co-operators.
(g) Eni is leading a consortium of partners including international companies and the national oil company Missan Oil within a Technical Service Contract as contractor.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 60
Main exploration and development project
Eni’s exploration and production activities are conducted in many Countries and are therefore
subject to a broad range of legislation and regulations. These cover virtually all aspects of
exploration and production activities, including matters such as license acquisition, production
rates, royalties, pricing, environmental protection, export, taxes and foreign exchange. The terms
and condition of the leases, licenses and contracts under which these Oil & Gas interests are
held vary from Country to Country. These leases, licenses and contracts are generally granted by
or entered into with a government entity or state company and are sometimes entered into with
private property owners. These contractual arrangements usually take the form of concession
agreements or production sharing agreements.
Concessions contracts. Eni operates under concession contracts mainly in Western Countries.
Concessions contracts regulate relationships between States and oil companies with regards
to hydrocarbon exploration and production activity. Contractual clauses governing mineral
concessions, licenses and exploration permits regulate the access of Eni to hydrocarbon reserves.
The company holding the mining concession has an exclusive right on exploration, development
and production activities, sustaining all the operational risks and costs related to the exploration
and development activities, and it is entitled to the productions realized. As a compensation for
mineral concessions, pays royalties on production (which may be in cash or in-kind) and taxes on
oil revenues to the state in accordance with local tax legislation. Both exploration and production
licenses are granted generally for a specified period of time (except for production licenses in
the United States which remain in effect until production ceases): the term of Eni’s licenses and
the extent to which these licenses may be renewed vary by area. Proved reserves to which Eni
is entitled are determined by applying Eni’s share of production to total proved reserves of the
contractual area, in respect of the duration of the relevant mineral right.
Production Sharing Agreement (PSA). Eni operates under PSA in several of the foreign
jurisdictions mainly in African, Middle Eastern, Far Eastern Countries. The mineral right is awarded
to the national oil company jointly with the foreign oil company that has an exclusive right to
perform exploration, development and production activities and can enter into agreements with
other local or international entities. In this type of contract, the national oil company assigns to the
international contractor the task of performing exploration and production with the contractor’s
equipment (technologies) and financial resources. Exploration risks are borne by the contractor
and production is divided into two portions: “Cost Oil” is used to recover costs borne by the
contractor and “Profit Oil” is divided between the contractor and the national company according
to variable schemes and represents the profit deriving from exploration and production. Further
terms and conditions of these contracts may vary from Country to Country. Pursuant to these
contracts, Eni is entitled to a portion of a field’s reserves, the sale of which is intended to cover
expenditures incurred by the Company to develop and operate the field. The Company’s share of
production volumes and reserves representing the Profit Oil includes the share of hydrocarbons
which corresponds to the taxes to be paid, according to the contractual agreement, by the national
government on behalf of the Company. As a consequence, the Company has to recognize at
the same time an increase in the taxable profit, through the increase of the revenues, and a tax
expense. Proved reserves to which Eni is entitled under PSAs are calculated so that the sale of
production entitlements should cover expenses incurred by the Group to develop a field (Cost Oil)
and recognize the Profit Oil set contractually (Profit Oil). A similar scheme applies to some service
contracts.
Italy
In the gas assets of the Adriatic Sea, development activities concerned: (i) maintenance and production
optimization intervention at the Bonaccia, Arianna and Basil offshore fields; and (ii) decommissioning
plan to plug-in depleted wells and to remove idle platforms progressed in the year in compliance
with Italian Ministerial Decree February 15, 2019 “Linee guida nazionali per la dismissione mineraria
delle piattaforme per la coltivazione in mare e delle infrastrutture connesse”. The decommissioning
process is ongoing as required by the Ministerial Decree for the first 10 platforms.
ENI ANNUAL REPORT 2022 61
Within Eni’s strategy to minimize carbon footprint, a program was launched to build a hub for the
capture and storage of CO2 (Carbon Capture and Storage - CCS) in depleted fields off the coast of
Ravenna with a potential CO2 store capacity of 500 million tonnes/year. The development program
includes a Phase 1 of project to build a CCS plant to storage 25 ktonnes/year of CO2 from 2024. In
December 2022 Phase 1 was sanctioned. By 2026, Phase 2 will start the industrial scale up with a
storage injection of 4 million tonnes/year.
In 2022 the Energy Valley project activities progressed and concerned certain initiatives with
the support of local stakeholders, in the area nearby at the Val d’Agri Oil Center, relating to
environmental sustainability, innovation, rehabilitation and enhancement of the area. In particular:
(i) the agricultural rehabilitation programs through the “Agricultural Center for Experimentation and
Training” project with sustainable agricultural initiatives and experimental crops; and (ii) training
activities also by means of the partnership agreement with the CNH industrial company in the
farm mechanization; and (iii) biomonitoring programs with innovative techniques.
In June 2022 Eni, Shell and the Basilicata Region, signed a Memorandum of Intent for a sustainable
development of the ten-year program at the Val d’Agri concession. The agreement provides for: (i)
energy transition and circular economy projects; (ii) development initiatives to enhance the area
and socio-economic, cultural and environmental programs; and (iii) partnerships and networks
developments with local and national stakeholders as well as local resources.
Within the Memorandum of Understanding for the Gela area, signed with the Ministry of Economic
Development in November 2014, the construction activities of the gas treatment plant progressed
at the Argo and Cassiopeia development project (Eni’s interest 60%). The project will be developed
in about 3 years with an investment of over €800 million.
The onshore and offshore project facilities will speed up the development of any additional
production resulting from the exploratory programs following the regulatory update to relaunch
domestic natural gas production. Natural gas production start-up is expected in the first half of
2024. Project configuration and design will support to achieve the carbon neutrality target (Scope
1 and 2).
Within the local support communities’ initiatives, according to the ratification of the framework
agreement with the Fondazione Banco Alimentare Onlus, Banco Alimentare della Sicilia Onlus and
the Municipality of Gela, activities were launched to create a food storage and distribution center
for disadvantaged communities.
Rest of Europe
Norway During 2022, Eni and the private equity fund HitecVision, shareholders of Vår Energi, have
finalized the process of listing the investee at the local stock exchange, the largest O&G IPO in
Europe in 15 years, placing about a 16.2% interest. Following the closing Eni’s interest is 63.1%.
Exploration activity yielded positive results with the Lupa (Eni’s interest 31.54%), Snofonn (Eni’s
interest 18.92%) and Skavl Sto (Eni’s interest 18.92%) discoveries in the Barents Sea, and the
Calypso discovery (Eni’s interest 12.61%) in the Norwegian Sea.
The mineral interest portfolio increased with twelve exploration licenses (five of which are
operated) following the “Awards in Predefined Areas 2022” (APA) by the Ministry of Petroleum
and Energy of Norway. The licenses are distributed over the three main sections of the Norwegian
continental shelf. The new acquired licenses are located in both near-fields already in production
or development areas with high exploration mineral potential.
In 2022, Vår Energi acquired: (i) 30% and operatorship of the PL820S and PL820 SB production
licenses, north of the Balder field in the North Sea. The transaction is pending government approval;
and (ii) the 40% stake and operatorship of the PL 917 and PL 917B production licenses, west of the
Balder field, through an equity swap with Aker BP in PL 956 and PL 985 licenses. The transaction
has been approved by the authorities. These transactions are part of the long-term growth strategy
focused on the North Sea hubs and will be included in the further development of the Balder area.
Development activities mainly concerned: (i) the Johan Castberg (Eni’s interest 18.92%) sanctioned
project with start-up expected in 2024; (ii) the Balder X sanctioned project in the PL 001 license,
located in the North Sea. The Balder project scheme provides for drilling additional productive wells,
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 62
to be linked to an upgraded Jotun FPSO unit that will be relocated in the area that will support the
development of new discoveries near to the area through upgrading existing infrastructure. The
planned activities will allow to extend the Balder hub production until 2045. Production start-up
is expected in 2024; and (iii) the Breidablikk sanctioned project with start-up in 2024. The project
scheme provides for drilling production wells to be linked to existing treatment facilities in the
area. Leveraging on high energy and operational efficiency technologies, the project development
will minimize direct GHG emissions.
United Kingdom In the year production start-up was achieved at the J-Area with three new
development wells as well as at the Jade South recent discovery by means of the linkage to the
existing facilities.
Development activities mainly concerned: (i) Talbot development project was sanctioned in 2022.
Drilling activities start-up are planned during 2023 with first oil in 2024; (ii) work-over program at
the Douglas field; and (iii) decommissioning planned activity of the Hewett Area.
Activities progressed at the HyNet North West integrated project where Eni is engaged with a
consortium of local industries for the capture, transportation and storage of CO2 emitted by them
and for the realization of a low carbon hydrogen production plant in the future. Eni will develop
and operate both the onshore and offshore transportation and storage of CO2 in its Liverpool Bay
assets. The project has been selected by the UK authorities between the two priority CCS projects
of the Track 1 clusters. The HyNet North West project start-up is expected in 2025 with an initial
CO2 storage capacity of 4.5 mmtonnes/year, at a later stage from 2030 will be increased to reach
10 mmtonnes/year. The HyNet North West project will support to achieve the decarbonisation
goals define by the UK Government at 2032. In particular the project will contribute to more than
80% of the CO2 capture and storage target by 2030, as well as with a production of 4 GW will
support to achieve the 80% production of low carbon hydrogen target by 2030.
In September 2022, Eni applied to the country’s authorities for carbon storage license at the
Hewett depleted field in the UK Southern North Sea, for the development of a CCS project aimed at
decarbonising the Bacton and Thames Estuary area. To support this application, Eni announces the
set-up of the Bacton Thames Net Zero initiative, including more tha 10 companies, to decarbonise
the energy-intensive and hard-to-abate sectors in the area.
North Africa
Algeria Exploration activities yielded positive results with: (i) the HDLE oil and gas discovery in the
Zemlet el Arbi concession; and (ii) the HDLS e RODW oil and associated gas discoveries in the Sif
Fatima II. These discoveries will be put into production through fast-track development activities
leveraging on the existing production facilities.
In September 2022, signed an agreement to purchase bp’s assets in Algeria including the two
gas-producing concessions In Amenas and In Salah, located in the southern Sahara Desert. Eni
finalized this agreement in February 2023 and acquired a stake of 45.89% and 33.15% in the
mentioned concessions, respectively.
During 2022, signed several agreements leveraging Eni’s strong relationship with the country
to increase and diversified natural gas export flows to Europe as well as other decarbonization
initiatives. In particular: (i) in March 2022 awarded a new PSA agreement for the Berkine South Area.
The project includes a fast-track development hub for oil and gas production through a synergy with
existing assets in block 405b; (ii) in April 2022 signed a Memoradum of Understading to evaluate
gas mineral potential and fast-track development of recent discoveries. Additional natural gas
production expected from the agreed areas will increase export capacity of the Transmed pipeline.
In addition, the agreement launched a study to assess technical and economic feasibility of a green
hydrogen pilot project nearby the BRN gas plant; (iii) in July 2022 a new PSA agreement was signed
with the partner of the Blocks 404 and 208. The agreement will support additional investments to
develop mineral potential in the area and possible initiative for the development of associated gas
volumes; and (iv) in November 2022 the Solar Lab research center was launched to identify the most
efficient technologies for the exploitation of solar energy in the country; as well as the activities for
ENI ANNUAL REPORT 2022 63
the construction of a 10 MW photovoltaic plant in the BRN production area started. The photovoltaic
plant will be the second one linked to the BRN facility, to further contribute to decarbonize the facility’s
hydrocarbon production. In addition, in January 2023, signed a Memorandum of Understanding to
study additional opportunities for Algerian gas export capacity increase to Italy and Europe and a
second memorandum of Understanding to identify decarbonization opportunities in the country by
means of the greenhouse gas and methane gas emissions reductions as well as CCUS projects,
renewable energy developments, energy efficiency initiatives also to monetize associated gas. These
activities, in line with Eni's net-zero strategy, are part of a wider-ranging decarbonization plan that also
includes venting monitoring and zero routine flaring and energy efficiency projects.
During the year production start-up was achieved at: (i) the Berkine North area (Eni’s interest
49%) with two gas and two oil fields. Ongoing development activities concerned the drilling and
completion of four additional production wells; and (ii) the Berkine South area with two gas and two
oil fields just six months from the closing of the contract agreement with a fast-track development.
The linkage to treatment plant and the installation of the transport facilities were completed.
Other development activities concerned: (i) production optimization by means of work-over and rig-
less activities in the production area of the Blocks 403 a/d and Rom North, Blocks 401a/402a and
Blocks 403 and 404; and (ii) development program of the CAFC project in the Block 405b.
Libya In January 2023, Eni signed an agreement with the National Oil Corporation of Libya (NOC)
for the development of the large gas reserves of A&E Structures, offshore Tripoli. Production is
expected to start in 2026 with volumes destined both to the domestic market and to Europe. The
project comprises construction of an onshore Carbon Capture and Storage (CCS) hub, in line with
Eni’s decarbonization strategy.
In November 2022 farm-out agreement with bp was ratified by relevant authority. The agreement
provides for the acquisition of a 42.5% interest and operatorship by Eni in the Ghadames North,
Ghadames South and Sirte offshore exploration permits.
During the year activities concerned: (i) initiatives related to reduction GHG emissions progressed, in
particular, with the BGUP project to monetize associated gas of the Bouri field. Start-up is expected
in 2025; and (ii) maintenance activities at the wastewater treatment plant for the Nalut General
Hospital as well as the health personnel training program following the agreements defined with
the country.
Egypt
Exploration activities yielded positive results with near-field discoveries in: (i) the Sinai production
concession with the Semiramis 1X oil exploration well; (ii) the Nile Delta concession with the El Qara
South-1X gas well; and (iii) in the Meleiha concessions through three oil and natural gas discovery
wells. New discoveries were started up by means of the linkage to the existing facilities and already
in production confirming the positive track-record of Eni’s exploration in the Country leveraging on
the continuous technology progress in exploration activities that allows to re-evaluate the residual
mineral potential in mature production areas.
In January 2023, exploration activities yielded positive results with the Nargis-1 gas discovery in
the non-operated Nargis Offshore Area in the Eastern Mediterranean Sea. The discovery will be
developed by leveraging Eni’s existing facilities.
In 2022, the portfolio of mineral interest was reloaded with: (i) following the successful participation
in the Egypt International Bid Round for Petroleum Exploration and Exploitation 2021, Eni was
awarded five exploration licenses, out of which four as operator, for a total acreage of about 8,400
square kilometers. The licenses are distributed in the mining area of greatest interest to Eni, which
will allow rapid developments through nearby existing plants. The operation is subjected to be
ratified by the relevant authorities; (ii) the award of the operatorship of three concessions in the
eastern Mediterranean Sea following the agreement with Ministry of Petroleum and the Egyptian
state-owned company EGAS; (iii) the farm-in agreement was finalized in the Nargis Offshore Area
with the acquisition of a 45% stake in the license; and (iv) the disposal of interests in the Ras
Qattara (Eni’s interest 75%), West Abu Gharadig (Eni’s interest 45%), East Kanays (Eni’s interest
100%) and West Razzak (Eni’s interest 100%) production assets.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 64
In April 2022 Eni signed a framework agreement with the Egyptian state-owned company EGAS to
enhance gas production and LNG exports to Europe, and in particular to Italy, through the Damietta
liquefaction plant. In addition, in January 2023 Eni signed a Memorandum of Intent (MoI) with EGAS
to launch joint studies on identifying opportunities for the reduction greenhouse gas emissions in
the country's upstream sector, through initiatives that will lead to further valorization of natural gas.
In addition, during the year unitization agreement was finalized for the Sand-1 field with the North
El Hammad (NEHO) concession.
Development activities concerned: (i) production optimization program in the Sinai concession;
(ii) development drilling activities in the Baltim and NEHO concessions; (iii) the FID of the Meleiha
Phase 2 project was sanctioned. The project was already started up in early production and the
completion of the development program is expected in 2024; (iv) upgrading of the facilities in the
Emry Deep and Arcadia fields as well as of the water injection facilities in the Western Desert; and
(v) desalination programs in production areas to reduce freshwater withdrawals in line with the
principles of the United Nations "CEO Water Mandate" initiative.
Development activities of the Zohr project concerned: (i) EPCI activities for the construction of
new submarine facilities and two additional treatment unit with a capacity of 6,000 barrels/d to
manage and recover production water. The construction of further three units with a capacity of
9,000 barrels/d is being studied; and (ii) development drilling activities with the completion of three
additional production wells with start-up in 2022.
As of December 31, 2022, the aggregate development costs incurred by Eni for developing the Zohr
project and capitalized in the financial statements amounted to $6 billion (€5.6 billion at the EUR/
USD exchange rate of December 31, 2022). Development expenditure incurred in the year were
€349 million. As of December 31, 2022, Eni’s proved reserves booked at the Zohr field amounted
to 650 mmboe.
Eni holds interest in the Damietta liquefaction plant with a capacity of 5.2 mmtonnes/y of LNG
associated to approximately 283 bcf/y of feed gas.
Eni progressed its activities to support a just energy transition, in line with Eni's strategy and the
country's national development plan. The Zohr development activities includes also several local
development initiatives. The defined programs with an overall expense expected in $20 million until
2024, include three main areas: (i) technical education. In particular the Zohr Applied Technology
School (ATS) launched training programs for 528 students. In addition, in October 2022 activities
started at the Centre of Excellence for access to employment supporting access to work; (ii)
economic diversification. The Youth Empowerment Program implemented training programs
for about 400 people and about 4,000 people benefitted of the Youth Center services; (iii) local
community’s health. In particular, several initiatives implemented to support local healthcare
system with equipment for the Port Said hospital, healthcare staff training and about 16,000 people
benefitted from health awareness campaigns.
Sub-Saharan Africa
Angola In August 2022, started operations at Azule Energy, the equally owned joint venture by bp
and Eni, with the derecognition of the Group’s Angolan operating companies transferred to the
JV Azule Energy combines both companies’ Angolan upstream, LNG and solar businesses and is
Angola’s largest independent oil and gas producer. Azule is a further example of Eni’s distinctive
satellite model designed to unlock value.
Exploration activities yielded positive results with the Ndungu-2 delineation well, increasing the
resources estimated of the homonymous production field and enhancing its full development.
In 2022 production start-up was achieved at: (i) the Ndungu Early Production by hooking it up to the
Ngoma FPSO. The Ngoma FPSO is designed with treatment capacity of approximately 100 kbbl/d
and with zero-water discharge and zero-process flaring to minimize emissions; (ii) the Agogo Early
Production Phase 2 in the Block 15/06 with the completion of the development activities and the
installation of the required submarine facilities; and (iii) one well started up from Cuica field in the
Eastern area of Block 15/06.
ENI ANNUAL REPORT 2022 65
In July 2022, reached the final investment decision (FID) by partners of the New Gas Consortium
for the development of the Quiluma and Maboqueiro fields. The project, the first non-associated
gas development in the country, is planned to start-up in 2026 with an expected production plateau
at 330 mmcf/d.
Development activities concerned: (i) the definition phases of the Agogo Integrated West Hub for
the full development of the western Block 15/06 area by means of the Ngoma and Agogo FPSOs;
(ii) the Sanha Lean Gas Connection and Booster Gas Compressor project in Block 0 increasing
associated gas production to feed the A-LNG liquefaction plant; and (iii) the FEED activity of the
South Ndola e Sanha-Mafumeira connector projects for the construction of transportation facilities
to put in production the residual reserves in the area; (iv) programs in the health services in the
Luanda area also by means of the electrification of health centers as well as several initiatives in
the Namibe, Huila and Cabinda areas in access to water, education, primary health services and
in the agricultural sector also supporting youth employment; and (v) food safety programs in the
Cunene area as well as child protection initiatives in the Zaire area.
Congo In April 2022 Eni signed a letter of intent with the Republic of Congo to strength joint
operations in the upstream sector targeting to increase natural gas export flows to Europe.
Development plans provide for an increase in natural gas production through fast-track projects to
monetize the associated and non-associated volumes in the Marine XII block both for the domestic
power generation and LNG export, also targeting to support zero routine flaring. The export project
consists of modular and phased LNG liquefaction plants with reduced time-to-market. Start-up is
expected in 2023 with capacity of approximately 35 BCF/year and approximately 160 BCF/y in 2025.
During 2022 additional development phase of the Néné-Banga field on the Marine XII block was
completed with the installation of a new platform resulting production start-up.
During the year activities progressed with: (i) the construction of the Centre of Excellence for
Renewable Energy and Energy Efficiency in Oyo; (ii) the Project Integrated Hinda (PIH) to support
the socio-economic development of the local communities with education, sanitary service an
access to water initiatives; (iii) in the agricultural sector with the CATREP program.
In addition, the Agri-feedstock project progressed in the agricultural sector to integrate producers
into the biofuels supply chain (see below).
Ivory Coast Exploration activities yielded positive results with the Baleine East 1X well in the CI-
802 operated block (Eni’s interest 90%), second discovery on the Baleine structure in the offshore
Ivory Coast and allowed an increase in estimated hydrocarbons in place to 2.5 billion barrels of oil
and 3.3 Tcf of associated gas.
Development activities focused on the development project of the Baleine discovery. During 2022
FID of both Phase 1 and 2 development projects was sanctioned. The development of Baleine field
is phased and fast-tracked with start-up of Phase 1 in 2023 and Phase 2 at the end of 2024. The
phased development approach is defined and agreed with the authorities. The project will be a
Scope 1 and 2 net-zero development, the first of this kind in Africa. Carbon neutrality will leverage
on certain emission reduction drivers by means of forest conservation (REDD+) and improved
cookstoves initiatives. In particular, improved cookstoves project for vulnerable households was
launched in June 2022 (see below).
In addition a program to support primary education was launched in the Abidjan area.
Baleine confirms Eni’s commitment to generate value while reducing the carbon footprint and
focus to improve the time-to-market of exploration discoveries.
Mozambique In December 2022, Eni was awarded a 60% interest and operatorship of the A6-C
exploration block following the participation in the 6th Bid Round. The completion of the relevant oil
contract is expected in early 2023.
In the second half of 2022 the Coral South project started up in the Area 4 block, first production start-
up in the country to develop gas discovery in the Rovuma offshore area. Start-up was achieved with
the Coral Sul Floating Liquefied Natural Gas (FLNG) vessel for the treatment, liquefaction, storage
and export, with a capacity of approximately 3.4 mmtonnes/y of LNG, feed by six subsea wells.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 66
The Coral-Sul FLNG was designed to high standards in terms of safety and sustainability. The
vessel was implemented with an energy efficiency approach and CO2 emissions reduction. In
particular the Coral Sul FLNG achieves zero flaring during normal operations and uses gas efficient
turbines also to power generation.
In November 2022, the first loading of liquefied natural gas was shipped from the Coral Sul Floating
Liquefied Natural Gas (FLNG) vessel. The Coral South development plan is expected to produce
total about 500 bcm of natural gas.
Additional development phases to put into production the Area 4 reserves, are being evaluated by
the delegated operators of Area 4 (Eni and ExxonMobil), which are expected to include offshore
development options, based on the expertise achieved with the Coral South FLNG project, and
onshore activities also through synergies with Area 1.
In 2022, Eni’s programs to support the local communities of the Country progressed with: (i)
programs to support primary and infant education, public healthcare as well as youth employment
in the Pemba area; (ii) programs in access to energy also by means of production and distribution of
improved cookstoves; and (iii) initiatives in access to fresh water, health and social care programs,
biodiversity projects in the Mecufi area.
Nigeria In August 2022 Eni finalized a twenty-year extension of the PSC agreement for the operated
OML 125 block. In addition, Eni signed an agreement with the State company NNPC to recover past
receivables related to the OML 125 development and production activities, starting in 2023.
Development activities at the operated OMLs 60, 61, 62 and 63 blocks concerned workover and
rigless activities to mitigate mature fields decline as well as asset integrity program of the facilities
and the installation of new compressor units to monetize additional natural gas volumes and to
improve environmental performance by reducing CO2 emissions related to flaring. During the year,
additional production well was started up by means of the completion of drilling activity.
In 2022 the collaboration with the Food and Agriculture Organization (FAO) progressed to foster
access to safe and clean water in Nigeria for local communities affected by humanitarian crisis
in the north-east areas of Nigeria: (i) in March 2022, Eni and FAO, in partnership with NNPC,
completed and delivered 11 water plants powered by photovoltaic systems in Borno and Yobo
states in northeastern Nigeria; and (ii) certain maintenance activities have been performed to
provide infrastructures reliability and sustainability. Since 2018, start year of program, realized 22
wells powered with photovoltaic systems, both for domestic use and irrigation purposes, to benefit
approximately 67,000 people.
During the year the activities in support of the Niger Delta populations, in addition to the Green
River Project, concerned several extraordinary intervention programs, such as distribution of
essential goods in about 260 communities, following the worst floods in recent years decades that
have affected the area. In addition, Eni continues to support reconstruction interventions also by
means of the restoration of main access and transport routes to reconnect all the different areas
remained isolated.
Development activities of the SPDC joint venture (Eni’s interest 5%) operated production areas
concerned: (i) restore the Trans Niger Pipeline (TNP) integrity that had been compromised by
external interference from third parties. The TNP is the main trunk oil line to the Bonny export
terminal. The TNP line was shut down for almost 2022 to address illegal tapping resulting from
bunkering activities and the operation of illegal refineries; (ii) five new production gas wells in the
Kolo Creek and Gbaran production areas have been linked, and five oil wells have been drilled in the
Forcados area to increase oil production; (iii) workover and rigless programs to mitigate mature
natural fields decline; and (iv) asset integrity activities.
In the participated OML 118 block development activities focused on the drilling of five development
wells, of which three wells were completed. Start-up was achieved with one production and one
injection wells.
Eni holds a 10.4% interest in the Nigeria LNG Ltd joint venture, which runs the Bonny liquefaction
plant located in the Eastern Niger Delta. The plant has a production capacity of 22 mmtonnes/y of
LNG associated with approximately 1,270 bcf/y of feed gas. Natural gas supplies to the plant are
currently provided under a gas supply agreement from the SPDC JV, TEPNG JV and the NAOC JV
ENI ANNUAL REPORT 2022 67
(Eni’s interest 20%). In 2022, the Bonny liquefaction plant processed approximately 830 bcf. LNG
production is sold under long-term contracts and exported mainly to the United States, Asian and
European markets by the Bonny Gas Transport fleet, wholly owned by Nigeria LNG, as well as is
sold FOB by means of the fleet owned by third parties.
Kazakhstan
Kashagan Current development plans of the Kashagan field envisage a phased increase in the
production capacity up to 450 kbbl/d by upgrading the existing associated gas compression
facilities. The ongoing activities, sanctioned in 2020, mainly concerned: (i) increasing gas reinjection
capacity by means of upgrading the existing facilities. Activities were completed during 2022; and
(ii) delivering a part of gas volumes to a new onshore treatment unit operated by a third party,
currently under construction.
As of December 31, 2022, the aggregate costs incurred by Eni for the Kashagan project capitalized
in the financial statements amounted to $10.1 billion (€9.5 billion at the EUR/USD exchange rate
of December 31, 2022). This capitalized amount included: (i) $7.5 billion relating to expenditures
incurred by Eni for the development of the oil field; and (ii) $2.6 billion relating primarily to accrued
finance charges and expenditures for the acquisition of interests in the Consortium from exiting
partners upon exercise of pre-emption rights in previous years. Cost incurred in the year were €82.6
million.
As of December 31, 2022, Eni’s proved reserves booked for the Kashagan field amounted to 587
mmboe, lower than 2021, due to price effects.
Karachaganak During 2022 within the development plan of the Karachaganak field to increase gas
re-injection treatment expansion in several phases, the installation and start-up of a fourth gas
compression unit was completed. Ongoing development phases, sanctioned in 2020, include: (i)
the drilling of three additional injection wells; (ii) a new injection line; and (iii) the installation of a
fifth compression gas unit. Start-up is expected in 2024. In addition, in 2022 the last phase for the
installation of a sixth compression unit was sanctioned. Start-up is expected in 2026.
Eni continues its commitment to support local communities in the nearby area of the Karachaganak
field. In particular, initiatives progressed with: (i) professional training; and (ii) realization of
kindergartens and schools, roads maintenance, construction of sport centers; and (iii) medical-
health support also by means of the medicines distribution.
As of December 31, 2022, the aggregate costs incurred by Eni for the Karachaganak project
capitalized in the financial statements amounted to $4.7 billion (€4.4 billion at the EUR/USD
exchange rate of December 31, 2022). Cost incurred in the year were €188.7 million.
As of December 31, 2022, Eni’s proved reserves booked for the Karachaganak field amounted to
354 mmboe, lower than 2021, due to price effects.
Rest of Asia
Indonesia Development activities concerned: (i) the Merakes East project in the operated East
Sepinggan block, in the deep offshore eastern Kalimantan. The project was approved with the
completion of the plan program definition; (ii) the Maha project in the operated West Ganal
offshore block (Eni’s interest 40%). Plan program definition is ongoing; (iii) upgrading activities of
the gas compression facilities in the operated Muara Bakau block (Eni’s interest 55%); and (iv) the
activities and initiatives in the fields of access to water and renewable energy to support the local
development areas of Samoja, Kutai Kartanegara and East Kalimantan.
Iraq Development activities comprised the execution of an additional development phase of the
ERP (Enhanced Redevelopment Plan) at the Zubair field, which will allow to achieve a production
contractual plateau of 700 kbbl/d. The production capacity and main facilities to treat the
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 68
production plateau target have already been installed. Activities to increase treatment capacity are
ongoing. The field reserves will be progressively put into production by drilling additional productive
wells over the next few years by means of the collection facilities expansion and the completion of
the water reinjection wells. In particular, projects ensuring water availability to maintain reservoir
pressurization are being implemented.
In February 2022, consistently with the sustainable development goals, Eni in collaboration with the
European Union and UNICEF, has launched a project in partnership with the Governorate of Basra,
aimed at improving quality of water for 850,000 people in the city of Basra, including over 160,000
children as direct beneficiaries.
Eni’s commitment continues with projects in the fields of education, health, environment and
access to water.
In particular: (i) construction activities of a new school in the Zubair area with completion expected
in 2024, as well as renovation and material supply initiatives; (ii) construction of a nuclear medicine
department and a new pediatric oncology department, nearing completion, at the Basra Cancer
Children Hospital; (iii) in 2022 start-up of the Al-Bardjazia drinking water supply plant in the Zubair
area while the construction of the new Al-Buradeiah plant in Basra is ongoing.
United Arab Emirates Exploration activities yielded positive results in the operated Block 2 (Eni’s
interest 70%) with the XF-002 well and DM-002 appraisal well, in offshore Abu Dhabi, with estimated
resources in 170 million barrels of oil and between 2.5 and 3.5 TCF of natural gas in place.
In 2022 development activities concerned: (i) the Dalma Gas Development sanctioned project in
the offshore Ghasha concession (Eni’s interest 25%) and the Umm Shaif Long-Term Development
Phase 1 sanctioned project in the Umm Shaif concession; and (ii) ramp-up production program of
the Mahani field in the onshore Area B concession.
In March 2023 Eni signed a strategic agreement with ADNOC to explore potential opportunities in
the areas of renewable energy, blue and green hydrogen, carbon dioxide capture and storage (CCS),
in the reduction of GHG and methane gas emissions, energy efficiency, routine gas flaring reduction
and the Global Methane Pledge, to support global energy security and a sustainable energy transition.
Americas
Mexico In March 2023 exploration activities yielded positive results with the Yatzil discovery in the
Block 7 (Eni operator with a 45% interest).
In January 2022, was signed a four-year Memorandum of Understanding with the United Nations
Educational, Scientific, and Cultural Organization (UNESCO) to identify potential jointly initiatives
supporting local economy sustainable development by means of economic diversification,
environmental and cultural heritage protection, access to primary services, human rights respect
and inclusion.
The development activities mainly concerned the full field development program of the operated
license Area 1 (Eni’s interest 100%), already in production, with the completion of the first
development phase. In particular: (i) in February 2022 start-up of the Miamte FPSO in the Miztón
field with production ramp-up in the area. During the year drilling production wells and water
injection wells were completed; and (ii) in March 2022 start-up of the Amoca WHP-1 platform.
Drilling activities are ongoing.
The development plan includes a second phase with the construction and installation of additional
two platform in the Amoca and Tecoalli fields.
Within the cooperation agreement with the local Authorities relating to health, education and environment,
as well as economic diversification initiatives to support the improvement of living conditions and local
development, during the year the activities concerned: (i) restructuring of school buildings; (ii) training
and inclusion school programs; (iii) initiatives to improve socio-economic conditions of communities with
development programs in particular in fishing activity; (iv) launched a youth development program; and (v)
awareness campaigns in the field of access to energy, environmental protection and social issues.
ENI ANNUAL REPORT 2022 69
Carbon offset initiatives
Eni recognizes and supports economy transition towards a low carbon model and on this basis, Eni
developed a decarbonization strategy of the Group's products and industrial processes to target
net zero Scope 1+2+3 emissions by 2050. Eni plans to offset its residual emissions by leveraging
on the Natural Climate Solutions initiatives and the technological applications in different areas
to progressively maximize the carbon removal. These initiatives are expected to achieve a carbon
credits portfolio on yearly basis to offset less than 25 million tons of CO2 in 2050.
Natural Climate Solutions
Within the Natural Climate Solutions (NCS) area, starting from 2019 Eni launched the forest
protection, conservation and sustainable management projects, in particular in developing
Countries. The forest projects are considered the most significant at internationally level within
climate change mitigation strategies.
These projects are framed in the REDD+ (Reducing Emissions from Deforestation and forest
Degradation) scheme. The REDD+ scheme was designed by the United Nations (in particular
within the UNFCCC – United Nations Framework Convention on Climate Change) and involves
conservation forest activities to reduce emissions and improve the natural storage capacity of
CO2, as well as supporting, with a different development model, the local communities through
socio-economic projects, in line with sustainable management, forest protection and biodiversity
conservation. In this scheme, Eni’s protection forest activities support national governments, local
communities and UN agencies in the REDD+ strategies, in line with the NDCs (Nationally Determined
Contributions) and National Development Plans and, mainly, the Sustainable Development Goals
(SDGs) of UN.
Eni built solid partnerships over time with recognized international developers of REDD+ projects
that allows to oversee every phase of the projects, from the design to the implementation up
to verify the reduction emissions, with an active role in the governance of the project. The Eni’s
role is essential to allow the alignment with the REDD+ scheme and also with highest standards
for certification of the carbon emissions reduction (Verified Carbon Standard – VCS) and social
and environmental effects (Climate Community & Biodiversity Standards - CCB), internationally
recognized.
Main initiatives supported by Eni are Luangwa Community Forest Project (LCFP) and Lower
Zambezi REDD+ Project (LZRP) in Zambia, Kulera in Malawi, Ntakata Mountains in Tanzania and
Amigos de Calakmul, in Mexico. In 2022 Eni achieved allowance of carbon credits by the projects
to offset GHG emissions equivalent to about 3.5 million tons of CO2.
During 202 Eni finalized agreements to support the future development projects in Ivory Coast,
Kenya and Mozambique where feasibility studies are underway.
In November 2022 Eni signed an agreement with the Rwanda Development Board and the non-profit
tech start-up Rainforest Connection in Rwanda to testing the application of artificial intelligence
technologies in the forest protection and conservation.
Eni continues to evaluate further NCS initiatives in restoration and sustainable management
ecosystems in Africa, Latin America, and Asia.
Technological projects
The technological application in different areas area is one of the levers in the residual emission
reduction. In particular, Eni launched projects to promote the Improved Cookstoves (ICS) distribution
for cooking food in energy poverty areas and continued to assess initiatives in renewable energy,
waste management, agricultural practices improvement that ensuring in addition to climate change
mitigation also significant social and environmental benefits for local stakeholders.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
70
These initiatives ensure to offset emissions by generating high credits quality, certified according
to the highest international environmental standards (Verified Carbon Standard - VCS) and support
the achievement of the SDGs (Sustainable Development Verified Impact Standard - SD VISta).
In June 2022 Eni launched the distribution of ICS to vulnerable households in Ivory Coast. It is
expected that more than 300,000 people form the Region of Gbêkê Project will benefit from the
projects which targeting to deliver 100,000 ICS over a period of 6 years, starting already this year.
All the stoves are produced by a local manufacturer, contributing to the development of local
content and in-country value creation.
This activity will enhance Eni’s decarbonization strategy in the Baleine discovery development. The
project is expected to generate high-quality carbon credits certified by the international standard
VERRA amounting to approximately 1 million of VCU (Verified Carbon Units) over the next 10 years.
Similar initiatives are planned in several countries, including Mozambique, Congo, Kenya and
Rwanda.
Agri-feedstock projects
During the year Eni finalized agreement with the authorities of Mozambique, Benin and Rwanda as
well as in 2021 in Kenya, Congo, Angola, Kazakhstan and Ivory Coast aiming to promote agricultural
initiatives for the cultivation of oil plants to be used as feedstock (Low ILUC feedstock – Indirect
Land Use Change) for Eni’s biorefineries, enhancing marginal areas not destined to the food chain.
The development activities plan is focused on vertical integration and includes agreements to
produce oilseeds by local farmers and cooperatives and the construction of oil collection and
extraction centers by Eni (Agri Hubs). The supply chain byproducts will be aimed for domestic
market and also for export. These initiatives will also support rural development, land restoration
through sustainable and regenerative agriculture, with positive impacts on socio-economic
development and employment, access to market opportunities as well as human rights protection,
health and food security. Further programs are being evaluated in other countries with a model in
analogy to the ones applied.
In particular, in October 2022, a first cargo of vegetable oil, produced at Eni’s Makueni agri-hub in
Kenya, was shipped to the Eni’s biorefinery of Gela. Makueni agri-hub started operations in July
2022. Production of such sustainable oil is expected to scale up rapidly to 20,000 tons by 2023
from current production of 2,500 tones at the end of 2022. The supply chain in Kenya is certified
according to the ISCC-EU (International Sustainability and Carbon Certification) sustainability
scheme, one of the main voluntary standards recognised by the European Commission for the
certification of biofuels (EU RED II). In addition, the agreement reached with Kenya also provides
for the engineering activities to conversion the Mombasa traditional refinery to biorefinery for HVO
and Biojet production; as well as the collection of UCO (Used Cooking Oil) to be used as feedstock.
Other ongoing activities concerned: (i) in Congo, started the cultivation with the first 2 thousand
hectares sown. Launched the engineering and construction phases of the first Agri Hub with a
capacity of 30 thousand tons/year and start-up in 2023. Full capacity is expected to produce 250
thousand tons starting from 2027; (ii) in Mozambique, in November 2022, started the cultivation of
pilot fields and engineering activities of the first Agri Hub with a capacity of 30 thousand tons/year
and start-up in 2023. Full capacity is expected to produce 200 thousand tons in 2027; (iii) in Angola,
in December 2022, started the cultivation of pilot fields in the Luanda area. The construction area of
the Agri-Hub plant has been identified. Production capacity is expected to 30 thousand tons/year;
(iv) in Ivory Coast, are ongoing preliminary activities for the production chain definition and the
area selection to build the Agri-Hub plant with start-up in 2023; and (v) in Italy, launched a project
in partnership with the Bonifiche Ferraresi company, to evaluate the crops development for energy
use, recovering degraded or polluted land not destinated to the food chain.
Agricultural productions projects started or under development will respond to the ISCC-EU
sustainability certification scheme.
Overall target production is expected to subsequently reach an agri-feedstock volume of over 700
thousand tonnes by 2026 leveraging on planned initiatives.
ENI ANNUAL REPORT 2022 71
In November 2022, in Rwanda, Eni signed an agreement with the National Industrial Research and
Development Agency to maximize techniques and know-how of the seeds production for agri-
feedstock initiatives launched by Eni in other African countries.
Within these development model, Eni finalized strategic partnership agreement with the Bonifiche
Ferraresi Group aimed at establishing in 2021 the Agri-Energy equal joint venture. In 2022 the
Agri-Energy JV launched research projects of sustainable energy crops, in particular with a pilot
project in Sardinia. In addition, Agri-Energy will support in the countries where Eni will develop agri-
feedstock projects by means of know-how transfer and agriculture seeds and products supplies.
Finally, in addition to the seeds cultivation in degraded or marginal land, Eni has diversified its
types of feedstock with agricultural waste and residues.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 72
Global Gas & LNG Portfolio
€ 2,063 mln
adjusted operating profit
more than tripled vs. 2021
~1,000
business customers
Replaced 50% of Russian gas
thanks to equity gas and partnerships
in North and West Africa
Entry in North Field
East LNG in Qatar
and Congo LNG
ENI ANNUAL REPORT 2022 73
2022
2021
2020
0,00
0,00
0,00
0,00
0,00
0,00
1.15
0.99
1.37
(bcm)
60.52
70.45
64.99
30.67
36.88
37.30
27.41
28.01
23.00
2.43
2.89
3.67
24.98
25.12
19.33
2.44
9.4
870
588
(number)
5.56
10.9
847
571
1.01
4.69
9.5
700
410
0.36
KEY PERFORMANCE INDICATORS
TRIR (Total Recordable Injury Rate)(a)
(total recordable injuries/worked hours) x 1,000,000
of which: employees
contractors
Natural gas sales(b)
Italy
Rest of Europe
of which: Importers in Italy
European markets
Rest of world
LNG sales(c)
Employees at year end
of which: outside Italy
Direct GHG emissions (Scope 1)(a)
(mmtonnes CO2eq.)
2.09
(a) Calculated on 100% operated assets.
(b) Data include intercomapny sales.
(c) Refers to LNG sales of the GGP segment (included in worldwide gas sales).
PERFORMANCE OF THE YEAR
• Achieved in 2022 for the second consecutive year, the target of zero-injury for employees and contractors.
• Direct GHG emissions (Scope 1) equal to 2.09 mmtonnes CO2eq. increased as a result of growing gas volumes transported by
TTPC and TMPC pipelines and the consolidation of Damietta liquefaction plant.
• Eni worldwide gas sales amounted to 60.52 bcm, decreased by 14.1% compared to 2021 (down by 9.93 bcm), following lower
sales in Italy, in particular hub and industrial segment and in the extra European markets.
• LNG sales amounted to 9.4 bcm, representing a decrease of 13.8% compared to 2021.
INITIATIVES TO SUPPORT ENERGY SECURITY
In line with the strategic guideline to increase gas production and import in Italy, Eni signed agreements with a number of
governments in the countries where it operates. In particular a letter of intent signed with the petroleum authorities of the
Republic of Congo with the aim of developing a liquefied natural gas project with start-up expected in 2023 and capacity of over
4.5 billion cubic meters/year; in Algeria, Eni plans to gradually increase volumes of gas imported in Italy through the Transmed
pipeline as part of the existing long-term supply contracts with Sonatrach, with additional gas deliveries starting from next
heating season and a progressive ramp-up to 9 billion cubic meters/year in 2024; in Egypt, Eni has agreed with the state-owned
company “EGAS” to valorize local gas reserves by increasing activities in jointly managed concessions and through near-field
exploration, with the target to increase in the next years the production and the exports of gas towards Italy, through the
Damietta liquefaction plant, up to approximately 3 billion cubic meters.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
74
Finally, as evidence of Eni’s commitment to ensuring security of supply while at the same
time pursuing our decarbonisation targets, in January 2023 the partnership between Italy
and Algeria has been further strengthened. Eni and Sonatrach signed strategic agreements
to accelerate emissions reduction and strengthen energy security. In particular, opportunities
for the reduction of greenhouse gas and methane gas emissions will be identified and will be
defined energy efficiency initiatives, renewable energy developments, green hydrogen projects
and carbon dioxide capture and storage projects, to support energy security and a sustainable
energy transition. In addition, studies will be conducted to identify possible measures to improve
Algerian energy export capacity to Europe.
DEVELOPMENT OF LNG BUSINESS
In June 2022, in the LNG business, Eni entered in the North Field East LNG project in Qatar, the
world’s largest, expanding its presence in the Middle East and gaining access to a leading country
in the LNG production. In August, Eni acquired the Tango FLNG floating liquefaction plant, that will
be used in the Republic of Congo, as part of the activities of the natural gas development project
Marine Block XII. The plant has an LNG production capacity of approximately 0.6 million tons/year
(about 1 billion standard cubic meters/year). Furthermore, in December among the same project, a
turnkey contract for construction, installation and commissioning activities of a FLNG floating unit
with a capacity of 2.4 million tons/year was signed. This plant, together with the Tango FLNG ship,
acquired earlier, will accelerate the Eni development plan in the area. LNG production is expected to
reach plateau capacity of 3 million tons/year in 2025.
PORTFOLIO DEVELOPMENTS
In January 2023, as part of Eni’s portfolio optimization, Eni finalized the sale to Snam of the 49.9%
interest (directly and indirectly held) in the companies operating two groups of international gas
pipelines connecting Algeria to Italy, in particular the onshore pipelines that extend from the border
between Algeria and Tunisia to the Tunisian coast (TTPC) and the offshore pipelines connecting
the Tunisian coast to Italy (TMPC). These interests were transferred by Eni to SeaCorridor Srl
held by Snam (49.9% interest) and Eni (50.1% interest). Eni and Snam exercise joint control over
SeaCorridor, based on the principles of equal governance.
Natural gas
Supply of natural gas
Eni’s consolidated subsidiaries supplied 60.59 bcm of natural gas, decreased by 10.39 bcm or by
14.6% from the full year 2021.
Gas volumes supplied outside Italy from consolidated subsidiaries (57.19 bcm), imported in Italy
or sold outside Italy, represented approximately 94% of total supplies, decreased by 10.20 bcm or
by 15.1% from the full year 2021. This mainly reflected lower volumes purchased in Russia (down
by 13.01 bcm), in Norway (down by 0.77 bcm), in the UK (down by 0.74 bcm), in Libya (down
by 0.56 bcm) and in Indonesia (down by 0.45 bcm) partly offset by higher purchases in Algeria
(up by 1.74 bcm), in the other European markets, in particular France, Germany and Spain (overall
increase of 5.72 bcm). Supplies in Italy (3.40 bcm) reported a decrease of 5.3% from the full
year 2021.
ENI ANNUAL REPORT 2022 75
In 2022, main gas volumes from equity production derived from: (i) certain Eni fields located in
the British and Norwegian sections of the North Sea (2.5 bcm); (ii) Italian gas fields (2.1 bcm); (iii)
Indonesia (0.8 bcm); (iv) Libyan fields (0.6 bcm).
Supplied gas volumes from equity production were about 6 bcm representing around 10% of total
volumes available for sale.
SUPPLY OF NATURAL GAS
(bcm)
ITALY
Russia
Algeria (including LNG)
Libya
Netherlands
Norway
United Kingdom
Indonesia (LNG)
Qatar (LNG)
Other supplies of natural gas
Other supplies of LNG
OUTSIDE ITALY
2022
3.40
17.20
11.86
2.62
1.39
6.75
1.91
1.36
2.56
8.11
3.43
2021
3.59
30.21
10.12
3.18
1.41
7.52
2.65
1.81
2.30
2.39
5.80
2020
Change
% Ch.
7.47
(0.19)
(5.3)
22.49
(13.01)
(43.1)
5.22
4.44
1.11
7.19
1.62
1.15
2.47
5.24
3.76
1.74
17.2
(0.56)
(17.6)
(0.02)
(1.4)
(0.77)
(10.2)
(0.74)
(27.9)
(0.45)
(24.9)
0.26
5.72
11.3
239.3
(2.37)
(40.9)
57.19
67.39
54.69
(10.20)
(15.1)
TOTAL SUPPLIES OF ENI'S CONSOLIDATED SUBSIDIARIES
60.59
70.98
62.16
(10.39)
(14.6)
Offtake from (input to) storage
0.00
(0.86)
0.52
0.86
100.0
Network losses, measurement differences and other
changes
(0.07)
(0.04)
(0.03)
(0.03)
(75.0)
AVAILABLE FOR SALE BY ENI'S CONSOLIDATED SUBSIDIARIES
60.52
70.08
62.65
(9.56)
(13.6)
Available for sale by Eni's affiliates
TOTAL AVAILABLE FOR SALE
0.00
0.37
2.34
(0.37)
(100.0)
60.52
70.45
64.99
(9.93)
(14.1)
Sales
European gas market was characterized by consumption reduction due to mild weather conditions
as well as to lower demand in price sensitive sector such as the industrial due to higher prices. In
this scenario, demand decreased by approximately 10% and 13% in Italy and in the European Union,
respectively, compared to 2021. Natural gas sales amounted to 60.52 bcm (including Eni’s own
consumption, Eni’s share of sales made by equity-accounted entities) and decreased by 9.93 bcm or
14.1% from the previous year due to lower sales in Italy and outside Europe.
GAS SALES BY ENTITY
Total sales of subsidiaries
Italy (including own consumption)
Rest of Europe
Outside Europe
Total sales of Eni's affiliates (net to Eni)
Rest of Europe
Outside Europe
(bcm)
2022
2021
2020
Change
% Ch.
60.52
69.99
62.58
(9.47)
(13.5)
30.67
36.88
37.30
(6.21)
(16.8)
27.41
27.69
21.54
(0.28)
(1.0)
2.44
0.00
0.00
0.00
5.42
0.46
0.32
0.14
3.74
2.41
1.46
0.95
(2.98)
(55.0)
(0.46)
(100.0)
(0.32)
(100.0)
(0.14)
(100.0)
WORLDWIDE GAS SALES
60.52
70.45
64.99
(9.93)
(14.1)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 76
Sales in Italy (30.67 bcm) decreased by 16.8% from 2021 mainly due to lower sales to hub, to industrial
and wholesalers segments. Sales to importers in Italy (2.43 bcm) decreased by 15.9% from 2021 due
to the lower availability of Libyan gas.
Sales in the European markets amounted to 24.98 bcm, substantially in line compared to 2021.
Sales in the extra European markets of 2.44 bcm decreased by 3.12 bcm or 56.1% from the previous
year, due to lower LNG volumes marketed in the Asian markets.
GAS SALES BY MARKET
ITALY
Wholesalers
(bcm)
2022
2021
2020
Change
% Ch.
30.67
36.88
37.30
(6.21)
(16.8)
12.22
13.37
12.89
(1.15)
(8.6)
Italian gas exchange and spot markets
9.31
12.13
12.73
(2.82)
(23.2)
Industries
Power generation
Own consumption
2.89
0.83
5.42
4.07
0.94
6.37
4.21
(1.18)
(29.0)
1.34
(0.11)
(11.7)
6.13
(0.95)
(14.9)
INTERNATIONAL SALES
29.85
33.57
27.69
(3.72)
(11.1)
Rest of Europe
Importers in Italy
European markets:
Iberian Peninsula
Germany/Austria
Benelux
United Kingdom
Turkey
France
Other
Extra European markets
WORLDWIDE GAS SALES
LNG
LNG SALES
Europe
Outside Europe
TOTAL LNG SALES
27.41
28.01
23.00
(0.60)
(2.1)
2.43
2.89
3.67
(0.46)
(15.9)
24.98
25.12
19.33
(0.14)
(0.6)
3.93
3.58
4.24
1.92
7.62
3.62
0.07
3.75
0.69
3.47
2.65
8.50
5.80
0.26
3.94
0.35
3.58
0.18
2.89
0.77
4.8
418.8
22.2
1.62
(0.73)
(27.5)
4.59
(0.88)
(10.4)
5.01
(2.18)
(37.6)
0.24
(0.19)
(73.1)
2.44
5.56
4.69
(3.12)
(56.1)
60.52
70.45
64.99
(9.93)
(14.1)
(bcm)
2022
2021
2020
Change
% Ch.
7.0
2.4
9.4
5.4
5.5
10.9
4.8
4.7
9.5
1.6
29.6
(3.1)
(56.4)
(1.5)
(13.8)
In 2022, LNG sales (9.4 bcm, included in the worldwide gas sales) decreased by 13.8% from 2021. In
2022 the main sources of LNG supply were Qatar, Egypt, Nigeria and Indonesia.
ENI ANNUAL REPORT 2022 77
International transport activity
Eni has transport rights on a large European and North African networks for transporting natural
gas in Italy and Europe, which link key consumption basins with the main producing areas (Russia,
Algeria, the North Sea, including the Netherlands, Norway, and Libya).
The main pipelines are: (i) the TTPC pipeline, 740-kilometer long which transports natural gas
from Algeria; (ii) the TMPC pipeline for the import of Algerian gas is 775-kilometer long; (iii) the
GreenStream pipeline for the import of Libyan gas (516-kilometer long); and (iv) the Blue Stream
underwater pipeline linking the Russian coast to the Turkish coast of the Black Sea.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT Operating Review
ENERGYEVOLUTION Refining & Marketing and Chemicals
Plenitude & Power
Environmental activities
80
Refining & Marketing and Chemicals
1.1 mln ton/y
biorefinery capacity
€1,929 mln
adjusted operating profit
7.50 mln tons
retail sales of petroleum products in Europe
Agreement with PBF
for the construction
of the St. Bernard
biorefinery in
Louisiana (USA)
ENI ANNUAL REPORT 2022 81
2022
0.81
0.95
0.69
543
1.1
53
42
79
7.50
5,243
1,587
1.20
6,775
3,676
59
2021
0.80
1.13
0.49
665
1.1
65
49
76
7.23
5,314
1,521
1.19
8,476
4,451
66
2020
0.80
1.17
0.48
710
1.1
63
54
69
6.61
5,369
1,390
1.22
8,073
4,339
65
(ktonnes)
(mmtonnes/year)
(%)
(mmtonnes)
(number)
(kliters)
(%)
(ktonnes)
(%)
(number)
13,132
13,072
11,471
(mmtonnes CO2eq.)
4,146
6.00
4,044
6.72
2,556
6.65
(tonnes CO2eq./ktonnes)
233
228
248
KEY PERFORMANCE INDICATORS
TRIR (Total Recordable Injury Rate)(a)
(total recordable injuries/worked hours) x 1,000,000
of which: employees
contractors
Bio throughputs
Biorefinery capacity
Average biorefineries utilization rate
Conversion index of oil refineries
Average oil refineries utilization rate
Retail sales of petroleum products in Europe
Service stations in Europe at year end
Average throughput per service station in Europe
Retail efficiency index
Production of petrochemical products
Sale of petrochemical products
Average petrochemical plant utilization rate
Employees at year end
of which: outside Italy
Direct GHG emissions (Scope 1)(a)
Direc GHG emissions (Scope 1)/Refinery throughputs
(raw and semi-finished materials)
(a) Calculated on 100% operated assets.
PERFORMANCE OF THE YEAR
• Total recordable injury rate (TRIR) of the workforce amounted to 0.81, a slight increase compared to the previous year, mainly
due to the growth of accidents among contract workers.
• Direct GHG emissions (Scope 1) decreased by 11% compared to 2021, thanks to the chemical sector following the new
structure of Porto Marghera.
• Direct GHG emissions (Scope 1)/refining throughputs (raw and semi-finished materials) were up by 2% compared to the
previous year.
• In 2022 Eni’s refining throughputs on own account amounted to 18.84 mmtonnes (excluding the ADNOC Refining) substantially
unchanged compared to the previous period.
• Bio throughputs from vegetable oil amounted to 543 mmtonnes, down by 18% from 2021, affected by a particularly depressed
scenario.
• Retail sales in Italy were 5.38 mmtonnes, increased by 5.1% from 2021 as a result of the progressive economy reopening and
greater mobility of people. Market share was 21.7% (22.2% in 2021).
• Sales of petrochemical products were 3.68 mmtonnes, down by 17.4%, due to the lower volumes sold in olefins, elastomers
and polyethylene segments.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
82
BUSINESS DEVELOPMENTS AND PORTFOLIO TRANSACTION
In January 2023, as a part of the Group’s satellite strategy to set-up new dedicated entities to accelerate
the decarbonization of its customer portfolio (Scope 3 emission), Eni established the new entity Eni
Sustainable Mobility. The company is vertically integrated and will support Eni’s energy transition by
combining the offer of increasingly sustainable fuel with advanced services for drivers in Italy and
Europe, leveraging on a network of 5,000 service stations, that will be also enhanced to support electric
and hydrogen-based mobility. Eni Sustainable Mobility will manage Eni’s biorefining and biomethane
assets and will continue the development of new projects, including those at Livorno and Pengerang in
Malaysia, which are currently under evaluation.
In line with the energy transition path, in 2022 the development of green chemistry business
progressed through the strengthening of the partnership with Novamont. The commitment to
Matrìca – the joint venture set up between Versalis and Novamont at Porto Torres specializing in
manufacturing bioproducts from renewable sources – has been reaffirmed aiming at enhancing
technologies and productive assets in order to fully develop its products, also within supply chains
integrated with the two partners, by focusing on growth in the previously referenced markets. In
this context, shareholder agreements have also been redefined: Versalis has increased its interest
in Novamont from 25% to 35%.
BIOREFINING AND BIOFEEDSTOCK BUSINESS
DEVELOPMENTS
In October 2022, a first cargo of vegetable oil for biorefining, produced at Eni’s Makueni agri-hub in
Kenya, has been shipped to Gela’s biorefinery. Vegetable oil is obtained processing castor, croton,
and cotton seeds. The initial production of 2,500 tons in 2022, is planned to scale up rapidly to
20,000 tons in 2023. This project marks the start of Eni’s innovative model of agri-business vertically
integrated with its biorefineries, supplying sustainable feedstock not competing with the food chain
and capable of significantly contribute to local development and to the circular economy. This model
will be replicated in other African countries, long-term partners of Eni. In addition, in October, the
phase-out of palm oil as feedstock supply for Eni’s biorefineries was completed, fully replacing by
sustainable raw materials.
As a part of Eni’s decarbonisation strategy and with the aim to increase the availability of decarbonized
and sustainable products to our customers and to achieve the Scope 1+2+3 emission reduction
targets, in October an economic feasibility study of the construction and management of a biorefinery
in Livorno was launched. The project involves three new plants for the production of hydrogenated
biofuels: a biogenic feedstock pre-treatment unit, a 500,000 ton/year Ecofining™ plant and a plant for
the production of hydrogen from methane gas. The transformation plan for the Livorno refinery will be
discussed with local institutions and trade unions, within the framework of a participatory and inclusive
industrial relations model.
In December, Eni, Euglena and Petronas started a collaboration in order to estimate the economic
feasibility for the construction and management of a biorefinery in Malaysia in the Pengerang
Integrated Complex (PIC). The three parties are currently carrying out technical and economic
feasibility assessments for the proposed project. The investment decision is expected to be
reached by 2023 and the plant is targeted to be operational by 2025. The expected capacity of the
biorefinery is about 650,000 tonnes/y with an expected production capacity up to 12,500 barrels/d
of biofuel (SAF, HVO and bionaphtha). The raw materials will not compete with those in the food
ENI ANNUAL REPORT 2022 83
chain. The biorefinery will use the Honeywell UOP’s Ecofining™ process which was developed by
Eni in cooperation with Honeywell UOP.
In February 2023, a collaboration agreement was announced with the refining company PBF relating
to the St. Bernard Renewables LLC (SBR) biorefining project, under construction in Louisiana (USA)
through a joint venture. The transaction, subject to the usual closing conditions, involves a capital
injection of $835 million by the subsidiary Eni Sustainable Mobility and the contribution of the
biorefining technologies. The start-up of the plant is expected in the first half of 2023 with the
target of a processing capacity of about 1.1 million tons/year, mainly for the production of HVO
Diesel.
SUSTAINABLE MOBILITY INITIATIVES
As a part of the path of transport and mobility decarbonization, Eni signed a letter of intent with IVECO
to develop a sustainable mobility platform for commercial fleets by offering innovative vehicles powered
by biofuels and other sustainable energy vectors, such as HVO (Hydrotreated Vegetable Oil), biomethane,
hydrogen and electricity and the related infrastructure. The areas of collaboration include Eni’s offer of
100%-pure HVO for IVECO heavy trucks equipped with engines able to operate on it. HVO biofuels derived
from materials of vegetable origin and waste, produced using the proprietary Ecofining™ technology at
Eni’s Venice and Gela biorefineries. 100%-pure HVO enables CO2 emission reductions of 60% to 90%
(calculated throughout the lifecycle) compared to the standard fossil fuel mix.
Furthermore, Eni and IVECO intend to speed up the market availability of biomethane, a renewable fuel
from agro-industrial waste, which can be both compressed (CNG) and liquified (LNG). This will be made
possible through partnerships in Italy and abroad.
In order to develop projects for the air transport decarbonization, Eni in December signed an
agreement with DHL Express Italy and SEA Group, which manages Milan Malpensa and Milan Linate
airports to test Eni Biojet, a Sustainable Aviation Fuel (SAF) 20% blended with JetA1 and produced
exclusively from waste raw materials, animal fat and used vegetable oils. In 2022, some flights
departing from Malpensa were be powered also by SAF produced by Eni in its Livorno refinery in
partnership with Eni’s biorefinery in Gela.
In February 2023, Eni signed a Memorandum of Understanding (MoU) with Saipem finalized to boost
biofuels on Saipem’s drilling and construction naval vessels, with particular attention to operations
in the Mediterranean Sea. This agreement represents an important milestone for Eni and Saipem,
confirming the mutual commitment to diversifying energy sources and to reducing the carbon footprint
across offshore operations.
As part of the development of hydrogen mobility, in June 2022 Eni inaugurated a new Eni-branded
hydrogen refuelling station in Mestre (Venice). This is the first road mobility station to open to the
public in an urban area in Italy where it is also possible to refuel using hydrogen.
The system is equipped with two dispensing points with a capacity of over 100 kg/day, which can
refuel vehicles in about 5 minutes and buses.
Furthermore in October 2022, two projects by Eni and Enel Green Power to develop green hydrogen
will receive public funding approved by the European Commission under IPCEI Hy2Us, the European
project aimed at supporting the hydrogen value chain. The electrolyzers with a capacity of 20 MW and
10 MW will be implemented at the Gela biorefinery in Sicily, and at Taranto refinery, respectively. Both
will use PEM (polymer electrolyte membrane) technology.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 84
SMART MOBILITY
In line with the decarbonization strategy, in 2022 Eni strengthened the collaboration with XEV, through
a cooperation agreement to explore areas of collaboration concerning research and development
into sustainable mobility systems to reduce the environmental impact of vehicles, the development
of battery swapping technology and the assembly of the car manufacturer’s vehicles. The agreement
is aimed at developing the electric city car sector jointly, in particular to implement XEV’s battery
swapping technology, but also for the possible assembly of XEV vehicles or parts of them in Italy
and for the management of the car battery life cycle from production to installation, maintenance
and end-of-life through recycling. During 2022, Eni’s car sharing service has been expanded through
the introduction of the XEV YOYO in Turin, Bologna, Florence and Milan. XEV YOYO is an electric car
always in operation thanks to battery swapping, alternative to plug-in columns.
CIRCULAR ECONOMY AND GREEN CHEMISTRY
As part of the initiatives aimed at developing circular economy, Versalis in June 2022 announced
the start of the use of packaging made from recycled raw materials from post-consumer industrial
packaging. To achieve this goal, two projects have been implemented, “Bag to Bag” and “Liner to
Liner”, in order to create a virtuous circle aimed at recovering and recycling industrial polyethylene
packaging bags and putting them back into the system.
As far as the “Bag to Bag” project is concerned, sacks are made with 50% of recycled materials and
are fully recyclable. The project has passed the testing phase at all Versalis operating sites. Currently,
the sacks are used at the Ragusa and Ferrara plants and by the end of the year, the project will be
operational at Brindisi and at the foreign subsidiaries located in Dunkerque and Oberhausen.
The “Liner to Liner” project, developed and applied mainly at the Brindisi site, relates to the interior
coverings of containers used for transporting bulk polyethylene, called “Liners”. They were sent for
recycling and transformed into new Liners, containing 50% of recycled plastic. The two projects
will help to reduce the consumption of virgin raw materials by 50% respectively with a consequent
reduction in terms of CO2.
As part of the transformation process of the Porto Marghera site, Versalis signed a new agreement
with Forever Plast, an Italian company, leader in Europe in the recycling of post-consumer plastics. The
agreement involves the acquisition of an exclusive licence to build an advanced mechanical recycling
unit for selected post-consumer plastics from waste sorting, in particular polystyrene and high-density
polyethylene. The plant, which is scheduled to go onstream in 2024 will have a transformation capacity
of 50,000 tonnes/y and will produce recycled polymer compounds. The deal also includes an extension
of the contract with Forever Plast, which will ensure the volumes required for the expansion of Versalis’
portfolio of recycled products and consolidate its current competitive advantage. The company has
already started a collaboration based on which new polystyrene compounds with up to 75% of recycled
content, already available on the market under the Versalis Revive® brand, were developed for food
packaging, thermal insulation and the electrical sector.
In December 2022, Versalis acquired from DSM a technology to produce enzymes for second-generation
ethanol to be employed at the Crescentino plant to integrate the proprietary Proesa® technology to
deliver sustainable bioethanol and chemical products from lignocellulosic biomass.
ENI ANNUAL REPORT 2022 85
Refining & Marketing
Supply and trading
In 2022, were purchased 19.15 mmtonnes of crude (compared with 18.85 mmtonnes in 2021), of which
5.02 mmtonnes by equity crude oil, 11.50 mmtonnes on the spot market and 2.63 mmtonnes by
producer’s Countries with term contracts. The breakdown by geographic area was as follows: 36%
of purchased crude came from the central Asia, 18% from North Africa, 17% from Middle East, 11%
from Italy, 6% from West Africa, 5% from Russia1, 3% from North Sea and 4% from other areas.
PURCHASES
Equity crude oil
Other crude oil
Total crude oil purchases
Purchases of intermediate products
Purchases of products
TOTAL PURCHASES
Consumption for power generation
Other changes(a)
TOTAL AVAILABILITY
(mmtonnes)
2022
2021
2020
Change
% Ch.
5.02
14.13
19.15
0.07
10.66
29.88
(0.31)
(1.57)
28.00
3.85
15.00
18.85
0.26
10.66
29.77
(0.31)
(0.89)
28.57
3.55
13.82
17.37
1.17
(0.87)
0.30
30.4
(5.8)
1.6
0.11
(0.19)
(73.1)
10.31
27.79
(0.35)
(0.69)
0.11
0.4
(0.68)
(76.4)
26.75
(0.57)
(2.0)
(a) Include change in inventories, decrease due to transportation, consumption and losses.
Refining
In 2022, Eni’s refining throughputs on own account were 18.84 mmtonnes substantially in line from
2021, the lower throughputs in Italy were offset by higher volumes processed in Germany.
In Italy, the refinery throughputs (16.12 mmtonnes) slightly decreased from 2021 (down by 2.4%):
lower volumes processed at Livorno refinery were partly offset by higher volumes at Milazzo refinery,
which benefitted by a favorable scenario.
Outside Italy, Eni’s refining throughputs on own account were 2.72 mmtonnes, up by approximately
450 ktonnes or 19.8% leveraging favorable environment as well as lower standstill compared to the
previous year. Total throughputs in wholly-owned refineries were 13.25 mmtonnes, decrease by 0.76
mmtonnes or 5.4% compared with 2021.
The refinery utilization rate, ratio between throughputs and refinery capacity, is 79%.
A share of 26.8% of processed crude was supplied by Eni, representing an increase from 2021 (21%).
Biorefinery
The volumes of biofuels processed from vegetable oil were 543 mmtonnes down by 18.3% from the
previous year (down by 122 ktonnes), as a result of the increased standstills at Gela biorefinery, partly
offset by higher volumes processed at the Venice biorefinery (up by 33 ktonnes).
(1) After the first quarter of 2022, following the Russia’s military aggression of Ukraine, Eni interrupted Russian crude oil purchase
from cargo market. During 2022, the PCK refinery continued to supply Ural crude oil through Druzbha pipeline. Russian crude oil was
replaced by volumes from Central Asia and North Africa.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
86
In addition, the incidence rate of palm oil supplied for the production of biodiesel was reduced by
approximately 28 percentage points compared to 2021, leveraging on the start-up of a new Biomass
Treatment Unit (BTU) at the Gela biorefinery, which allows the use up to 100% of biomass not in
competition with the food chain for the production of biofuels.
In October, Eni has definitively ended the supply of palm oil at the Venice and Gela biorefineries for
production of hydrogenated biofuels.
In 2022 productions of biofuels (HVO) amounted to approximately 428 ktonnes (down by 27%)
according to certifications in use (European RED and related directives).
AVAILABILITY OF REFINED PRODUCTS
ITALY
At wholly-owned refineries
Less input on account of third parties
At affiliated refineries
(mmtonnes)
2022
2021
2020
Change
% Ch.
13.25
14.01
12.72
(0.76)
(5.4)
(1.70)
(1.71)
(1.75)
4.57
4.21
3.85
0.01
0.36
0.6
8.6
Refinery throughputs on own account
16.12
16.51
14.82
(0.39)
(2.4)
Consumption and losses
Products available for sale
(1.11)
(1.11)
(0.97)
0.00
0.4
15.01
15.40
13.85
(0.39)
(2.5)
Purchases of refined products and change in inventories
7.02
7.38
7.18
(0.36)
Products transferred to operations outside Italy
(0.40)
(0.67)
(0.66)
Consumption for power generation
(0.31)
(0.31)
(0.35)
0.27
0.00
(4.9)
40.3
0.0
Sales of products
Bio throughputs
OUTSIDE ITALY
21.32
21.80
20.02
(0.48)
(2.2)
0.54
0.67
0.71
(0.13)
(19.4)
Refinery throughputs on own account
2.72
2.27
2.18
0.45
Consumption and losses
Products available for sale
Purchases of refined products and change in inventories
Products transferred from Italian operations
Sales of products
(0.19)
(0.18)
(0.17)
(0.01)
2.53
3.54
0.40
6.47
2.09
3.41
0.67
6.17
19.8
(5.6)
21.1
3.8
2.01
3.39
0.44
0.13
0.66
(0.27)
(40.3)
6.06
0.30
0.06
4.9
0.3
Refinery throughputs on own account
18.84
18.78
17.00
of which: refinery throughputs of equity crude on own
account
5.02
3.86
3.55
1.16
30.1
Total sales of refined products
27.79
27.97
26.08
(0.18)
(0.6)
Crude oil sales
TOTAL SALES
0.21
0.60
0.67
(0.39)
(65.0)
28.00
28.57
26.75
(0.57)
(2.0)
Marketing of refined products
In 2022, retail sales of refined products (27.79 mmtonnes) were down by 0.18 mmtonnes or by 0.6%
from 2022, lower sales in Italy were partly offset by higher volumes marketed outside.
ENI ANNUAL REPORT 2022
87
PRODUCT SALES IN ITALY AND OUTSIDE ITALY
(mmtonnes)
2022
2021
2020
Change
% Ch.
Retail
Wholesale
Petrochemicals
Other sales
Sales in Italy
Retail rest of Europe
Wholesale rest of Europe
Wholesale outside Europe
Other sales
Sales outside Italy
5.38
6.19
0.39
5.12
6.02
0.52
4.56
5.75
0.61
0.26
0.17
5.1
2.8
(0.13)
(25.0)
9.36
10.14
9.10
(0.78)
21.32
21.80
20.02
(0.48)
2.12
2.44
0.52
1.39
6.47
2.11
2.19
0.52
1.35
6.17
2.05
2.40
0.48
1.13
6.06
0.01
0.25
0.04
0.30
(7.7)
(2.2)
0.5
11.4
3.0
4.9
TOTAL SALES OF REFINED PRODUCTS
27.79
27.97
26.08
(0.18)
(0.6)
RETAIL SALES IN ITALY
In 2022, retail sales in Italy were 5.38 mmtonnes, with an increase compared to 2021 (0.26
mmtonnes or up by 5.1%) as consequence of the reopening of the economy and higher mobility
of people. Average throughput per service station (1,445 kliters) increased by 83 kliters from 2021
(1,362 kliters). Eni’s retail market share of 2022 was 21.7%, slightly down from 2021 (22.2%).
As of December 31, 2022, Eni’s retail network in Italy consisted of 4,003 service stations, lower
by 75 units from December 31, 2021 (4,078 service stations), resulting from the negative balance
of acquisitions/releases of lease concessions (90 units), the negative balance of the company-
owned stations (9 units), partly balanced by the increase of 24 lease stations.
RETAIL AND WHOLESALES SALES OF REFINED PRODUCTS
(mmtonnes)
2022
2021
2020
Change
% Ch.
Italy
Retail sales
Gasoline
Gasoil
LPG
Others
Wholesale sales
Gasoil
Fuel Oil
LPG
Gasoline
Lubricants
Bunker
Jet fuel
Other
Outside Italy (retail+wholesale)
Gasoline
Gasoil
Jet fuel
Fuel Oil
Lubricants
LPG
Other
11.57
11.14
10.31
5.38
1.49
3.54
0.32
0.03
6.19
3.04
0.04
0.16
0.43
0.05
0.48
1.50
0.49
5.08
1.11
2.92
0.11
0.13
0.08
0.53
0.20
5.12
1.38
3.38
0.31
0.05
6.02
3.11
0.03
0.17
0.34
0.08
0.59
0.92
0.78
4.82
1.06
2.78
0.07
0.08
0.11
0.53
0.19
4.56
1.16
3.10
0.27
0.03
5.75
3.11
0.02
0.18
0.30
0.08
0.63
0.70
0.73
4.93
1.13
2.73
0.09
0.13
0.09
0.50
0.26
TOTAL RETAIL AND WHOLESALES SALES
16.65
15.96
15.24
0.43
0.26
0.11
0.16
0.01
3.8
5.1
8.0
4.7
3.2
(0.02)
(40.0)
0.17
(0.07)
0.01
(0.01)
0.09
(0.04)
(0.11)
0.58
2.7
(2.3)
33.3
(5.9)
26.5
(43.8)
(18.6)
63.0
(0.29)
(37.2)
0.26
0.05
0.14
0.04
0.05
5.4
4.7
5.0
57.1
62.5
(0.03)
(27.3)
0.00
0.01
0.69
0.0
5.3
4.3
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
88
RETAIL SALES IN THE REST OF EUROPE
Retail sales in the Rest of Europe were 2.12 mmtonnes, substantially in line with 2021 as result of
higher volumes sold in Germany, France, Spain and Austria partly balanced by the decrease of the
volumes in Switzerland.
At December 31, 2022, Eni’s retail network in the Rest of Europe consisted of 1.240 units, increasing
by 4 unit from December 31, 2021, mainly thanks to the openings in Germany and Austria balanced
by the reduction in Switzerland and France. Average throughput (2,027 kliters) increased by 2 kliters
compared to 2021 (2,025 kliters).
WHOLESALE AND OTHER SALES
Wholesale sales in Italy amounted to 6.19 mmtonnes, increasing by 2.7% from 2021, due to higher
sales of jet fuel for the recovery of the aviation sector which offset lower volumes marketed in all the
other segments.
Wholesale sales in the Rest of Europe were 2.44 mmtonnes, up by 11.4% from 2021 particularly in
Germany, Austria and Spain.
Supplies of feedstock to the petrochemical industry (0.39 mmtonnes) decreased by 25%. Other sales
in Italy and outside Italy (10.76 mmtonnes) decreased by 0.74 mmtonnes or down by 6.4% mainly due
to lower volumes sold to oil companies.
Chemicals
Petrochemical sales of 3,676 ktonnes decreased from 2021 (down by 775 ktonnes, or 17.4%). In
particular, the main changes were registered in olefine (down by 22.8%), elastomer (down by 18.7%),
in the polyethylene (down by 16.4%) and in the styrenic (down by 12.1%). In moulding & compounding
business sales were 76 ktonnes.
PRODUCT AVAILABILITY
Intermediates
Polymers
Biochem
(ktonnes)
2022
2021
2020
Change
% Ch.
4,897
6,284
5,861
(1,387)
(22.1)
1,873
2,184
2,211
(311)
(14.2)
5
8
1
(3)
..
Production of petrochemicals
6,775
8,476
8,073
(1,701)
(20.1)
Moulding & Compounding
Total productions
Consumption and losses
Purchases and change in inventories
Total availability
Intermediates
Polymers
Oilfield chemicals
Biochem
Sales of petrochemicals
Moulding & Compounding
Total sales
81
20
61
6,856
8,496
8,073
(1,640)
(19.3)
(3,923)
(4,590)
(4,366)
819
565
632
667
254
14.5
45.0
3,752
4,471
4,339
(719)
(16.1)
2,158
2,648
2,539
(490)
(18.5)
1,494
1,771
1,790
(277)
(15.6)
21
3
24
8
9
1
(3)
(5)
..
..
3,676
4,451
4,339
(775)
(17.4)
76
20
56
3,752
4,471
4,339
(719)
(16.1)
Average unit sales prices of the intermediates business increased by 34.2% from 2021, with aromatics
and olefins up by 47.2% and 32.4%, respectively. The polymers reported an increase of 22.0% from
2021.
ENI ANNUAL REPORT 2022
89
Petrochemical production of 6,775 ktonnes were down by 1,701 ktonnes from 2021 due to lower
production of intermediates business (down by 1,387 ktonnes), particularly olefins and aromatics.
The main decreases in production were registered at the Porto Marghera site (down by 821 ktonnes),
Dunkerque (down by 563 ktonnes) and Priolo (down by 164 ktonnes).
Nominal capacity of plants decreased from 2021. The average plant utilization rate calculated on
nominal capacity was 59.0% lower compared to 2021 (66.0% in 2021).
Business trends
INTERMEDIATES
Intermediates revenues (€2,368 million) increased by €202 million from 2021 (up by 9.3%) mainly
reflecting the higher commodity prices scenario. Sales (2,158 ktonnes) decreased by 18.5% vs. 2021.
The main reductions were registered in olefins (down by 22.8%), aromatics (down by 15.3%) and
derivatives (down by 0.8%).
Average prices increased by 34.2%, in particular aromatics (up by 47.2%), olefins (up by 32.4%) and
derivatives (up by 23.5%). Intermediates production (4,897 ktonnes) registered a decrease of 22.1%
from 2021. Decreases were also registered in olefins (down by 24.3%), in the aromatics (down by
22.6%), while a slight increase was reported in derivatives (up by 0.6%).
POLYMERS
Polymers revenues (€3,203 million) increased by €89 million or 2.9% from 2021 due to the increase
of the average unit prices. The styrenics business benefitted by the increase of sale prices (up by
25.8%), notwithstanding the reduction of volumes sold (down by 12.1%) for lower product availability
and lower demand. The reduction in volumes is mainly attributable to AN (down by 33.1%), EPS
(down by 26.8%) and GPPS (down by 11.5%), partly offset by higher sales of ABS (up by 11.9%).
In the elastomers business, the decrease of sold volumes (down by 17.2%) was attributable to the
decline in European and extra-European consumption and to the non-competitive prices, due to the
higher energy costs. In particular were registered lower sales of BR (down by 23.7%), SBR (down
by 17.9%) and NBR rubbers (down by 17.3%). Overall, the sold volumes of polyethylene business
reported a decrease (down by 16.4%) with lower sales of LDPE (down by 27.7%), EVA (down by
12.5%) and HDPE (down by 10.6%). In addition, average sale prices increased by 13.4%.
Polymers productions (1,873 ktonnes) decreased by 14.2% from the 2021 due to the lower productions
of polyethylene (down by 17.3%), elastomers (down by 17.2%) and styrenics (down by 10%).
OILFIELD CHEMICALS, BIOCHEM E MOULDING & COMPOUNDING
Oilfiled chemicals revenues (€83 million) increased by 26.6% (up by €17 million compared to 2021) as
a result of the combined mix of increased unit price for formulations and for the associated services.
Biochem business revenues (€25 million) decreased by €35 million from 2021, mainly due to lower
production of disinfectant, following the end of the health emergency, partly offset by the sale of
energy produced at the biomass power plant at the Crescentino hub, at full capacity.
Moulding & Compounding business revenues of €327 million include compounding activities for €78
million, moulding for €108 million and the Padanaplast activities for €141 million.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 90
Plenitude & Power
2.2 GW
renewable installed capacity
100% solar and wind
13,000
EV charging points
10 mln
retail and business
customers for gas and electricity
18.8 TWh
retail sales of electricity
to end customers
ENI ANNUAL REPORT 2022 91
KEY PERFORMANCE INDICATORS
2022
2021
2020
TRIR (Total Recordable Injury Rate)(a)
(total recordable injuries/worked hours) x 1,000,000)
of which: employees
contractors
Plenitude
Retail gas sales
Retail power sales
Retail/business customers
EV charging points(a)
Energy production from renewable sources
Installed capacity from renewables at period end
Power
Power sales in the open market
Thermoelectric production
Employees at year end
of which: outside Italy
Direct GHG emissions (Scope 1)(b)
Direct GHG emissions (Scope 1)/equivalent produced
electricity (Eni Power)(b)
(a) 2020 proforma figure is disclosed for comparative purpose.
(b) Calculated on 100% operated assets.
PERFORMANCE OF THE YEAR
(bcm)
(TWh)
(milion of POD)
(thousand)
(GWh)
(MW)
(TWh)
(mmtonnes CO2eq.)
(gCO2eq./kWh eq.)
0.31
0.26
0.39
6.84
18.77
10.07
13.1
2,553
2,198
22.37
21.37
2,794
698
9.76
393
0.29
0.49
0.00
7.85
16.49
10.04
6.2
986
1,137
28.54
22.31
2,464
600
10.03
380
0.32
0.00
0.73
7.68
12.49
9.7
3.4
340
335
25.34
20.95
2,092
413
9.63
391
• Total recordable injury rate (TRIR) of the workforce (0.31) slightly increased compared to 2021, following a single event
occurred among contractors.
• Direct GHG emissions (Scope 1) reported a decrease of 3% compared to 2021, in line with lower productions at the power
generation sites.
• Direct GHG emissions (Scope 1)/equivalent produced electricity reported an increasing trend from 2021, following the higher
use of syngas at the Ferrera Erbognone power plant.
• Energy production from renewable sources amounted to 2,553 GWh, almost tripling from the previous year (986 GWh in
2021) due to the contribution of the acquired assets in operation in Italy, the United States, France and Spain, as well as the
organic development of projects in Kazakhstan and in the United States.
• As of December 31, 2022, the installed capacity from renewables was 2,198 MW: 54% attributable to photovoltaic plants
(including installed storage capacity) and 46% attributable to wind farms.
• Retail gas sales amounted to 6.84 bcm, down by 13% compared to 2021, as a result of lower sales in Italy in the retail
segment and abroad, particularly in France.
• Retail and business power sales to end customers amounted to 18.77 TWh, recording an increase of 14% benefitting from the
growth in Italy and the development of the activities abroad.
• The EV charging points installed at the end of 2022 amounted to over 13,000 units, more than doubled compared to 2021.
• Power sales in the open market amounted to 22.37 TWh, down by 21.6% following the lower volumes sold to the Power
Exchange.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
92
PORTFOLIO DEVELOPMENTS
As a part of the development of the wind and photovoltaic sector, representing a pillar of our growth
strategy, in 2022 continued the expansion in the national and international renewable energy market, with
acquisitions able to be quickly integrated into Eni’s portfolio, in particular:
• In Italy and Spain, started a new partnership with Infrastrutture SpA to develop solar and wind
power projects, by acquiring a 65% stake in Hergo Renewables SpA, a company holding a portfolio
of projects in the two countries, with a total capacity of approximately 1.5 GW; in addition Plenitude
acquired 100% of PLT (PLT Energia Srl and SEF Srl and their respective subsidiaries and affiliates),
an integrated Italian group engaged in producing renewable electricity and in supplying energy to
the retail segment. The acquired company includes 90,000 retail customers in Italy and a capacity
portfolio of 1.6 GW. The agreement allows Plenitude to strengthen its presence in the two countries,
consolidating a vertically integrated platform.
• In the United States, Plenitude, through its US subsidiary Eni New Energy US Inc., acquired the
81 MW Kellam photovoltaic plant, located in North Texas. This acquisition has been finalized in
January 2023. The plant, sold by Hanwha Qcells USA Corp., joins the other assets within Texas
and the rest of the United States in Plenitude’s portfolio, which reaches, with this transaction, an
installed capacity of 878 MW in the US market. The operation was carried out with the support
of Novis Renewables, LLC, a partnership between Eni New Energy US, Inc. and Renantis North
America, Inc., which is exclusive for the US and dedicated to the development of solar, wind and
storage projects. The plant stands on over 150 hectares of land and the produced energy will be
sold to a local power company.
In order to strengthen the presence in the wind sector and contribute to the expansion of the Norwegian
joint venture Vårgrønn, Plenitude and HitecVision have signed an agreement with the aim to consolidate
its presence among the most important players in the offshore wind industry. Plenitude, in October,
sold to the joint venture its 20% stake in Dogger Bank (UK) which is developing major offshore wind
projects. As a result of this transaction, HitecVision increased its stake in Vårgrơnn from 30.4% to 35%
through a capital injection.
With the aim to optimize its portfolio, in December 2022, Plenitude sold to Depa Infrastructure, a Greek
subsidiary of Italgas, a 49% stake of Eda Thess (Thessaloniki Thessalia Gas Distribution S.A), one of
the main operators of the gas infrastructure system in Greece.
Finally, to support the energy transition process, Plenitude in 2022 invested in innovative
technological solutions, in particular in EnerOcean S.L., a Spanish developer of the W2Power
technology for floating wind power. The agreement is structured as a long-term partnership
focused on the deployment of the W2Power technology as a lead solution for floating wind power
developments worldwide. Plenitude will contribute to the development program of EnerOcean S.L.
with capital and expertise and will initially retain a 25% stake in the Company, which will continue
to operate independently.
DEVELOPMENTS IN THE RENEWABLE BUSINESS
In line with the strategy of energy transition and decarbonization of product and process, Plenitude
inaugurated:
• the Badamsha 2 wind farm located in the Aktobe region, Kazakhstan, the second wind installation
in the region, allowing to double the installed capacity of Badamsha 1 project (48 MW, for a total
amount of 96 MW installed in the Country);
• the 104.5 MW El Monte wind farm, located in the Spanish region of Castilla La Mancha, built in
collaboration with the strategic partner Azora Capital. The plant will produce about 300 GWh/year,
equivalent to the domestic consumption of 100,000 households;
• the 263 MW “Golden Buckle Solar Project” solar farm in Brazoria County, Texas (USA), in January
2023. The plant was built in just over a year and will produce a yearly average of 400 to 500 GWh
of solar energy. The plant development was carried out with the support of Novis Renewables, LLC.
GreenIT, a joint venture with the Italian agency CDP Equity, acquired the entire portfolio of Fortore
Energia Group, consisting of four onshore wind farms operating in Italy with a total capacity of 110
ENI ANNUAL REPORT 2022 93
MW (56 MW Eni’s share); furthermore the JV signed an additional agreement with the equity fund
Copenhagen Infrastructure Partners (CIP) to build and operate two floating offshore wind farms in
Sicily and Sardinia, with an expected total capacity of approximately 750 MW.
In January 2023, Plenitude signed an agreement with Simply Blue Group for the joint development
of floating offshore wind projects in Italy. The first two floating offshore wind projects, “Messapia” in
Apulia and “Krimisa” in Calabria, have already been submitted to the relevant authorities. The Messapia
project, located about 30 km off the Otranto coast, will have a total capacity of 1.3 GW and will be
able to provide annual power generation of about 3.8 TWh. The Krimisa project, located about 45 km
off the coast of Crotone, will have a total capacity of 1.1 GW and will be able to provide annual energy
production of up to 3.5 TWh.
INITIATIVES FOR ELECTRIC MOBILITY
As a recognition of Eni’s commitment to sustainable infrastructure development, the European
Climate, Infrastructure and Environment Executive Agency (CINEA) has selected a project of Be
Charge, the Plenitude integrated operator for electric mobility, to build, by 2025, one of the largest
high-speed charging networks in Europe for EVs along key European transport corridors (TEN-T) and
at parking areas and in major cities in 8 Country: Italy, Spain, France, Austria, Germany, Portugal,
Slovenia and Greece.
TECHNOLOGY DEVELOPMENTS
Eni signed an agreement with Ansaldo Energia to develop projects based on innovative technological
solutions for electricity storage as an alternative to electrochemical batteries. Under the terms of
the agreement, these technologies, which are being studied, are implemented in synergy in some
industrial sites of Eni and its subsidiaries in Italy, exploiting the potential of existing power generation
and consumption systems. Electricity storage is essential to overcome the structural limitations of
renewables in terms of predictability and intermittency and is consequently necessary to promote
their development.
PLENITUDE
Retail Gas & Power
Gas demand
Eni operates in a liberalized energy market, where customers are allowed to choose the gas supplier and,
according to their specific needs, to evaluate the quality of services and select the most suitable offers.
Overall, Eni supplies 10 million of retail clients (gas and electricity) in Italy and Europe. In particular, clients
located all over Italy are 8.1 million.
GAS SALES BY MARKET
ITALY
Retail
Business
INTERNATIONAL SALES
European markets:
France
Greece
Other
RETAIL GAS SALES
(bcm)
2022
2021
2020
Change
% Ch.
4.65
3.34
1.31
2.19
1.69
0.33
0.17
6.84
5.14
3.88
1.26
2.71
2.17
0.39
0.15
7.85
5.17
3.96
1.21
2.51
2.08
0.34
0.09
(0.49)
(0.54)
0.05
(9.5)
(13.9)
4.0
(0.52)
(19.2)
(0.48)
(0.07)
0.03
(22.1)
(16.7)
16.7
7.68
(1.01)
(12.9)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
94
Retail gas sales
In 2022, retail gas sales in Italy and in the rest of Europe amounted to 6.84 bcm, down by 1.01 bcm or
12.9% from the previous year. Sales in Italy amounted to 4.65 bcm down by 9.5% from 2021, as a result
of lower sales to the retail segment.
Sales on the European markets of 2,19 bcm decreased by 19.2% (down by 0.52 bcm) compared to
2021. Lower sales were recorded in France and Greece.
Retail power sales to end customers
In 2022, retail power sales to end customers amounted to 18.77 TWh, managed by Plenitude and the
subsidiaries in France, Greece and Spain increased by 13.8% from 2021, due to the development of
activities in Italy and abroad.
Renewables
Eni is engaged in the renewable energy business (solar and wind) aiming at developing, constructing
and managing renewable energy producing plant. Eni’s targets in this field will be reached by leveraging
on an organic development of a diversified and balanced portfolio of assets, integrated with selective
asset and projects acquisitions as well as national and international strategic partnerships.
ENERGY PRODUCTION FROM RENEWABLE SOURCES
Energy production from renewable sources
(GWh)
of which: photovoltaic
wind
of which: Italy
outside Italy
of which: own consumption(a)
(a) Electricity for Eni’s production sites consumptions.
2022
2,553
1,135
1,418
818
1,735
1%
2021
2020
Change
986
398
588
400
586
8%
1,567
737
830
418
1,149
340
223
116
112
227
23%
% Ch.
158.9
185.2
141.2
104.5
196.1
Energy production from renewable sources amounted to 2,553 GWh (of which 1,135 GWh photovoltaic
and 1,418 GWh wind) up by 1,567 GWh compared to 2021. The increase in production, compared to
the previous year, benefitted from the entry in operations of new capacity, mainly for the contribution
of assets already operating in Italy, France, Spain and United States, as well as from the organic
development of projects in the United States and Kazakhstan. Follows breakdown of the installed
capacity by Country and technology:
INSTALLED CAPACITY AT PERIOD END (ENI’S SHARE)
Installed capacity from renewables at period end
(MW)
of which: photovoltaic (including installed storage capacity)
wind
Italy
Outside Italy
Algeria(a)
Australia
France
Pakistan
Tunisia(a)
United States
Spain
Kazakhstan
TOTAL PHOTOVOLTAIC INSTALLED CAPACITY
of which: installed storage power
(a) Assets transferred to other segments in the fourth quarter of 2021.
2022
2,198
54%
46%
2021
1,137
49%
51%
2020
Change
% Ch.
1,061
93
335
80%
20%
(MW)
2022
2021
2020
844
1,354
64
114
797
283
96
466
671
64
108
10
269
129
91
2,198
1,137
7
7
112
223
5
64
10
9
87
48
335
8
ENI ANNUAL REPORT 2022
95
As of December 31, 2022, the total installed capacity from renewables amounted to 2.2 MW, doubled from
2021, mainly thanks to the construction of the photovoltaic plant of Brazoria, in the United States and the
onshore wind farm Badamsha 2 in Kazakhstan, as well as, the acquisition of assets of Fortore Energia and
PLT in Italy, the Corazon photovoltaic plant, in the United States and the Cuevas assets in Spain.
E-mobility
In a context of the mobility market that includes a constant increase in the number of electric vehicles
in circulation in Italy and in Europe, Plenitude, thanks to the acquisition of Be Charge, disposes one of
the largest and most widespread networks of public charging infrastructure for electric vehicles, and
represents the first operator in Italy for public access sites at high power >100 kW.
As of December 31, 2021, there are more than 13,000 charging points distributed throughout the
country. These stations are smart and user-friendly, monitored 24 hours a day by a help desk and
accessible via the mobile app. Within the sector chain, Be Charge plays both the role of owner and
manager of the charging infrastructure network (CSO – Charge Station Owner and CPO - Charge Point
Operator), and the role of charging and electric mobility service provider working directly with electric
vehicle users (EMSP - Electric Mobility Service Provider). Be Charge charging stations are Quick (up to
22 kW) alternating current, Fast (up to 150 kW) or HyperCharge (above 150 kW) direct current type.
POWER
In 2022, Eni finalized the disposal to the investment company Sixth Street of the 49% share in EniPower
which owns six gas power plants. Eni holds the remaining 51% share and maintains the operative
control of EniPower as well as the consolidation of the company.
Availability of electricity
Eni’s power generation sites are located in Brindisi, Ferrera Erbognone, Ravenna, Mantova, Ferrara and
Bolgiano. As of December 31, 2022, installed operational capacity of Enipower’s power plants was 2.3 GW.
In 2022, thermoelectric power generation was 21.37 TWh, decreasing by 0.94 TWh from the previous year.
Electricity trading (9.49 TWh) reported a decrease of 18.3% from 2021, in order to optimize inflows and
outflows of power.
Power sales in the open market
In 2022, power sales in the open market were 22.37 TWh, representing a decrease of 21.6% compared
to 2021, due to lower volumes marketed at Power Exchange.
Purchases of natural gas
Purchases of other fuels
Power generation
Steam
AVAILABILITY OF ELECTRICITY
Power generation
Trading of electricity(a)
Availability
Power sales in the open market
Power sales to Plenitude
2022
2021
2020
Change
% Ch.
(mmcm)
4,218
4,670
4,346
(452)
(ktoe)
175
93
160
82
(TWh)
21.37
22.31
20.95
(0.94)
(ktonnes)
6,900
7,362
7,591
(462)
(9.7)
88.2
(4.2)
(6.3)
(TWh)
2022
2021
2020
Change
% Ch.
21.37
22.31
20.95
(0.94)
(4.2)
9.49
11.62
13.04
(2.13)
(18.3)
30.86
33.93
33.99
(3.07)
(9.0)
22.37
28.54
25.34
(6.17)
(21.6)
8.49
5.39
8.65
3.10
57.5
(a) Includes positive and negative imbalances (difference between the electricity effectively fed-in and as scheduled).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 96
Environmental activities
around 2 mln tonnes
total waste managed
operating in over 100 sites
of regional and national priority
as Eni global contractor
9.9 mln cm
reused water for industrial
and environmental use
around 74 %
recovered waste
vs. total recoverable waste
over 35 mln cm
treated water
circa 2 mln tonnellate
totale rifiuti gestiti
presente in oltre
100 siti di interesse
regionale e nazionale
quale global contractor Eni
ACQUE RIUTILIZZATE PER USO
INDUSTRIALE E AMBIENTALE
(mln mc)
9,9
6,1
6,9
circa 73% rifiuti
recuperati sul totale
rifiuti recuperabili
circa 39 mln mc
quantità di acque trattate
2020
2021
2022
circa 95% aree
con decreto approvato
sul totale aree contaminate in siti
di interesse nazionale
ENI ANNUAL REPORT 2022 97
The Group’s environmental activities are managed by Eni Rewind, Eni’s subsidiary engaged in the
valorization of land, water and waste resources, industrial or deriving from reclamation activities, to
give them new life leveraging on the circular economy principles, through sustainable reclamation
and revaluation projects, both in Italy and abroad.
Eni Rewind, through its integrated end-to-end model, guarantees the supervision of every phase
of the process reclamation and waste management, planning projects from the early stages to
enhance and reuse resources (soils, water, waste), making them available for new development
opportunities.
Reclamation activities
Coherently with the expertise gained and in agreement with institutions and stakeholders, Eni Rewind
assesses the projects for enhancement and reuse of reclaimed areas, allowing the environmental
recovery of former industrial area and the resumption of the local economy.
Eni Rewind operates in 13 sites of national priority and over 100 sites of regional priority, consolidating
in recent years its role as a global contractor for all Eni businesses. Main activities on remediation,
water and waste management, valorization of restorated sites are progressing mainly in Ravenna,
Porto Torres, Gela, Cengio and Porto Marghera.
The Ponticelle Project in Ravenna, where Eni Rewind is committed to enhance the abandoned industrial
area through Permanent Safety Measures of the site and the design of targeted improvements for the
industrial requalification, is particularly relevant.
Planned activities relate to the construction of a multifunctional platform for the pre-processing of
waste in partnership with Herambiente and a biorecovery platform (biopile) for land to be reused in
service stations after remediation, reducing landfilling disposal and consumption of vergin resources.
Ponticelle area will become a hub for sustainable reclamation, waste enhancement and green energy
production also leveraging on the collaboration with Eni New Energy, Plenitude’ subsidiary, engaged
in the realization of a photovoltaic plant and a storage lab.
Water & Waste Management
Eni Rewind manages water treatment, aimed at reclamation activities, through an integrated aquifer
interception system and the conveyance of water for purification to treatment plants. During 2022,
the project of automation and digitalization of groundwater treatment plants progressed as a part of a
larger optimization initiative, in order to increase business competitiveness and sustainability, quality
of work and process security. The main drivers of the optimization project are represented by the
implementation of optimized operational model for plant management, leveraging on the technological
enhancement of San Donato Milanese Control Room and the digitalization of its related sites.
Currently, there are 43 treatment plants fully in operation and managed in Italy, with over 35 million
cubic meters of treated water in 2022. The recovery and reuse of treated water for the production
of demineralized water for industrial use and as part of the operational plans for the remediation of
contaminated sites is undergoing.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 98
In 2022 about 9.9 million cubic meters of water have been reused after treatment, with an increase
of 10% compared to 2021.
At the end of 2022, completed the installation of 57 devices using the proprietary technology
E-Hyrec® for the selective removal of hydrocarbons from groundwater to improve the effectiveness
and efficiency of groundwater reclamation, with significant reductions in extraction times and
avoiding the disposal of more than 1,200 tons of waste equivalent.
Eni Rewind also operates as Eni’s competence center for management of waste deriving from Eni’s
environmental remediation activities and production activities in Italy, thanks to its model allowing to
minimize costs and environmental impacts, by adopting the best technological solutions available on
the market.
In 2022, Eni Rewind managed a total of approximately 2 million tonnes1 of waste by sending for
recovery or disposal at external plants.
In particular, the recovery index (ratio of recovered/recoverable waste) in 2022 was 74%: the slight
increase compared to 2021 (73%) is due to the qualitative and particle size characteristics of the
reclamation waste, detected during characterization, notwithstanding the consistency of used
equipped plants with technologies available for recovery did not increase.
Certification
Eni Rewind holds SOA Certification, the mandatory certification for participation in tenders to execute
public works contracts with a basic auction amount exceeding €150,000.00, for its core activities in the
OG 12 - Reclamation and protection works and plants environmental and in the specialized categories
OS 22 - Drinking water and purification plants and OS 14 - Waste disposal and recovery plants.
During 2022, Eni Rewind achieved the highest certification, with unlimited amount, relative to the
categories OS14 and OG12.
Not-captive initiatives
In line with the path started in 2020, Eni Rewind expanded the scope of its activities, by offering
services outside Eni group. In particular, in 2022, Eni Rewind progressed in the implementation of
activities for the qualification process of leading national and international operators as suppliers.
Finalized also the registration to the MEPA portal (Electronic Market of the Public Administration).
In addition, Eni Rewind was awarded the Raggruppamento Temporaneo d’Impresa (RTI) of the
reclamation of the former Q8 plant in Naples, and will carry out the design, environmental analysis,
supply, installation and management of a thermal desorber.
Under the public regime, the post-assignment due diligence process by ANAS of requirements of
the RTI in which Eni Rewind is principal, was completed, in order to start activities for investigation
services and characterization in the Adriatic lot (Emilia-Romagna, Marche, Abruzzo, Molise, Puglia),
where Eni Rewind, through its environmental laboratories, will provide specific chemical analysis
services.
(1) The volume includes waste deriving from the management of the environmental activities of the points of sale network (about
112 ktonnes), whose “producer” is the same environmental company in charge of the execution out the work.
ENI ANNUAL REPORT 2022 99
In September 2022, Eni Rewind signed the relevant act setting up the RTI to subscribe the contract
with Anas.
Relating to the private sector, Eni Rewind was awarded a three-year framework agreement (renewable
for a further 2 years) for the transport and disposal service of about 50 ktonnes of waste generated
by the Refinery of Milazzo (RAM).
Eni Rewind outside Italy
Since 2018, Eni Rewind has been making its expertise available to Eni’s subsidiaries, located outside
Italy, to manage environmental issues, in particular for management and enhancement activities of
the water resource, soil, as well as training and knowledge sharing.
In order to implement the Memorandum of Understanding (MoU) signed in 2021 with the National
Authority for oil and gas of the Kingdom of Bahrain (NOGA), the Bahrain Petroleum Company refinery
(BAPCO) requested in 2022 to Eni Rewind a large-scale implementation of the e-Hyrec treatment
system, including services such as engineering, supply, installation and technical assistance.
Eni Rewind is progressing in the collaboration with Eni on “water management & valorization” projects.
In June 2022, completed the feasibility studies for the optimization of waste water management and
process water through its reuse for plants located in Algeria and Libya.
In 2022, carried out the environmental engineering activities for the remediation of company service
stations in France and Germany.
In the new mandate for the reclamations of the service stations’ areas signed with Eni Sustainable
Mobility effective from January 1st, 2023, Eni Rewind will support the company in the feasibility of
environmental activities also for the remediation of service stations of the European network.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 100
Financial Review
Possible impacts of the Russia-Ukraine war
For details on the impacts of the Russia-Ukraine war, please
refer to the paragraph “Risks in connection with Russia’s
military aggression of Ukraine” in the section “Risk factors and
uncertainty”.
PROFIT AND LOSS ACCOUNT
Sales from operations
Other income and revenues
Operating expenses
Other operating income (expense)
Depreciation, depletion, amortization
Net impairment reversals (losses) of tangible and intangible and right-of-use assets
Write-off of tangible and intangible assets
Operating profit (loss)
Finance income (expense)
Income (expense) from investments
Profit (loss) before income taxes
Income taxes
Tax rate (%)
Net profit (loss)
attributable to:
- Eni's shareholders
- Non-controlling interest
(€ million)
2022
132,512
1,175
2021
76,575
1,196
2020
43,987
960
Change
55,937
(21)
(105,497)
(58,716)
(36,640)
(46,781)
(1,736)
(7,205)
(1,140)
(599)
903
(7,063)
(167)
(387)
17,510
12,341
(925)
5,464
22,049
(8,088)
36.7
13,961
13,887
74
(788)
(868)
10,685
(4,845)
45.3
5,840
5,821
19
(766)
(7,304)
(3,183)
(329)
(3,275)
(1,045)
(1,658)
(5,978)
(2,650)
..
(2,639)
(142)
(973)
(212)
5,169
(137)
6,332
11,364
(3,243)
(8,628)
8,121
(8,635)
7
8,066
55
% Ch.
73.0
(1.8)
(79.7)
..
(2.0)
..
(54.8)
41.9
(17.4)
..
..
(66.9)
..
..
..
Eni’s 2022 results were significantly influenced by the recovery in
the energy commodity price scenario.
2022 marked one of the most volatile year in the history of crude
oil prices, due to the impact of Russia’s military aggression of
Ukraine in late February 2022 occurred against a backdrop of
substantially tight crude oil market due to the post-pandemic
recovery and supply tensions in the natural gas market,
particularly in Europe.
The price of the Brent crude oil benchmark spiked, approaching
its all-time highs in 2008 at approximately 140 $/bbl.
The first half of 2022, characterized by an average price of 108
$/bbl, was followed by a volatile second half of the year with a
decrease of about 40 $/bbl from 125 $/bbl at the end of June
2022; the downward trend resumed in December with a decline
below 80 $/bbl, eroding earnings registered in 2022.
On annual average, the Brent price was 101 $/barrel with
an increase of 40% compared to the 2021 average of about
70 $/bbl.
Natural gas prices experienced a degree of volatility even higher
than that of crude oil, especially in Europe due to its dependence
on pipeline supplies from Russia. Compared to the 2021 average
of about 15 $/mmBTU for the European spot reference Title
Transfer Facility (TTF) which already represented a historical
record, in 2022 values recorded 80-90 $/mmBTU due to fears
of shortage for the following winter season in relation to the
progressive downsizing of Russian export flows via pipeline, in
the context of a continuous deterioration of political relations
with the EU.
In the final part of 2022 and early 2023, natural gas prices, thanks
to a particularly mild winter season and significant exports of
LNG from the USA, corrected substantially, closing at year end at
values equal to or lower than those recorded before the outbreak
of the conflict.
Refining margins were supported by a recovery in fuel demand
in all sectors, including civil aviation, and substantial diesel
shortages mainly due to lower supplies from Russia.
ENI ANNUAL REPORT 2022
Average price of Brent dated crude oil in U.S. dollars(a)
Average EUR/USD exchange rate(b)
Average price of Brent dated crude oil in euro
Standard Eni Refining Margin (SERM)(c)
PSV(d)
TTF(d)
101
2022
101.19
1.053
96.09
8.5
1,294
1,279
2021
70.73
1.183
59.80
(0.9)
487
486
2020
41.67
1.142
36.49
1.7
112
100
Var. %
43.1
(11.0)
60.7
..
165.6
163.1
(a) Price per barrel. Source: Platt’s Oilgram.
(b) Source: ECB.
(c) In $/BBL FOB Mediterranean Brent dated crude oil. Source: Eni calculations. Approximates the margin of Eni’s refining system in consideration of material balances and refineries’ product yields.
(d) €/kcm
Adjusted results and breakdown of special items
In 2022, Eni reported an adjusted net profit attributable to its
shareholders of €13,301 million, increasing by 9 billion from 2021,
driven by the robust performance of the E&P segment due higher
realizations on equity production, portfolio optimizations at the
GGP segment as well as the improved performance of the R&M
segment which benefitted from plant availability and cost and
output optimization allowing to capture the upside of a strong
refining environment. Net profit benefitted from better results of
equity-accounted entities as well as a lower adjusted tax rate
which excludes non - recurring accruals.
Below the breakdown of the operating profit by business segment:
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Corporate and other activities
Impact of unrealized intragroup profit elimination
Operating profit (loss)
(€ million)
2022
15,908
3,730
460
(825)
(1,901)
138
2021
10,066
899
45
2,355
(816)
(208)
2020
(610)
(332)
(2,463)
660
(563)
33
17,510
12,341
(3,275)
Change
5,842
2,831
415
(1,085)
346
5,169
% Ch.
58.0
..
..
..
..
41.9
Eni’s management determines adjusted results excluding
extraordinary gains/charges or special items, in order to
improve understanding the underlying operating performance
of our business.
ADJUSTED RESULTS
Operating profit (loss)
Exclusion of inventory holding (gains) losses
Exclusion of special items
Adjusted operating profit (loss)
Breakdown by segment:
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Corporate and other activities
Impact of unrealized intragroup profit elimination and other consolidation adjustments
Net profit (loss) attributable to Eni's shareholders
Exclusion of inventory holding (gains) losses
Exclusion of special items
Adjusted net profit (loss) attributable to Eni's shareholders
(€ million)
2022
17,510
(564)
3,440
20,386
2021
12,341
(1,491)
(1,186)
9,664
2020
Var. ass.
(3,275)
5,169
Var. %.
41.9
1,318
3,855
1,898
10,722
110.9
16,411
9,293
1,547
2,063
1,929
615
(622)
(10)
13,887
(401)
(185)
13,301
580
152
476
(593)
(244)
5,821
(1,060)
(431)
4,330
326
6
465
(507)
61
7,118
1,483
1,777
139
(29)
234
(8,635)
8,066
937
6,940
(758)
8,971
76.6
255.7
..
29.2
(4.9)
..
..
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
102
In FY 2022, the adjusted operating profit was €20,386 million, an
increase of €10,722 million compared to 2021.
This performance was driven by the E&P segment due to a strong
recovery in commodity prices, by the GGP segment leveraging
on continuing optimization across the flexible gas and LNG
portfolio, as well as by the R&M business due to plant availability
and cost and output optimization allowing to capture the upside
of a strong refining environment.
The operating performance achieved record results with the
following breakdown by business segment:
• E&P reported a higher than 70% increase in adjusted operating
profit to €16.4 billion due to its capacity to capture the upside
of a favorable commodity environment;
• GGP reported an operating performance of €2.1 billion, replacing
Russian flows with equity gas or supplies from countries where
we operate, and ensuring optimization of the gas and LNG
portfolio in a tight market, while ensuring stable and secure
supplies to its customers and managing financial risks;
• R&M achieved its best performance ever with €2.2 billion,
compared to breakeven in 2021, due to plant availability and
output optimization allowing to capture the upside of a strong
refining environment, and efficiency measures to address the
rise in plant utility expenses;
• Plenitude delivered against its operating and financial targets
with EBIT of €0.34 billion and a renewable capacity of 2.2 GW,
despite the challenging market scenario;
• Versalis was impacted by competitive pressures, weakening
demand and higher gas-indexed utilities expenses, driving a
loss of €0.25 billion.
A detailed disclosure on businesses performance, see the
paragraph “Results by business segments”.
In FY 2022, adjusted net profit amounted to €13,301 million, an
increase of €8,971 million from 2021, due to a strong operating
performance and higher results of equity-accounted entities.
BREAKDOWN OF SPECIAL ITEMS
Net profit includes special items consisting of net gains of €185
million, mainly relating to the following:
i)
Italian
taken
environmental provision of €2,056 million
at dismissed
industrial hubs, based on
management’s accumulate know-how about scale, reach
and timing of remediation activities and a stabilized
regulatory framework, allowing reliable estimate of
the future costs of the reclamation of groundwater.
This amount includes an approximately €300 million
decommissioning charge relating to certain refinery
production units and facilities;
asset impairment charges driven by reserve revisions and
expenditures updates (€432 million in the year);
impairment losses of chemical plants to reflect a reduced
profitability outlook and
the write-down of capital
expenditures made for compliance and stay-in-business at
certain CGU with expected negative cash flows in the R&M
business (overall €717 million);
ii)
iii)
iv) provisions for redundancy incentives (€202 million);
the difference between the value of gas
inventories
v)
accounted for under the weighted-average cost method
provided by IFRS and management’s own measure of
inventories, which moves forward at the time of inventory
drawdown, the margins captured on volumes in inventories
above normal levels leveraging the seasonal spread in
gas prices net of the effects of the associated commodity
derivatives (gains of €70 million);
the accounting effect of certain fair-valued commodity
derivatives lacking the formal criteria to be classified as
hedges or to be elected under the own use exemption (gain
of €389 million) driving by high volatility of natural gas prices;
the reclassification to adjusted operating profit of the
vii)
vi)
positive balance of €149 million related to derivatives used
to manage margin exposure to foreign currency exchange
rate movements and exchange translation differences of
commercial payables and receivables;
viii) risk provisions (€87 million);
ix) a gain of €2.5 billion (including the reversal of accumulated
exchange rate translation differences) arising in connection
with the contribution of Eni’s subsidiaries operating in
Angola in exchange for a 50% equity interest in the newly
established Azule Energy JV with bp, which has been
recognized to the extent that the gain was attributable to
the other party to the joint venture based on the provisions
of IAS 28;
a gain on the share offering of the Vår Energi investee
through an IPO and listing at the Norwegian stock exchange
(€0.4 billion);
x)
xi) charges of €0.3 billion relating to the JV Vår Energi, driven
by impairment losses and currency translation differences
at finance debt denominated in a currency other than the
reporting currency for which the cash outflows are expected
to be matched by highly probable cash inflows from the sale
of production volumes, in the same currency as the finance
debt as part of a natural hedge relationship;
xii) extraordinary income taxes of €2.2 billion relating to windfall
taxes levied on energy companies in Italy and German.
Such charges included an Italian solidarity contribution
enacted by Budget Law 2023 calculated on the 2022
taxable income, determined considering the distribution of
certain revaluation reserves of the parent company;
xiii) recognized deferred tax assets of about €2.2 billion:
xiv) Eni’s share of non current charges/impairments relating to
Saipem (charges of €22 million).
ENI ANNUAL REPORT 2022 103
2020
3,855
(25)
3,183
(9)
149
123
440
(160)
154
152
160
1,655
(€ million)
2022
3,440
2,056
1,140
2
(41)
87
202
2021
(1,186)
271
167
247
(100)
142
193
(389)
(2,139)
149
234
(127)
(149)
(2,834)
(448)
(2.542)
(683)
(204)
(19)
(185)
183
(150)
(115)
(183)
851
851
1,207
19
(431)
1,278
6,940
(431)
6,940
Special items of operating profit (loss)
- environmental charges
- impairment losses (impairments reversal), net
- impairment of exploration projects
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Net finance (income) expense
of which:
- exchange rate differences and derivatives reclassified to operating profit (loss)
Net (income) expense from investments
of which:
- impairments / revaluation of equity investments
- gain on the divestment of Vår Energi
- net gains on the divestment of Angolan assets
Income taxes
Total special items of net profit (loss)
Attributable to:
- non-controlling interest
- Eni's shareholders
The breakdown by segment of the adjusted net profit is provided in the table below:
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Corporate and other activities
Impact of unrealized intragroup profit elimination and other consolidation adjustments(a)
Adjusted net profit (loss)
attributable to:
- Eni's shareholders
- Non-controlling interest
2020
Change
(€ million)
2022
10,776
982
1,914
397
(709)
(4)
13,356
2021
5,543
169
62
327
124
211
(246)
329
(1,576)
(1,205)
(176)
4,349
36
(751)
% Ch.
94.4
..
..
21.4
55.0
5,233
813
1,852
70
867
172
9,007
207.1
13,301
4,330
(758)
8,971
55
19
7
36
..
..
(a) This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end of the period.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
104
Revenues
TOTAL REVENUES
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
- Refining & Marketing
- Chemicals
- Consolidation adjustments
Plenitude & Power
- Plenitude
- Power
- Consolidation adjustments
Corporate and other activities
Consolidation adjustments
Sales from operations
Other income and revenues
Total revenues
(€ million)
2022
31,200
48,586
59,178
54,675
6,215
(1,712)
20,883
13,497
9,533
(2,147)
1,879
2021
21,742
20,843
40,374
36,501
5,590
(1,717)
11,187
7,452
3,996
(261)
1,698
13,590
7,051
25,340
22,965
3,387
(1,012)
7,536
6,020
1,894
(378)
1,559
2020
Change
9,458
27,743
18,804
18,174
625
9,696
6,045
5,537
% Ch.
43.5
..
46.6
49.8
11.2
86.7
81.1
138.6
181
10.7
(29,214)
(19,269)
(11,089)
132,512
76,575
43,987
55,937
1,175
1,196
960
(21)
133,687
77,771
44,947
55,916
73.0
(1.8)
71.9
Total revenues amounted to €133,687 million, reporting an
increase of 71.9% from 2021, reflecting the upside of a favorable
commodity environment and the appreciation of the US dollar vs.
the euro (+10%).
Sales from operations increased by €55,937 million from 2021
(+73.0%) to €132,512 million. This trend is due to the upside
of a favorable commodity environment (Brent price increased
by 71 $/bbl in 2021 to 101 $/bbl in 2022; gas spot prices in
Italy and Europe more than tripled) as well as to the recovery
of sold volumes leveraging on the recovery in global demand
of commodities in key final markets. The retail gas and power
business benefitted from the positive performance of the
extracommodity business and the marketing actions in Italy.
Other income and revenues amounting to €1,175 million were
broadly unchanged from 2021 and include the recovery of
the cost share of right-of-use assets pertaining to partners of
unincorporated joint operations operated by Eni (€204 million)
as well as income from royalties, patents, licences.
OPERATING EXPENSES
Purchases, services and other
Impairment losses (impairment reversals) of trade and other receivables, net
Payroll and related costs
of which: provision for redundancy incentives and other
(€ million)
2022
2021
2020
Change
102,529
55,549
33,551
46,980
(47)
3,015
202
279
2,888
193
226
2,863
123
(326)
127
% Ch.
84.6
(116.8)
4.4
105,497
58,716
36,640
46,781
79.7
Operating expenses for 2022 (€105,497 million) increased by
€46,781 million from 2021, up by 79.7%.
Purchases, services and other (€102,529 million) were up by
84.6% vs. 2021 mainly reflecting higher costs for hydrocarbon
supplies (gas under long-term supply contracts and refinery and
chemical feedstocks).
Payroll and related costs
(€3,015 million) were slightly
increased from 2021 (up by €127 million, or 4.4%) mainly due
to the appreciation of the USD against the euro as well as wage
dynamics.
ENI ANNUAL REPORT 2022
105
DEPRECIATION, DEPLETION, AMORTIZATION, IMPAIRMENT LOSSES (IMPAIREMENT REVERSALS) NET AND WRITE-OFF
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
- Refining & Marketing
- Chemicals
Plenitude & Power
- Plenitude
- Power
Corporate and other activities
Impact of unrealized intragroup profit elimination
Total depreciation, depletion and amortization
Impairment losses (impairment reversals) of tangible and intangible and right
of use assets, net
Depreciation, depletion, amortization, impairments and reversals, net
Write-off of tangible and intangible assets
(€ million)
2022
6,018
2021
5,976
2020
6,273
217
506
389
117
358
307
51
139
(33)
7,205
1,140
8,345
599
8,944
174
512
417
95
286
241
45
148
(33)
7,063
167
7,230
387
7,617
125
575
488
87
217
172
45
146
(32)
7,304
3,183
10,487
329
10,816
Change
% Ch.
42
43
(6)
(28)
22
72
66
6
(9)
142
973
1,115
212
1,327
0.7
24.7
(1.2)
(6.7)
23.2
25.2
27.4
13.3
(6.1)
2.0
..
15.4
54.8
17.4
Depreciation, depletion and amortization (€7,205 million) increased
by €142 million from 2021 (up by 2%) mainly in the Exploration &
Production segment due to start-ups and ramp-up of new projects
partly offset by the appreciation of the USD, in the GGP segment
following the ramp-up of the Damietta liquefaction plant, as well as
in Plenitude & Power due to the start-up of certain assets.
Impairment
losses (impairment reversals) of tangible and
intangible and right of use assets, net (€1,140 million), disclosed in
the section “special item” follow the breakdown below:
Exploration & Production
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
Plenitude & Power
Corporate and other activities
Impairment losses (impairment reversals) of tangible and intangible and right of use assets, net
(€ million)
2022
432
(12)
717
(37)
40
1,140
2021
(1,244)
26
1,342
20
23
167
2020
1,888
2
1,271
1
21
3,183
Change
1,676
(38)
(625)
(57)
17
973
Write-off of tangible and intangible assets amounted to €599
million and mainly related to previously capitalized costs of
exploratory wells which were expensed through profit because
it was determined that they did not encounter commercial
quantities of hydrocarbons mainly in Libya, Egypt, the Ivory
Coast, Vietnam and Kenya or due to lack of management
commitment in pursuing further appraisal activity.
The amount also comprised previously capitalized costs
of development projects that were written off due to lack of
economic perspectives.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
106
FINANCE INCOME (EXPENSE)
(€ million)
Finance income (expense) related to net borrowings
- Interest and other finance expense on ordinary bonds
- Net finance income (expense) on financial assets held for trading
- Net expenses on other financial assets valued at fair value with effects on profit and loss
- Interest and other expense due to banks and other financial institutions
- Interest on lease liabilities
- Interest from banks
- Interest and other income on financial receivables and securities held for non operating purposes
Income (expense) on derivative financial instruments
- Derivatives on exchange rate
- Derivatives on interest rate
- Options
Exchange differences, net
Other finance income (expense)
- Interest and other income on financing receivables and securities held for operating purposes
- Finance expense due to the passage of time (accretion discount)
- Other finance income (expense)
Finance expense capitalized
2022
(939)
(507)
(53)
(2)
(128)
(315)
57
9
13
(70)
81
2
238
(275)
128
(199)
(204)
(963)
38
(925)
2021
(849)
(475)
11
(94)
(304)
4
9
(306)
(322)
16
476
(177)
67
(144)
(100)
(856)
68
(788)
2020
(913)
(517)
31
(102)
(347)
10
12
351
391
(40)
(460)
(96)
97
(190)
(3)
(1,118)
73
(1,045)
Change
(90)
(32)
(64)
(2)
(34)
(11)
53
319
252
65
2
(238)
(98)
61
(55)
(104)
(107)
(30)
(137)
Net finance expenses were €925 million, €137 million higher than in
2021, mainly driven by: (i) lower recognition of income on exchange
rate (down €238 million) offset by the positive change of fair valued
currency derivatives (up €252 million) lacking the formal criteria to
be designated as hedges under IFRS 9; (ii) higher expenses relating
to our floating rate financial liabilities (up €90 million) due to higher
interest rate environment and the positive change in the fair value
of interest rate derivatives (up €65 million). Other finance expense
increased by €98 million and mainly related to higher discount
rates as well as higher finance expense relating to the unwinding
of discount of provisions (mainly the decommissioning provision
of certain plants).
NET INCOME (EXPENSE) FROM INVESTMENTS
2022
Share of gains (losses) from equity-accounted investments
Dividends
Net gains (losses) on disposals
Other income (expense), net
(€ million)
Exploration
& Production
Global Gas
& LNG Portfolio
Refining
& Marketing and
Chemicals
Plenitude
& Power
Corporate
and other
activities
Group
1,526
269
448
2,615
4,858
4
4
446
82
3
102
633
(20)
(115)
1,841
351
483
2,789
2
(5)
(118)
5,464
30
77
87
Net income from investments of €5,464 million related to:
• Eni’s share of profits generated by equity-accounted investments
amounting to €1,841 million, mainly driven by profits in the E&P
Vår Energi associate, the R&M ADNOC Refining associate, the
E&P Azule Energy Holdings joint venture. It includes also Eni’s
share of the joint venture Saipem results;
• dividends of €351 million paid by minority investments in certain
entities which were designated at fair value through other
comprehensive income under IFRS 9, except for dividends which
are recorded through profit. These entities mainly comprised
Nigeria LNG Ltd (€247 million) and Saudi European Petrochemical
Co (€77 million);
• net gains on divestment of assets of €483 million referred to the
divestment of an interest in Vår Energi through a public offering at
the Oslo stock exchange and a private placement;
• other gains (losses) net of €2,789 million mainly relating to the fair
value evaluation of the business combination Azule Energy.
The table below sets forth a breakdown of income/expense from
investments:
ENI ANNUAL REPORT 2022
107
(€ million)
2022
1,841
351
483
2,789
5,464
2021
2020
Change
(1,091)
(1,733)
230
1
(8)
150
(75)
(868)
(1,658)
2,932
121
482
2,797
6,332
Share of gains (losses) from equity-accounted investments
Dividends
Net gains (losses) on disposals
Other income (expense), net
Income (expense) from investments
Income Taxes
Income taxes increased by €3,243 million to €8,088 million
and included an extraordinary solidarity tax for the year
2022 (€1,036 million) enacted in Italy by Law No. 51 of May
20, 2022, a similar tax enacted in Germany as well as the UK
Energy profit levy. The total 2022 income taxes included also
an extraordinary contribution as enacted by Law No. 197 of
December 29, 2022 (Italian 2023 Budget Law) calculated on the
2022 taxable income, determined considering the distribution
of certain revaluation reserves of the parent company.
Reported tax rate was 36.7%. On an adjusted basis, not
considering the extraordinary one-off items reported as special
items (see the paragraph “Breakdown of special items”), the tax
rate stabilized at around 39%.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
108
RESULTS BY BUSINESS SEGMENTS1
EXPLORATION & PRODUCTION
Operating profit (loss)
Exclusion of special items:
- environmental charges
- impairment losses (impairment reversals), net
- impairment of exploration projects
- net gains on disposal of assets
- provision for redundancy incentives
- risk provisions
- exchange rate differences and derivatives
- other
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income (expense) from investments (a)
of which: Vår Energi
Azule
Income taxes(a)
Tax rate
Adjusted net profit (loss)
Results also include:
Exploration expenses:
‐ prospecting, geological and geophysical expenses
‐ write‐off of unsuccessful wells(b)
Average realizations
Liquids(c)
Natural gas
Hydrocarbons
(€ million)
2022
2021
15,908
10,066
503
30
432
2
(27)
34
34
(57)
55
16,411
(319)
2,086
951
455
(773)
60
(1,244)
247
(77)
60
113
(3)
71
9,293
(313)
681
425
Change
5,842
% Ch.
..
76.6
7,118
(6)
1,405
2020
(610)
2,157
19
1,888
1
34
114
13
88
1,547
(316)
262
193
(7,402)
(4,118)
(1,369)
(3,284)
(%)
40.7
10,776
605
220
385
92.49
10.37
73.98
($/bbl)
($/kcf)
($/boe)
42.6
5,543
558
194
364
66.62
6.64
51.49
..
124
510
196
314
37.06
3.76
28.92
5,233
..
47
26
21
25.87
3.73
22.49
8.4
13.4
5.8
38.8
56.1
43.7
(a) Excluding special items.
(b) Also includes write‐off of unproved exploration rights, if any, related to projects with negative outcome.
(c) Includes condensates.
In 2022, the Exploration & Production segment reported an
adjusted operating profit of €16,411 million, up 77% compared
to 2021 driven by a supportive oil scenario and a tight
worldwide market for natural gas, as well as by cost discipline.
Against this backdrop, Eni’s realized prices of liquids increased
by 39%, whereas natural gas realized prices increased by 56%
compared to 2021.
These effects were partly offset by lower production volumes.
Adjusted operating profit excluded special charges of €503
million.
Adjusted net profit of €10,776 million almost doubling
net profit of €5.543 million reported in 2021, due to a better
(1) Other alternative performance indicators disclosed are accompanied by explanatory notes and tables in line with the guidance provided by ESMA guidelines on alternative
performance measures (ESMA/2015/1415), published on October, 2015. For further information, see the section “Alternative performance measures” of this Annual Report at
subsequent pages.
ENI ANNUAL REPORT 2022
109
operating and equity-accounted performance. The reduction in
the tax rate in 2022, down by 2 percentage points compared to
2021, benefitted from the positive scenario and better equity-
accounted performance.
In 2022, Eni’s gas realizations for the full year increased on
average by 56% in dollar terms, driven by a recovery in trading
environment. Those were reduced on average by 1.27 $/kcf
due to the impact of cash flow hedges activated in the period
January - December 2022 on the sale of about 85 bcf. These
transactions were part of an hedging program in the period
December 2021 to December 2022.
The following table reports the impact of cash flow hedge
derivatives as described above:
Natural gas
Sale volumes
Sale volumes hedged by derivatives (cash flow hedge)
Total price excluding derivatives
Realized gains (losses) on derivatives
Total average price
GLOBAL GAS & LNG PORTFOLIO
Operating profit (loss)
Exclusion of special items:
- impairment losses (impairment reversals), net
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income (expense) from investments(a)
Income taxes(a)
Adjusted net profit (loss)
(a) Excluding special items.
2022
(billion cubic feet)
1,379
($/kcf)
85
11.64
(1.27)
10.37
(€ million)
2022
3,730
(1,667)
(12)
4
(1,805)
244
(98)
2,063
(17)
4
(1,068)
982
2021
899
(319)
26
5
(207)
206
(349)
580
(17)
(394)
169
2020
(332)
658
2
2
858
(183)
(21)
326
(15)
(100)
211
Change
% Ch.
2,831
..
1,483
4
(674)
813
..
..
In 2022, the Global Gas & LNG Portfolio segment reported an
adjusted operating profit of €2,063 million, a robust growth
compared to 2021 (up by €1,483 million, almost quadrupled
from 2021). The positive performance was achieved despite
the anticipated reversal in market trends and lower Russian
supplies, as well as higher expenses for contract revisions. The
segment replaced Russian flows with equity gas or supplies
from countries where we operate and ensuring optimization
of the gas and LNG portfolio in a tight market, while ensuring
stable and secure supplies to its customers and managing
financial risks.
Adjusted net profit was €982 million (net profit of €169 million
in 2021).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
110
REFINING & MARKETING AND CHEMICALS
(€ million)
Operating profit (loss)
Exclusion of inventory holding (gains) losses
Exclusion of special items:
- environmental charges
- impairment losses (impairment reversals), net
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Adjusted operating profit (loss)
- Refining & Marketing
- Chemicals
Net finance (expense) income(a)
Net income (expense) from investments(a)
of which: ADNOC Refining
Income taxes(a)
Adjusted net profit (loss)
(a) Excluding special items.
2022
460
(416)
1,885
962
717
(10)
52
46
4
(33)
147
1,929
2,183
(254)
(36)
637
568
(616)
1,914
2021
45
(1,455)
1,562
150
1,342
(22)
(4)
42
50
(14)
18
152
(46)
198
(32)
(4)
(76)
(54)
62
2020
Change
% Ch.
(2,463)
415
..
1,290
1,179
85
1,271
(8)
5
27
(185)
10
(26)
6
235
(229)
(7)
(161)
(167)
(84)
(246)
1,777
2,229
(452)
(4)
641
(562)
1,852
..
..
..
..
The Refining & Marketing business reported an adjusted
operating profit of €2,183 million in 2022, compared to an
operating loss of €46 million in 2021, due to significantly
higher refining margins. The performance was also driven by
optimization measures and initiatives to reduce energy costs
of industrial processes by replacing natural gas with cheaper
alternatives.
due to a large increase in utilities costs indexed to the natural
gas price. These were partly offset by optimization measures
intended to reduce natural gas consumption and a reduction
in production to compensate the decrease in demand.
Adjusted operating profit of the R&M and Chemicals segment
of €1.929 million, excluded special items of €1,885 million and
inventory holding gains of €416 million.
In 2022, the Chemical business reported an adjusted
operating loss of €254 million, compared to a profit of €198
million reported in 2021, which reflected unusual market
conditions in 2021 due to the pandemic. The performance
was impacted by weaker demand and rising expenses mainly
On a net basis, the positive result of €1,914 million reported by
the Refining & Marketing and Chemicals segment, compared to
a profit of €62 million in 2021, due to the better performance of
the Refining & Marketing business.
ENI ANNUAL REPORT 2022
PLENITUDE & POWER
Operating profit (loss)
Exclusion of special items:
- environmental charges
- impairment losses (impairment reversals), net
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Adjusted operating profit (loss)
- Plenitude
- Power
Net finance (expense) income(a)
Net income (expense) from investments(a)
Income taxes(a)
Adjusted net profit (loss)
(a) Excluding special items.
111
Change
(3,180)
% Ch.
..
139
(18)
157
(9)
(3)
(57)
70
29.2
(5.0)
..
21.4
(€ million)
2022
(825)
1,440
2
(37)
1
65
1,412
(5)
2
615
345
270
(11)
(6)
(201)
397
2021
2,355
(1,879)
20
(2)
(5)
2020
660
(195)
1
1
10
20
(1,982)
(233)
(6)
96
476
363
113
(2)
(3)
(144)
327
6
465
304
161
(1)
6
(141)
329
In 2022, Plenitude reported an adjusted operating profit of
€345 mln, down 5% compared to 2021, due to the challenging
market scenario. The Power generation business from gas-
fired plants reported an adjusted operating profit of €270
million in 2022, more than doubled from 2021, due to a
favorable price scenario.
The Plenitude & Power segment reported an adjusted operating
profit of €615 million, which includes a positive adjustment for
special item of €1,440 million.
The Plenitude & Power segment reported an adjusted net profit
of €397 million, up 21.4% from the 2021 result (adjusted net
profit of €327 million).
CORPORATE AND OTHER ACTIVITIES
(€ million)
Operating profit (loss)
Exclusion of special items:
- environmental charges
- impairment losses (impairment reversals), net
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- other
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income (expense) from investments(a)
Income taxes(a)
Adjusted net profit (loss)
(a) Excluding special items.
2022
(1,901)
1,279
1,062
40
(5)
1
53
128
(622)
(669)
(91)
673
2021
(816)
223
61
23
1
33
91
14
(593)
(539)
(691)
247
2020
(563)
56
(130)
21
(2)
20
40
107
(507)
(569)
(95)
(34)
(709)
(1,576)
(1,205)
Change
(1,085)
% Ch.
..
(29)
(130)
600
426
867
(4.9)
55.0
The results of Corporate and Other Activities mainly include
costs of Eni’s headquarters net of services charged to
operational companies for the provision of general purposes
services, administration, finance, information technology, human
resources management, legal affairs, international affairs, as well
as operational costs of decommissioning activities pertaining to
certain businesses which Eni exited, divested or shut down in
past years, net of the margins of captive subsidiaries providing
specialized services to the business (insurance, financial,
recruitment).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
112
SUMMARIZED GROUP BALANCE SHEET(a)
The summarized Group balance sheet aggregates the amount of
assets and liabilities derived from the statutory balance sheet in
accordance with functional criteria which considers the enterprise
conventionally divided into the three fundamental areas focusing
on resource investments, operations and financing. Management
believes that this summarized group balance sheet is useful
information in assisting investors to assess Eni’s capital structure
and to analyse its sources of funds and investments in fixed assets
and working capital. Management uses the summarized group
balance sheet to calculate key ratios such as the return on invested
capital (adjusted ROACE) and the financial soundness/equilibrium
(gearing and leverage).
(€ million)
December 31, 2022
December 31, 2021
Change
Fixed assets
Property, plant and equipment
Right of use
Intangible assets
Inventories - Compulsory stock
Equity-accounted investments and other investments
Receivables and securities held for operating purposes
Net payables related to capital expenditure
Net working capital
Inventories
Trade receivables
Trade payables
Net tax assets (liabilities)
Provisions
Other current assets and liabilities
Provisions for employee benefits
Assets held for sale including related liabilities
CAPITAL EMPLOYED, NET
Eni shareholders' equity
Non-controlling interest
Shareholders’ equity
Net borrowings before lease liabilities ex IFRS 16
Lease liabilities
- of which Eni working interest
- of which Joint operators’ working interest
Net borrowings post lease liabilities ex IFRS 16
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
56,332
4,446
5,525
1,786
13,294
1,978
(2,320)
81,041
7,709
16,556
(19,527)
(2,991)
(15,267)
316
(13,204)
(786)
156
67,207
54,759
471
55,230
7,026
4,951
4,457
494
11,977
67,207
56,299
4,821
4,799
1,053
7,181
1,902
(1,804)
74,251
6,072
15,524
33
(375)
726
733
6,113
76
(516)
6,790
1,637
1,032
(16,795)
(2,732)
(3,678)
687
(13,593)
(1,674)
(2,258)
(14,728)
(819)
139
58,843
44,437
82
44,519
8,987
5,337
3,653
1,684
14,324
58,843
2,574
1,524
33
17
8,364
10,322
389
10,711
(1,961)
(386)
804
(1,190)
(2,347)
8,364
(a) For a reconciliation to the statutory statement of cash flow see the paragraph “Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flows to Statutory Schemes”.
As of December 31, 2022, fixed assets of €81,041 million,
increased by €6,790 million from December 31, 2021, due to the
exchange rate translation differences (the period-end exchange
rate of EUR vs. USD was 1.067, down 6% compared to 1.133 as
of December 31, 2021), acquisitions, expenditures and the entry
into service of the FPSO vessel operating Area 1 in Mexico, partly
offset by the net effect of the contribution of Angolan subsidiaries
in exchange for 50% equity interest in Azule Energy and DD&A,
impairment charges and write-offs recorded in the year.
Net working capital (-€13,204 million) increased by €1,524
million as a result of increased value of oil and product inventories
due to the weighted-average cost method of accounting in an
environment of rising prices (up €1,637 million), as well as by an
increase in other current assets and liabilities (up €2,574 million)
due to fair value changes of derivative instruments, partly offset
by increased risk provisions (up €1,674 million) and a lower
balance between trade receivables and trade payables (down
€1,700 million).
ENI ANNUAL REPORT 2022
Comprehensive income
Net profit (loss)
Items that are not reclassified to profit or loss in later periods
Remeasurements of defined benefit plans
Change in the fair value of minor investments with effects to other comprehensive income
Share of other comprehensive income on equity accounted investments
Taxation
Items that may be reclassified to profit or loss in later periods
Currency translation differences
Change in the fair value of cash flow hedging derivatives
Share of "Other comprehensive income" on equity accounted investments
Taxation
Total other items of comprehensive income (loss)
Total comprehensive income (loss)
attributable to:
- Eni's shareholders
- Non-controlling interest
Changes in shareholders’ equity
Shareholders' equity at January 1st, 2021
Total comprehensive income (loss)
Dividends distributed to Eni's shareholders
Dividends distributed by consolidated subsidiaries
Net issue of perpetual subordinated bonds
Coupon of perpetual subordinated bonds
Costs for the issue of perpetual subordinated bonds
Buy-back program
Other changes
Total changes
Shareholders' equity at December 31, 2021
attributable to:
- Eni's shareholders
- Non-controlling interest
Shareholders' equity at January 1st, 2022
Total comprehensive income (loss)
Dividends distributed to Eni's shareholders
Dividends distributed by consolidated subsidiaries
Enipower transaction
Buy-back program
Coupon of perpetual subordinated bonds
Taxes on hybrid bond coupon
Other changes
Total changes
Shareholders' equity at December 31, 2022
attributable to:
- Eni's shareholders
- Non-controlling interest
113
(€ million)
2022
13,961
114
60
56
3
(5)
1,643
1,095
794
(12)
(234)
1,757
15,718
15,643
75
2021
5,840
149
119
105
2
(77)
1,902
2,828
(1,264)
(34)
372
2,051
7,891
7,872
19
(€ million)
37,493
7,891
(2,390)
(5)
2,000
(61)
(15)
(400)
6
15,718
(3,022)
(60)
542
(2,400)
(138)
44
27
7,026
44,519
44,437
82
44,519
10,711
55,230
54,759
471
Shareholders’ equity (€55,230 million) increased by €10,711
million compared to December 31, 2021, due to the net profit
for the period (€13,961 million), positive foreign currency
translation differences (about €1,095 million) reflecting
the appreciation of the US dollar vs. the Euro, the positive
change in the cash flow hedge reserve of €794 million, partly
offset by dividend payments and the share buy-back (€5,422
million).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
114
Net borrowings and leverage
Leverage is a measure used by management to assess the
Company’s level of indebtedness. It is calculated as a ratio
of net borrowings which is calculated by excluding cash and
cash equivalents and certain very liquid assets from financial
including non-controlling
debt
to shareholders’ equity,
interest. Management periodically reviews leverage in order
to assess the soundness and efficiency of the Group balance
sheet in terms of optimal mix between net borrowings and
net equity, and to carry out benchmark analysis with industry
standards.
Total finance debt
- Short-term debt
- Long-term debt
Cash and cash equivalents
Financial assets measured at fair value through profit or loss
Financing receivables held for non-operating purposes
Net borrowings before lease liabilities ex IFRS 16
Lease Liabilities
- of which Eni working interest
- of which Joint operators' working interest
Net borrowings post lease liabilities ex IFRS 16
Shareholders' equity including non-controlling interest
Leverage before lease liability ex IFRS 16
Leverage after lease liability ex IFRS 16
(€ million)
December 31, 2022
December 31, 2021
Change
26,917
7,543
19,374
(10,155)
(8,251)
(1,485)
7,026
4,951
4,457
494
11,977
55,230
0.13
0.22
27,794
4,080
23,714
(8,254)
(6,301)
(4,252)
8,987
5,337
3,653
1,684
14,324
44,519
0.20
0.32
(877)
3,463
(4,340)
(1,901)
(1,950)
2,767
(1,961)
(386)
804
(1,190)
(2,347)
10,711
0.07
0.10
As of December 31, 2022, net borrowings were €11,977 million
decreasing by €2,347 million from 2021.
Total finance debt of €26,917 million consisted of €7,543
million of short-term debt (including the portion of long-term
debt due within twelve months of €3,097 million) and €19,374
million of long-term debt. The decrease in financing receivables
held for non-operating purposes was due to the operations in
commodity derivates. The amount of €1,266 million is connected
to the financial deposits to secure the derivatives transactions,
mainly related to the Global Gas & LNG Portfolio segment. When
excluding the lease liabilities, net borrowings were re-determined
at €7,026 million reducing by €1,961 million from 2021.
Leverage2 – the ratio of the borrowings to total equity – was 0.13
at December 31, 2022. The impact of the liability pertaining to
joint operators in Eni-led unincorporated joint ventures weighted
on leverage for 1 point. Including the impact of IFRS 16 altogether,
leverage would be 0.22.
(2) Other alternative performance indicators disclosed are accompanied by explanatory notes and tables in line with guidance provided by ESMA guidelines on alternative
performance measures (ESMA/2015/1415), published on October 5, 2015. For further information, see the section “Alternative performance measures” of this Annual Report
at subsequent pages.
ENI ANNUAL REPORT 2022 115
SUMMARIZED GROUP CASH FLOW STATEMENT
Eni’s Summarized Group Cash Flow Statement derives from
the statutory statement of cash flows. It enables investors to
understand the connection existing between changes in cash
and cash equivalents (deriving from the statutory cash flows
statement) and in net borrowings (deriving from the summarized
cash flow statement) that occurred in the reporting period. The
measure which links the two statements is represented by the
“free cash flow” which is calculated as difference between the
cash flow generated from operations and the net cash used in
investing activities. Starting from free cash flow it is possible to
determine either: (i) changes in cash and cash equivalents for
the period by adding/deducting cash flows relating to financing
debts/receivables (issuance/repayment of debt and receivables
related to financing activities), shareholders’ equity (dividends
paid, net repurchase of own shares, capital issuance) and
the effect of changes in consolidation and of exchange rate
differences; and (ii) change in net borrowings for the period by
adding/deducting cash flows relating to shareholders’ equity
and the effect of changes in consolidation and of exchange rate
differences.
SUMMARIZED GROUP CASH FLOW STATEMENT(a)
Net profit (loss)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
- depreciation, depletion and amortization and other non monetary items
(€ million)
- net gains on disposal of assets
- dividends, interests, taxes and other changes
Changes in working capital related to operations
Dividends received by investments
Taxes paid
Interests (paid) received
Net cash provided by operating activities
Capital expenditure
Investments and purchase of consolidated subsidiaries and businesses
Disposals of consolidated subsidiaries, businesses, tangible and intagible assets and
investments
Other cash flow related to investing activities
Free cash flow
Net cash inflow (outflow) related to financial activities
Changes in short and long-term financial debt
Repayment of lease liabilities
Dividends paid and changes in non-controlling interests and reserves
Net issue (repayment) of perpetual hybrid bond
Effect of changes in consolidation and exchange differences of cash and cash equivalent
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT
Adjusted net cash before changes in working capital at replacement cost
Change in net borrowings
Free cash flow
Repayment of lease liabilities
Net borrowings of acquired companies
Net borrowings of divested companies
Exchange differences on net borrowings and other changes
Dividends paid and changes in non-controlling interest and reserves
Net issue (repayment) of perpetual hybrid bond
CHANGE IN NET BORROWINGS BEFORE LEASE LIABILITIES
Repayment of lease liabilities
Inception of new leases and other changes
Change in lease liabilities
CHANGE IN NET BORROWINGS AFTER LEASE LIABILITIES
(€ million)
2022
13,961
4,369
(524)
8,611
(1,279)
1,545
(8,488)
(735)
17,460
(8,056)
(3,311)
1,202
2,361
9,656
786
(2,569)
(994)
(4,841)
(138)
16
1,916
20,380
2022
9,656
(994)
(512)
142
(1,352)
(4,841)
(138)
1,961
994
(608)
386
2,347
2021
5,840
2020
Change
(8,628)
8,121
8,568
(102)
5,334
(3,146)
857
(3,726)
(764)
12,861
(5,234)
(2,738)
404
289
5,582
(4,743)
(244)
(939)
(2,780)
1,924
52
(1,148)
12,711
2021
5,582
(939)
(777)
(429)
(2,780)
1,924
2,581
939
(1,258)
(319)
2,262
12,641
(4,199)
(9)
3,251
(18)
509
(422)
3,277
1,867
688
(2,049)
(4,762)
(875)
4,822
(4,644)
(392)
28
(735)
(921)
1,156
3,115
(869)
(1,968)
2,975
(69)
3,419
6,726
2020
(921)
(869)
(67)
759
(1,968)
2,975
(91)
869
(239)
630
539
29
4,599
(2,822)
(573)
798
2,072
4,074
5,529
(2,325)
(55)
(2,061)
(2,062)
(36)
3,064
7,669
Change
4,074
(55)
265
142
(923)
(2,061)
(2,062)
(620)
55
650
705
85
(a) For a reconciliation to the statutory statement of cash flow see the paragraph “Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flows to Statutory Schemes”.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
116
Net cash provided by operating activities in 2022 was €17,460
million, an increase of €4,599 million compared to 2021 (up 36%),
due to a better scenario in the upstream segment and a strong
contribution from the R&M business.
The outflow relating to the working capital of €1,279 million
was due to the change in the value of inventory holding
accounted for under the weighted-average cost method in a
rising price environment, the build-up of gas inventories and
invoice payments for gas supplies. The dividends received by
investments mainly related to Vår Energi, Nigeria LNG, Azule
Energy and ADNOC R&T.
Cash flow from operating activities before changes in working
capital at replacement cost was €20,380 million in 2022 and
was net of the following items: inventory holding gains or losses
relating to oil and products, the reversing timing difference
between gas inventories accounted at weighted average cost
and management’s own measure of performance leveraging
inventories to optimize margin, provisions for environmental
reclamation activities and decommissioning of refinery assets,
extraordinary credit losses and other charges/gains, the fair
value of commodity derivatives lacking the formal criteria to be
designated as hedges, the Italian windfall tax levied on energy
companies for fiscal year 2022, as well as the reclassification
as an operating cash flow of a reimbursement of share capital
made by an associate.
Net financial borrowings before IFRS 16 decreased by €1,961
million due to the net cash provided by operating activities
(approximately €17.5 billion), the reimbursement of operating
financing receivable by Azule Energy (€1.3 billion), partly offset by
net capex requirements (€8.2 billion), dividends payments to Eni’s
shareholders of €3 billion, a €2.4 billion share buy-back program,
the cash outflow related to acquisitions and divestments (€2.5
billion), payments of lease liabilities for €1 billion, the payment of
the coupon of perpetual subordinated hybrid bonds (€0.1 billion)
and other positive changes for about €0.5 billion.
A reconciliation of cash flow from operations before changes
in working capital at replacement cost to net cash provided by
operating activities for the full year of 2022, 2021 and 2020 is
provided below:
Net cash provided by operating activities
Changes in working capital related to operations
Exclusion of commodity derivatives
Exclusion of inventory holding (gains) losses
Provisions for extraordinary credit losses and other charges
(€ million)
2022
17,460
1,279
(389)
(564)
2,594
2021
12,861
3,146
(2,139)
(1,491)
334
Adjusted net cash before changes in working capital at replacement cost
20,380
12,711
CAPITAL EXPENDITURE AND INVESTMENTS
(€ million)
Exploration & Production
- acquisition of proved and unproved properties
- exploration
- oil and gas development
- CCUS and agro-biofeedstock projects
- other expenditure
Global Gas & LNG Portfolio
Refining & Marketing and Chemicals
- Refining & Marketing
- Chemicals
Plenitude & Power
- Plenitude
- Power
Corporate and other activities
Impact of unrealized intragroup profit elimination
Capital expenditure(a)
Investments and purchase of consolidated subsidiaries and businesses
Total capex and investments and purchase of consolidated subsidiaries
and businesses
2022
6,362
260
708
5,238
110
46
23
878
623
255
631
481
150
166
(4)
8,056
3,311
11,367
2021
3,861
17
391
3,364
37
52
19
728
538
190
443
366
77
187
(4)
5,234
2,738
7,972
2020
3,472
57
283
3,077
55
11
771
588
183
293
241
52
107
(10)
4,644
392
5,036
2020
4,822
18
440
1,318
128
6,726
Change
2,501
243
317
1,874
73
(6)
4
150
85
65
188
115
73
(21)
2,822
573
3,395
Change
4,599
(1,867)
1,750
927
2,260
7,669
% Ch.
64.8
..
81.1
55.7
..
(11.5)
21.1
20.6
15.8
34.2
42.4
31.4
94.8
(11.2)
53.9
..
42.6
(a) Expenditures to purchase plant and equipment from suppliers whose payment terms matched classification as financing payables, have been recognized among other changes of the cash flow
statement (€61 million).
ENI ANNUAL REPORT 2022
117
Cash outflows for capital expenditure and investments were
€11,367 million, increasing by 43% from 2021 and include the
acquisition of a 20% stake in the Dogger Bank C offshore wind
project in the North Sea, the 100% stake in SKGR company
owner of a portfolio of photovoltaic plants in Greece, renewable
capacity in the United States, a 3% interest in the North Field East
LNG project in Qatar, the 100% stake in PLT Energia engaged in
the renewable business, the Tango FLNG floating liquefaction
vessel in Congo, as well as a capital contribution to our joint
venture Saipem to support a new industrial plan and a financial
restructuring of the investee. These outflows were partly offset
by the divestment of a stake of the joint venture Vår Energi
(€0.5 billion) and an equity contribution by an investor in Eni’s
subsidiaries operating in the natural gas-fired power generation
with recognition of a non-controlling interest (€0.5 billion).
In 2022, capital expenditure amounted to €8,056 million (€5,234
million in 2021), increasing by 54% and mainly related to:
• oil and gas development activities (€5,238 million) mainly in
Egypt, Ivory Coast, Congo, the United Arab Emirates, Mexico,
Iraq, Italy and Algeria;
• refining activity in Italy and outside Italy (€491 million)
mainly relating to the activities to maintain plants’ integrity
and stay-in-business, as well as HSE initiatives; marketing
activity (€132 million) for regulation compliance and stay-
in-business initiatives in the retail network in Italy and in the
rest of Europe;
• Plenitude (€481 million) mainly relating to development
activities in the renewable business, acquisition of new
customers as well as development of electric vehicles network
infrastructure.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 118
Non-GAAP measures (Alternative performance measures)
Management evaluates underlying business performance
on the basis of Non-GAAP financial measures, which are not
provided by IFRS (“Alternative performance measures”), such
as adjusted operating profit, adjusted net profit, which are
arrived at by excluding from reported results certain gains
and losses, defined special items, which include, among
others, asset impairments, including impairments of deferred
tax assets, gains on disposals, risk provisions, restructuring
charges, the accounting effect of fair-valued derivatives
used to hedge exposure to the commodity, exchange rate
and interest rate risks, which lack the formal criteria to be
accounted as hedges, and analogously evaluation effects of
assets and liabilities utilized in a relation of natural hedge of the
above mentioned market risks. Furthermore, in determining
the business segments’ adjusted results, finance charges on
finance debt and interest income are excluded (see below).
In determining adjusted results, inventory holding gains or
losses are excluded from base business performance, which
is the difference between the cost of sales of the volumes sold
in the period based on the cost of supplies of the same period
and the cost of sales of the volumes sold calculated using
the weighted average cost method of inventory accounting as
required by IFRS, except in those business segments where
inventories are utilized as a lever to optimize margins.
Finally, the same special charges/gains are excluded from
the Eni’s share of results at JVs and other equity accounted
entities, including any profit/loss on inventory holding.
Management
is disclosing Non-GAAP measures of
performance to facilitate a comparison of base business
performance across periods, and to allow financial analysts
to evaluate Eni’s trading performance on the basis of their
forecasting models.
Non-GAAP financial measures should be read together with
information determined by applying IFRS and do not stand in
for them. Other companies may adopt different methodologies
to determine Non-GAAP measures.
Follows the description of the main alternative performance
measures adopted by Eni. The measures reported below refer
to the performance of the reporting periods disclosed in this
press release.
Adjusted operating and net profit
Adjusted operating profit and adjusted net profit are
determined by excluding inventory holding gains or losses,
special items and, in determining the business segments’
adjusted results, finance charges on finance debt and interest
income. The adjusted operating profit of each business
segment reports gains and losses on derivative financial
instruments entered into to manage exposure to movements
in foreign currency exchange rates, which impact industrial
translation of commercial payables and
margins and
receivables. Accordingly, also currency translation effects
recorded through profit and loss are reported within business
segments’ adjusted operating profit. The taxation effect of
the items excluded from adjusted operating or net profit is
determined based on the specific rate of taxes applicable to
each of them.
Finance charges or income related to net borrowings excluded
from the adjusted net profit of business segments are
comprised of interest charges on finance debt and interest
income earned on cash and cash equivalents not related to
operations. Therefore, the adjusted net profit of business
segments
income deriving
from certain segment operated assets, i.e., interest income
on certain receivable financing and securities related to
operations and finance charge pertaining to the accretion of
certain provisions recorded on a discounted basis (as in the
case of the asset retirement obligations in the Exploration &
Production segment).
includes finance charges or
Inventory holding gain or loss
This is the difference between the cost of sales of the volumes
sold in the period based on the cost of supplies of the same
period and the cost of sales of the volumes sold calculated
using the weighted average cost method of
inventory
accounting as required by IFRS.
include certain significant
Special items
These
income or charges
pertaining to either: (i) infrequent or unusual events and
transactions, being identified as non-recurring items under
such circumstances; (ii) certain events or transactions which
are not considered to be representative of the ordinary course
of business, as in the case of environmental provisions,
restructuring charges, asset impairments or write ups and
gains or losses on divestments even though they occurred in
past periods or are likely to occur in future ones. Exchange rate
differences and derivatives relating to industrial activities and
commercial payables and receivables, particularly exchange
rate derivatives to manage commodity pricing formulas which
are quoted in a currency other than the functional currency
are reclassified in operating profit with a corresponding
adjustment to net finance charges, notwithstanding the
handling of foreign currency exchange risks is made centrally
by netting off naturally-occurring opposite positions and
then dealing with any residual risk exposure in the derivative
market. Finally, special items include the accounting effects
of fair-valued commodity derivatives relating to commercial
exposures, in addition to those which lack the criteria to be
designed as hedges, also those which are not eligible for the
own use exemption, including the ineffective portion of cash
flow hedges, as well as the accounting effects of settled
commodity and exchange rates derivatives whenever it is
deemed that the underlying transaction is expected to occur
in future reporting periods.
ENI ANNUAL REPORT 2022 119
include the
Correspondently, special charges/gains also
evaluation effects relating to assets/liabilities utilized in a
natural hedge relation to offset a market risk, as in the case
of accrued currency differences at finance debt denominated
in a currency other than the reporting currency, where the
cash outflows for the reimbursement are matched by highly
probable cash inflows in the same currency. The deferral of
both the unrealized portion of fair-valued commodity and
other derivatives and evaluation effects are reversed to future
reporting periods when the underlying transaction occurs.
As provided for in Decision No. 15519 of July 27, 2006
of the Italian market regulator (CONSOB), non-recurring
material income or charges are to be clearly reported in the
management’s discussion and financial tables.
Leverage
Leverage is a Non-GAAP measure of the Company’s financial
condition, calculated as the ratio between net borrowings and
shareholders’ equity, including non-controlling interest. Leverage
is the reference ratio to assess the solidity and efficiency of the
Group balance sheet in terms of incidence of funding sources
including third-party funding and equity as well as to carry out
benchmark analysis with industry standards.
of own shares, capital issuance) and the effect of changes in
consolidation and of exchange rate differences; (ii) changes in
net borrowings for the period by adding/deducting cash flows
relating to shareholders’ equity and the effect of changes in
consolidation and of exchange rate differences.
Net borrowings
Net borrowings is calculated as total finance debt less cash,
cash equivalents, financial assets measured at fair value
through profit or loss and financing receivables held for non-
operating purposes. Financial activities are qualified as “not
related to operations” when these are not strictly related to the
business operations.
ROACE Adjusted
Is the return on average capital invested, calculated as the
ratio between net income before minority interests, plus net
financial charges on net financial debt, less the related tax
effect and net average capital employed.
Coverage
Financial discipline ratio, calculated as the ratio between
operating profit and net finance charges.
Gearing
Gearing is calculated as the ratio between net borrowings
and capital employed net and measures how much of capital
employed net is financed recurring to third-party funding.
Current ratio
Measures the capability of the Company to repay short-term
debt, calculated as the ratio between current assets and
current liabilities.
Cash flow from operations before changes in working capital
at replacement cost
This is defined as net cash provided from operating activities
before changes in working capital at replacement cost. It also
excludes certain non-recurring charges such as extraordinary
credit allowances and, considering the high market volatility,
changes in the fair value of commodity derivatives lacking
the formal criteria to be designed as hedges, including
derivatives which were not eligible for the own use exemption,
the ineffective portion of cash flow hedges, as well as the
effects of certain settled commodity derivatives whenever it is
deemed that the underlying transaction is expected to occur in
future reporting periods.
Free cash flow
Free cash flow represents the link existing between changes
in cash and cash equivalents (deriving from the statutory
cash flows statement) and in net borrowings (deriving from
the summarized cash flow statement) that occurred from the
beginning of the period to the end of period. Free cash flow is
the cash in excess of capital expenditure needs. Starting from
free cash flow it is possible to determine either: (i) changes in
cash and cash equivalents for the period by adding/deducting
cash flows relating to financing debts/receivables (issuance/
repayment of debt and receivables related to financing
activities), shareholders’ equity (dividends paid, net repurchase
Debt coverage
Rating companies use the debt coverage ratio to evaluate
debt sustainability. It is calculated as the ratio between net
cash provided by operating activities and net borrowings, less
cash and cash-equivalents, securities held for non-operating
for non-operating
purposes and
purposes.
receivables
financing
Net Debt/EBITDA adjusted
Net Debt/adjusted EBITDA is the ratio between the profit
available to cover the debt before interest, taxes, amortizations
and impairment. This index is a measure of the company’s ability
pay off its debt and gives an indication as to how long a company
would need to operate at its current level to pay off all its debt.
Profit per boe
Measures the return per oil and natural gas barrel produced. It
is calculated as the ratio between Results of operations from
E&P activities (as defined by FASB Extractive Activities - Oil
and Gas Topic 932) and production sold.
Opex per boe
Measures efficiency in the Oil & Gas development activities,
calculated as the ratio between operating costs (as defined
by FASB Extractive Activities - Oil and Gas Topic 932) and
production sold.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 120
Finding & Development cost per boe
Represents Finding & Development cost per boe of new proved
or possible reserves. It is calculated as the overall amount of
exploration and development expenditure, the consideration
for the acquisition of possible and probable reserves as
well as additions of proved reserves deriving from improved
recovery, extensions, discoveries and revisions of previous
estimates (as defined by FASB Extractive Activities - Oil and
Gas Topic 932).
The following tables report the group operating profit and
Group adjusted net profit and their breakdown by segment,
as well as is represented the reconciliation with net profit
attributable to Eni’s shareholders of continuing operations.
RECONCILIATION TABLES OF NON-GAAP RESULTS TO THE MOST COMPARABLE MEASURES OF FINANCIAL PERFORMANCE
DETERMINED IN ACCORDANCE TO GAAPS
2022
(€ million)
n
o
i
t
c
u
d
o
r
P
&
n
o
i
t
a
r
o
p
x
E
l
s
a
G
l
a
b
o
G
l
o
i
l
o
f
t
r
o
P
G
N
L
&
Reported operating profit (loss)
15,908
3,730
d
n
a
g
n
i
t
e
k
r
a
M
&
i
g
n
n
fi
e
R
l
i
s
a
c
m
e
h
C
460
(416)
962
717
(10)
52
46
4
(33)
147
1,885
1,929
(36)
637
r
e
h
t
o
d
n
a
e
t
a
r
o
p
r
o
C
s
e
i
t
i
v
i
t
c
a
e
d
u
t
i
n
e
P
l
r
e
w
o
P
&
d
e
z
i
l
a
e
r
n
u
f
o
t
c
a
p
m
I
t
fi
o
r
p
p
u
o
r
g
a
r
t
n
i
n
o
i
t
a
n
m
i
i
l
e
p
u
o
r
G
(825)
(1,901)
138
(148)
17,510
(564)
2
(37)
1
65
1,412
(5)
2
1,440
615
(11)
(6)
1,062
40
(5)
1
53
128
1,279
(622)
(669)
(91)
673
2,056
1,140
2
(41)
87
202
(389)
149
234
3,440
(10)
20,386
(1,052)
2,630
6
(8,608)
39.2
30
432
2
(27)
34
34
(57)
55
503
(12)
4
(1,805)
244
(98)
(1,667)
16,411
2,063
(319)
2,086
(17)
4
(7,402)
(1,068)
(616)
(201)
10,776
982
1,914
397
(709)
(4)
13,356
55
13,301
13,887
(401)
(185)
13,301
Exclusion of inventory holding (gains) losses
Exclusion of special items:
- environmental charges
- impairment losses (impairments reversal), net
- impairment of exploration projects
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Special items of operating profit (loss)
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income(expense) from investments(a)
Income taxes(a)
Tax rate (%)
Adjusted net profit (loss)
of which attributable to:
- non-controlling interest
- Eni's shareholders
Reported net profit (loss) attributable to Eni's shareholders
Exclusion of inventory holding (gains) losses
Exclusion of special items
Adjusted net profit (loss) attributable to Eni's shareholders
(a) Excluding special items.
ENI ANNUAL REPORT 2022
RECONCILIATION TABLES OF NON-GAAP RESULTS TO THE MOST COMPARABLE MEASURES OF FINANCIAL PERFORMANCE
DETERMINED IN ACCORDANCE TO GAAPS
121
2021
(€ million)
n
o
i
t
c
u
d
o
r
P
&
n
o
i
t
a
r
o
p
x
E
l
s
a
G
l
a
b
o
G
l
d
n
a
g
n
i
t
e
k
r
a
M
&
i
g
n
n
fi
e
R
i
l
s
a
c
m
e
h
C
r
e
h
t
o
d
n
a
e
t
a
r
o
p
r
o
C
s
e
i
t
i
v
i
t
c
a
e
d
u
t
i
n
e
P
l
r
e
w
o
P
&
d
e
z
i
l
a
e
r
n
u
f
o
t
c
a
p
m
I
t
fi
o
r
p
p
u
o
r
g
a
r
t
n
i
n
o
i
t
a
n
m
i
i
l
e
p
u
o
r
G
o
i
l
o
f
t
r
o
P
G
N
L
&
Reported operating profit (loss)
10,066
899
45
2,355
(816)
(208)
12,341
Exclusion of inventory holding (gains) losses
Exclusion of special items:
- environmental charges
60
- impairment losses (impairments reversal), net
(1,244)
26
- impairment of exploration projects
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Special items of operating profit (loss)
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income(expense) from investments(a)
Income taxes(a)
Tax rate (%)
Adjusted net profit (loss)
of which attributable to:
- non-controlling interest
- Eni's shareholders
Reported net profit (loss) attributable to Eni's shareholders
Exclusion of inventory holding (gains) losses
Exclusion of special items
Adjusted net profit (loss) attributable to Eni's shareholders
(a) Excluding special items.
(1,455)
150
1,342
(22)
(4)
42
50
(14)
18
20
(2)
(5)
(1,982)
(6)
96
1,562
(1,879)
152
(32)
(4)
(54)
476
(2)
(3)
(144)
61
23
1
33
91
14
223
(593)
(539)
(691)
247
(36)
(1,491)
271
167
247
(100)
142
193
(2,139)
183
(150)
(1,186)
9,664
(903)
(17)
(244)
68
(4,395)
247
(77)
113
60
(3)
71
(773)
9,293
(313)
681
5
(207)
206
(349)
(319)
580
(17)
(4,118)
(394)
5,543
169
62
327
(1,576)
(176)
50.3
4,349
19
4,330
5,821
(1,060)
(431)
4,330
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
122
RECONCILIATION TABLES OF NON-GAAP RESULTS TO THE MOST COMPARABLE MEASURES OF FINANCIAL PERFORMANCE
DETERMINED IN ACCORDANCE TO GAAPS
2020
(€ million)
n
o
i
t
c
u
d
o
r
P
&
n
o
i
t
a
r
o
p
x
E
l
s
a
G
l
a
b
o
G
l
o
i
l
o
f
t
r
o
P
G
N
L
&
d
n
a
g
n
i
t
e
k
r
a
M
&
i
g
n
n
fi
e
R
l
i
s
a
c
m
e
h
C
Reported operating profit (loss)
(610)
(332)
(2,463)
r
e
h
t
o
d
n
a
e
t
a
r
o
p
r
o
C
s
e
i
t
i
v
i
t
c
a
(563)
(130)
21
(2)
20
40
107
56
(507)
(569)
(95)
(34)
d
e
z
i
l
a
e
r
n
u
f
o
t
c
a
p
m
I
t
fi
o
r
p
p
u
o
r
g
a
r
t
n
i
n
o
i
t
a
n
m
i
i
l
e
p
u
o
r
G
33
28
(3,275)
1,318
(25)
3,183
(9)
149
123
440
(160)
154
3,855
1,898
(893)
(3)
61
(25)
(1,753)
e
d
u
t
i
n
e
P
l
r
e
w
o
P
&
660
1
1
10
20
1,290
85
1,271
(8)
5
27
(185)
(233)
10
(26)
1,179
6
(7)
(161)
(84)
6
(195)
465
(1)
6
(141)
19
1,888
1
114
34
13
88
2,157
1,547
(316)
262
(1,369)
2
2
858
(183)
(21)
658
326
(15)
(100)
124
211
(246)
329
(1,205)
36
175.0
(751)
7
(758)
(8,635)
937
6,940
(758)
Exclusion of inventory holding (gains) losses
Exclusion of special items:
- environmental charges
- impairment losses (impairments reversal), net
- net gains on disposal of assets
- risk provisions
- provision for redundancy incentives
- commodity derivatives
- exchange rate differences and derivatives
- other
Special items of operating profit (loss)
Adjusted operating profit (loss)
Net finance (expense) income(a)
Net income(expense) from investments(a)
Income taxes(a)
Tax rate (%)
Adjusted net profit (loss)
of which attributable to:
- non-controlling interest
- Eni's shareholders
Reported net profit (loss) attributable to Eni's shareholders
Exclusion of inventory holding (gains) losses
Exclusion of special items
Adjusted net profit (loss) attributable to Eni's shareholders
(a) Excluding special items.
ENI ANNUAL REPORT 2022
RECONCILIATION OF SUMMARIZED GROUP BALANCE SHEET AND STATEMENT OF
CASH FLOWS TO STATUTORY SCHEMES
123
December 31, 2022
December 31, 2021
Notes to the
Consolidated
Financial Statement
Amounts
from statutory
scheme
Amounts of the
summarized
Group scheme
Amounts
from statutory
scheme
Amounts of the
summarized
Group scheme
(€ million)
SUMMARIZED GROUP BALANCE SHEET
Items of Summarized Group Balance Sheet
(where not expressly indicated, the item derives directly from the statutory scheme)
Fixed assets
Property, plant and equipment
Right of use
Intangible assets
Inventories - Compulsory stock
Equity‐accounted investments and other investments
Receivables and securities held for operating activities
Net payables related to capital expenditure, made up of:
- liabilities for current investment assets
- liabilities for no current investment assets
- receivables related to disposals
- receivables related to disposals non‐current
- payables for purchase of non-current assets
Total fixed assets
Net working capital
Inventories
Trade receivables
Trade payables
Net tax assets (liabilities), made up of:
- current income tax payables
- non-current income tax payables
- other current tax liabilities
- deferred tax liabilities
- other non‐current tax liabilities
- current income tax receivables
- non-current income tax receivables
- other current tax assets
- deferred tax assets
- other non‐current tax assets
- receivables for Italian consolidated accounts
- payables for Italian consolidated accounts
Provisions
Other current assets and liabilities, made up of:
- short-term financial receivables for operating purposes
- receivables vs. partners for exploration and production activities and other
- other current assets
- other receivables and other assets non-current
- advances, other payables, payables vs. partners for exploration and production
activities and other
- other current liabilities
- other payables and other liabilities non-current
Total net working capital
Provisions for employee benefits
Assets held for sale including related liabilities
made up of:
- assets held for sale
- liabilities directly associated with held for sale
CAPITAL EMPLOYED, NET
Shareholders' equity including non‐controlling interest
Net borrowings
Total debt, made up of:
‐ long‐term debt
‐ current portion of long‐term debt
‐ short‐term debt
less:
Cash and cash equivalents
Financial assets measured at fair value through profit or loss
Financing receivables held for non‐operating purposes
Net borrowings before lease liabilities ex IFRS 16
Lease liabilities, made up of:
- long‐term lease liabilities
- current portion of long‐term lease liabilities
Total net borrowings post lease liabilities ex IFRS 16(a)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
(a) For details on net borrowings see also note 20 to the consolidated financial statements.
(see note 17)
(see note 11)
(see note 11)
(see note 8)
(see note 11)
(see note 18)
(see note 8)
(see note 18)
(see note 11)
(see note 11)
(see note 11)
(see note 11)
(see note 8)
(see note 18)
(see note 17)
(see note 8)
(see note 11)
(see note 11)
(see note 18)
(see note 11)
(see note 11)
(see note 17)
(4)
(79)
301
23
(2,561)
(2,108)
(253)
(1,463)
(5,094)
(34)
317
114
807
4,569
157
3
(6)
8
3,980
12,014
2,056
(3,615)
(11,006)
(3,121)
264
(108)
19,374
3,097
4,446
4,067
884
56,332
4,446
5,525
1,786
13,294
1,978
(2,320)
81,041
7,709
16,556
(19,527)
(2,991)
(15,267)
316
(13,204)
(786)
156
67,207
55,230
26,917
(10,155)
(8,251)
(1,485)
7,026
4,951
11,977
67,207
(16)
(87)
8
23
(1,732)
(648)
(374)
(1,435)
(4,835)
(27)
195
108
442
2,713
182
3
(2)
39
3,315
13,192
824
(3,191)
(14,305)
(2,132)
263
(124)
23,714
1,781
2,299
4,389
948
56,299
4,821
4,799
1,053
7,181
1,902
(1,804)
74,251
6,072
15,524
(16,795)
(3,678)
(13,593)
(2,258)
(14,728)
(819)
139
58,843
44,519
27,794
(8,254)
(6,301)
(4,252)
8,987
5,337
14,324
58,843
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
124
SUMMARIZED GROUP CASH FLOW STATEMENT
Items of Summarized Cash Flow Statement and
confluence/reclassification of items in the statutory scheme
Net profit (loss)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization and other non monetary items
- depreciation, depletion and amortization
- impairment losses (impairment reversals) of tangible, intangible and right of use,
net
- write-off of tangible and intangible assets
- share of profit (loss) of equity-accounted investments
- other changes
- net change in the provisions for employee benefits
Gains on disposal of assets, net
Dividends, interests, income taxes and other changes
- dividend income
- interest income
- interest expense
- income taxes
Cash flow from changes in working capital
- inventories
- trade receivables
- trade payables
- provisions for contingencies
- other assets and liabilities
Dividends received
Income taxes paid, net of tax receivables received
Interests (paid) received
- interest received
- interest paid
Net cash provided by operating activities
Investing activities
- tangible assets
- intangible assets
Investments and purchase of consolidated subsidiaries and businesses
‐ investments
‐ consolidated subsidiaries and businesses net of cash and cash equivalent acquired
Disposals
- tangible assets
- intangible assets
- Consolidated subsidiaries and businesses net of cash and cash equivalent
disposed of
- tax disposals
- investments
Other cash flow related to capital expenditure, investments and disposals
- prepaid right of use
‐ investment of securities and financing receivables held for operating purposes
‐ change in payables in relation to investing activities
‐ disposal of securities and financing receivables held for operating purposes
‐ change in receivables in relation to disposals
Free cash flow
2022
2021
Amounts
from
statutory
scheme
Amounts
of the
summarized
Group scheme
Amounts
from
statutory
scheme
Amounts
of the
summarized
Group scheme
(€ million)
13,961
4,369
(524)
8,611
5,840
8,568
(102)
5,334
7,063
167
387
1,091
(194)
54
(230)
(75)
794
4,845
(1,279)
(3,146)
(2,033)
(7,888)
7,744
(406)
(563)
28
(792)
(4,950)
(284)
(837)
(1,901)
1,545
(8,488)
(735)
17,460
(8,056)
(3,311)
857
(3,726)
(764)
12,861
(5,234)
(2,738)
1,202
404
2,361
207
1
76
(35)
155
(2)
(227)
386
141
(9)
289
9,656
5,582
7,205
1,140
599
(1,841)
(2,773)
39
(351)
(159)
1,033
8,088
(2,528)
(1,036)
2,284
2,028
(2,027)
116
(851)
(7,700)
(356)
(1,675)
(1,636)
149
17
(60)
1,096
(3)
(350)
927
483
1,304
ENI ANNUAL REPORT 2022
125
Items of Summarized Cash Flow Statement and
confluence/reclassification of items in the statutory scheme
Free cash flow
Borrowings (repayment) of debt related to financing activities
- net change of seurities and financing receivables held for non-operating purposes
Changes in short and long‐term finance debt
- increase in long-term debt
- repayments of long-term debt
- increase (decrease) in short-term debt
Repayment of lease liabilities
Dividends paid and changes in non‐controlling interest and reserves
- capital issuance from non-controlling interest
- net purchase of treasury shares
- (disposal) acquisition of additional interests in consolidated subsidiaries
- dividends paid to Eni's shareholders
- dividends paid to non controlling interest
Net issue (repayment) of perpetual hybrid bond
- issue of perpetual subordinated bonds
- coupon of perpetual subordinated bonds
Effect of changes in consolidation, exchange differences and cash and cash equivalent
- effect of exchange rate changes and other changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalent
2022
2021
Amounts
from
statutory
scheme
Amounts
of the
summarized
Group scheme
Amounts
from
statutory
scheme
Amounts
of the
summarized
Group scheme
(€ million)
786
130
(4,074)
1,375
92
(2,400)
536
(3,009)
(60)
(138)
16
9,656
786
(2,569)
(994)
(4,841)
(138)
16
1,916
(4,743)
3,556
(2,890)
(910)
(400)
(17)
(2,358)
(5)
1,985
(61)
52
5,582
(4,743)
(244)
(939)
(2,780)
1,924
52
(1,148)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
126
Risk factors and uncertainties
The Group’s performance is mainly exposed to the
volatility of the prices of crude oil and natural gas
and to changing margins of oil derivative products
such as, refined products and chemical products
The price of crude oil is the main driver of the Company’s operating
performance and cash flow, given the current size of Eni’s
Exploration & Production segment relative to other Company’s
business segments. The price of crude oil has a history of
volatility because, like other commodities, it is influenced by
the ups and downs in the economic cycle and several other
macro-variables that are beyond management’s control. Crude
oil prices are mainly determined by the balance between global
oil supplies and demand, the global levels of commercial
inventories and producing countries’ spare capacity. In the
short-term, worldwide demand for crude oil is highly correlated
to the macroeconomic cycle. A downturn in economic activity
normally triggers lower global demand for crude oil and possibly
a supply and/or an inventory build-up, because in the short-term
producers are unable to respond to swings in demand quickly.
Whenever global supplies of crude oil outstrip demand, crude oil
prices weaken. Factors that can influence the global economic
activity in the short-term and demand for crude oil include
several, unpredictable events, like trends in the economic growth
which shape crude oil demand in big consuming countries like
China, India and the United States, financial crisis, geo-political
crisis, local conflicts and wars, social instability, pandemic
diseases, the flows of international commerce, trade disputes
and governments’ fiscal policies, among others. All these events
could influence demands for crude oil. Long-term demands for
crude oil is driven, on the positive side, by demographic growth,
improving living standards and GDP (Gross Domestic Product)
expansion; on the negative side, factors that in the long-term may
significantly reduce demands for crude oil include availability of
alternative sources of energy (e.g., nuclear and renewables),
technological breakthroughs, shifts in consumer preferences,
and finally measures and other initiatives adopted or planned
by governments to tackle climate change and to curb carbon-
dioxide emissions (CO2 emissions), including stricter regulations
and control on production and consumption of crude oil. Many
governments and supranational institutions, with the USA and EU
leading the way, have begun implementing policies to transition
the economy towards a low carbon model of development
through various means and strategies, particularly by supporting
development of renewable energies and the replacement of
internal combustion engine vehicles with electric vehicles,
including the possible adoption of tougher regulations on the
use of hydrocarbons such as the taxation of CO2 emissions.
According to Eni’s management, the push to reduce worldwide
greenhouse gas emissions and an ongoing energy transition
towards a low carbon economy are likely to materially affect the
worldwide energy mix in the long-term and may lead to structural
lower crude oil demands and prices. See the section dedicated to
the discussion of climate-related risks below.
Notwithstanding the USA being the first oil producer in the
world since the shale oil revolution of 2011, global oil supplies
are controlled to a large degree by the Organization of the
Petroleum Exporting Countries (“OPEC”) cartel and its allied
countries, like Russia and Kazakhstan, known as the OPEC+
alliance. Saudi Arabia plays a crucial role within the cartel,
because it is estimated to hold huge amounts of reserves and
a vast majority of worldwide spare production capacity. This
explains why geopolitical developments in the Middle East and
particularly in the Gulf area, like regional conflicts, acts of war,
strikes, attacks, sabotages, and social and political tensions can
have a big influence on crude oil prices. Furthermore, due to
expectations of a slowdown in the growth rate of the US shale
oil production or of a possible decline in the long-term due to
capital discipline and industrial factors like a shrinking number
of premium locations and high-yield wells, the OPEC+ alliance
could exert an increasingly large influence over the crude oil
market. Finally, sanctions imposed by the United States and the
EU against certain producing countries may influence trends in
crude oil prices.
To a lesser extent, extreme weather events, such as hurricanes in
areas of highly concentrated production like the Gulf of Mexico,
and operational issues at key petroleum infrastructure may have
an impact on crude oil prices.
2022 marked one of the most volatile year in the history of crude
oil prices, as measured by the number of days in a year in which
the Brent crude oil benchmark moved by more than 5 $/bbl.
Immediately after the start of Russia’s military operations in
Ukraine, the price of the Brent crude oil benchmark spiked,
approaching its all-time high set in 2008 at approximately 140
$/bbl, then retreated once fears dissipated about possible
disruptions in the flows of liquid hydrocarbons from Russia to
international markets. Overall, crude oil prices remained well
supported in the first half of the year. A favorable combination
of macro and micro developments helped sustain prices in
the 100-120 $/bbl range through the first half of 2022. The
full reopening of Western economies and the post-pandemic
recovery drove pent-up demand for all kinds of refined products
with the last leg of end-markets, the airline sector, joining a
rebound in consumption. International oil companies and listed
ENI ANNUAL REPORT 2022 127
shale producers in the USA remained reluctant to invest in new
oil & gas fields and retained the financial discipline adopted
in response to the COVID-19 crisis, allocating the extra-cash
generated in the high oil-price environment to restructure the
balance sheet and to boost shareholders’ returns. Pressured by
investor demanding higher returns and by ESG considerations
and, in the case of European players, by the need to allocate
more funds to the businesses of the energy transition, Oil &
Gas companies have continued to constrain the spending in the
traditional upstream business, reinvesting in the business just a
fraction of the cash flows to maintain production. According to
market sources, global upstream’s capital expenditures in 2022
increased by about 20% from 2021 mainly in response to cost
inflation. According to market intelligence, the current level of
global upstream investment is insufficient to hold oil production
steady at 100 million barrels/d, which is the needed level to
match current global oil demand.
The alliance of petroleum producers OPEC+ has continued
supporting the oil market by means of effective production
management. The production performance exhibited a
systematic
the stated
trend of underdelivering against
production targets, raising doubts about the ability to retain an
adequate spare capacity to meet eventual demand spikes. New
consumption trends emerged in response to surging natural
gas costs in Europe, like a resumption of the utilization of fuel
oil to produce electricity (gas-to-oil switch). Finally, continuing
uncertainties have been surrounding a possible return of Iran
to comply with a revised version of the 2015 Iran nuclear deal,
known as JCPOA, that would see Western countries lift the
embargo on Iranian crude oil in exchange.
These price-supporting developments were partially mitigated by
the effects of the zero-tolerance policy adopted by the Chinese
authorities against the spread of the COVID-19 pandemic, which
resulted in the continuing lockdowns of large cities and districts,
thus dampening mobility and economic activities. Furthermore,
to mitigate market imbalances and reduce the cost of fuels to
American consumers, U.S. authorities executed an emergency
plan to release 1 million bbl/day of crude oil from the national
Strategic Petroleum Reserve for a six-month period, starting in
May; other sales were arranged in the months of November and
December. Other OECD governments coordinated by the IEA
also arranged the release of their strategic reserves in response
to the Russia-Ukraine crisis.
Crude oil prices peaked at the end of June. As developments in
the second half of 2022 would demonstrate, the oil industry is a
cyclical business, and our results of operations and cash flows
are exposed to the risks of rapidly changing market conditions
and of sudden and sharp price downturns due to the complexity
and unpredictability of macro variables to which the oil business
is subject. Among those variables, one of the most important,
albeit difficult to be perceived, is the relatively low elasticity of
supplies, which helps when demand rebounds, but backfires in
case of a demand shock, leading to a quick build-up in supplies
and a sell-off in prices. It is worth mentioning, based on our
experience, that a small imbalance between supply and demand
could cause a significant contraction in prices.
As a matter of fact, the trading environment has changed
radically from the end of June 2022. The resurgence of
inflationary pressures led by rising commodity prices forced
the Federal Reserves (“Fed”) to change course in its monetary
policy and to start a tightening cycle by raising interest rates
and suspending its program of buying treasuries. Other central
banks have followed the Fed’s new stance towards inflation.
Rising interest rates and quantitative tightening are expected
to dent economic activity and to reduce demand for crude oil.
Furthermore, since the Fed has been moving at a faster pace
than other central banks, it has driven the value of the US dollar
that has appreciated significantly against all other currencies.
A stronger dollar makes the dollar- denominated contracts for
crude oil more expensive for holders of other currencies, thus
weighing on demand.
indicators started to weaken during the
Macroeconomic
summer months amid the uncertainties associated with the
Russia- Ukraine war, growing geopolitical risks and surging
energy costs impacting industrial activity and consumers’
confidence, fueling fears of a prolonged slowdown or of a global
recession and expectations of lower demand for crude oil.
Furthermore, Russian production levels and exports towards
Western markets held steady, defying expectations of a sharp
drop. Those developments triggered a sharp correction in the
price of Brent crude oil that lost approximately 40 $/bbl or 30%
in just a quarter (from 125 $/bbl at the end of June 2022 to
approximately 85 $/bbl by the end of September). In the final
months of 2022, Brent prices seemed to stabilize due to the
decision of the OPEC+ alliance to reduce the production quotas
by about 2 million bbl/day from November 2022 until December
2023, resulting in an actual production cut of approximately
half that amount considering that many cartel countries were
producing well below their respective stated quotas. The market
was also affected by uncertainties due to the entry into force of
an EU ban on importation of seaborne Russian crude and the
perceived risks of a reduction at Russian supplies, while China
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 128
began relaxing the restrictive measures to contain the COVID-19
pandemic. Finally, G-7 nations, the EU and Australia agreed
to impose a price cap on Russian crude at 60 $/bbl, banning
Western insurers and shippers to provide services to support
transportation of Russian crude oil unless the price cap is fulfilled.
The downtrend in crude oil prices resumed in December, erasing
all the gains made so far in 2022, with prices falling below 80 $/
bbl. The downturn in crude oil prices in the second half of 2022
was largely driven by the liquidation of derivative positions by
financial market participants driven by fears and uncertainties
about possible broad-based macroeconomic
issues, that
pushed the forward prices curve back into contango in relation to
short- term deliveries. However, the physical markets continued
to signal steady demand trends as highlighted by continuing
drawdowns of global inventories of crude oil, including global oil-
on-water, with commercial stocks at OECD countries falling to
about 4 billion barrels at the end of the year. That is one of the
lowest levels for this time of year on record.
Overall, in 2022 global demand for crude oil continued recovering
from the COVID-19 pandemic lows, increasing by approximately
2 million bbl/d to reach a level almost in line with 2019, at
approximately 99.6 million bbl/d.
Looking forward, we believe crude oil prices to be negatively
affected by continuing uncertainties among market participants
about a possible slowdown or a recession of the global
economy leading to a contraction in demand for crude oil, thus
limiting the chance of a price recovery from the 2022 lows
registered in December 2022. Furthermore, due to pressures
from governments to increase output, international Oil & Gas
companies have been announcing capital budget significantly
higher than in 2022 and that could lead to faster growth in
supplies than the market is currently anticipating.
Natural gas prices experienced a degree of volatility even higher
than that of crude oil, especially in Europe (see risk factors
below). Overall, natural gas prices rose sharply across all
geographies due to slow additions of new supplies reflecting a
slowdown in expenditures in past years and a demand recovery
in the wake of an improved macroeconomic backdrop. Russia’s
military invasion of Ukraine greatly compounded the already
tight market fundamentals, triggering fears among market
participants of possible disruptions in the natural gas flows
from Russia to Europe. During summer months, prices reached
all time-highs at spot markets in Europe driven by tight supplies,
a progressive reduction in the flows of gas imported via pipeline
from Russia amidst deteriorating political relationships with
the EU block of nations (see below) and increased demand to
replenish natural gas inventories in preparation of the heating
season. In 2022, the spot price at the European reference hub
Title Transfer Facility “TTF” averaged about 40 $/mmBTU,
almost a threefold increase versus 2021. However, from
the final months of 2022 and the beginning of 2023, market
fundamentals have begun trending lower due to a recovery in
US production of dry natural gas and a significant increase in
exported volumes through LNG facilities, the wide adoption of
energy saving measures in Europe, a slowdown in industrial
activities and finally a warmer-than usual winter season which
has reduced heating consumption in the Western Hemisphere.
In response to those trends, natural gas prices have been falling
very rapidly: by the end of February 2023, the TTF European
benchmark has plunged below 20 $/mmBTU, an eighteen-
month low, down about 80% from the all-time high reached
during the summer 2022. We believe this deteriorating trend
in natural gas prices to affect significantly and adversely our
results of operations and cash flows in 2023.
The volatility of hydrocarbons prices significantly affects the
Group’s financial performance. Lower hydrocarbon prices from
one year to another negatively affect the Group’s consolidated
results of operations and cash flow; the opposite occurs in
case of a rise in prices. This is because lower prices translate
into lower revenues recognised in the Company’s Exploration &
Production segment at the time of the price change, whereas
expenses in this segment are either fixed or less sensitive to
changes in crude oil prices than revenues. With respect to price
assumptions for 2023 (our Brent crude oil price forecast for
2023 is 85 $/bbl), we estimate our cash flow from operations
to vary by approximately €0.13 billion for each one-dollar
change in the price of the Brent crude oil applied to liquids and
oil-linked gas and by approximately €0.13 billion for each one-
dollar change in the spot price (1 $/mmbtu) of the European
benchmark TTF spot price of natural gas compared to our
assumption of 25-26 $/mmBTU for 2023. Eni is planning to
gradually increase the share of natural gas production in its
portfolio to reach 60% by 2030. Considering the higher volatility
experienced in the natural gas market compared to the crude
oil market, this long-term shift in the production mix could
increase the variability of the Group’s results of operations and
cash flows.
The exposure of our cash flow from operations to the volatility of
hydrocarbons prices and our expectations of lower hydrocarbons
prices in 2023 compared to 2022 are due to increase our financial
risk profile going forward, in light of the projected significant
expected increase in the capital budget planned for 2023, which
at about €9.5 billion is featuring a 15% rise compared to 2022.
Finally, movements in hydrocarbons prices significantly affect
the reportable amount of production and proved reserves
under our production sharing agreements (“PSAs”), which
represented about 54% of our proved reserves as of end of 2022.
The entitlement mechanism of PSAs foresees the Company
is entitled to a portion of a field’s reserves, the sale of which
is intended to cover expenditures incurred by the Company to
develop and operate the field. The higher the reference prices for
Brent crude oil used to estimate Eni’s proved reserves, the lower
the number of barrels necessary to recover the same amount of
expenditure, and vice versa. In 2022 our reported production and
ENI ANNUAL REPORT 2022 129
reserves were lowered by an estimated amount of respectively 5
KBOE/d and by 34 mmBOE due to an increased Brent reference
price. Considering the current portfolio of oil & gas assets, the
Company estimates its production to vary by about 0.5 KBOE/d
for each one-dollar change in the price of the Brent crude oil.
Eni’s Refining & Marketing and Chemical businesses are cyclical.
Their results are impacted by trends in the supply and demand
of oil products and plastic commodities, which are influenced
by the macro-economic scenario and by product margins.
Generally speaking, margins for refined and chemical products
depend upon the speed at which products’ prices adjust to reflect
movements in oil prices.
All these risks may adversely and materially impact the Group’s
results of operations, cash flow, liquidity, business prospects,
financial condition, and shareholder returns, including dividends,
the amount of funds available for stock repurchases and the
price of Eni’s share.
in connection with Russia’s military
Risks
aggression of Ukraine
a) A prolonged war could derail
the post-pandemic
macroeconomic recovery and that could reduce demands
for hydrocarbons
Russia’s military aggression of Ukraine in late February
2022 occurred against a backdrop of already tight crude oil
and natural gas markets, particularly in Europe. The post-
pandemic recovery leading to a pent-up demand for all kind
of energy commodities and the suppression of supplies due
to the financial discipline of Oil & Gas companies, and years
of underinvestment in the industry drove a strong upcycle in
commodity prices. Against this backdrop, the war triggered
an energy crisis that hit severely businesses’ balance sheet
and the purchasing power of households across all of EU
member states and the UK, souring mood and confidence.
Increasingly high costs of natural gas and electricity have
reignited inflationary pressures along the supply chain,
forcing central banks to change course in their monetary
policy. In response to Russia’s aggression, the EU nations,
the UK and the USA have adopted massive economic and
financial sanctions to curb Russia’s ability to fund the war
and that is negatively affecting the economic activity. All
these developments have resulted in a significant slowdown
of the economy in the Euro-zone, in the UK, in the USA and in
other areas.
reduction in hydrocarbons demands. This scenario would
lead to lower commodity prices and would adversely and
significantly affect our results of operations and cash
flow, as well as business prospects, with a possible lower
remuneration of our shareholders.
b) 2022 was characterized by an unprecedented level of
volatility in the European natural gas market due to the
uncertainties triggered by the Russia-Ukraine crisis and
continuing disruptions in the supplies from Russia. We
expect prices to remain volatile in the foreseeable future and
this may negatively affect our results of operations and cash
flow
In the aftermath of the start of the conflict, hydrocarbons prices
rallied well above the peaks recorded in 2021, driven by the
macro-uncertainty associated with the geopolitical situation,
the possible fallout of the economic sanctions adopted by
EU countries, the USA, and the UK against Russia and rising
worries among market participants about possible disruptions
in the hydrocarbons flows from Russia to international
markets. While the Brent benchmark crude oil price initially
approached its all- time highs at about 140 $/bbl and then
retreated to below 80 $/bbl due to macroeconomic drivers,
the natural gas market in Europe underwent far more complex
trading conditions due to Europe’s dependency on Russian
supplies. The Title Transfer Facility (TTF), the European
benchmark of natural gas, which was trading at about 6 $/
mmBTU at the beginning of 2021, increased exponentially
throughout the year and approached the 90-dollar mark
in August 2022, driven by strong fundamentals and rising
uncertainties about supply risks, amidst deteriorating political
relationships between the EU and Russia. Those latter
materialized in the summer months as on several occasions
the flows of natural gas from Russia to Europe were halted
or reduced due to a dispute between Russia and European
nations about the currency of settlement of the payments due
by European operators. To make things worse, in September
2022, a massive leak occurred at the North-Stream pipeline,
which is one of the main routes for transporting natural gas
from Russia to Europe, forcing the operator to completely
shut down the facility to execute major repairs. Natural gas
flows from Russia to Italy experienced a significant reduction,
too. With prices of natural gas increasing by several hundred
percentage points against the backdrop of unprecedented
volatility, traders like Eni faced large margin calls and high
funding costs that increased pressure on their balance sheet
and leverage.
A prolonged armed conflict, a possible escalation in the
military action, an enlargement of the ongoing geopolitical
crisis and a further tightening up of the economic sanctions
against Russia represent elements of uncertainty that
could eventually sap consumers’ confidence and deter
investment decisions, increasing the risks of a worldwide
macroeconomic recession and with it, expectations of a
The exceptionally large price movements resulted in sizeable
daily or even intraday variation margin calls as derivatives
contracts were marked to market. Furthermore, the elevated
volatility prompted central counterparties and financial
institutions to increase the initial margin substantially. As a
matter of fact, to maintain derivatives positions, traders are
required to pledge liquid assets as collateral for the settlement
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
130
of the derivative transactions (initial margin). Materially higher
natural gas prices triggered proportional increases in the
initial margins (margin call), leading to substantially higher
funding needs of traders and impairing their creditworthiness,
as many traders saw their bond prices fall significantly. To
cope with raising borrowing costs and surging financing
needs, traders opted to reduce the volume of transactions in
financial derivatives leading to substantially thinner markets.
Trading volumes in both exchange markets and over-the-
counter saw large declines. In response to much higher
funding requirements than in the past to maintain derivatives
positions, as well as due to much lower hedging opportunities
because of thinner liquidity in the financial derivatives markets,
the Company has opted to reduce our usual risk management
activities and to retain a higher share of the commodity price
risks unhedged, also considering risks of a possible default of
supplies from our Russian counterparts (see below). Those
developments may negatively affect our results of operations
and cash flow in the GGP business that engages in trading
large volumes of natural gas in the European markets. We
believe this risk factor to continue affecting the business
performance for the foreseeable future as trading conditions
in the natural gas market are expected to remain challenging
and volatile.
In response to our expectations of much more volatile
markets going forward, we have increased our financial
headroom by raising our reserves of cash on hand,
increasing amounts of committed credit
lines, and
entering into repurchase agreements using our portfolio
of securities as collateral, to cope with expected higher
margins requirements and other possible financing needs.
This could lead to higher finance expense and reduced
investment opportunities.
c) Risks in connection with our presence in Russia and our
relationships with Russia’s State-owned
commercial
companies
Eni’s assets located in Russia are immaterial to the Group
results. Our exploration projects in the Russian Oil & Gas
sector have been suspended
indefinitely, following the
previous sanction regime, and the expenditures incurred in
relation to those projects were written off in past reporting
periods. Currently, we do not have booked hydrocarbons
reserves in Russia.
The Group has announced the intention to divest its interest
in the Blue Stream joint operations, which manages the gas
pipeline that transports natural gas produced in Russia to
Turkey through the Black Sea. Those volumes of gas are
jointly marketed by Eni and Gazprom to the Turkish state-
owned company Botas. This divestment is not expected to
have a significant effect on the Group consolidated results
and balance sheet; the book value of this asset was €90
million as of December 31, 2022.
In 2022 the Group ceased signing new supply contracts of
Russian crude oil to supply its operated refineries and has
incurred higher expenses and lower margins to replace the
Russian crude oil. We do not plan to alter our course of action
in 2023 and will continue to avoid supplying any quantity of
Russian crude for processing at our refineries or otherwise to
trade any volume of Russian crude oil or refined products. In
2022 the purchase of crude oil from Russia represented 5%
of the total volumes of crudes traded by Eni to support its
operated refineries; those volumes were supplied before the
start of the war.
Finally, Russian Oil & Gas companies are currently joint
operators in certain upstream projects where we have
a working
interest. Every possible decision about the
participation of the Russian counterparts to those projects
are in the power of the state-owned companies of the host
countries where such projects are located.
The most important transactions that involve Russian
counterparts relate to the purchase of natural gas from
the Russian state-owned company Gazprom and
its
affiliates, based on long-term supply contracts with take-
or-pay clauses. In the past, the volumes supplied from
Russia have represented a material amount of our global
portfolio of natural gas supplies. In 2022, we significantly
reduced natural gas supplies from Russia to 28% (down
from 43% in 2021). We intend to continue our effort to
substitute Russian-origin gas in our portfolio, with the aim
to continue to reduce such dependence in the shortest
possible timeframe.
Further, although we have access to increased supplies from
other geographies in our portfolio by means of developing our
existing reserves and we are currently able to import larger
volumes from producing countries under existing contracts,
should supplies from non-Russian sources be insufficient to
compensate for lower quantities purchased from Gazprom
and its affiliated companies, we may suffer adverse effects
which we cannot currently estimate or quantify, but could be
material.
To cope with the emerging risk of a possible shortfall
of natural gas supplies from Russia and with a view to
reducing our contractual selling obligations going forward,
the business has adopted a cautious stance in signing new
selling contracts for the current thermal year (October 2022 -
September 2023) and in doing so, it has been missing out on
better selling margin opportunities than what can be earned
by selling natural gas at the spot markets.
The process of substituting Russian-origin gas may entail
operational and financial risks which may be significant.
Those development could negatively and significantly affect
the performance of the GGP business.
ENI ANNUAL REPORT 2022
131
d) In 2022
the GGP business delivered a significant
performance due to the continuing optimizations of the
portfolio of assets, amidst exceptional market conditions
due to the war situation. There is no guarantee that a similar
level of performance can be sustained in the near future
In 2022, the profitability in the GGP business was underpinned
by management’s ability to leverage the assets portfolio (long-
term natural gas purchase contracts, transport capacity
booked at the main European pipelines, access to storage
capacity, thermoelectric plants, presence in the LNG business)
to drive sales opportunities and margin improvements on the
back of favorable market trends. There is no guarantee that a
similar level of performance can be reiterated next year or in
the medium-term due to rapidly changing market conditions
and unpredictable developments in the European natural
gas markets. The Company’s decision to reduce its hedging
activity in response to risks of undersupplies from its Russian
counterparts has also increased the business exposure to the
commodity risk.
e) In response to the current energy crisis, EU member states
have been implementing measures intended to curb the
consumption of electricity and to contain the cost of energy
to businesses and households, and that could negatively
affect demand for natural gas and electricity and the
profitability of our operations
Russia’s military invasion of Ukraine triggered a relevant
deterioration in the fundamentals of the European natural
gas and electricity sectors due to European’ dependency on
Russian natural gas supplies and actual reductions in the
volumes of natural gas available to Europe. This has driven
material increases in the price of natural gas and in the cost
of electricity that is indexed to natural gas. High energy
costs have put enormous pressure on the balance sheet of
businesses, also in the energy sector, forcing many industrial
undertakings to halt production or to shut down plants
indefinitely, while several energy wholesalers and retailers
unable to manage volatility have gone bankrupt or have
been bailed out by governments. Many businesses highly
dependent on energy consumption have been assessing
whether to relocate their operations overseas to reduce the
costs of energy inputs. Households have seen their energy
bills increase manyfold, resulting in social anger and protest.
The economic and social ramifications of this crisis have yet
to be appreciated. In response to the crisis, EU member states
have been implementing several initiatives intended to reduce
imposing mandated saving
electricity consumptions by
targets to each of the member states and to reduce the cost of
electricity by introducing a mandatory cap on market revenues
of electricity producers from certain sources (e.g. photovoltaic
and wind power) and the possibility for the member states
to temporarily set electricity prices below production costs.
For example, the EU Commission’s REPowerEU plan has set
a strategic goal of ceasing the EU’s dependency on Russia’s
natural gas well before 2030, through various measures
including supplies diversification, development of renewable
energies and energy savings. Those measures could reduce
electricity consumption and hence demands for natural gas
and that could significantly and adversely affect the results
of operations and cash flow of our E&P and GGP businesses.
The mandated cap on market revenues of electricity produced
at photovoltaic and wind facilities will limit the profitability
upside in our business of renewable energies. Governments
may introduce administrative measures intended to limit the
ability of retail operators in the natural gas and electricity
markets to pass increases in the cost of supplies onto final
customers and that could significantly and adversely affect
the results of operations and cash flow at our retail subsidiary
Plenitude. Finally, governments across Europe and in the
UK have imposed windfall taxes on the profits of energy
companies to raise funds to compensate businesses and
households for the surging energy costs and this trend has
negatively affected our results of operations and cash flow
(see below).
There is strong competition worldwide, both within
the oil industry and with other industries, to supply
energy and petroleum products to the industrial,
commercial, and residential energy markets
The current competitive environment in which Eni operates
is characterized by volatile prices and margins of energy
limited product differentiation and complex
commodities,
relationships with state-owned companies and national
agencies of the countries where hydrocarbons reserves are
located to obtain mineral rights. As commodity prices are
beyond the Company’s control, Eni’s ability to remain competitive
and profitable in this environment requires continuous focus
on technological innovation, the achievement of efficiencies
in operating costs, effective management of capital resources
and the ability to provide valuable services to energy buyers. It
also depends on Eni’s ability to gain access to new investment
opportunities.
is facing
In the Exploration & Production segment, Eni
competition from both
international and state-owned oil
companies for obtaining exploration and development rights
and developing and applying new technologies to maximize
hydrocarbon recovery. Because of the larger size of some
other international oil companies, Eni may face a competitive
disadvantage when bidding for large scale or capital intensive
projects and it may be exposed to the risk of obtaining lower cost
savings in a deflationary environment compared to its larger
competitors given its potentially smaller market power with
respect to suppliers, whereas in case of rising input costs due
to a shortage of materials, labour and other productive factors
Eni may experience higher pressure from its suppliers to raise
the price of goods and services to the Company compared to
Eni’s larger competitors. Due to those competitive pressures, Eni
may fail to obtain new exploration and development acreage,
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
132
to apply and develop new technologies and to control costs.
The COVID-19 pandemic has caused Exploration & Production
companies to significantly reduce their capital investment in
response to lower cash flows from operations and to focus on
the more profitable and scenario-resilient projects. The Company
believes that this development will be long-lasting and likely
drive increased competition among players to gain access to
relatively cheaper reserves (onshore vs. offshore; proven areas
vs. unexplored areas).
In the Global Gas & LNG Portfolio business, Eni is facing strong
competition in the European wholesale markets to sell gas
to industrial customers, the thermoelectric sector and retail
companies from other gas wholesalers, upstream companies,
traders and other players. The results of Eni’s wholesale gas
business are affected by global and regional dynamics of
gas demand and supplies, as well as by the constraints of its
portfolio of long-term, take-or-pay supply, whereby the Company
is obligated to offtake minimum annual volumes of gas or in
case of failure to pay the corresponding purchase price (see
below). Due to the competitive nature of the business, sales
margins tend to be small. We believe wholesale margins of gas
will be negatively affected by competitive pressures and by the
expected growth of renewable sources of energy that will replace
natural gas in supplying electricity to European markets in the
medium-term. Also, the energy crisis of 2022 stimulated energy
saving measures and a curtailment of consumption among
businesses and households and by public administrations and
that could lead to long-term natural gas demand destruction,
intensifying competition.
The results of the LNG business are mainly influenced by the
global balance between demand and supplies, considering the
higher level of flexibility of LNG with respect to gas delivered via
pipeline.
In its Refining & Marketing segment, Eni is facing competition
both in the refining business and in the retail marketing of fuels.
Eni’s refining business has been negatively affected for many
years by structural headwinds due to muted trends in the
European demand for fuels, refining overcapacity and continued
competitive pressure from players in the Middle East, the United
States and Far East Asia. Those competitors can leverage on
larger plant scale and cost economies, availability of cheaper
feedstock and lower energy expenses. Those unfavorable
competitive dynamics were exacerbated by the economic
downturn triggered by the COVID-19 pandemic in 2020, whose
effects rippled throughout 2021 due to the gradual lifting of
restrictions to mobility and air travel. In 2022, the weak underlying
fundamentals of the sector were superseded by a widespread
recovery in demands for refined products also helped by a
recovery in the airline sector, and by market disruptions caused
by the Russia-Ukraine war which negatively affected the flows
of products from Russia, reducing particularly the supplies of
gasoil, and other market dislocations. The trading environment
was very volatile with refining margins hitting historic highs on
some occasions (for example in the second quarter and at the
start of the Autumn months) and then retreating.
Overall, in 2022 the Company’s own internal performance
measure to gauge the profitability of its refineries, the SERM,
averaged about 8 $/bbl, a noteworthy increase compared to
2021 when the margin was negative at minus 0.9 $/bbl, and one
of the best values in several years. However, due to the start-up
of new refining capacity in Middle East and other geographies,
management does not expect that level of refining margin to be
sustainable in the future. Furthermore, management expects
demand for oil-based refined products in Europe to be negatively
affected by the market penetration of EV and a growth in
biofuels. Based on those assumptions, despite the strong
results of the refining business in 2022, management did not
record any reversal of previously recognized impairment losses
and confirmed the full write-off of the Company’s oil-based,
operated refineries. Furthermore, management assessed that
certain refinery production lines that were shut down during
the COVID-19 downturn would not restart under management’s
planning assumptions and forecast trading environment. As
a consequence of that, management recognized a provision
to decommission such product lines, for an amount of about
€300 million.
Furthermore, refinery’s operating expenses were negatively
affected by higher costs for the purchase of emission allowances
to comply with the requirements of the European ETS, which
reached all-time highs due to a combination of macroeconomic
recovery which drove industrial production and rising coal
consumption to fire power generation due to a shortage of gas
supplies and cost competitiveness. The 2022 cost for emission
allowance was on average 80 €/ton, up by about 50% from 2021
(53.4 €/ton). We believe costs for the purchase of CO2 allowances
to continue trending higher in the foreseeable future also due
to a possible revision of the EU regulation that is anticipated to
reduce free allowances.
Eni’s Chemical business has been facing for years strong
competition from well-established international players and
state-owned petrochemical companies, particularly in the most
commoditized market segments such as the production of basic
petrochemical products (like polyethylene), where demand is a
function of macroeconomic growth. Many of these competitors
based in the Far East and the Middle East have been able to
benefit from cost economies due to larger plant scale, wide
geographic moat, availability of cheap feedstock and proximity
to end-markets. Excess worldwide capacity of petrochemical
commodities has also fueled competition in this business.
Furthermore, petrochemical producers based in the United States
have regained market share, as their cost structure has become
competitive due to the availability of cheap feedstock deriving
from the production of domestic shale gas from which ethane
is derived, which is a cheaper raw material to produce ethylene
ENI ANNUAL REPORT 2022 133
than the oil-based feedstock utilized by Eni’s petrochemical
subsidiaries. Finally, it is likely that rising public concern about
climate change and the preservation of the environment will
negatively affect the consumption of single-use plastics going
forward. In 2021 those challenging business fundamentals were
mitigated by the post-pandemic economic recovery and supply
chain issues, which alleviated competitive issues. In 2022,
the Eni’s chemicals business reverted to its historical trend of
underperformance driven by a recovery in the export of cheap
product flows from the Middle and Far East, the entry into service
of new capacity and surging costs of plant utilities indexed to the
price of natural gas. An uncertain macroeconomic outlook also
weighed on the purchase decision of distributors and resellers
who opted for destocking their
inventories. Management
believes the profitability prospects of the chemicals business
to remain weak in the foreseeable future and as a consequence
the carrying amounts of the Company’s chemicals plants were
marked down to account for lower recoverable values with an
impairment loss of €385 million.
Plenitude & Power business engages in the supply of gas and
electricity to customers in the retail markets mainly in Italy,
France, Spain, and other Countries in Europe. Customers include
large residential accounts (hospitals, schools,
households,
public administration buildings, offices) and small and medium-
sized businesses. The retail market is characterized by strong
competition among selling companies which mainly compete in
terms of pricing and the ability to bundle valuable services with
the supply of the energy commodity. In this segment, competition
has intensified in recent years due to the progressive opening
of the market and the ability of residential customers to switch
smoothly from one supplier to another.
Eni also engages in the business of producing gas-fired
electricity that is largely sold in the wholesale market and in the
dispatching services market. As far as the wholesale market
is concerned, margins of electricity production from gas-
fired plants (“Clean Spark Spread” or “CSS”) have experienced
some fluctuations in recent years due to the volatility of costs
of production, as well as to increasing competition from
renewables. In 2022, the business profitability was driven by
a non-recurring increase in revenues from the dispatching
services market. Looking forward, management is assuming
service revenues to normalize.
In case the Company is unable to effectively manage the above
described competitive risks, which may increase in case of an
economic slowdown or a recession weaker-than anticipated
recovery in the post-pandemic economy or in a worst case
scenario of the imposition by governments of new lockdown
measures and other restrictions in response to the pandemic,
the Group’s future results of operations, cash flow, liquidity,
business prospects, financial condition, shareholder returns,
including dividends, the amount of funds available for stock
repurchases and the price of Eni’s shares may be adversely and
significantly affected.
risk
The Group is exposed to significant safety, security,
environmental and other operational
in
connection with the nature of its operations
The Group engages in the exploration and production of oil and
natural gas, processing, transportation and refining of crude oil,
transport of natural gas, storage and distribution of petroleum
products and the production of base chemicals, plastics, and
elastomers. By their nature, the Group’s operations expose
Eni to a wide range of significant health, safety, security, and
environmental risks. Technical faults, malfunctioning of plants,
equipment and facilities, control systems failure, human errors,
acts of sabotage, attacks, loss of containment and climate-
related hazards can trigger adverse consequences such as
explosions, blowouts, fires, oil and gas spills from wells, pipeline
and tankers, release of contaminants and pollutants in the air,
ground and water, toxic emissions, and other negative events.
The magnitude of these risks is influenced by the geographic
range, operational diversity, and technical complexity of Eni’s
activities. Eni’s future results of operations, cash flow and
liquidity depend on its ability to identify and address the risks
and hazards inherent to operating in those industries.
In the Exploration & Production segment, Eni faces natural
hazards and other operational risks including those relating to
the physical and geological characteristics of oil and natural
gas fields. These include the risks of eruptions of crude oil or
of natural gas, discovery of hydrocarbon pockets with abnormal
pressure, crumbling of well openings, oil spills, gas leaks, risks of
blowout, fire or explosion and risks of earthquake in connection
with drilling activities.
Eni’s activities in the Refining & Marketing and Chemical
segment entail health, safety and environmental risks related to
the handling, transformation and distribution of oil, oil products
and certain petrochemical products. These risks can arise
from the intrinsic characteristics and the overall lifecycle of
the products manufactured and the raw materials used in the
manufacturing process, such as oil-based feedstock, catalysts,
additives, and monomer feedstock. These risks comprise
flammability, toxicity, long-term environmental impact such
as greenhouse gas emissions and risks of various forms of
pollution and contamination of the soil and the groundwater,
emissions and discharges resulting from their use and from
recycling or disposing of materials and wastes at the end of
their useful life.
All of Eni’s segments of operations involve, to varying degrees,
the transportation of hydrocarbons. Risks in transportation
activities depend on several factors and variables, including
the hazardous nature of the products transported due to their
flammability and toxicity, the transportation methods utilized
(pipelines, shipping, river freight, rail, road and gas distribution
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 134
networks), the volumes involved and the sensitivity of the regions
through which the transport passes (quality of infrastructure,
population density, environmental considerations). All modes
of transportation of hydrocarbons are particularly susceptible
to risks of blowout, fire and loss of containment and, given that
normally high volumes are involved, could present significant
risks to people, the environment and the property.
Eni has material offshore operations relating to the exploration
and production of hydrocarbons. In 2022, approximately 71%
of Eni’s total oil and gas production for the year derived from
offshore fields, mainly in Egypt, Norway, Libya, Angola, Congo,
Indonesia, the United Arab Emirates, Kazakhstan, the United
States, Venezuela and the United Kingdom. Offshore operations
in the oil and gas industry are inherently riskier than onshore
activities. Offshore accidents and spills could cause damage of
catastrophic proportions to the ecosystem and to communities’
health and security due to the apparent difficulties in handling
hydrocarbons containment in the sea, pollution, poisoning
of water and organisms, length and complexity of cleaning
operations and other factors. Furthermore, offshore operations
are subject to marine risks, including storms and other adverse
weather conditions and perils of vessel collisions, which may
cause material adverse effects on the Group’s operations and
the ecosystem.
The Company has invested and will continue to invest significant
financial resources to continuously upgrade the methods and
systems for safeguarding the reliability of its plants, production
facilities, vessels, transport and storage infrastructures, the
safety and the health of its employees, contractors, local
communities, and the environment, to prevent risks, to comply
with applicable laws and policies and to respond to and learn from
unforeseen incidents. Eni seeks to manage these operational
risks by carefully designing and building facilities, including
wells, industrial complexes, plants and equipment, pipelines,
storage sites and other facilities, and managing its operations in
a safe and reliable manner and in compliance with all applicable
rules and regulations, as well as by applying the best available
techniques in the marketplace. However, these measures may
ultimately not be completely successful in preventing and/or
altogether eliminating risks of adverse events. Failure to properly
manage these risks as well as accidental events like human
errors, unexpected system failure, sabotages, cyberattacks
or other unexpected drivers could cause oil spills, blowouts,
fire, release of toxic gas and pollutants into the atmosphere or
the environment or in underground water and other incidents,
all of which could lead to loss of life, damage to properties,
environmental pollution, legal liabilities and/or damage claims
and consequently a disruption in operations and potential
economic losses that could have a material and adverse effect
on the Group’s results of operations, cash flow, liquidity, business
prospects, financial condition, and shareholder returns, including
dividends, the amount of funds available for stock repurchases
and the price of Eni’s shares.
Eni also faces risks once production is discontinued because
Eni’s activities require the decommissioning of productive
infrastructures, well plugging and the environmental remediation
and clean-up of industrial hubs and oil and gas fields once
production and manufacturing activities cease. Furthermore, in
certain situations where Eni is not the operator, the Company
may have limited influence and control over third parties,
which may limit its ability to manage and control such risks.
Eni retains worldwide third-party liability insurance coverage,
which is designed to hedge part of the liabilities associated
with damage to third parties, loss of value to the Group’s assets
related to adverse events and in connection with environmental
clean-up and remediation. As of the date of this filing, maximum
compensation allowed under such insurance coverage is equal
to $1.1 billion in case of offshore incident and $1.3 billion in
case of incident at onshore facilities (refineries). Additionally,
the Company may also activate further insurance coverage in
case of specific capital projects and other industrial initiatives.
Management believes that its insurance coverage is in line
with industry practice and is enough to cover normal risks in
its operations. However, the Company is not insured against all
potential risks. In the event of a major environmental disaster,
such as the incident which occurred at the Macondo well in
the Gulf of Mexico several years ago, Eni’s third-party liability
insurance would not provide any material coverage and thus
the Company’s liability would far exceed the maximum coverage
provided by its insurance. The loss Eni could suffer in case of a
disaster of material proportions would depend on all the facts
and circumstances of the event and would be subject to a whole
range of uncertainties, including legal uncertainty as to the
scope of liability for consequential damages, which may include
economic damage not directly connected to the disaster. The
Company cannot guarantee that it will not suffer any uninsured
loss and there can be no guarantee, particularly in the case of a
major environmental disaster or industrial accident, that such a
loss would not have a material adverse effect on the Company.
The occurrence of any of the above-mentioned risks could have a
material and adverse impact on the Group’s results of operations,
cash flow, liquidity, business prospects, financial condition, and
shareholder returns, including dividends, the amount of funds
available for stock repurchases and the price of Eni’s shares and
could also damage the Group’s reputation.
Risks deriving from Eni’s exposure to weather
conditions
Significant changes in weather conditions in Italy and in the rest
of Europe from year to year may affect demand for natural gas
and some refined products.
In colder years, demand for such products is higher. Accordingly,
the results of operations of Eni’s businesses engaged in the
marketing of natural gas and, to a lesser extent, the Refining &
Marketing business, as well as the comparability of results over
ENI ANNUAL REPORT 2022 different periods may be affected by such changes in weather
conditions. Over recent years, this pattern could have been
possibly affected by the rising frequency of weather trends
like milder winter or extreme weather events like heatwaves
or unusually cold snaps, which are possible consequences of
climate change.
The Group is exposed to significant financial,
operational and industrial risks associated with
the exploration and production of crude oil and
natural gas
The exploration and production of oil and natural gas require
high levels of capital expenditures and are subject to natural
hazards and other uncertainties, including those relating to the
physical characteristics of oil and gas fields. The exploration and
production activities are subject to the mining risk that is the risk
of discovering uncommercial quantities of hydrocarbons or of
producing less reserves than initially estimated, and the risks
of cost overruns and delayed start-up at the projects to develop
and produce hydrocarbons reserves with adverse consequences
on the return on capital employed. Those risks could have an
adverse, significant impact on Eni’s future growth prospects,
results of operations, cash flows, liquidity, and shareholders’
returns.
The production of oil and natural gas is highly regulated and
is subject to conditions imposed by governments throughout
the world in matters such as the award of exploration and
production leases, the imposition of specific drilling and other
work obligations, higher-than-average rates of income taxes,
additional royalties and taxes on production, environmental
protection measures, control over the development and
decommissioning of fields and installations, and restrictions on
production. A description of the main risks facing the Company’s
business in the exploration and production of oil and gas is
provided below.
a) Exploratory drilling efforts may be unsuccessful
Exploration activities are mainly subject to the mining risk, i.e.
the risk of dry holes or failure to find commercial quantities
of hydrocarbons. The costs of drilling and completing wells
have margins of uncertainty, and drilling operations may be
unsuccessful because of a large variety of factors, including
geological failure, unexpected drilling conditions, pressure or
heterogeneities in formations, equipment failures, well control
(blowouts) and other forms of accidents. A large part of the
Company exploratory drilling operations is located offshore,
including in deep and ultra-deep waters, remote areas and
environmentally-sensitive locations (such as the Barents
Sea, the Gulf of Mexico, deep water leases off West Africa,
Indonesia, the Mediterranean Sea and the Caspian Sea). In
these locations, the Company generally experiences higher
operational risks and more challenging conditions and incurs
higher exploration costs than onshore. Furthermore, deep
135
and ultra-deep water operations require significant time
before commercial production of discovered reserves can
commence, increasing both the operational and the financial
risks associated with these activities.
Because Eni plans to make significant
investments
in
executing exploration projects, it is likely that the Company
will incur significant amounts of dry hole expenses in future
years. Unsuccessful exploration activities and failure to
discover additional commercial reserves could reduce future
production of oil and natural gas, which is highly dependent
on the rate of success of exploration projects and could
have an adverse impact on Eni’s future performance, growth
prospects and returns.
b) Development projects bear significant operational risks
which may adversely affect actual returns
Projects to develop reserves of crude oil and natural gas
normally take several years before production start-up after
a discovery. Such long lead times are due to the complexity
of the activities and tasks that need to be performed before
a project final investment decision is made and commercial
production can be achieved. Those activities include the
appraisal of a discovery to evaluate the technical and
economic feasibility of the development project, obtaining the
necessary authorizations from governments, state agencies
or national oil companies, signing agreements with the first
party regulating a project’s contractual terms such as the
production sharing and cost recovery, agreeing on fiscal terms,
obtaining partners’ approval, environmental permits and other
conditions, signing long-term gas contracts, carrying out the
concept design and the front-end engineering and building
and commissioning the related plants and facilities. Moreover,
projects executed with partners and joint venture partners
reduce the ability of the Company to manage risks and costs,
and Eni could have limited influence over and control of the
operations and performance of its partners. The execution
of development projects on time and on budget depends on
several factors:
• the outcome of negotiations with joint venture partners,
governments and state-owned companies, suppliers and
potential customers to define project terms and conditions,
including, for example, the fiscal take, the production
sharing terms with the first party, or Eni’s ability to negotiate
favorable long-term contracts to market gas reserves;
• timely issuance of permits and licenses by government
agencies, including obtaining all necessary administrative
authorizations
install producing
infrastructures, build pipelines and related equipment to
transport and market hydrocarbons;
locations,
to drill
• the ability to carry out the front-end engineering design in
order to prevent the occurrence of technical inconvenience
during the execution phase;
• timely manufacturing and delivery of critical plants and
equipment by contractors, like floating production storage
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 136
and offloading (FPSO) vessels, floating units for the
production of liquefied natural gas (FLNG) and platforms;
• risks associated with the use of new technologies and the
inability to develop advanced technologies to maximise
the recoverability rate of hydrocarbons or gain access to
previously inaccessible reservoirs;
• delays in the commissioning and hook-up phase;
• changes in operating conditions and cost overruns. We
expect the prices of key input factors such as labour, basic
materials (steel, cement, and other metals) and utilities
to increase meaningfully in the next year or two due to
rising inflationary pressures rippling through the entire
supply chain at our development projects driven by higher
worldwide demand for commodities and semi-finished
goods as well as a shortage of productive factors. We
also expect a rise in the daily rates of leased rigs and other
drilling vessels and facilities as oil companies competes
for a stable amount of supply of this kind of equipment.
As a matter of fact, oilfield services companies have seen
their revenues shrink meaningfully in recent years due to a
contraction in capital expenditures made by their clients,
and they have responded to the downturn by slashing
costs and reducing expenditures in fleet upgrading and
expansion;
• the actual performance of the reservoir and natural field
decline;
• and the ability and time necessary to build suitable
transport infrastructures to export production to final
markets.
The occurrence of any of such risks may negatively affect the
time-to-market of the reserves and may cause cost overruns
and start-up delays, lengthening the project pay-back period.
Those risks would adversely affect the economic returns of
Eni’s development projects and the achievement of production
growth targets, also considering that those projects are exposed
to the volatility of oil and gas prices which may be substantially
different from those estimated when the investment decision
was made, thereby leading to lower return rates.
Finally, if the Company is unable to develop and operate major
projects as planned, it could incur significant impairment
losses of capitalized costs associated with reduced future
cash flows of those projects.
c) Inability to replace oil and natural gas reserves could
impact results of operations and financial
adversely
condition, including cash flows
In case the Company’s exploration efforts are unsuccessful
at replacing produced oil and natural gas, its reserves
will decline. In addition to being a function of production,
revisions and new discoveries, the Company’s reserve
replacement is also affected by the entitlement mechanism
in its production sharing agreements (“PSAs”), whereby the
Company is entitled to a portion of a field’s reserves, the
sale of which is intended to cover expenditures incurred by
the Company to develop and operate the field. The higher
the reference prices for Brent crude oil used to estimate
Eni’s proved reserves, the lower the number of barrels
necessary to recover the same amount of expenditure, and
vice versa.
Future oil and gas production is a function of the Company’s
ability to access new reserves through new discoveries,
application of improved techniques, success in development
activity, negotiations with national oil companies and other
owners of known reserves and acquisitions.
An inability to replace produced reserves by discovering,
acquiring, and developing additional reserves could adversely
impact future production levels and growth prospects. If Eni
is unsuccessful in meeting its long-term targets of reserve
replacement, Eni’s future total proved reserves and production
will decline.
d) Uncertainties in estimates of oil and natural gas reserves
The accuracy of proved reserve estimates and of projections
of future rates of production and timing of development costs
depends on several factors, assumptions and variables,
including:
• the quality of available geological, technical and economic
data and their interpretation and judgment;
regarding
• management’s assumptions
future
rates
of production and costs and timing of operating and
development costs. The projections of higher operating
and development costs may impair the ability of the
Company to economically produce reserves leading to
downward reserve revisions;
• changes in the prevailing tax rules, other government
regulations and contractual terms and conditions;
• results of drilling, testing and the actual production
performance of Eni’s reservoirs after the date of the
estimates which may drive substantial upward or
downward revisions; and
• changes in oil and natural gas prices which could affect
the quantities of Eni’s proved reserves since the estimates
of reserves are based on prices and costs existing as of the
date when these estimates are made.
In 2022, despite rising hydrocarbons prices, we incurred
around €400 million of asset impairment at upstream cash
generating units “CGU” located in Congo, Egypt, the USA and
Algeria due to the above-mentioned risks and accounting
estimates. As part of our yearly review of recoverability of
the carrying amounts of oil & gas assets, we determined
that certain amounts of previously booked proved reserves
were no longer economically producible at those assets and
we increased future expected development expenditures
leading to lower recoverable amounts and the recognition of
impairment losses.
ENI ANNUAL REPORT 2022
137
Lower oil prices may impair the ability of the Company to
economically produce reserves leading to downward reserve
revisions.
Many of the factors, assumptions and variables underlying
the estimation of proved reserves involve management’s
judgment or are outside management’s control (prices,
governmental regulations) and may change over time,
therefore affecting the estimates of oil and natural gas
reserves from year-to-year.
The prices used in calculating Eni’s estimated proved reserves
are, in accordance with the U.S. Securities and Exchange
Commission (the “U.S. SEC”) requirements, calculated by
determining the unweighted arithmetic average of the first-
day-of-the-month commodity prices for the preceding 12
months. For the 12-months ending at December 31, 2022,
average prices were based on 101 $/barrel for the Brent
crude oil. Compared to the 2022 reference price, Brent prices
have declined significantly in the first quarter of 2023. If such
prices do not increase in the coming months, Eni’s future
calculations of estimated proved reserves will be based
on lower commodity prices which would likely result in the
Company having to remove non-economic reserves from its
proved reserves in future periods.
Accordingly, the estimated reserves reported as of the end
of 2022 could be significantly different from the quantities
of oil and natural gas that will be ultimately recovered. Any
downward revision in Eni’s estimated quantities of proved
reserves would indicate lower future production volumes,
which could adversely impact Eni’s business prospects,
results of operations, cash flows and liquidity.
e) The development of the Group’s proved undeveloped
reserves may take longer and may require higher levels
of capital expenditures than it currently anticipates or the
Group’s proved undeveloped reserves may not ultimately be
developed or produced
As of December 31, 2022, approximately 37% of the
Group’s total estimated proved reserves
(by volume)
were undeveloped and may not be ultimately developed
or produced. Recovery of undeveloped reserves requires
significant capital expenditures and successful drilling
operations. The Group’s reserve estimates assume
it
can and will make these expenditures and conduct these
operations successfully. These assumptions may prove to be
inaccurate and are subject to the risk of a structural decline
in the prices of hydrocarbons due to a possible acceleration
towards a low-carbon economy and a shift in consumers’
behavior and preferences. In case of a prolonged decline in
the prices of hydrocarbon the Group may not have enough
financial resources to make the necessary expenditures to
recover undeveloped reserves. The Group’s reserve report
as of December 31, 2022 includes estimates of total future
development and decommissioning costs associated with
the Group’s proved total reserves of approximately €44.3
billion (undiscounted, including consolidated subsidiaries
and equity-accounted entities). It cannot be certain that
estimated costs of the development of these reserves will
prove correct, development will occur as scheduled, or the
results of such development will be as estimated. In case of
change in the Company’s plans to develop those reserves,
or if it is not otherwise able to successfully develop these
reserves as a result of the Group’s inability to fund necessary
capital expenditures or otherwise, it will be required to remove
the associated volumes from the Group’s reported proved
reserves.
f) The Oil & Gas industry is a capital-intensive business and
needs large amount of funds to find and develop reserves.
In case the Group does not have access to sufficient funds
its oil&gas business may decline
The Oil & Gas industry is a capital intensive business. Eni
makes and expects to continue making substantial capital
expenditures in its business for the exploration, development
and production of oil and natural gas reserves. Over the next
four years, the Company plans to invest in the Oil & Gas
business approximately €6-6.5 billion per year on average.
Historically, Eni’s capital expenditures have been financed
with cash generated from operations, proceeds from asset
disposals, borrowings under its credit facilities and proceeds
from the issuance of debt and bonds. The actual amount and
timing of future capital expenditures may differ materially
from Eni’s estimates as a result of, among other things,
changes in commodity prices, changes in cost of oil services,
available cash flows, lack of access to capital, actual drilling
results, the availability of drilling rigs and other services and
equipment, the availability of transportation capacity, and
regulatory, technological and competitive developments. Eni’s
cash flows from operations and access to capital markets are
subject to several variables, including but not limited to:
• the amount of Eni’s proved reserves;
• the volume of crude oil and natural gas Eni is able to
produce and sell from existing wells;
• the prices at which crude oil and natural gas are marketed;
• Eni’s ability to acquire, find and produce new reserves;
• and the ability and willingness of Eni’s lenders to extend
credit or of participants in the capital markets to invest in
Eni’s bonds.
If revenues or Eni’s ability to borrow decrease significantly
due to factors such as a prolonged decline in crude oil and
natural gas prices or a more stringent investment framework
on part of lenders and financing institutions due to ESG
considerations, Eni might have limited ability to obtain the
capital necessary to sustain its planned capital expenditures.
In addition, a greater than expected capital expenditure
may curtail Eni’s ability to return cash to is shareholders
through dividends and share repurchases. If cash generated
by operations, cash from asset disposals, or cash available
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
138
under Eni’s liquidity reserves or its credit facilities is not
sufficient to meet capital requirements, the failure to obtain
additional financing could result in a curtailment of operations
relating to development of Eni’s reserves, which in turn could
adversely affect its results of operations and cash flows and
its ability to achieve its growth plans. The variability of Eni’s
cash flow from operation has become an even greater risk
factor in the current scenario, which is featuring significant
increases in expenditures to sustain the Company’s current
production plateau. In 2022 our capital expenditures in the
E&P segment increased by about 60% to €6.4 billion due to
the need to catch up following the capex cuts and activities
rescheduling made during the COVID-19 pandemic, cost
inflation, the appreciation of US dollar against the Euro (up
by 10% in 2022) and the start of new projects. Higher cash
requirements to fund the Company’s capital plans at a time
when hydrocarbons prices may come under pressure due to
macroeconomic risks may increase the Company’s financial
risk profile and may require us to take on new finance debt
from banks and financing institutions.
Finally, funding Eni’s capital expenditures with additional debt
will increase its leverage and the issuance of additional debt
will require a portion of Eni’s cash flows from operations to
be used for the payment of interest and principal on its debt,
thereby reducing its ability to use cash flows to fund capital
expenditures and dividends.
g) Oil & gas activity may be subject to increasingly high levels
of income taxes and royalties
Oil and gas operations are subject to the payment of royalties
and income taxes, which tend to be higher than those payable
in other commercial activities. Management believes that the
marginal tax rate in the oil & gas industry tends to increase in
correlation with higher oil prices, which could make it more
difficult for Eni to translate higher oil prices into increased
net profit. However, the Company does not expect that the
marginal tax rate will decrease in response to falling oil prices.
Adverse changes in the tax rate applicable to the Group’s
profit before income taxes in its oil and gas operations would
have a negative impact on Eni’s future results of operations
and cash flows.
The surge in hydrocarbons and electricity prices drove a
strong rebound in the results of companies in the energy
sector. This trend started in 2021 due to a rebound in
economic activity post the COVID-19 downturn and then
accelerated in 2022 due to market fundamentals and
geopolitical factors. The rise in the cost of fuels and energy
has significantly and adversely affected businesses’ profit
margins and households’ disposable income. In response to
growing public concern, in the course of 2022 governments
of EU member states and of UK have enacted or have
announced the intention to enact one-off or temporary
windfall levies to increase the taxes on the profits of energy
companies relating to the portion of those profits deemed to
exceed historical averages, to collect funds to alleviate the
financial burden on households and businesses due to rising
costs of fuels and energy.
In Italy, Law No.51 of May 20, 2022, enacted a solidarity
contribution for energy companies by establishing a one-off,
windfall tax on the profits of those businesses. The levy was
calculated by applying a 25% rate to the increase of the balance
of sales and purchases declared in the periodic settlement of
the value added tax in the six-month period starting October
1st, 2021 through April, 30, 2022 over the corresponding prior
years period. The Company recognized a cash expense of
about €1.04 billion to settle this tax item.
In October, EU regulation 1854/2022 introduced a solidarity
contribution for EU companies with activities in the crude
petroleum, natural gas, coal and refinery sectors in order to
mitigate the economic effects of the soaring energy prices for
public authorities’ budgets, final customers and companies
across the EU. Each Member State is demanded to adopt
a national legislation to comply with that regulation. As
part of that framework, the Italian government through the
budget law for 2023 has enacted a windfall levy calculated by
applying a 50% rate to the portion of taxable profit earned by
companies in the hydrocarbons sector in 2022, which exceeds
an amount equal to 110% of the average taxable profit of the
previous four-year period. To account for this additional levy,
the Group recognized a tax expense of about €1 billion, with
the relevant cash out due in the course of 2023. Also Germany
enacted a similar levy on the company’s our refining activity
in this country, leading to the recognition of a tax expense of
€0.17 billion.
Finally, the UK Energy Profits Levy was enacted effective
May 26, 2022, which added a windfall tax rate of 25% to the
corporate tax rate of oil & gas companies operating in UK
and in the UK continental shelf. As a result of this windfall
tax, the UK corporate tax rate increased to 65%. The windfall
tax will remain valid until hydrocarbons prices normalize, and
however no further than December 31, 2025. Eni accrued
a charge of about €170 million to account for that levy.
Furthermore, the UK proposal of budget law for fiscal year
2023 provisioned an increase of that rate to 35% and an
extension of its term until the first quarter of 2028. Based on
the latest levy modifications, the Company expects to incur a
significant burden of income taxes at its UK activities in the
next years, until the planned levy expiration in 2028.
Overall, all those extraordinary tax charges affected the Group
net income for about €2.4 billion and reduced the yearly cash
flow by about €1.1 billion.
Given the current environment of high energy prices, rising
pressures on public finances due to an expected economic
slowdown and the perception the oil & gas companies
ENI ANNUAL REPORT 2022
may be benefiting from the ongoing geopolitical situation,
management cannot rule out the possibility of the introduction
of new windfall taxes and other extraordinary levies targeting
the hydrocarbons sector, which could negatively affect the
Group’s results of operations and cash flows.
h) The present value of future net revenues from Eni’s proved
reserves will not necessarily be the same as the current
market value of Eni’s estimated crude oil and natural gas
reserves
The present value of future net revenues from Eni’s proved
reserves may differ from the current market value of Eni’s
estimated crude oil and natural gas reserves. In accordance
with the SEC rules, Eni bases the estimated discounted
future net revenues from proved reserves on the 12-month
unweighted arithmetic average of the first day of the month
commodity prices for the preceding twelve months. Actual
future prices may be materially higher or lower than the SEC
pricing method in the calculations. Actual future net revenues
from crude oil and natural gas properties will be affected by
factors such as:
• the actual prices Eni receives for sales of crude oil and
natural gas;
• the actual cost and timing of development and production
expenditures;
• the timing and amount of actual production; and
• changes in governmental regulations or taxation.
The timing of both Eni’s production and its incurrence of
expenses in connection with the development and production
of crude oil and natural gas properties will affect the timing
and amount of actual future net revenues from proved
reserves, and thus their actual present value. Additionally, the
10% discount factor Eni uses when calculating discounted
future net revenues may not be the most appropriate discount
factor based on interest rates in effect from time to time
and risks associated with Eni’s reserves or the crude oil and
natural gas industry in general.
i) Oil and gas activity may be subject to increasingly high
levels of regulations throughout the world, which may
have an impact on the Group’s extraction activities and the
recoverability of reserves
The production of oil and natural gas is highly regulated and
is subject to conditions imposed by governments throughout
the world in matters such as the award of exploration and
production leases, the imposition of specific drilling and
other work obligations, environmental and safety protection
measures, control over the development and abandonment
of fields and installations, and restrictions on production.
These risks can limit the Group’s access to hydrocarbons
reserves or may cause the Group to redesign, curtail or
cease its oil and gas operations with significant effects on
the Group’s business prospects, results of operations and
cash flow.
139
Risks related to political considerations
As at December 31, 2022, about 81% of Eni’s proved hydrocarbon
reserves were located in non-OECD (Organisation for Economic
Co-operation and Development) countries, mainly in Africa,
Central Asia and Middle East where the socio-political framework,
the financial system and the macroeconomic outlook are less
stable than in the OECD countries. In those non-OECD countries,
Eni is exposed to a wide range of political risks and uncertainties,
which may impair Eni’s ability to continue operating economically
on a temporary or permanent basis, and Eni’s ability to access oil
and gas reserves. Particularly, Eni faces risks in connection with
the following potential issues and risks:
leading
• socio-political
to
instability
internal conflicts,
revolutions, establishment of non-democratic
regimes,
protests, attacks, and other forms of civil disorder and unrest,
such as strikes, riots, sabotage, blockades, vandalism and
theft of crude oil at pipelines, acts of violence and similar
events. These risks could result in disruptions to economic
activity, loss of output, plant closures and shutdowns, project
delays, loss of assets and threats to the security of personnel.
They may disrupt financial and commercial markets, including
the supply of and pricing for oil and natural gas, and generate
greater political and economic instability in some of the
geographical areas in which Eni operates. Additionally, any
possible reprisals because of military or other action, such as
acts of terrorism in Europe, the United States or elsewhere,
could have a material adverse effect on the world economy
and hence on the global demand for hydrocarbons. In recent
years including 2022, we have experienced higher-than-usual
frequency in the theft of oil at our pipelines in Nigeria, which
have resulted in significant loss of output and revenues;
• lack of well-established and reliable
legal systems and
uncertainties surrounding the enforcement of contractual rights;
• unfavorable enforcement of laws, regulations and contractual
arrangements
to expropriation,
nationalization or forced divestiture of assets and unilateral
cancellation or modification of contractual terms;
for example,
leading,
• sovereign default or financial instability since those countries
rely heavily on petroleum revenues to sustain public finance.
Financial difficulties at country level often translate into
failure by state-owned companies and agencies to fulfil their
financial obligations towards Eni relating to funding capital
commitments in projects operated by Eni or to timely paying
for supplies of equity oil and gas volumes;
• restrictions on exploration, production, imports and exports;
• tax or royalty increases (including retroactive claims);
• difficulties in finding qualified international or local suppliers
in critical operating environments; and
• complex processes of granting authorizations or licenses
affecting time-to-market of certain development projects.
Areas where Eni operates and where the Company is particularly
exposed to political risk include, but are not limited to Libya,
Venezuela, and Nigeria.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 140
Eni’s operations in Libya are currently exposed to significant
geopolitical risks. The social and political instability of the
Country dates back to the revolution of 2011 that brought a
change of regime and a civil war, triggering an uninterrupted
period of lack of well-established institutions and recurrent acts
of internal conflict, clashes, acts of war, disorders and other
forms of civil turmoil and unrest between the two conflicting
factions that emerged in the post-revolution political landscape.
In the year of the revolution, Eni’s operations in Libya were
materially affected by a full-scale war, which forced the Company
to shut down its development and extractive activities for almost
all of 2011, with a significant negative impact on the Group’s
results of operation and cash flow. In subsequent years, Eni has
experienced frequent disruptions to its operations, albeit on
a smaller scale than in 2011, due to security threats to its
installations and personnel and plan shutdowns due to force
majeure. Since September 2020, the country had undergone a
phase of stability which lasted for a large part of 2021, thanks
to a pacification agreement with the aim of installing a new
government freely elected by the entire population. However,
the electoral process failed and the opposition between the
Government of National Unity installed in Tripoli and the
self-appointed National Stability Government installed in the
east of the country resumed, fueling protests for a better
redistribution of oil revenues and social tension. In 2022, the
situation of instability and disorder determined between April
and June the almost total shutdown of oil production in the
eastern part of the country and the main export terminals,
while two factions were disputing the appointment of the top
management of the NOC State Company. The force majeure
affected some assets participated by Eni. In 2022, Eni's
production in Libya was 159 kboe/d.
Management believes that Libya’s geopolitical situation will
continue to represent a source of risk and uncertainty to Eni’s
operations in the country and to the Group’s results of operations
and cash
represents
flow. Currently, Libyan production
approximately 10% of the Group’s total production.
Venezuela is currently experiencing a situation of financial
stress, which has been exacerbated by the economic recession
caused by the effects of the COVID-19 pandemic. Lack of
financial resources to support the development of the country’s
hydrocarbons reserves has negatively affected the country’s
production levels and hence fiscal revenues. The situation has
been made worse by certain international sanctions targeting
the country’s financial system and its ability to export crude oil to
U.S. markets, which is the main outlet of Venezuelan production,
as well as a US ban on dealing with Venezuela’s state-owned
petroleum entities.
a long-term supply agreement. PDVSA has failed to regularly
pay the receivables for the gas volumes supplied by Cardón IV
and consequently a significant amount of overdue receivables is
outstanding at the closing date of the financial year 2022 and a
credit loss provision has been booked to reflect the counterparty
risk. The Company incurred in past years significant impairment
losses and reserves de-bookings at the other main project in
Venezuela relating to the PetroJunin onshore oilfield and at
other minor projects, which were completely written off in past
reporting periods. As of 31 December 2021, Eni’s invested capital
in Venezuela was approximately €1.1 billion, mainly relating to
trade receivable owed to us by PDVSA. Due to a partial lifting of
US sanctions on the trade of Venezuelan crude oil, Eni was able in
2022 to obtain the reimbursement in-kind of a portion of its trade
receivables, so to partly offset the increase of the year due to the
current natural gas production and revenues. However, there is
still a great deal of uncertainty about any possible evolution of
the US sanctions against Venezuela and our ability to recover
our outstanding receivables.
The Group has significant credit exposure towards state-
owned and privately-held local companies in Nigeria in relation
to their share of funding of petroleum projects operated by
Eni. Eni has incurred significant credit losses because of the
ongoing difficulties of Eni’s Nigerian counterparts to reimburse
amounts past due.
Furthermore, Eni’s operations in Nigeria were negatively affected
by continuing acts of theft of oil at onshore pipelines.
Finally, Eni’s Oil Prospecting License 245 expired in May 2021 and a
request is pending to convert the license into an oil mining license
to start development operations of the license reserves before the
Nigerian authorities in charge. The management believes the request
of conversion complies with the contractual terms, deadlines, and
any other applicable conditions. However, the Nigerian authorities
are holding back the approval. Eni has started an arbitration before
an ICSID court to preserve the value of its asset.
Sanction targets
The most relevant sanction programs for Eni are those issued
by the European Union and the United States of America and, as
of today, the restrictive measures adopted by such authorities in
respect of Russia and Venezuela.
As consequence of Russia’s military aggression of Ukraine, the
European Union, the United Kingdom, the United States and the
G-7 countries adopted a comprehensive system of sanctions
against Russia to weaken its economy and its ability to finance
the war. The sanction system is constantly evolving.
Currently, the Company retains just one main asset in Venezuela:
the 50%-participated Cardón IV joint venture, which is operating
an offshore natural gas field and is supplying its production to the
national oil company, Petroleos de Venezuela SA (“PDVSA”), under
The main targets of the sanctions are the Russian Central Bank
and the major financial institutions of the country. The EU has
sanctioned the Russian Central Bank and many commercial
banks by freezing assets and imposing a ban on EU operators
ENI ANNUAL REPORT 2022 141
from making transactions with sanctioned entities (such as
providing financing, managing assets or Russian Central Bank’s
reserves and any other kind of transaction).
Considering the complexity of the sanctions and the existing
Eni’s contracts for gas supply from Russia and the need to make
payments to Russian counterparties, the Company is exposed to
the risk of possible violations of the sanction’s regime.
Eni adopted the necessary measures to ensure that
its
activities are carried out in accordance with the applicable rules,
ensuring continuous monitoring of the evolution in the sanction
framework, to adapt on an ongoing basis its activities to the
applicable restrictions. In accordance with these guidelines,
Eni complied with a new procedure of payment in rubles of
Russian gas supplies, requested by the supplier GazpromExport
in execution of legislative acts to which Eni is not subject
(presidential decrees of the President of the Russian Federation).
The adhesion to this new payment procedure, not provided by the
existing contractual provisions of regulation in euro, took place
after considering the risks of possible violation of the sanction’s
regime, as well as all the risks related to the duty to implement
fairly the contractual obligations and after obtaining the prior
approval of the Italian Authorities, responsible for verifying the
compliance with the EU sanctions.
Eni has agreed to adhere to the new procedure, which we
believe does not constitute a unilateral modification of the
supply contract and invoices have continued to be issued in
euro. This new procedure provides: (i) the opening by Eni, as
a precautionary measure, of two currency accounts called "K
accounts" at the Russian Gazprombank; (ii) the deposit by Eni
of the invoices balance expressed in euro in one of the two K
accounts (the one denominated in euro); (iii) the conversion by
Gazprombank into rubles at the Moscow Stock Exchange in the
following 48 hours through a clearing agent; (iv) the transfer
according to the procedure of rubles obtained in the second K
account (denominated in rubles). GazpromExport will be paid
through this latter K account.
Eni considers that this conversion does not constitute the
management of assets or reserves of the Russian Central Bank
or a form of financing for Gazprombank or other entities subject
to EU sanctions, as well as that the opening of K accounts takes
place without prejudice to any of its contractual rights, which
provide for the fulfilment of the obligation to pay in euro, while
the risks and charges for conversion into rubles remains at the
responsibility of the Russian supplier.
As a precautionary measure, Eni has initiated an international
arbitration based on the Swedish law (as required by the
existing contracts) to resolve doubts regarding the contractual
changes required by the new payment procedure and the correct
allocation of costs and risks.
Furthermore, an escalation of the international crisis, resulting
in a tightening of sanctions, could entail a significant disruption
of energy supply and trade flows globally, which could have
a material adverse effect on the Group’s business, financial
conditions, results of operations and prospects.
From 2017, the United States have enacted a regime of
economic and financial sanctions against Venezuela. The scope
of the restrictions, initially targeting certain financial instruments
issued or sold by the Government of Venezuela, was gradually
expanded over 2017 and 2018 and then significantly broadened
during the course of 2019 when PDVSA, the main national state-
owned enterprise, has been added to the “Specially Designated
Nationals and Blocked Persons List” and the Venezuelan
government and its controlled entities became subject to
assets freeze in the United States. Even if such U.S. sanctions
are substantially “primary” and therefore dedicated in principle
to U.S. persons only, retaliatory measures and other adverse
consequences may also interest foreign entities which operate
with Venezuelan listed entities and/or in the oil sector of the
country. The U.S. sanction regime against Venezuela was further
tightened in the final part of 2020 by restricting any Venezuelan
oil exports, including swap schemes utilised by foreign entities
to recover trade and financing receivables from PDVSA and
other Venezuelan counterparties. This latter tightening of the
sanction regime has reduced the Group’s ability to collect the
trade receivable owed to Eni for its activity in the country in 2021
and 2022, except for limited waivers agreed with US relevant
authorities.
Eni carefully evaluates on a case-by-case basis the adoption of
adequate measures to minimize its exposure to any sanctions
risk which may affect its business operation. In any case, the U.S.
sanctions add stress to the already complex financial, political
and operating outlook of the country, which could further limit
the ability of Eni to recover its investments in Venezuela.
Specific risks of the Company’s gas business in
Italy
a) Current, negative trends in the competitive environment of
the European natural gas sector may impair the Company’s
ability to fulfil its minimum off-take obligations in connection
with its take-or-pay, long-term gas supply contracts
Eni is currently party to a few long-term gas supply contracts
with state-owned companies of key producing countries,
from where most of the gas supplies directed to Europe are
sourced via pipeline (Russia, Algeria, Libya and Norway).
These contracts which were intended to support Eni’s sales
plan in Italy and in other European markets, provide take-
or-pay clauses whereby the Company has an obligation
to lift minimum, preset volumes of gas in each year of the
contractual term or, in case of failure, to pay the whole price, or
a fraction of that price, up to a minimum contractual quantity.
Similar considerations apply to ship-or-pay contractual
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 142
obligations which arise from contracts with transmission
system operators or pipeline owners, which the Company has
entered into to secure long-term transport capacity. Long-
term gas supply contracts with take-or pay clauses expose
the Company to a volume risk, as the Company is obligated
to purchase an annual minimum volume of gas, or in case
of failure, to pay the underlying price. The structure of the
Company’s portfolio of gas supply contracts is a risk to the
profitability outlook of Eni’s wholesale gas business due to the
current competitive dynamics in the European gas markets.
In past downturns of the gas sector, the Company incurred
significant cash outflows in response to its take-or-pay
obligations. Furthermore, the Company’s wholesale business
is exposed to volatile spreads between the procurement costs
of gas, which are linked to spot prices at European hubs or to
the price of crude oil, and the selling prices of gas which are
mainly indexed to spot prices at the Italian hub.
Eni’s management is planning to continue its strategy of
renegotiating the Company’s long-term gas supply contracts
in order to constantly align pricing terms to current market
conditions as they evolve and to obtain greater operational
flexibility to better manage the take-or-pay obligations
(volumes and delivery points among others), considering the
risk factors described above. The revision clauses included
in these contracts state the right of each counterparty to
renegotiate the economic terms and other contractual
conditions periodically, in relation to ongoing changes in
the gas scenario. Management believes that the outcome
of those renegotiations is uncertain in respect of both the
amount of the economic benefits that will be ultimately
obtained and the timing of recognition of profit. Furthermore,
in case Eni and the gas suppliers fail to agree on revised
contractual terms, both parties can start an arbitration
procedure to obtain revised contractual conditions. All these
possible developments within the renegotiation process
could increase the level of risks and uncertainties relating the
outcome of those renegotiations.
b) Risks associated with the regulatory powers entrusted to
the Italian Regulatory Authority for Energy, Networks and
Environment in the matter of pricing to residential customers
Eni’s wholesale gas and retail gas and power businesses are
subject to regulatory risks mainly in Italy’s domestic market.
The Italian Regulatory Authority for Energy, Networks and
Environment (the “Authority”) is entrusted with certain powers
in the matter of natural gas and power pricing. Specifically, the
Authority retains a surveillance power on pricing in the natural
gas market in Italy and the power to establish selling tariffs
for the supply of natural gas to residential and commercial
users who are opting for adhering to regulated tariffs until
the market is fully opened. Developments in the regulatory
framework intended to increase the level of market liquidity
or of deregulation or intended to reduce operators’ ability to
transfer to customers cost increases in raw materials may
negatively affect future sales margins of gas and electricity,
operating results, and cash flow. In the current environment
characterized by rising energy costs, it is increasingly possible
that the Authority may enact measures intended to limit
revenues of inframarginal power generation and to reduce
the indexation of the cost of the raw materials in pricing
formulae applied by retail companies that market natural gas
and electricity to residential customers and that development
could negatively affect our results of operations and cash
flow in the domestic retail business of natural gas and power.
In the current energy crisis context, characterized by many
regulatory interventions at EU and national level aimed at
ensuring security of supply and curbing consumptions and
energy prices for final customers, also our GGP business
that engages in the wholesale marketing of natural gas and
the power generation business that sell produced electricity
on the spot market could be exposed to a regulatory risk,
although on a smaller scale than the retail business due to
well-established and liquid spot markets for natural gas and
electricity.
Risks related to environmental, health and safety
regulations and relevant legal risks
Eni has incurred in the past, and will continue incurring in
future years, material operating expenses and expenditures in
relation to compliance with applicable environmental, health
and safety regulations, including compliance with any national
or international regulation on greenhouse gas (GHG) emissions
Eni is subject to numerous European Union, international,
national, regional and local laws and regulations regarding
the impact of its operations on the environment and on health
and safety of employees, contractors, communities and on the
value of properties. Laws and regulations intended to preserve
the environment and to safeguard health and safety of workers
and communities impose several obligations, requirements
and prohibitions to the Company’s businesses due to their
inherent nature because of flammability, dangerousness and
toxicity of hydrocarbons and of objective risks of industrial
processes to explore, develop, extract, refine and transport oil,
gas, and products. Generally, these laws and regulations require
acquisition of a permit before drilling for hydrocarbons may
commence, restrict the types, quantities and concentration of
various substances that can be released into the environment
in connection with exploration, drilling and production activities,
including refinery and petrochemical plant operations, limit or
prohibit drilling activities in certain protected areas, require to
remove and dismantle drilling platforms and other equipment
and well plug-in once oil and gas operations have terminated,
provide for measures to be taken to protect the safety of the
workplace, the health of employees, contractors and other
Company collaborators and of communities involved by the
Company’s activities, and impose criminal and civil liabilities
for polluting the environment or harming employees’ or
ENI ANNUAL REPORT 2022 143
communities’ health and safety as result from the Group’s
operations. These laws and regulations control the emission
of scrap substances and pollutants, discipline the handling of
hazardous materials and set limits to or prohibit the discharge
of soil, water or groundwater contaminants, emissions of toxic
gases and other air pollutants or can impose taxes on carbon
dioxide emissions, as in the case of the European Trading
Scheme that requires the purchase of an emission allowance
for each tons of carbon dioxide emitted in the environment
above a pre-set threshold, resulting from the operation of oil and
natural gas extraction and processing plants, petrochemical
plants, refineries, service stations, vessels, oil carriers, pipeline
systems and other facilities owned or operated by Eni.
In addition, Eni’s operations are subject to laws and regulations
relating to the production, handling, transportation, storage,
disposal and treatment of waste. Breaches of environmental,
health and safety laws and regulations as in the case of
negligent or willful release of pollutants and contaminants into
the atmosphere, the soil, water or groundwater or exceeding
the concentration thresholds of contaminants set by the law
expose the Company to the incurrence of liabilities associated
with compensation for environmental, health or safety damage
and expenses for environmental remediation and clean-up.
Furthermore, in the case of violation of certain rules regarding
the safeguard of the environment and the health and safety of
employees, contractors, and other collaborators of the Company,
and of communities, the Company may incur liabilities in
connection with the negligent or willful violations of laws by its
employees as per Italian Law Decree No. 231/2001.
Environmental, health and safety laws and regulations have a
substantial impact on Eni’s operations. Management expects
that the Group will continue to incur significant amounts of
operating expenses and expenditures in the foreseeable future
to comply with laws and regulations and to safeguard the
environment and the health and safety of employees, contractors
and communities involved by the Company operations, including:
• costs to prevent, control, eliminate or reduce certain
types of air and water emissions and handle waste and
other hazardous materials, including the costs incurred
in connection with government action to address climate
change (see the specific section below on climate-related
risks);
remedial and clean-up measures related to environmental
contamination or accidents at various sites, including those
owned by third parties;
•
• damage compensation claimed by individuals and entities,
including local, regional or state administrations, should Eni
cause any kind of accident, oil spill, well blowouts, pollution,
contamination, emission of air pollutants and toxic gases
above permitted levels or of any other hazardous gases,
water, ground or air contaminants or pollutants, as a result
of its operations or if the Company is found guilty of violating
environmental laws and regulations; and
• costs in connection with the decommissioning and removal
of drilling platforms and other facilities, and well plugging
at the end of oil and gas field production. Also, in case
management decides to shut down production lines at
refineries or petrochemicals complex, the Group would incur
liabilities to dismantle and remove production facilities put
out of service and to clean up and to remediate the area,
as occurred in 2022 with management’s resolution to halt
a refinery unit and ancillary equipment at an Italian refinery.
As a further consequence of any new laws and regulations
or other factors, like the actual or alleged occurrence of
environmental damage at Eni’s plants and facilities, the Company
may be forced to curtail, modify or cease certain operations
or implement temporary shutdowns of facilities. If any of the
risks set out above materialise, they could adversely impact
the Group’s results of operations, cash flow, liquidity, business
prospects, financial condition, and shareholder returns, including
dividends, the amount of funds available for stock repurchases
and the price of Eni’s shares.
Climate change-related risks
a) Increasing worldwide efforts to tackle climate change may
lead to the adoption of stricter regulations to curb carbon
emissions and this may end up suppressing demands for
our products in medium-to-long term.
Governments of the nations that have signed the 2015 COP
21 Paris Agreement have been advancing plans and initiatives
intended to transition the economy towards a low-carbon
model in the long run to pursue the objective of containing
the temperature increase to 1.5°C above preindustrial levels
and tackling risks of structural modifications to the Earth
climate, which would pose serious threat to life on the planet.
The scientific community has been sounding alarms over the
potential, catastrophic consequences caused by rising global
temperatures to the environment and has established that
the release in the atmosphere of carbon dioxide (CO2) as a
result of burning fossil fuels and other human activities and
the emissions of other harmful gases like methane are the
main drivers of climate change. The rising in frequency and
dangerousness of many extreme weather events has been
widely recognized as a direct consequence of the climate
change such as floods, drought, hurricanes, heat waves,
cold snaps, rising sea levels, fires, and other environmental
mutations, which have been causing material damage
to economies, loss of human lives, damage to property,
destruction of ecosystems and other negative impacts. The
energy transition, as well as increasingly stricter regulations
in the field of CO2 emission, could adversely and materially
affect demands for the Group’s products and hence our
business, results of operations and prospects.
The dramatic fallout of the COVID-19 pandemic on economic
activity and people’s lifestyle could have possibly accelerated
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 144
the evolution toward a low-carbon model of development.
This is because many governments and the EU deployed
massive amounts of resources to help the economy recover
and a large part of this economic stimulus has been or is
planned to be directed to help transitioning the economy
and the energy mix towards a low-carbon model, as in the
case of the EU’s recovery fund, which provides for huge
investments in the sector of renewable energies and the
green economy, including large-scale adoption of hydrogen
as a new energy source.
Those risks may emerge in the short, medium and long term.
Eni expects that the achievement of the Paris Agreement
goal of limiting the rise in temperature to well below 2°C
above pre- industrial levels in this century, or the more
ambitious goal of limiting global warming to 1.5°C, will
strengthen the global response to the issue of climate
change and spur governments to introduce measures and
policies targeting the reduction of GHG emissions, which
are expected to bring about a gradual reduction in the use of
fossil fuels over the medium to long-term, notably through
the diversification of the energy mix, likely reducing local
demand for fossil fuels and negatively affecting global
demand for oil and natural gas.
Although the Company is investing a significant amount of
resources to develop decarbonized products and to grow
the generation capacity of renewable power and other low
and zero carbon technologies to produce power or absorb
carbon dioxide (CO2) from the atmosphere, the Group’s
financial performance and business prospects still depends
in a substantial way on the legacy business of Exploration
& Production. In case demands for hydrocarbons decline
rapidly due to widespread adoption of regulations, rules or
international treaties designed to reduce GHG emissions,
our results of operations and business prospects may be
significantly and negatively affected.
Eni expects its operating and compliance expenses to
increase in the short term due to the likely growing adoption
of carbon tax mechanisms. Some governments have already
introduced carbon pricing schemes, which can be an effective
measure to reduce GHG emissions at the lowest overall cost
to society. Currently, about half of the direct GHG emissions
coming from Eni’s operated assets are included in national
or supranational Carbon Pricing Mechanisms, such as the
European Emission Trading Scheme (ETS), which provides
an obligation to purchase, on the open market, emission
allowances in case GHG emissions exceed a pre-set amount
of emission allowances allotted for free. In 2022 to comply
with this carbon emissions scheme, Eni purchased on the
open market allowances corresponding to 16.73 million
tons of CO2 emissions incurring expenses of around €950
million (12.42 million tons in 2021 for a total expense of €660
million). Due to the likelihood of new regulations in this area
and expectations of a reduction in free allowances under the
European ETS and the likely adoption of similar schemes by a
rising number of governments, Eni is aware of the risk that a
growing share of the Group’s GHG emissions could be subject
to carbon-pricing and other forms of climate regulation in
the near future, leading to additional compliance and cost
obligations with respect to the release in the atmosphere
of carbon dioxide. In the future, we could incur increased
investments and significantly higher operating expenses in
case the Company is unable to reduce the carbon footprint of
its operations. Eni also expects that governments will require
companies to apply technical measures to reduce their GHG
emissions.
b) In the
long-term demands for hydrocarbons may be
materially reduced by the projected mass adoption of
electric vehicles, the development of green hydrogen, the
deployment of massive investments to grow renewable
energies also supported by governments fiscal policies and
the development of other technologies to produce clean
feedstock, fuels and energy.
In the long-term, the role of hydrocarbons in satisfying a
large portion of the energy needs of the global economy
may be displaced by the emergence of new products
and technologies, as well as by changing consumers’
preferences. The automotive industry is investing material
amounts of resources to upgrade its assembly line to
ramp-up production of electric vehicles (EVs) and to boost
the EVs line-up, with R&D efforts focused on reducing the
performance and cost gap with the internal-combustion-
engine cars and light-duty vehicles, particularly by extending
batteries range. The EV market has attracted large amounts
of venture capital and financing, which have propelled the
growth of an entirely new batch of pure-EV players, which are
introducing smart EV models to gain consumers preference
and market share, fueling continuing innovation in the sector
and accelerating the strategic shift of well-established car
companies. Sales of EVs have grown significantly in 2022,
also thanks to fiscal incentives designed to increase the
affordability of EVs by middle and low-income households,
and according to market projections sales of EVs will surpass
internal-combustion-engine sales by 2030 also helped by
proposed measures to be introduced by states and local
administration to ban sales of new internal-combustion-
engine cars. This trend could disrupt in the long term the
consumption of gasoline which is one of the main drivers
of global crude oil demand. Other potentially disruptive
technologies designated to produce clean energy and fuels
are emerging, driven by the development of hydrogen-based
solutions as an energy vector or the utilization of renewables
feedstock to manufacture fuels and other goods replacing
oil-based products. Production of hydrogen by means of
green technologies will also reduce hydrocarbons demands.
The electricity generation from wind power or solar
technologies is projected to grow massively in line with the
stated targets by several governments and institutions like
ENI ANNUAL REPORT 2022
the EU, the USA and the UK to decarbonize the electricity
sector in the next one or two decades, replacing gas-fired
generation.
These trends could disrupt demand for hydrocarbons in the
future, with many forecasters, both within the industry, or
state agencies and independent observers predicting peak oil
demand in the next ten years or earlier.
including state
A large portion of Eni’s business depends on the global demand
for oil and natural gas. If existing or future laws, regulations,
treaties, or international agreements related to GHG and
climate change,
incentives to conserve
energy or use alternative energy sources, technological
breakthroughs in the field of renewable energies, hydrogen,
production of nuclear energy or mass adoption of electric
vehicles trigger a structural decline in worldwide demand for
oil and natural gas, Eni’s results of operations and business
prospects may be materially and adversely affected.
c) Supranational institutions, like the United Nations, civil
society and the scientific community are calling for
bold action to tackle climate change and this may lead
governments to take extraordinary measures to cut carbon
emissions
The United Nations, representatives from the civil society,
some Non-Governmental Organizations (“NGO”), international
institutions and the scientific community have become
increasingly vocal about the dramatic consequences of
climate change for the life on the planet, warning about
irreversible damages to the ecosystem and calling for
drastic and immediate actions by governments to tackle
the emergency. In a report issued on May 18, 2021 the
International Energy Agency has claimed that to reach net-
zero GHG emissions by 2050 and commitments set out
in the Paris Agreement, there must be an immediate ban
on investments in new oil and gas projects. In response to
those requests for intervention, it is possible that certain
governments in jurisdictions where we operate may deny
permissions to start new oil and gas projects or may impose
further restrictions on drilling and other field activities or ban
oil&gas operations altogether. These possible developments
could significantly and negatively affect our business’s
prospects and results of operations.
d) We are exposed to growing legal risks in connection with
the hundreds of lawsuits pending in various jurisdictions
against oil&gas companies based on alleged violation of
human rights, damage to environment and other claims and
such legal actions may be brought against us
In recent years, there has been a marked increase in climate-
based litigation. Courts could be more likely to hold companies
who have allegedly made the most significant contributions
to climate change to account. Oil&gas companies are
particularly exposed to that risk.
145
In 2021, a Dutch court ordered an international oil company
to reduce their worldwide emissions (Scope 1, 2, and 3) by a
significant amount within a preset timeframe. This indicates
that oil and gas companies may have an individual legal
responsibility to reduce emissions to address climate change
and confirms the risk of liability, including liability for human
rights violations. Courts may condemn oil and gas companies
to compensate individuals, communities, and states for the
economic losses due to global warming as a consequence
of their alleged responsibility in supporting hydrocarbons and
knowingly hurting the environment.
For example, we are defending
in California against
claims brought to us by local administrations and certain
associations of individuals who are seeking compensation
for alleged economic losses and environmental damage due
to climate change.
Board’s directors may be summoned before courts for having
failed to implement a climate strategy in line with the goals of
the Paris Agreement or for not having acted quickly to reduce
emissions of greenhouse gases “GHG”.
Private individuals, associations and NGOs may also bring
legal actions against states to get them condemned to
adopt stricter national targets of reduction in the absolute
level of GHG emissions and that could entail more restrictive
measures on businesses. For example, an association of
private individuals have sued the Italian state for allegedly
violating human rights and have claimed the Italian State to
increase the national targets of reduction of GHG emissions
and that could have negative consequences for Eni.
There are also
risks
that governments,
regulators,
organizations, NGOs and individuals may sue us for alleged
crimes against the environment in connection with past and
present GHG emissions related to our operations and the use
of the products we have manufactured.
As such, climate litigation constitutes a material risk for
the company and its investors. In case the Company is
condemned to reduce its GHG emissions at a much faster
rate than planned by management or to compensate for
damage related to climate change due to ongoing or potential
lawsuits, we could incur a material adverse effect on our
results of operations and business’s prospects.
e) Asset managers, banks and other financing institutions
have been increasingly adopting ESG criteria in their
investment and financing decisions and this could reduce
the attractiveness of our share or limit our ability to access
the capital markets
Many professional investors like asset managers, mutual
funds, global allocation funds, generalist investors and
pensions funds have been reducing their exposure to the
fossil fuel industry due to the adoption of stricter ESG
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
146
criteria in selecting investing opportunities. In some cases,
those investors have adopted climate change targets in
determining their policies of asset allocations. Many of
them have announced plans to completely divest from the
fossil fuel industry. This trend could reduce the market
for our share and negatively affect shareholders’ returns.
Likewise, banks, financing institutions, lenders and also
insurance companies are cutting exposure to the fossil fuel
industry due to the need to comply with ESG mandate or
to reach emission reduction targets in their portfolios and
this could limit our ability to access new financing, could
drive a rise in borrowing costs to us or increase the costs
of insuring our assets. During COP 26 at Glasgow (UK), 450
financial institutions, mostly banks and pension funds, in
45 countries with assets estimated at $130 trillion have
committed to limiting greenhouse gas emitting assets in
their portfolios. The finance pledge, known as the Glasgow
Financial Alliance for Net Zero (GFANZ), will mean that by
2050 all the assets under management by the institutions
that signed on can be counted toward a net-zero emission
pathway. However, while this pledge does not preclude the
continued funding of fossil fuels, as of recently several
large, international financing institutions have taken a
tougher approach as they announced they would not
support direct financing to develop new oil and gas fields
soon, a move that could herald an emerging trend among
banks and lenders towards a phase-out of financing the
hydrocarbons sector.
As a result of those developments, we expect the cost of
capital to the Company to rise in the future and reduced ability
on part of Eni to obtain financing for future projects in the
oil & gasbusiness or to obtain it at competitive rates, which
may curb our investment opportunities or drive an increase
in financing expenses, negatively affecting our results of
operations and business prospects.
f) Activist shareholders have been increasingly pressuring
oil&gas companies to accelerate the shift to renewable
energies and to reduce CO2 emissions and this may
interfere with management’s plans and lead to sub-optimal
investment decisions
Shareholders and activist funds may have resolutions passed
at annual general meetings of listed oil&gas companies, which
would force management to implement faster than planned
actions to curb emissions or to revise industrial plans to obtain
a quicker pace of emissions reduction and that could interfere
with management’s long-term goals, strategies and capital
allocation processes leading to unplanned cost increases
and sub-optimal investment decisions. For example, in 2021,
activist shareholders succeeded in passing a nonbinding
shareholders resolution to force Chevron into cutting its
carbon emissions, including those relating to the products the
company sells to its customers. Similar resolutions were also
approved at other US oil&gas companies.
Meanwhile, an activist hedge fund conducted a successful
proxy fight at ExxonMobil and won a seat in its board of
directors. This will likely lead to greater scrutiny of the
company strategies and capital allocation plans by the board.
More recently, activist investors have pursued claims against
oil&gas companies. In UK, a group of institutional investors
have brought a lawsuit against the board of directors of an
oil&gas company over alleged climate mismanagement,
arguing that directors failed to manage the material and
foreseeable risks posed to the company by climate change,
and as such they were breaking company law.
It is the first, notable lawsuit by a shareholder against a board
over the alleged failure to properly prepare for a shift away
from fossil fuels.
These events underscore the growing pressure from investors
and capital markets on oil&gas companies towards a future
based on renewables energies and an acceleration in the
phase-out of investments into fossil fuels. We believe that our
company could be exposed to that kind of risk.
g) Extreme weather phenomena, which has been widely
recognized as a direct consequence of climate change, may
disrupt our operations
The scientific community has concluded that increasing
global average temperature produces significant physical
effects, such as the increased frequency and severity of
hurricanes, storms, droughts, floods, or other extreme
climatic events that could interfere with Eni’s operations
and damage Eni’s facilities. Extreme and unpredictable
weather phenomena can result in material disruption to Eni’s
operations, and consequent loss of or damage to properties
and facilities, as well as a loss of output, loss of revenues,
increasing maintenance and repair expenses and cash flow
shortfall.
h) We are exposed to reputational risks in connection with the
public perception of oil&gas companies as entities primarily
responsible for the climate change
There is a reputational risk linked to the fact that oil companies
increasingly perceived by governments, financial
are
institutions and the general public as entities primarily
responsible for global warming due to GHG emissions across
the hydrocarbon value chain, particularly related to the use of
energy products, and as poorly-performing players alongside
ESG dimensions. This could possibly impair the company
reputation and a societally recognized mission to operate
in the e&p area. This could also make Eni’s shares and debt
instruments less attractive to banks, funds and individual
investors who have been increasingly applying ESG criteria
and have been growing cautions in assessing the risk profile
of oil and gas companies, due to their carbon footprint, when
making investment and lending decisions.
ENI ANNUAL REPORT 2022
147
As a result of these trends, climate-related risks could have
a material and adverse effect on the Group’s results of
operations, cash flow, liquidity, business prospects, financial
condition, and shareholder returns, including dividends and
the price of Eni’s shares.
Environmental, legal, IT and financial risks
a) Eni is exposed to the risk of material environmental
liabilities in addition to the provisions already accrued in the
consolidated financial statement
Eni has incurred in the past and may incur in the future
material environmental liabilities in connection with the
environmental impact of its past and present industrial
activities. Eni is also exposed to claims under environmental
requirements and, from time to time, such claims have been
made against the Company. Furthermore, environmental
regulations in Italy and elsewhere typically impose strict
liability. Strict liability means that in some situations Eni
could be exposed to liability for clean-up and remediation
costs, environmental damage, and other damages as a
result of Eni’s conduct of operations that was lawful at
the time it occurred or of the management of industrial
hubs by prior operators or other third parties, who were
subsequently taken over by Eni. In addition, plaintiffs
may seek to obtain compensation for damage resulting
from events of contamination and pollution or in case the
Company is found liable for violations of any environmental
laws or regulations. In Italy, Eni is exposed to the risk of
expenses and environmental liabilities in connection with
the impact of its past activities at certain industrial hubs
where the Group’s products were produced, processed,
stored, distributed, or sold, such as chemical plants,
mineral-metallurgic plants, refineries, and other facilities,
which were subsequently disposed of, liquidated, closed,
or shut down. At these industrial hubs, Eni has undertaken
several initiatives to remediate and clean up proprietary or
concession areas that were allegedly contaminated and
polluted by the Group’s industrial activities. State or local
public administrations have sued Eni for environmental and
other damages and for clean-up and remediation measures
in addition to those which were performed by the Company,
or which the Company has committed to performing.
In some cases, Eni has been sued for alleged breach of
criminal laws (for example for alleged environmental crimes
such as failure to perform soil or groundwater reclamation,
environmental disaster and contamination, discharge of
toxic materials, amongst others). Although Eni believes that
it may not be held liable for having exceeded in the past
pollution thresholds that are unlawful according to current
regulations, but were allowed by laws then effective, or
because the Group took over operations from third parties,
it cannot be excluded that Eni could potentially incur such
environmental liabilities. Eni’s financial statements account
for provisions relating to the costs to be incurred with
respect to clean ups and remediation of contaminated areas
and groundwater for which legal or constructive obligations
exist and the associated costs can be reasonably estimated
in a reliable manner, regardless of any previous liability
attributable to other parties. In 2022, due to environmental
regulation development setting more clear criteria
concerning the recovery management of groundwater
pollutants, and taking into account the expertise cumulated
in years of environmental management, the Group was in
position to reliably accrue a provision of about €1.3 billion
to account for the future expected costs of completing
ongoing cleanup of groundwater at a number of Italian hubs,
where operations were shut down years ago. The accrued
amounts of the existing environmental risk provision
represent management’s best estimates of the Company’s
existing liabilities for future remediation and clean-up of
Eni’s shut-down Italian sites.
Management believes that it is possible that in the future Eni
may incur significant or material environmental expenses
and liabilities in addition to the amounts already accrued
due to: (i) the likelihood of as yet unknown contamination; (ii)
the results of ongoing surveys or surveys to be carried out
on the environmental status of certain Eni’s industrial sites
as required by the applicable regulations on contaminated
sites; (iii) unfavourable developments in ongoing litigation
on the environmental status of certain of the Company’s
sites where a number of public administrations, the Italian
Ministry of the Environment or third parties are claiming
compensation for environmental or other damages such
as damages to people’s health and loss of property value;
(iv) the possibility that new litigation might arise; (v) the
probability that new and stricter environmental laws might
be implemented; and (vi) the circumstance that the extent
and cost of environmental restoration and remediation
programs are often inherently difficult to estimate leading
to underestimation of the future costs of remediation and
restoration, as well as unforeseen adverse developments
both in the final remediation costs and with respect to the
final liability allocation among the various parties involved
at the sites. As a result of these risks, environmental
liabilities could be substantial and could have a material
adverse effect on the Group’s results of operations, cash
flow, liquidity, business prospects, financial condition, and
shareholder returns, including dividends, the amount of
funds available for stock repurchases and the price of Eni’s
shares.
Finally,
in case of conviction of Eni’s employees for
environmental crimes, the Company could be held liable as
per Italian Legislative Decree 231/2001 which states the
responsibility of legal entities for certain violations of laws
committed by their employees and could face fines and
restrictive measures to perform industrial activities which
could adversely and significantly affect results of operations,
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 148
cash flows and the Company’s reputation.
b) Risks related to legal proceedings and compliance with anti-
corruption legislation
Eni is the defendant in a number of civil and criminal actions
and administrative proceedings. In future years Eni may
incur significant losses due to: (i) uncertainty regarding the
final outcome of each proceeding; (ii) the occurrence of
new developments that management could not take into
consideration when evaluating the likely outcome of each
proceeding in order to accrue the risk provisions as of the date
of the latest financial statements or to judge a negative outcome
only as possible or to conclude that a contingency loss could
not be estimated reliably; (iii) the emergence of new evidence
and information; and (iv) underestimation of probable future
losses due to circumstances that are often inherently difficult
to estimate. Certain legal proceedings and investigations in
which Eni or its subsidiaries or its officers and employees are
defendants involve the alleged breach of anti- bribery and anti-
corruption laws and regulations and other ethical misconduct.
Such proceedings are described in the notes to the condensed
consolidated interim financial statements, under the heading
“Legal Proceedings”. Ethical misconduct and noncompliance
with applicable laws and regulations, including noncompliance
with anti-bribery and anti-corruption laws, by Eni, its officers
and employees, its partners, agents or others that act on the
Group’s behalf, could expose Eni and its employees to criminal
and civil penalties and could be damaging to Eni’s reputation
and shareholder value.
c) Risks from acquisitions
Eni is constantly monitoring the market in search of
opportunities to acquire individual assets or companies with
a view of achieving its growth targets or complementing its
asset portfolio. Acquisitions entail an execution risk – the
risk that the acquirer will not be able to effectively integrate
the purchased assets to achieve expected synergies. In
addition, acquisitions entail a financial risk – the risk of
not being able to recover the purchase costs of acquired
assets, in case of a prolonged decline in the market prices
of commodities. Eni may also incur unanticipated costs
or assume unexpected liabilities and losses in connection
with companies or assets it acquires. If the integration and
financial risks related to acquisitions materialize, expected
synergies from acquisition may fall short of management’s
targets and Eni’s financial performance and shareholders’
returns may be adversely affected.
d) Eni’s crisis management systems may be ineffective
Eni has developed contingency plans to continue or recover
operations following a disruption or incident. An inability to
restore or replace critical capacity to an agreed level within
an agreed period could prolong the impact of any disruption
and could severely affect business, operations and financial
results. Eni has crisis management plans and the capability
to deal with emergencies at every level of its operations. If Eni
does not respond or is not seen to respond in an appropriate
manner to either an external or internal crisis, this could
adversely impact the Group’s results of operations, cash
flow, liquidity, business prospects, financial condition, and
shareholder returns, including dividends, the amount of funds
available for stock repurchases and the price of Eni’s shares.
e) Disruption to or breaches of Eni’s critical IT services or
digital infrastructure and security systems could adversely
affect the Group’s business, increase costs and damage
Eni’s reputation
The Group’s activities depend heavily on the reliability and
security of its information technology (IT) systems and digital
security. The Group’s IT systems, some of which are managed
by third parties, are susceptible to being compromised,
damaged, disrupted or shutdown due to failures during the
process of upgrading or replacing software, databases or
components, power or network outages, hardware failures,
cyberattacks (viruses, computer intrusions), user errors or
natural disasters. The cyber threat is constantly evolving.
The oil and gas industry is subject to fast-evolving risks
from cyber threat actors, including nation states, criminals,
terrorists, hacktivists and insiders. Attacks are becoming
more sophisticated with regularly renewed techniques
while the digital transformation amplifies exposure to these
cyber threats. The adoption of new technologies, such as
the Internet of Things (IoT) or the migration to the cloud,
as well as the evolution of architectures for increasingly
interconnected systems, are all areas where cyber security is
a very important issue. The Group and its service providers
may not be able to prevent third parties from breaking into
the Group’s IT systems, disrupting business operations or
communications infrastructure through denial of service,
attacks, or gaining access to confidential or sensitive
information held in the system. The Group, like many
companies, has been and expects to continue to be the target
of attempted cybersecurity attacks. While the Group has not
experienced any such attack that has had a material impact
on its business, the Group cannot guarantee that its security
measures will be sufficient to prevent a material disruption,
breach or compromise in the future. As a result, the Group’s
activities and assets could sustain serious damage, services
to clients could be interrupted, material intellectual property
could be divulged and, in some cases, personal injury, property
damage, environmental harm and regulatory violations could
occur. If any of the risks set out above materialise, they could
adversely impact the Group’s results of operations, cash
flow, liquidity, business prospects, financial condition, and
shareholder returns, including dividends, the amount of funds
available for stock repurchases and the price of Eni’s share.
f) Violations of data protection laws carry fines and expose
the Company and/or its employees to criminal sanctions
and civil suits
Data protection laws and regulations apply to Eni and its joint
ENI ANNUAL REPORT 2022 149
ventures and associates in the vast majority of countries
in which they do business. The General Data Protection
Regulation (EU) 2016/679 (GDPR) came into effect in May
2018 and increased penalties up to a maximum of 4% of
global annual turnover for breach of the regulation. The
GDPR requires mandatory breach notification, a standard
also followed outside of the EU (particularly in Asia). Non-
compliance with data protection laws could expose Eni to
regulatory investigations, which could result in fines and
penalties as well as harm the Company’s reputation. In addition
to imposing fines, regulators may also issue orders to stop
processing personal data, which could disrupt operations. The
Company could also be subject to litigation from persons or
corporations allegedly affected by data protection violations.
Violation of data protection laws is a criminal offence in some
countries, and individuals can be imprisoned or fined. If any
of the risks set out above materialise, they could adversely
impact the Group’s results of operations, cash flow, liquidity,
business prospects, financial condition, and shareholder
returns, including dividends, the amount of funds available for
stock repurchases and the price of Eni’s shares.
g) Eni is exposed to treasury and trading risks, including liquidity
risk, interest rate risk, foreign exchange risk, commodity
price risk and credit risk and may incur substantial losses in
connection with those risks
Market risk
Eni’s business is exposed to the risk that changes in interest
rates, foreign exchange rates or the prices of energy
commodities and products will adversely affect the value of
assets, liabilities or expected future cash flows.
The Group does not hedge
its exposure to volatile
hydrocarbons prices in its business of developing and
extracting hydrocarbons reserves and other types of
commodity exposures (e.g. exposure to the volatility of
refining margins and of certain portions of the gas long-term
supply portfolio) except for specific markets or business
conditions. The Group has established risk management
procedures and enters derivatives commodity contracts to
hedge exposure to the commodity risk relating to commercial
activities, which derives from different indexation formulas
between purchase and selling prices of commodities.
However, hedging may not function as expected. In addition,
Eni undertakes commodity trading to optimize commercial
margins or with a view of profiting from expected movements
in market prices. Although Eni believes it has established
sound risk management procedures to monitor and
control commodity trading, this activity involves elements
of forecasting and Eni is exposed to the risk of incurring
significant losses if prices develop contrary to management
expectations and to the risk of default of counterparties.
Eni is exposed to the risks of unfavorable movements
in exchange rates primarily because Eni’s consolidated
financial statements are prepared in Euros, whereas Eni’s
main subsidiaries in the Exploration & Production sector
are utilizing the U.S. dollar as their functional currency. This
translation risk is unhedged.
Furthermore, Eni’s euro-denominated subsidiaries
incur
revenues and expenses in currencies other than the euro
or are otherwise exposed to currency fluctuations because
prices of oil, natural gas and refined products generally are
denominated in, or linked to, the U.S. dollar, while a significant
portion of Eni’s expenses are incurred in euros and because
movements in exchange rates may negatively affect the fair
value of assets and liabilities denominated in currencies
other than the euro. Therefore, movements in the U.S. dollar
(or other foreign currencies) exchange rate versus the euro
affect results of operations and cash flows and year-on-
year comparability of the performance. These exposures
are normally pooled at Group level and net exposures to
exchange rate volatility are netted on the marketplace using
derivative transactions. However, the effectiveness of such
hedging activity is uncertain, and the Company may incur
losses also of significant amounts. As a rule of thumb, a
depreciation of the U.S. dollar against the euro generally has
an adverse impact on Eni’s results of operations and liquidity
because it reduces booked revenues by an amount greater
than the decrease in U.S. dollar-denominated expenses and
may also result in significant translation adjustments that
impact Eni’s shareholders’ equity.
Eni is exposed to fluctuations in interest rates that may affect
the fair value of Eni’s financial assets and liabilities as well
as the amount of finance expense recorded through profit.
Eni enters into derivative transactions with the purpose of
minimizing its exposure to the interest rate risk.
Eni’s credit ratings are potentially exposed to risk from
possible reductions of the sovereign credit rating of Italy.
Based on the methodologies used by Standard & Poor’s and
Moody’s, a potential downgrade of Italy’s credit rating may
have a potential knock-on effect on the credit rating of Italian
issuers such as Eni and make it more likely that the credit
rating of the debt instruments issued by the Company could
be downgraded.
Credit risk
Eni is exposed to credit risk. Eni’s counterparties could
default, could be unable to pay the amounts owed to it in
a timely manner or meet their performance obligations
under contractual arrangements. These events could cause
the Company to recognize loss provisions with respect to
amounts owed to it by debtors of the Company and cash
flow shortfall. In recent years, the Group has experienced
a significant level of counterparty default due to Europe
and Italy’s weak economic growth and a downturn in crude
oil prices affecting the solvency of national oil entities and
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
150
local companies, which are joint operators of Eni- lead
projects. Those trends were made worse by the COVID-19
recession, resulting in a significantly deteriorated credit and
financial profile of many of Eni’s counterparties, including
joint operators and national oil companies in Eni’s upstream
projects, retail customers in the gas retail business and other
industrial accounts. In 2022, the significant rise in the prices
of energy commodities has increased Eni’s exposure to the
credit risk in the mid and downstream businesses of natural
gas. The retail gas & power business managed by Plenitude
is particularly exposed to the credit risk due to its large and
diversified customer base, which includes thousands of
medium and small-sized businesses and retail customers
whose financial condition has been negatively and
adversely affected because the value of invoices has risen
manyfold putting at stress the ability of our counterparts
to pay amounts owed to us. Also, certain large industrial
accounts at our wholesale natural gas business have been
facing difficulties at paying amounts due to us. Due to that
trend, we increased our credit loss provisions in 2022. It is
possible that the ability of our debtors to pay amounts due
to us will deteriorate in the next future, especially in case of
a continuing uptrend in the prices of energy commodities.
Furthermore, we are exposed to risks of growing working
capital needs in case regulatory authorities introduce
measures intended to safeguard households and other
residential customers by mandating us to extend payment
terms.
Eni believes that the management of doubtful accounts in
the current environment of surging energy prices represents
a significant financial risk to the Company, which will require
management focus and commitment going forward. Eni
cannot exclude the recognition of significant provisions for
doubtful accounts in future reporting periods and increasing
working capital needs.
If any of the risks set out above materializes, this could
adversely impact the Group’s results of operations, cash
flow, liquidity, business prospects, financial condition, and
shareholder returns, including dividends, the amount of
funds available for stock repurchases and the price of Eni’s
shares.
Liquidity risk
Liquidity risk is the risk that suitable sources of funding
for the Group may not be available, or that the Group is
unable to sell its assets on the marketplace to meet short-
term financial requirements and to settle obligations. Such
a situation would negatively affect the Group’s results of
operations and cash flows as it would result in Eni incurring
higher borrowing expenses to meet its obligations or, under
the worst conditions, the inability of Eni to continue as a
going concern. Global financial markets are volatile due
to several macroeconomic risk factors and unpredictable
developments. In case new restrictive measures in response
to a resurgence of the pandemic or the war in Ukraine lead
to a double-dip in economic activity and energy demand, in
the event of extended periods of constraints in the financial
markets, or if Eni is unable to access the financial markets
(including cases where this is due to Eni’s financial position or
market sentiment as to Eni’s prospects) at a time when cash
flows from Eni’s business operations may be under pressure,
the Company may incur significantly higher borrowing
costs than in the past or difficulties obtaining the necessary
financial resources to fund Eni’s development plans, therefore
jeopardizing Eni’s ability to maintain long- term investment
programs. A reduction in the investments needed to develop
Eni’s reserves and to grow the business may significantly
and negatively affect Eni’s business prospects, results of
operations and cash flows, and may impact shareholder
returns, including dividends or share price.
ENI ANNUAL REPORT 2022
Outlook
151
For the main business and economic-financial evolutions please refer to the following sections: Strategy, Financial Review and Risk
factors and uncertainties.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 152
Consolidated Disclosure
of Non-Financial Information
Eni’s 2022
Consolidated
Disclosure of
Non-Financial
Information (NFI)
has been drafted
in accordance
with Legislative
Decree 254/2016
and the
“Sustainability
Reporting
Standards”
published by the
Global Reporting
Initiative (GRI)
Eni’s 2022 Consolidated Disclosure of Non-Financial Information (NFI) has been drafted in
accordance with Legislative Decree 254/2016 and the “Sustainability Reporting Standards”
published by the Global Reporting Initiative (GRI1) as indicated in the chapter “Reporting Principles
and Criteria”. The new GRI standards came into force for the NFI 2022, both the Universal
Standards (i.e. those required of all companies regardless of the results of the materiality analysis
and those specific to the Oil & Gas sector). Since last year, the NFI includes the disclosure
requirements for listed companies, provided for in Article 8 of EU Regulation 852/2020 relating to
suitable economic activities and assets for the purposes of achieving the objectives of the Climate
Change Mitigation and Adaptation Regulation. In continuity with previous editions, the document
is structured according to the three levers of the integrated business model, Carbon Neutrality by
2050, Operational Excellence and Alliances for Development, which aim to create long-term value
for all stakeholders. The contents of the “Carbon neutrality by 2050” chapter have been organized
according to the voluntary recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) of the Financial Stability Board, of which Eni has been a member since its
foundation, in order to provide even clearer and more in-depth disclosure on these issues. In addition,
the main United Nations Sustainable Development Goals (SDGs), that constitute an important
reference for Eni in the conduct of its activities, have been mentioned in the various chapters. The
NFI is included in the Management Report in the Annual Report, to meet the information needs
of Eni stakeholders in a clear and concise manner, further favouring the integrated disclosure of
financial and non-financial information. In order to avoid duplication of information and ensure
that disclosures are as concise as possible, the NFI provides integrated disclosures, which may
include references to other sections of the Management Report, the Corporate Governance and
Shareholding Structure Report and the Report on remuneration policy and remuneration paid, when
the issues required by Legislative Decree 254/2016 are already contained therein or for further
details. Specifically, the Management Report describes the Eni business model and governance,
the main results and targets, the integrated risk management system and the risk and uncertainty
factors in which the main risks, possible impacts and treatment actions are detailed, in line with the
disclosure requirements of Italian regulations. The NFI contains detailed information on corporate
policies, management and organizational models, an in-depth analysis of ESG (Environmental,
Social and Governance) risks, the strategy on the topics covered, the most important initiatives
of the year, the main performances with related comments and the 2022 materiality analysis. In
the 2022 NFI, the “core” metrics defined by the World Economic Forum2 (WEF) in the 2020 White
Paper “Measuring Stakeholder Capitalism - Towards Common Metrics and Consistent Reporting
of Sustainable Value Creation” were also included. As in previous years, on the occasion of the
Shareholders’ Meeting, Eni will also publish Eni for, the voluntary sustainability report that aims
to further enhance non-financial information. The 2022 edition of Eni for will also include a report
dedicated to human rights (Eni for – Human Rights3). Below is a reconciliation table showing the
information content required by the Legislative Decree 254/2016, the areas and relative positioning
in the NFI, the Management Report, the Corporate Governance and Shareholding Structure Report
and the Report on remuneration policy and remuneration paid.
(1) For further details, reference is made to the paragraph: “Reporting Principles and Criteria”.
(2) The reconciliation with the WEF core metrics is directly shown in the Content Index in a dedicated column.
(3) The update of the Eni for - Human Rights report will be published subsequent to Eni for.
ENI ANNUAL REPORT 2022 CORPORATE MANAGEMENT
MODEL AND GOVERNANCE
POLICIES APPLIED
RISK MANAGEMENT
MODEL
PERFORMANCE INDICATORS
153
SCOPE OF
LEGISLATIVE
DECREE 254/2016
CROSS
-REFERENCES
TO ALL SCOPES
OF THE DECREE
CLIMATE
CHANGE
Art. 3.2,
paragraphs a)
and b)
Y
T
I
L
A
R
T
U
E
N
N
O
B
R
A
C
0
5
0
2
Y
B
NFI
- Management
and
organisation models pp. 158-159;
Sustainability Material Topics,
218-219; Responsible and
pp.
Sustainable Approach, pp. 160-161;
AR - Business Model, pp. 8-9;
Stakeholder
engagement
activities, pp. 16-17; Strategy, pp.
18-23; Governance, pp. 30-41
CGR - Responsible and Sustainable
Approach
Stakeholder
and
dialogue; Corporate Governance
Model; Board of Directors; Board
Committees; Board of Statutory
Auditors; Model 231.
NFI - Carbon neutrality by 2050,
pp. 164-170
AR - Strategy, pp. 18-23
CGR
-
Sustainable
Stakeholder dialogue
Responsible
Approach
and
and
PEOPLE
Art. 3.2,
paragraphs c)
and d)
RESPECT
FOR THE
ENVIRONMENT
Art. 3.2,
paragraphs a), b)
and c)
HUMAN RIGHTS
Art. 3.2,
paragraph e)
AR - Governance, pp. 30-41
NFI - People (employment, diversity
and inclusion, training, industrial
relations, corporate welfare and
work-life balance, health), pp. 171-
177; Safety, pp. 178-180
NFI - Respect for the environment
(circular economy, air, waste, water,
oil spills, biodiversity), pp. 180-186
NFI - Human Rights (security,
training, and reporting), pp. 186-
189
CGR
-
Responsible
Approach
and
and
Sustainable
Stakeholder dialogue
SUPPLIERS
Art. 3.1,
paragraph c)
NFI - Human Rights, pp. 186-189;
Suppliers, pp. 190-191
NFI
-
Transparency,
anti-
corruption and tax strategy, pp.
191-194
TRANSPARENCY,
ANTI
-CORRUPTION
AND TAX
STRATEGY
Art. 3.2,
paragraph f)
E
C
N
E
L
L
E
C
X
E
L
A
N
O
I
T
A
R
E
P
O
AR
-
Integrated Risk
Management, pp. 24-29;
Risk
and
factors
uncertainties, pp. 126-150
AR - Eni at a glance, pp. 10-15
NFI
- Responsible and
Sustainable Approach, pp.
160-161
AR
-
Integrated Risk
Management, pp. 24-29;
Risk
factors
and
uncertainties, pp. 126-
150
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI
- Carbon neutrality
164-
pp.
2050,
by
170;
and
Responsible
Sustainable Approach, pp.
160-161
AR - Risk factors and
uncertainties, pp.126-150;
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI
- People, pp. 171-
177; Safety, pp. 178-180;
Responsible and Sustainable
Approach, pp. 160-161
RR - Summary
AR
•
Integrated
Risk
Management, pp. 24-
29;
• Risk
and
factors
uncertainties, pp. 126-
150;
NFI
for
- Respect
the
180-
pp.
environment,
186;
and
Responsible
Sustainable Approach, pp.
160-161
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
AR - Risk factors and
uncertainties, pp. 126-150;
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI
- Human Rights, pp.
186-189; Responsible and
Sustainable Approach, pp.
160-161
AR - Risk factors and
uncertainties, pp. 126-150;
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI - Human Rights, pp. 186-
189; Suppliers, pp. 190-191;
Responsible and Sustainable
Approach, pp. 160-161
AR - Risk factors and
uncertainties, pp. 126-150;
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI - Transparency, anti-
corruption and tax strategy,
pp. 191-194; Responsible
and Sustainable Approach,
pp. 160-161
CGR
- Principles and
values. The Code of Ethics;
Eni Regulatory System.
NFI
- Main
regulatory
instruments,
guidelines
and management models
related
topics
the
Legislative Decree
of
254/2016, pp. 154-155
to
NFI
- Main
regulatory
instruments,
guidelines
and management models
related
topics
the
of
Legislative Decree
254/2016, pp. 154-155
to
NFI
- Main
regulatory
instruments,
guidelines
and management models
topics
related
the
of
Legislative Decree
254/2016, pp. 154-155
to
NFI
- Main
regulatory
instruments,
guidelines
and management models
related
topics
the
of
Legislative Decree
254/2016, pp. 154-155
to
NFI
- Main
regulatory
instruments,
guidelines
and management models
related
topics
the
Legislative Decree
of
254/2016, pp. 154-155
to
NFI
- Main
regulatory
instruments,
guidelines
and management models
topics
the
related
of
Legislative Decree
254/2016, pp. 154-155
to
RCG
- Principles and
values. The Code of
Ethics;
Anti-Corruption
Compliance Program
NFI - Alliances for development,
pp. 195-197
R
O
F
S
E
C
N
A
I
L
L
A
COMMUNITIES
Art. 3.2,
paragraph d)
T LOCAL
N
E
M
P
O
L
E
V
E
D
NFI
- Main
regulatory
instruments,
guidelines
and management models
related
topics
the
of
Legislative Decree
254/2016, pp. 154-155
to
AR - Risk factors and
uncertainties, pp. 126-150
NFI - Main ESG risks and
related mitigation
the
actions, pp. 162-163
NFI
-
Alliances
for
development,
pp.
195-
and
Responsible
197;
Sustainable Approach, pp.
160-161
AR Management Report 2022
CGR Corporate Governance and Shareholding Structure Report 2022
RR Report on Remuneration Policy and Remuneration Paid 2023
Sections/paragraphs providing the disclosures required by the Decree
Sections/paragraphs to which reference should be made for further details
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
154
THE COMPANY MISSION AND COMMITMENT TO A JUST TRANSITION
Eni’s mission confirms its commitment to a Just Transition
as the main challenge for the energy sector by balancing
the need to ensure universal access to energy for a growing
population and the urgency of tackling climate change by
acting immediately on all available levers and accelerating
the transition process towards a sustainable mix that is
socially just at the same time. Furthermore, the mission is
inspired by the UN’s “Sustainable Development Goals” Eni
intends to contribute to, aware that business development
can no longer be separated from these. Eni’s goal is to
achieve net-zero emissions by 2050, with a view to sharing
social and economic benefits with workers, the value chain,
communities and customers in an inclusive, transparent
and socially equitable manner, taking into consideration the
different level of development of the Countries in which it
operates, minimising existing inequalities. In this sense, in
2020, the evaluation against business projects SDGs was
launched for a few pilot cases to quantify their contribution
to the Country of presence and to guide project choices.
In addition, to contribute to the achievement of the SDGs
and to the growth of the Countries in which it operates,
Eni is committed to building alliances with national and
international development cooperation actors, in line with the
results of the Third International Conference on Financing
for Development, organized by the United Nations in Addis
Abeba in July 2015. Eni is aware the social dimension of
the ambitious path mapped out has significant relevance.
First and foremost, the energy transition is a technological
transition: only with solid industrial, innovative capacity,
as well as a willingness to combine forces and skills, will
Eni be able to implement the transition by improving at the
same time the opportunity for people. With this in mind,
Eni is working to ensure that the decarbonization process
offers opportunities for converting existing activities and
developing new production supply chains with significant
opportunities for workers, economies and communities
in the Countries where the company operates. At the
same time, Eni is committed to managing any potential
negative impact that may be linked to the energy transition
on workers, communities, consumers and suppliers.
This ambition necessarily requires the involvement of all
stakeholders, especially those who can play a relevant role
in the just transition, such as trade unions and workers’
representatives,
institutions, community representatives,
and industry organisations. The approach highlighted by the
mission is also confirmed by the application from January 1st,
2021 of the 2020 Corporate Governance Code, which identifies
“sustainable success” as the objective that must guide the
action of the Board of Directors and consists of creating long-
term value for the benefit of shareholders, taking into account
the interests of other relevant stakeholders (see pp. 30-41). Eni,
however, has been considering the interest of stakeholders other
than shareholders as one of the necessary elements directors
must evaluate in making informed decisions since 2006. In
compliance with the Code, last year, the BoD also approved,
at the proposal of the Chairman, in agreement with the CEO, a
policy for dialogue with shareholders that identifies the parties
responsible for its management and the manner in which it is
carried out at the initiative of shareholders or the Company; the
policy also governs reporting to the Board on the development
and significant content of the dialogue that has taken place and
the manner in which it is disclosed and updated.
MAIN REGULATORY TOOLS, GUIDELINES AND MANAGEMENT MODELS RELATED
TO THE SCOPE OF LEGISLATIVE DECREE 254/2016
In order to implement the mission in actual practice and to
ensure integrity, transparency, correctness and effectiveness in
its processes, Eni adopts rules for the performance of corporate
activities and the exercise of powers, ensuring compliance with
the general principles of traceability and segregation.
All of Eni’s operating activities can be grouped into a map of
processes functional to the corporate activities and integrated
with control requirements and principles set out
in the
compliance and governance models and based on the By-laws,
the Code of Ethics and the Corporate Governance Code 20204,
the Model 2315, the SOA6 principles and the CoSO Report7.
With regard to the types of instruments that make up the
Regulatory System:
(4) On December 23, 2020, the Eni Board of Directors resolved to adhere to the new Code, the recommendations of which are applicable as of January 1st, 2021. Therefore,
as from that date, roles, responsibilities and regulatory instruments must take into account the new recommendations on the subject provided for by the new Code, as well
as the decisions taken by the Board of Directors on how to apply these recommendations.
(5) On November 18, 2021, the BoD approved a new version of the Model 231 that – adapting the document to the changes in the organizational structure of Eni – ratio-
nalises and enhances the internal control system and the various related compliance programmes in line with recent best practices in this field. In particular, also through
an express reference to the NFI, the systems that are further strengthened relate to the areas of the fight against corruption, environmental protection and safety (topics
in Italian Legislative Decree 254/2016).
(6) US Sarbanes-Oxley Act of 2002.
(7) Framework issued by the “Committee of Sponsoring Organizations of the Treadway Commission (CoSO)” in May 2013.
ENI ANNUAL REPORT 2022
FRAMEWORK OF REFERENCE FOR THE REGULATORY SYSTEM
BY-LAWS
CODE OF ETHICS
CORPORATE
GOVERNANCE CODE
MODEL 231
PRINCIPLES OF ENI’S CONTROL
SYSTEM OVER FINANCIAL REPORTS
CoSO REPORT FRAMEWORK
155
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10 policy approved by the BoD
· Operational Excellence; Our tangible and intangible assets; Our partners in the value chain;
Our institutional partners; Global compliance; Sustainability; Our people; Information management; Integrity in our
operations; and Corporate governance.
Policy
Management
System
Guideline
49 Management System Guideline ("MSG"):
· 1 Regulatory System MSG defines the management process for the Regulatory System;
· 36 Process MSGs define the guidelines for properly managing the reference process and the related risks,
with an aim towards integrated compliance;
· 12 Compliance and governance MSGs (usually approved by the BoD) define the general rules for ensuring
compliance with the law, regulations and corporate governance code: Code of commercial practices and advertising,
Compliance Models regarding Corporate Administrative Liability for Eni’s subsidiaries;
Corporate Governance of Eni companies; Abuse of Market Information (Issuers); Anti-Corruption; Antitrust; Transactions
involving interests of directors and statutory auditors and transactions with related parties ; Privacy and data protection;
Economic and Financial Sanctions; Internal Control and Risk Management System; Eni’s financial reporting internal control
system MSG; and Market conduct and financial regulation.
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Procedure
Operating Instruction
· Define the operating procedures to be implemented in executing the Company’s activities.
· Define in detail the operating procedures for a specific function, organisational unit or professional area/family.
• the Policies, approved by the Board of Directors, are mandatory
documents that set out the principles and general rules of
conduct on which all the activities carried out by Eni must be
based, in order to guarantee the achievement of corporate
objectives, taking into account risks and opportunities. The
Policies cut across all processes and are focused on a key
element of business management. They apply to Eni SpA and,
following the implementation process, to all subsidiaries;
• the Management System Guidelines (“MSGs”) are the
guidelines common to all Eni’s companies and may be
process or compliance/governance guidelines (the latter
normally approved by the Board of Directors) and include
sustainability aspects. The individual MSGs issued by Eni
SpA apply to subsidiaries, which ensure their implementation,
unless a derogation is needed;
• the Procedures set out the operating procedures by which
the Companies’ activities are to be carried out. They
describe the tasks and responsibilities of the organizational
contacts involved, management and control methods and
communication flows. They also regulate operations in order
to pursue the objectives of compliance with local regulations.
The content is defined in compliance with the Policies and
MSGs as implemented by the companies;
• the Operating Instructions define the details of the operating
procedures referring to a specific function/organizational unit/
professional area or professional family, or to Eni’s people and
functions involved in the fulfilments regulated therein.
The regulatory instruments are published on the Company’s
Intranet site and, in some cases, on the Company’s website.
In addition, in 2020 Eni updated its Code of Ethics in which it
renewed the corporate values that characterize the commitment
of Eni people and all third parties who work with the Company:
integrity, respect and protection of human rights, transparency,
promotion of development, operational excellence, innovation,
teamwork and collaboration.
In the first of the next two tables (pp. 156-157), in addition to the
Policies and the Code of Ethics, other Eni regulatory instruments
approved by the CEO and/or the BoD are also considered.
The second table (pp. 158-159) show the management and
organization models, including management systems, multi-
year plans, processes and interfunctional working groups.
Finally, in 2022, with a view to continuous improvement and
to go along the Company’s transition strategy, an initiative
was launched to verify (through the analysis of market
best practices) possible actions to
improve the current
Eni Regulatory System in terms of tools and management
process. On January 26, 2023, the BoD updated the key lines
of the Regulatory System Policy in line with the operational and
governance requirements for the new strategy. These called
for an evolution of the Regulatory System architecture that will
lead to (i) more accessible regulatory instruments; (ii) better-
streamlined decision-making and operational processes; and
(iii) greater management awareness in identifying risks and
mitigation actions.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
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ENI’S POLICY AND PUBLIC POSITIONS ON THE ISSUES OF LEGISLATIVE DECREE 254/2016
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CLIMATE CHANGE
GOAL: Combat climate change
PUBLIC DOCUMENTS
Strategic Plan 2023-26; Eni’s responsible engagement on climate change within business association; Eni’s position on biomass; Eni Code of
Ethics.
PRINCIPLES
• Total decarbonization of all products and processes by 2050 in line with the objectives of the Paris Agreement;
• Ensure consistency and transparency in the activities of associations with Eni’s strategy on climate change and energy transition, in line with
stakeholders’ expectations;
• Promotion of a low carbon energy mix and an ongoing commitment to research and development;
• 100% of the biomass used in Eni’s biorefineries is certified under voluntary EU or Italian certification schemes;
• Ensure sustainable biomass management along the entire supply chain;
• Promote the role of Natural Climate Solutions as a lever for offsetting residual hard-to-abate GHG emissions;
• Ensure transparency in reporting on climate change issues.
PEOPLE
GOAL: Value Eni’s people
PUBLIC DOCUMENTS
Eni’s statement on Respect for Human Rights; Eni Policy Against Violence and Harassment at Work; Eni Code of Ethics.
PRINCIPLES
• Establish labour relations characterised by fairness, equality, non-discrimination, care and respect for the dignity of each individual;
• Support organizational models that enhance cooperation between people from different cultures, perspectives and experiences;
• Recognise collaboration as a critical element in building strong and lasting relationships through which achieve business objectives;
• Promoting the development of a culture based on the spread of knowledge and the belief in training as a tool for enriching people, spreading
ethical values and reinforcing a common corporate identity;
• Support organizational models that enhance cooperation among people from different cultures, perspectives and experiences;
• Reward our people with remuneration commensurate with their responsibilities and contributions;
• Prohibit all forms of violence and harassment at work within the Company, with no exception.
HEALTH AND SAFETY
GOAL: Protect the health and safety of Eni’s people and contractors who work for Eni
PUBLIC DOCUMENTS
Eni’s statement on Respect for Human Rights; Eni Code of Ethics.
PRINCIPLES
• The health and safety of Eni’s people, the community and its partners are a priority objective;
• Adopt safety measures to protect people and assets with respect for the human rights of local communities;
• Clearly and transparently inform our people, the community and our partners about the necessary preventive and protective measures to be
implemented, to eliminate the risks and criticalities of the processes and activities;
• Spreading a culture of health and safety is an ongoing commitment;
• Respect the rights of people and local communities in the Countries in which it operates, with particular reference to the highest achievable
level of physical and mental health;
• Eni carries out assessments of its actual and potential health impacts to plan specific mitigation actions.
RESPECT FOR THE ENVIRONMENT
GOAL: Use resources efficiently and protect biodiversity and ecosystem services (BES)
PUBLIC DOCUMENTS
Eni Biodiversity and Ecosystem Services policy; Eni’s commitment not to conduct exploration and development activities within the
boundaries of Natural Sites included in the UNESCO World Heritage List; Eni’s Position on Water; Eni’s Position on Biomass, Eni Code of
Ethics.
PRINCIPLES
• Include innovative solutions to reduce the impact of operations through efficient use of natural resources, protection of biodiversity and water
resources;
• Commitment to actively participate in the process of risk prevention and environmental protection;
• Promote scientific and technological development aimed at protecting the environment;
• Consider, in project assessments and operations, the presence of UNESCO World Heritage Sites, other protected areas and key biodiversity
areas, identifying potential impacts and mitigation actions (risk-based approach);
• Through the application of the Mitigation Hierarchy, prioritise preventive mitigation measures over corrective ones;
• Establish links between environmental and social aspects including the sustainable development of local communities.
ENI ANNUAL REPORT 2022
157
HUMAN RIGHTS
GOAL: Respect for human rights
PUBLIC DOCUMENTS
Eni Code of Ethics; Eni’s statement on Respect for Human Rights; Whistleblowing reports received, including anonymously, by Eni SpA and
its subsidiaries in Italy and abroad policy; Supplier Code of Conduct; Alaska Indigenous Peoples policy; Eni against Violence and Harassment
at Work policy.
PRINCIPLES
• Ensure respect for internationally recognised human rights in its own activities and those of its business partners, in line with the United
Nations Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises;
• Subjecting its activities to a due diligence process on human rights. Continuously assess and monitor actual and potential impacts, and
identify specific strategies and solutions to improve the effectiveness of prevention and mitigation action;
• Respect the rights of individuals and communities, recognising and valuing their specific characteristics, with particular reference to their
cultures, life styles, institutions, bonds with their homeland and development models in line with international standards;
• Adopt safety measures to protect people and assets with respect for the human rights of local communities;
• Prohibit all forms of violence and harassment, without exception;
• Select business partners that comply with the Eni Supplier Code of Conduct, are committed to preventing or mitigating impacts on human
rights, and refuse all forms of forced and/or child labour;
• Verifying and providing, or cooperating to provide, remediation in case of adverse human rights impacts it might have caused (or contributed to).
SUPPLIERS
GOAL: Develop the sustainable supply chain
PUBLIC DOCUMENTS
Supplier Code of Conduct; Eni’s position on Conflict Minerals; Eni’s Code of Ethics; Eni’s Statement on Respect for Human Rights; Eni’s
Slavery and Human Trafficking Statement.
PRINCIPLES
• Adopt accurate processes for the qualification, selection and monitoring of our suppliers and partners, based on the principles of
transparency and integrity and, refusing to tolerate collusive practices, in full compliance with the law;
• Define and disseminate policies, standards and rules that guide the action of suppliers and partners to respect Human Rights and the
sustainability principles of Eni;
• Promote long-term strategic partnerships based on an integrated, coordinated and transparent approach, encouraging the fair sharing of
risks and opportunities;
• Support the creation of a responsible workplace, recognising diversity;
• Combat climate change and its effects;
• Support the low carbon energy transition by safeguarding the environment and optimising the use of resources.
TRANSPARENCY, ANTI-CORRUPTION AND TAX STRATEGY
GOAL: Fight any form of corruption, with no exception
PUBLIC DOCUMENTS
Anti-Corruption Management System Guideline; Whistleblowing reports received, including anonymously, by Eni SpA and its subsidiaries
in Italy and abroad; Tax Strategy Guideline; Eni’s position on Contract Transparency; Eni Code of Ethics.
PRINCIPLES
• Carry out business activities with fairness, correctness, transparency, honesty and integrity and in compliance with the law;
• Prohibit any form of corruption, with no exception;
• Always ensure compliance with applicable laws, standards and regulations for the prevention of corruption and money laundering;
• Carry out regular anti-corruption and anti-money laundering awareness-raising, communication and training initiatives;
• Ensure the communication of the Anti-Corruption MSG to Third Parties at Risk by providing appropriate contractual clauses and/or
declarations and promoting training and awareness-raising initiatives dedicated to them.
LOCAL COMMUNITIES
GOAL: Promote relations with local communities and contribute to their sustainable development also through public-private partnerships
PUBLIC DOCUMENTS
Eni’s Statement on Respect for Human Rights; Code of Ethics; Alaska Indigenous Peoples.
PRINCIPLES
• Working with communities, local organisations and development actors to foster autonomous, lasting and sustainable local growth;
• In all our activities, from the earliest feasibility assessments and in cooperation with local communities, consider environmental aspects,
social, health and safety aspects and respect for Human Rights;
• Promote continuous and transparent forms of consulting to inform local communities and to consider their expectations in our activities;
• Establish solid, lasting relationships and partnerships with the communities in which we operate to build lasting shared value.
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ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
158
MANAGEMENT AND ORGANISATION MODELS
CLIMATE
CHANGE
• Organizational structure functional to the energy transition process with two General Directions: Natural Resources, for the
optimization and progressive decarbonization of the Upstream portfolio and Energy Evolution, for the expansion of bio, renewable
and circular economy activities and the offering of new energy solutions and services;
• Dedicated central function that oversees the Company’s strategy and positioning on climate change;
PEOPLE
HEALTH
SAFETY
• Employment management and planning process to align skills to the technical and professional needs;
• Management and development tools, aimed at professional involvement, growth and updating, intergenerational and intercultural
exchange of experiences, building of cross-cutting and professional managerial development pathways in core technical areas
valuing and including diversity;
• Development of Innovative HR Management Tools;
• Support and development of the distinctive skills necessary and consistent with corporate strategies, focusing on energy
transition and digital transformation issues, also through the use of Faculties/Academies;
• Health management system based on an operational platform of qualified health providers and collaborations with national and
international university and government institutions and research centres;
• Occupational medicine for the protection of the health and safety of workers, in relation to the workplace, to occupational risk
factors and to the way in which work is carried out;
• Integrated environment, health and safety management system for workers certified in accordance with the OHSAS ISO 45001
standard with the aim of eliminating or mitigating the risks to which workers are exposed during their work activities;
• Process safety management system aimed at preventing major accidents by applying high technical and management standards
(application of best practices for asset design, operating management, maintenance and decommissioning);
RESPECT
FOR THE
ENVIRONMENT
• Integrated environment, health and safety management system: adopted in all plants and production units and certified in
accordance with the ISO 14001:2015 environmental management standard;
• Application of the ESHIA (Environmental Social and Health Impact Assessment) process to all projects;
• Technical meetings for analysing and sharing experiences on specific environmental and energy issues;
• Site-specific circularity measurement analysis: mapping of elements already present, measurement and identification of possible
interventions for improvement;
• Human Rights management process regulated by an internal regulatory instrument aligned with the United Nations Guiding
Principles (UNGP);
HUMAN RIGHTS
• Inter-functional activities on Business and Human Rights to further align processes with key international standards and best
practices;
• Human Rights Impact Assessment and Human Rights Risk Analysis with a risk-based prioritisation model for industrial projects;
SUPPLIERS
• Sustainable supply chain program: initiatives aimed at involving Eni suppliers, and the companies along the industrial
supply chains in general, in the process of measuring, defining development plans and implementing actions to improve
their ESG profile;
TRANSPARENCY,
ANTI
-CORRUPTION
AND TAX
STRATEGY
• Model 231: sets out responsibilities, sensitive activities and control protocols for crimes of corruption under Italian Legislative
Decree 231/01 (including environmental crimes and crimes related to workers’ health and safety);
• Anti-Corruption Compliance Program: system of rules and controls to prevent corruption crimes;
• Recognition for the Eni SpA Anti-Corruption Compliance Program: certified pursuant to the ISO 37001:2016 standard;
• Anti-corruption and anti-money laundering unit placed in the “Integrated Compliance” function reporting directly to the CEO;
LOCAL
COMMUNITIES
• Sustainability contact person at local level, who interfaces with the Company headquarters to define Local Development
Programmes in line with national development plans integrating business processes;
• Application of the ESHIA (Environmental Social & Health Impact Assessment) process to all business projects;
INNOVATION AND
DIGITALIZATION
• Centralized Research & Development Function structured to ensure rapid and effective deployment of the technologies developed;
• Management of Technological Innovation projects in line with best practices (step-by-step planning and control according to the
development of the technology);
ENI ANNUAL REPORT 2022 159
• Energy management systems coordinated with the ISO 50001 standard, included in the HSE regulatory system, to improve energy performance;
already implemented in all the main Mid-Downstream sites and currently being extended to the whole of Eni;
• Organization of the Technology Research and Development aimed at the creation and application of low carbon footprint technologies, in full inte-
gration with renewable sources, the use of biomass and the enhancement of waste materials.
• Training quality management system updated and compliant with ISO 9001:2015;
• Knowledge management system for the integration and sharing of know-how and professional experiences;
• New international mobility initiatives to foster more significant exposure to business, more flexible dedicated International Mobility policy and more
robust work-life balance support;
• National and international industrial relations management system: participative model and platform of operating tools to engage personnel in
compliance with ILO (International Labour Organization) conventions and the guidelines of the Institute for Human Rights and Business;
• Welfare system for the achievement of work-life balance.
• Health assistance and medical emergency for the provision of health services consistent with the results of the analysis of needs and of the epidemiological,
operational and legislative contexts; health emergencies preparedness and response, including epidemics and pandemics response plans;
• Health promotion, initiatives to spread a culture of well-being identified following analysis of available health indicators for the general population;
• Global health: initiatives aimed at maintaining, protecting and/or improving the health status of communities and Health Impact Assessment
activities.
• Emergency preparedness and response with plans that put the protection of people and the environment first;
• Product safety management system for the assessment of risks related to the production, import, sale, purchase and use of substances/mixtures to
ensure human health and protection of the environment throughout their life cycle;
• Methodology for the analysis and management of the Human Factor in accident prevention.
• Working groups for defining the strategic positioning and objectives of Eni for the protection of water resources and biodiversity;
• Development of a single integrated methodology for environmental analysis, impact/risk assessment for the environment and organization, including
type 231, applicable in Italy and abroad;
• Environmental Golden Rules: 4 principles and 6 golden rules to promote more conscious and responsible virtuous behaviours towards the environment
by Eni employees and suppliers;
• Spreading the environmental culture through the site and contractor engagement programme.
• Security management system aimed at ensuring respect of human rights in all Countries, particularly in high-risk Countries;
• Whistleblowing management process aimed also at the identification of whistleblowing reports concerning facts or behaviours contrary to (or in
conflict with) the responsibilities taken on by Eni to respect the human rights of each individual or community and the adoption of actions aimed at
mitigating their impacts;
• Three-year e-learning training plan on the main areas of interest on human rights.
• The Sustainable Procurement Process calls for the verification of ESG characteristics and the supplier’s technical-operational, ethical and
reputational reliability at all stages of the procurement process (qualification, tender procedure, contract award and management). This is done
through rewarding mechanisms and action plans aimed at promoting a sustainable development path;
• Vendor Development: function dedicated to the definition of tools to support the growth and transformation of Eni suppliers along the directives
“Energy Transition and Sustainability”, “Financial Economic Solidity” and “Digital Technological Excellence”.
• Eni participation in local Extractive Industries Transparency Initiative (EITI) activities at international level and multi stakeholder group activities to
promote responsible use of resources, fostering transparency;
• Integrated compliance model: for the various areas of compliance, defines the activities at risk by evaluating, with a preventive approach, the level of
risk, modulating the controls from a risk-based perspective and monitoring their exposure over time.
• Stakeholder Management System platform aimed at managing and monitoring relationships with local stakeholders and grievances;
• Sustainability management process in the business cycle and design specifications according to international methods (e.g. Logical Framework).
• Continuous updating of procedures relating to the protection of intellectual property and the identification of service/professional service providers;
• Open Innovation functions (Open Innovation & Ecosystems Development; Joule, Eni’s school for business; Eniverse; and Eni Next) that work in
synergy to study and support the innovation market and experiment with innovative and sustainable solutions that meet business needs.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 160
RESPONSIBLE AND SUSTAINABLE APPROACH
Eni’s mission clearly expresses Eni’s commitment to achieving zero net emissions by 2050 through a “Just Transition”
approach, i.e. sharing social and economic benefits with workers, the supply chain, communities and customers in an
CARBON
NEUTRALITY
BY 2050
COMBATING
CLIMATE
CHANGE
Eni has defined a medium/long-term plan to take full advantage of the opportunities
offered by the energy transition and progressively reduce the carbon footprint of
its activities, committing to achieving total decarbonization of all products and
processes by 2050.
SDG: 7 9 12 13 15 17
• 33% Net Carbon Footprint UPS and -19% Net Carbon Footprint Eni vs. 2018
• -17% Net GHG Lifecycle Emissions vs. 2018
• -3% Net Carbon Intensity vs. 2018
• Net Zero Carbon Footprint upstream in 2030 and Eni in 2035
• Net-Zero GHG Lifecycle Emissions and Carbon Intensity in 2050
MAIN RESULTS 2022
MAIN COMMITMENTS AND TARGETS
PEOPLE
HEALTH
SAFETY
Eni is committed to supporting the Just Transition process by consolidating and
developing skills, enhancing every dimension (professional and otherwise) of its
people and recognizing the values of diversity and inclusion.
SDG: 3 4 5 8 10
• +0.6 p.p. female population vs. 2021
• Women’s turnover rate is higher than men’s
• +0.7 p.p. population under 30 vs. 2021
• +1.2 p.p female personnel in positions of responsibility vs. 2021
• +7 p.p. in 2030 for the presence of non-Italian employees in positions of responsibility
• +3 p.p. vs. 2020 of the female population by 2030
• >1 women replacement rate to 2025
• +5 p.p. population under 30 to 2026 vs. 2021
vs. 2021
• +20% training hours by 2026 vs. 2022
Eni considers protecting the health of its people, workers, families and communities
in the Countries where it operates a fundamental human right and promotes their
psycho-physical and social well-being by placing it at the centre of its operating
models.
SDG: 2 3 6 8
Eni believes that safety at work is an essential value shared by employees,
contractors and local stakeholders to prevent accidents and protect the integrity
of assets.
SDG: 3 8 9 11 14
RESPECT FOR THE
ENVIRONMENT
OPERATIONAL
EXCELLENCE
Eni promotes protection of the environment and biodiversity, the efficient management
of resources with actions aimed at improving energy efficiency and transitioning to a
circular economy, identifying potential impact and mitigation actions.
SDG: 3 6 9 11 12 14 15
• 90% fresh water reuse
• +29% waste generated by production activities vs. 2021
• -35% operational oil spill vs. 2021
HUMAN RIGHTS
SUPPLIERS
Eni is committed to respecting human rights in its activities and to promoting such
respect with partners and stakeholders. This commitment is based on the dignity of
every human being and on companies’ responsibility to contribute to the well-being of
individuals and of local communities.
SDG: 1 2 3 8 10 16
Eni is committed to sustainably develop its supply chain, involving and supporting
companies with concrete tools to facilitate growth and improvement on ESG
dimensions.
SDG: 3 5 7 8 9 10 12 13 16 17
TRANSPARENCY,
ANTI-CORRUPTION
AND TAX STRATEGY
Eni carries out its business activities with fairness, correctness, transparency,
honesty, integrity and in compliance with the law.
SDG: 16 17
ALLIANCES FOR
DEVELOPMENT
COOPERATION
MODEL
The alliances for Development represent Eni’s commitment to an equitable transition
with a broad portfolio of community-based initiatives.
SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17
• 72 million for Health activities, including expenditure on Community Health
initiatives
• 82,700 health promotion activities registrations
• 68% employees with access to psychological support service
• ~€267 million for Health activities 2023-26
• 80% of employees with access to psychological support service by 2026
• Digital initiatives for monitoring and improving the healthiness of indoor workplaces
• TRIR(a) = 0.41; 4 fatal accidents
• 7 applications of THEME methodology on site
• >6K resources trained in Operational Safety Management
• Maintenance of the TRIR <0.40 in the four-year period 2023-26; 0 fatal accidents
• Extension of digital safety initiatives to contracting companies and digitalization of HSE
processes
• Application of the Human Factor analysis model to Eni sites, both in Italy and abroad
• Commitment to minimising freshwater withdrawals from water-stressed areas
• Reuse of fresh water in line with the trend of the past 5 years
• Re-injected produced water in line with the trend of the last 5 years within the
• Development of new technologies for waste recovery and implementation on an
same perimeter
industrial scale
• 2,622 people trained for the three-year Human Rights programme
• 100% of the procurement professional area trained on human rights
• 100% new suppliers assessed according to social criteria
• 409 participants in the Security & Human Rights workshop in Nigeria
• 100% of new projects with human rights risk assessed with specific analysis
• 100% new suppliers assessed according to social criteria
• Update the three-year training programme modules on business and human rights
• 52% of strategic suppliers assessed on sustainable development path
• 100% of strategic suppliers assessed on the sustainable development path by
• ~€4.5 billion awarded contracts value in Italy related to procurements with ESG
2025
assessment
• Adhesion of 15 partners and >10K companies at the Open-es initiative
• Procurement processes with ESG assessment for 75% of Italian awarded
contracts value by 2023 and 50% of foreign awarded contracts value by 2024
• €23 million mini-bonds financed by the Sustainable Energy - Basket Bond programme
• 1,000 foreign local suppliers involved on Open-es by 2023
• Passing the ISO 37001:2016 recertification audit
Administrative Liability” to all employees
• Delivery of the new “Code of Ethics, Anti-Corruption and Corporate Administrative
• Delivery of the new e-learning course on the Anti-Corruption Compliance
• Delivery of the new course “Code of Ethics, Anti-Corruption and Corporate
Liability” course to about 28K employees
Programme to medium and high-risk employees
• Maintenance of ISO 37001:2016 certification
• 63K new students supported with access to education; 128K people supported
with access to clean cooking technology; 7.8K people supported with access to
• By 2026 ensure access to: 62.9K students to education; 26.1K people to vocational
vocational training and supported with economic empowerment(b); 71K people
training and economic empowerment support(b); 97.3K people to drinking water; and
supported with access to clean water; and 120K people supported with access to
480K people to health services
health services
TRANSVERSAL
THEMES
TECHNOLOGICAL
INNOVATION
For Eni, research, development and rapid implementation of new technologies are an
important strategic lever to drive business transformation.
SDG: 7 9 12 13 16
• 70% of R&D expenditure is dedicated to decarbonization activities
• Maintaining 70% of R&D expenditure on decarbonization issues each year for the
four-year period 2023-26
ENI ANNUAL REPORT 2022 161
inclusive, transparent and socially equitable manner, contributing to the achievement of the Sustainable Development
Goals (SDGs).
MAIN RESULTS 2022
MAIN COMMITMENTS AND TARGETS
CARBON
NEUTRALITY
BY 2050
COMBATING
CLIMATE
CHANGE
Eni has defined a medium/long-term plan to take full advantage of the opportunities
offered by the energy transition and progressively reduce the carbon footprint of
its activities, committing to achieving total decarbonization of all products and
processes by 2050.
SDG: 7 9 12 13 15 17
• 33% Net Carbon Footprint UPS and -19% Net Carbon Footprint Eni vs. 2018
• -17% Net GHG Lifecycle Emissions vs. 2018
• -3% Net Carbon Intensity vs. 2018
• Net Zero Carbon Footprint upstream in 2030 and Eni in 2035
• Net-Zero GHG Lifecycle Emissions and Carbon Intensity in 2050
models.
SDG: 2 3 6 8
of assets.
SDG: 3 8 9 11 14
PEOPLE
HEALTH
SAFETY
HUMAN RIGHTS
SUPPLIERS
Eni is committed to supporting the Just Transition process by consolidating and
developing skills, enhancing every dimension (professional and otherwise) of its
people and recognizing the values of diversity and inclusion.
SDG: 3 4 5 8 10
• +0.6 p.p. female population vs. 2021
• Women’s turnover rate is higher than men’s
• +1.2 p.p female personnel in positions of responsibility vs. 2021
• +0.7 p.p. population under 30 vs. 2021
• +3 p.p. vs. 2020 of the female population by 2030
• >1 women replacement rate to 2025
• +5 p.p. population under 30 to 2026 vs. 2021
• +7 p.p. in 2030 for the presence of non-Italian employees in positions of responsibility
vs. 2021
• +20% training hours by 2026 vs. 2022
Eni considers protecting the health of its people, workers, families and communities
in the Countries where it operates a fundamental human right and promotes their
psycho-physical and social well-being by placing it at the centre of its operating
• 72 million for Health activities, including expenditure on Community Health
initiatives
• 82,700 health promotion activities registrations
• 68% employees with access to psychological support service
• ~€267 million for Health activities 2023-26
• 80% of employees with access to psychological support service by 2026
• Digital initiatives for monitoring and improving the healthiness of indoor workplaces
Eni believes that safety at work is an essential value shared by employees,
contractors and local stakeholders to prevent accidents and protect the integrity
• TRIR(a) = 0.41; 4 fatal accidents
• 7 applications of THEME methodology on site
• >6K resources trained in Operational Safety Management
RESPECT FOR THE
ENVIRONMENT
OPERATIONAL
EXCELLENCE
Eni promotes protection of the environment and biodiversity, the efficient management
of resources with actions aimed at improving energy efficiency and transitioning to a
circular economy, identifying potential impact and mitigation actions.
SDG: 3 6 9 11 12 14 15
• 90% fresh water reuse
• +29% waste generated by production activities vs. 2021
• -35% operational oil spill vs. 2021
• Maintenance of the TRIR <0.40 in the four-year period 2023-26; 0 fatal accidents
• Extension of digital safety initiatives to contracting companies and digitalization of HSE
processes
• Application of the Human Factor analysis model to Eni sites, both in Italy and abroad
• Commitment to minimising freshwater withdrawals from water-stressed areas
• Reuse of fresh water in line with the trend of the past 5 years
• Re-injected produced water in line with the trend of the last 5 years within the
same perimeter
• Development of new technologies for waste recovery and implementation on an
industrial scale
Eni is committed to respecting human rights in its activities and to promoting such
respect with partners and stakeholders. This commitment is based on the dignity of
every human being and on companies’ responsibility to contribute to the well-being of
individuals and of local communities.
SDG: 1 2 3 8 10 16
Eni is committed to sustainably develop its supply chain, involving and supporting
companies with concrete tools to facilitate growth and improvement on ESG
dimensions.
SDG: 3 5 7 8 9 10 12 13 16 17
• 2,622 people trained for the three-year Human Rights programme
• 100% of the procurement professional area trained on human rights
• 100% new suppliers assessed according to social criteria
• 409 participants in the Security & Human Rights workshop in Nigeria
• 100% of new projects with human rights risk assessed with specific analysis
• 100% new suppliers assessed according to social criteria
• Update the three-year training programme modules on business and human rights
• 52% of strategic suppliers assessed on sustainable development path
• ~€4.5 billion awarded contracts value in Italy related to procurements with ESG
assessment
• Adhesion of 15 partners and >10K companies at the Open-es initiative
• €23 million mini-bonds financed by the Sustainable Energy - Basket Bond programme
• 100% of strategic suppliers assessed on the sustainable development path by
2025
• Procurement processes with ESG assessment for 75% of Italian awarded
contracts value by 2023 and 50% of foreign awarded contracts value by 2024
• 1,000 foreign local suppliers involved on Open-es by 2023
TRANSPARENCY,
ANTI-CORRUPTION
AND TAX STRATEGY
Eni carries out its business activities with fairness, correctness, transparency,
honesty, integrity and in compliance with the law.
SDG: 16 17
• Passing the ISO 37001:2016 recertification audit
• Delivery of the new “Code of Ethics, Anti-Corruption and Corporate Administrative
Liability” course to about 28K employees
• Delivery of the new course “Code of Ethics, Anti-Corruption and Corporate
Administrative Liability” to all employees
• Delivery of the new e-learning course on the Anti-Corruption Compliance
Programme to medium and high-risk employees
• Maintenance of ISO 37001:2016 certification
ALLIANCES FOR
DEVELOPMENT
COOPERATION
MODEL
The alliances for Development represent Eni’s commitment to an equitable transition
with a broad portfolio of community-based initiatives.
SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17
• 63K new students supported with access to education; 128K people supported
with access to clean cooking technology; 7.8K people supported with access to
vocational training and supported with economic empowerment(b); 71K people
supported with access to clean water; and 120K people supported with access to
health services
• By 2026 ensure access to: 62.9K students to education; 26.1K people to vocational
training and economic empowerment support(b); 97.3K people to drinking water; and
480K people to health services
TRANSVERSAL
THEMES
TECHNOLOGICAL
INNOVATION
For Eni, research, development and rapid implementation of new technologies are an
important strategic lever to drive business transformation.
SDG: 7 9 12 13 16
• 70% of R&D expenditure is dedicated to decarbonization activities
• Maintaining 70% of R&D expenditure on decarbonization issues each year for the
four-year period 2023-26
(a) Total Recordable Injury Rate.
(b) The beneficiaries include only those trained and/or supported for the start-up or strengthening of specific economic activities, not beneficiaries of the construction of infrastructure (roads, civil buildings, etc.) or new
agri-business activities being started. In some cases, beneficiaries are not trained but receive input, funding or other support to start businesses.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 162
MAIN ESG RISKS AND RELATED MITIGATION ACTIONS
For the analysis and assessment of risks, Eni has adopted an
Integrated Risk Management Model with the aim of allowing
management to make informed decisions with a comprehensive
and forward-looking vision8. Risks are assessed with quantitative
and qualitative tools considering both the probability of
occurrence and the impacts (environmental, health and safety,
social, and reputational) that would take place in a given time
frame if the risk were to occur. These are represented on matrices
that allow comparison and classification by relevance based on
the probability of occurrence and impact. The results of the risk
assessment, including the main ESG risks, are submitted to the
Board of Statutory Auditors, the Control and Risk Committee and
the BoD on a half yearly basis. Climate Change Risk is confirmed
among the main risks in the international scene’s evolution.
Eni’s aims to ensure the security and sustainability of the energy
system, maintaining a clear focus on a fair energy transition and
the creation of value for stakeholders.
De-risking actions include: upstream decarbonization through
energy efficiency and projects to reduce flaring; development of
Carbon Capture and Storage initiatives for hard-to-abate industrial
cycles; expansion of biofuels with feedstock diversification
by leveraging vertical integration with the agribusiness chain;
development of chemicals from renewable and recycled sources;
growth of customer portfolio and renewable capacity; initiatives
to accelerate the development of breakthrough technologies
oriented to decarbonization. In terms of the risk portfolio
evolution, “biological risk” was confirmed among the Top Risks
with a reduction in impact due to the progressive easing of
containment measures related to the pandemic; in light of the
international situation, the alert level for Cyber Security has been
raised, requiring constant monitoring to define timely actions to
mitigate ICT risk scenarios.
For the effects of the Russia-Ukraine war, please refer to the
dedicated paragraph of the AR (p. 130).
The table below provides a summary view of Eni ESG risks
classified according to the areas of Legislative Decree 254/2016.
For each risk event, the type of risk – top risk and non-top risk –
and the page references, where the main treatment actions are
set out, are indicated.
RISK MANAGEMENT MODEL
SCOPE OF LEGISLATIVE
DECREE 254/2016
RISK EVENT
TOP
RISK
MAIN TREATMENT
ACTIONS
CROSS-CUTTING
RISKS
• Risks associated with research and
development activities
• Cyber Security
• Relationship with local stakeholders
NFI - Carbon neutrality by 2050, pp. 164-170;
Safety, pp. 178-180; Respect for the environment,
pp. 180-186.
AR - Integrated Risk Management, pp. 24-29;
Cyber Security Risk, p. 148
AR - Integrated Risk Management, pp. 24-29;
Country risk, pp. 139-140; Specific risks associated
with hydrocarbon exploration and production, pp.
135-139
NFI - Alliances for development, pp. 195-197
• Political and social instability and global security risk
AR - Integrated Risk Management, pp. 24-29;
Country Risk, pp. 139-140
• Risks connected with Corporate governance
AR - Integrated Risk Management, pp. 24-29;
Top risk
(8) For further details, refer to the Integrated Risk Management chapter on pp. 24-29.
ENI ANNUAL REPORT 2022
163
SCOPE OF LEGISLATIVE
DECREE 254/2016
RISK EVENT
TOP
RISK
MAIN TREATMENT
ACTIONS
N
O
B
R
A
C
0
5
0
2
Y
B
Y
T
I
L
A
R
T
U
E
N
CLIMATE
CHANGE
Art. 3.2,
paragraphs a)
and b)
PEOPLE
Article 3.2,
paragraphs c)
and d)
RESPECT
FOR THE
ENVIRONMENT
Article 3.2,
paragraphs a),
b) and c
• Climate Change Risk:
- Energy transition risk
- Physical risks
• Biological risk, i.e. the spread of pandemics and
epidemics with potential impact on people, health
systems and business
• Risks regarding human health and safety:
- Injuries involving workers and contractors
- Process safety and asset integrity incidents
• Risks connected with the portfolio of skills
• Blowout
• Process safety and asset integrity incidents
• Energy sector regulatory risk
• Permitting
• Environmental risks (e.g. water scarcity, oil
spills, waste, biodiversity)
AR - Integrated Risk Management, p. 24-29;
Safety, security, environmental and other
operational risks (HSE), pp. 133-134; Climate
change risk, pp. 143-146
NFI - Carbon neutrality by 2050
(risk management), pp. 164-170
AR - Integrated Risk Management, pp. 24-29;
Specific risks connected to hydrocarbon
exploration and production activities, pp. 135-
139; Safety, security, environmental and other
operational risks (HSE), pp. 143-146;
NFI - People, pp. 171-177, Safety, pp. 178-180
AR - Integrated Risk Management, pp. 24-
29; Specific risks connected to hydrocarbon
exploration and production activities, pp. 143-
146; Safety, security, environmental and other
operational risks (HSE), pp. 143-146; Evolution of
environmental regulation, pp. 143-146; Water risk
pp. 146-150; Emergency and spill management
pp. 146-150
• Involvement in HSE investigations and disputes
NFI - Respect for the environment, pp. 180-186
HUMAN RIGHTS
Article 3.2,
paragraph e)
• Risks associated with the violation of human rights
(human rights in the supply chain, human rights in
security, human rights in the workplace, and human
rights in local communities)
NFI - Human Rights (risk management),
pp. 186-189
SUPPLIERS
Article 3.1,
paragraph c)
TRANSPARENCY,
ANTI
-CORRUPTION
AND TAX
STRATEGY
Article 3.2,
paragraph f)
COMMUNITIES
Article 3.2,
paragraph d)
• Risks associated with procurement activities
NFI - Suppliers (risk management), pp. 190-191
• Compliance risks (antibribery, privacy, etc.)
• Risks connected with local content
AR - Integrated Risk Management, pp. 24-29;
Risks related to legal proceedings and compliance
with anti-corruption legislation pp. 143-148
CGR - Internal control and risk management system
NFI - Transparency, anti-corruption and tax
strategy, pp. 191-194
AR - Integrated Risk Management, pp. 24-29;
Country Risk, pp. 139-140; Specific risks
associated with hydrocarbon exploration and
production, pp. 135-139
NFI - Alliances for development, pp. 195-197
E
C
N
E
L
L
E
C
X
E
L
A
N
O
T
A
R
E
P
O
I
R
O
F
S
E
C
N
A
I
L
L
A
T
N
E
M
P
O
L
E
V
E
D
Top risk
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
164
CARBON NEUTRALITY BY 2050
Aware of the ongoing climate emergency, Eni wants to be
an active part of the energy sector’s transition with a long-
term strategy towards Carbon Neutrality in 2050, in line with
scenarios that are compatible with keeping global warming
within the 1.5°C threshold by the end of the century. Eni has long
been committed to promoting comprehensive and effective
disclosure on climate change and in this respect confirms its
commitment to implementing the recommendations of the
Task Force on Climate Related Financial Disclosure (TCFD)
of the Financial Stability Board, which Eni has adopted since
2017, the first year applicable for reporting.
Disclosure on Carbon Neutrality by 2050 is organized according
to the four thematic areas indicated by TCFD: Governance,
Risk Management, Strategy and Metrics and Targets. The key
elements of each area are presented below; for a complete
analysis of Eni’s climate strategy, please see “Eni for - A Just
Transition” while additional information will be available through
Eni’s disclosure to CDP Climate Change 2023 questionnaire.
Governance
Role of the BoD. Eni’s decarbonization strategy is an integral
part of Eni’s business strategy and is also implemented through
a structured system of Corporate Governance, where the BoD
and the CEO play a central role in managing key climate change
issues. Specifically, the BoD examines and approves the Strategic
Plan proposed by the CEO, which sets out strategies and targets
including those related to climate change and energy transition,
and, starting 2019, examines and approves also Eni’s medium/
long-term plan which aims to outline and monitor the evolution
of decarbonization objectives and their economic and business
sustainability in a time frame up to 2050.
Since 2014, the Eni BoD has been supported in performing
its duties by the Sustainability and Scenarios Committee
(SSC), established on a voluntary basis, which, among
other tasks, periodically examines the integration between
strategy, development scenarios and the medium/long-term
sustainability of the business with a view to energy transition
and climate change. During 2022, the SSC explored various
topics related to climate change, including R&D activities for
the energy transition, carbon pricing systems, agri-feedstock
activities, Nature & Technology Based carbon offsets, Eni’s
positioning on climate targets and strategies versus peers,
Eni’s performance in CDP questionnaires, climate resolutions
and Shareholders’ Meeting disclosures, Carbon Capture and
Storage (CCS) projects, and Just Transition related topics.
With reference to the composition of the Board, it is reported
that on the basis of the self-assessment conducted, about
90% of the Board Members expressed their positive opinion
on the professionalism within the Board – in terms of
knowledge, experience and skills (with particular reference
to advisory, training and publication activities in the energy
and environmental field, participation in governmental and
non-governmental, national and international bodies that deal
with these issues) – and on the personal contribution that the
individual Board Members make to the Board of Directors in
matters of sustainability, ESG and energy transition, which
have characterized the BoD’s work for their entire mandate.
The relevance of these skills is reaffirmed in the Guidelines
for Shareholders on the optimal composition of the Future
Board of Directors, which emphasises the importance of
ensuring Eni’s directors have knowledge of topics related to
sustainability and the control of climate and environmental
risks, acted out in managerial or entrepreneurial roles and
acquired in industrial contexts comparable to those in which
the Company operates.
The commitment of the entire Board of Directors on the
issues of energy transition, climate change, sustainability and
ESG is unanimously recognised in its strategic guiding role
and monitoring activities for the transition path undertaken.
Equally significant is the support provided by the board
committees, in particular the Sustainability and Scenarios
Committee, to maintain continuity of training and discussion
on these topics, which are unanimously seen as growing
in perspective, along with strategy and business issues.
Immediately after the appointment of the Board of Directors
and the Board of Statutory Auditors, a board induction
programme was implemented for directors and statutory
auditors, which covered, among other topics, issues related
to the decarbonization process and the environmental and
social sustainability of Eni’s activities. The economic-financial
exposure of Eni to the risks deriving from the introduction of
new carbon pricing mechanisms is examined by the BoD both
in the phase leading up to authorisation of each investment
and in the following half-year monitoring of the entire project
portfolio. The BoD is also informed annually on the results of
the impairment test carried out on the main Cash Generating
Units. Since 2021, the IEA’s9 NZE (Net Zero Emissions)
scenario is included in the scenarios for portfolio evaluations
(see pp. 143-146, chapter on “Climate Change Risk”). Finally,
the BoD is informed on a quarterly basis on the results of the
risk assessment and monitoring activities related to Eni’s top
risks, including climate change.
(9) International Energy Agency.
ENI ANNUAL REPORT 2022 165
Role of management. All company structures are involved
in the definition or implementation of the carbon neutrality
strategy that is reflected in Eni’s organizational structure
with the two business groups: Natural Resources, active in
the optimisation and progressive decarbonization of the
Upstream portfolio, Natural Climate Solutions
initiatives
and CO2 storage projects, and Energy Evolution, active in the
expansion of bio, renewable and circular economy activities
and the offer of new energy solutions and services. As of 2019,
climate strategy issues are managed by the CFO area through
dedicated structures with the aim of overseeing the process
of defining Eni’s climate strategy and the related portfolio
of initiatives, in line with international climate agreements.
The strategic commitment in carbon footprint reduction is
part of the essential goals of the Company and is therefore
also reflected in the Variable Incentive Plans for the CEO and
Company’s management. In particular, the Long-Term Stock-
based Incentive Plan, in line with the previous one, provides
specific objectives for decarbonization and energy transition
that include the production of biojet fuel and circular economy
projects, for a total weight of 35%, in line with the objectives
communicated to the market and with the aim of aligning with
the interests of all stakeholders. The Short-Term Incentive
Plan, in line with the previous one, is closely linked to Eni’s
strategic transformation targets, including decarbonization
and energy transition objectives consistent with the Long-
Term Incentive Plan, with an overall weight of 25% for the CEO
and, according to weights consistent with the responsibilities
assigned, for all Company management.
Risk management
The process for identifying and assessing climate-related
risks is part of Eni’s Integrated Risk Management Model (see
section “Integrated Risk Management” of the AR, pp. 24-29)
developed to ensure that decisions made take into account
risks from an integrated, comprehensive and forward-looking
perspective. The process ensures the detection, consolidation
and analysis of all Eni’s risks and supports the BoD in checking
the compatibility of the risk profile with the strategic targets,
also in a long-term perspective, and monitoring the evolution
of the main risks and the de-risking actions.
Risks, including Climate Change, are assessed with quantitative
and qualitative tools considering both the probability of
occurrence and the impacts (environmental, health and safety,
social, and reputational) that would take place in a given time
frame if the risk were to occur. These risks are represented
on matrices that allow comparison and classification by
relevance based on the probability of occurrence and impact.
Risks related to climate change are analysed, assessed and
managed by considering the drivers identified in the TCFD
recommendations, which refer both to energy transition risks
(market scenario, regulatory and technological evolution,
reputation issues) and physical risk (acute and chronic)
associated with climate change. The identification of main
transition risks adopts an integrated bottom-up and top-down
approach. The former is applied during risk assessment down
to the business line and subsidiary level, and it assesses the
executive risks related to strategic climate change de-risking
actions through interviews with risk owners. The top-down
approach involves multi-disciplinary teams (covering regulatory,
legal, technological, etc. aspects) and identifies, for in the
medium-to-long-term, possible context developments. The
analysis considers both external sources (e.g. IEA scenarios)
and internal monitoring. Concerning physical risk, Eni has
developed an assessment process that includes both its assets
and those of third parties that may impact Eni’s operations. The
process, which is constantly evolving based on the results of
the first implementations, based on data provided by specialist
data providers, assesses the inherent risk of assets (based on
position and over a 30-year time frame) against ten identified
risks (acute and chronic). The strength and effectiveness of
existing mitigation actions is assessed for exposed assets,
identifying the residual risk (per individual asset). Assets still
exposed are analysed in more detail as part of the Asset Integrity
process with a specific check on the consistency between
adopted design criteria and prospective climatic conditions.
When the process ends, if necessary, further mitigation actions
are identified and implemented. The table below summarises
the main risks and opportunities identified by Eni in relation
to the energy transition. For an in-depth content analysis by
individual driver, including physical risk, please refer to the Risk
Factors section on pp. 126-150 of the AR.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
166
TRANSITION RISKS
OPPORTUNITIES
LOW CARBON
SCENARIO
• Uncertainty on market development for new products
• Changing consumer preferences (e.g. decline in global demand
for hydrocarbons)
• Loss of profits and cash flow
•
•
“Stranded asset” risk
Impacts on shareholders’ returns
• Opening up of new market opportunities for low carbon products
• Development of renewables and low carbon energy
• Growing demand for hydrogen
• Diversification of raw materials for biorefineries and the chemical
industry and development of new products
• CCS development
REGULATORY
AND LEGAL
ISSUES
• New regulatory requirements imposing a potential increase in
operating and investment costs for traditional businesses
• Development of renewables and low carbon energy
• Diversification of raw materials for biorefineries and the chemical
• New regulatory requirements imposing a potential reduction in
industry and development of new products
demand for hydrocarbons
• Proceedings relating to climate change and greenwashing
• Reassessment of assets from a circular perspective
• Energy efficiency interventions with the adoption of BAT
TECHNOLOGICAL
DEVELOPMENTS
• Reduction in hydrocarbon demand through technological
breakthroughs
• Profitability and specific risks of transition technologies
• Development of renewables and low carbon energy
• Development of new products and services through R&D and innovation
• Partnerships for the development of technological solutions to cut
emissions
• Changing consumer preferences
• Deterioration of the sector’s image in the face of accusations
REPUTATION
of greenwashing
Impact on share price
•
• Decline in attractiveness for retail savers
• Development of renewables and low carbon energy
• Positive impact on stakeholder perception (e.g. rise in share price)
• Eni’s distinctive positioning in climate benchmarks
• Partnerships for decarbonization
Strategy and objectives
The pathway towards Eni’s Carbon Neutrality in 2050 includes a
series of objectives that foresee net zero emissions (Scope 1+2) for
the upstream business by 2030 and for Eni’s group by 2035, then
net zero emissions by 2050 for all GHG Scope 1, 2 and 3 emissions
associated with the portfolio of the energy products sold.
• Net Zero Carbon Footprint Upstream (Scope 1+2) @2030,
with an intermediate target of -65% @2025 vs. 2018 and
Net Zero Carbon Footprint Eni @2035;
• -35% Net GHG Lifecycle Emissions (Scope 1+2+3) @2030
vs. 2018, -55% @2035 and -80% @2040;
• -15% Net Carbon Intensity of energy products sold @2030
vs. 2018 and -50% @2040.
The residual emissions will be compensated through offsets, mainly
from Natural Climate Solutions, which will contribute to about 5% of
the overall reduction of the value chain emissions in 2050.
Eni’s decarbonisation objectives are based on a transformation
industrial plan that will be implemented punctually according to
market dynamics and in line with the evolution of the Company,
and which is based on solutions and technologies that are
already available:
• reduction of hydrocarbon production in the medium/long-
term with a plateau expected through 2030 and gradual
growth of the gas share, which will reach more than 60% by
2030 and more than 90% after 2040;
• increase “organic” refining capacity to more than 5 million tonnes
by 2030, palm oil free since the end of 2022 and vertical integration
with Upstream with 700,000 tonnes of feedstock by 2026;
• progressive increase in Plenitude installed renewable capacity
with over 15 GW by 2030, to reach 60 GW in 2050 within a
customer base growth to more than 20 million in 2050;
• business development for sustainable mobility with about
30,000 charging points for electric vehicles by 2026 and
about 160,000 by 2050;
• progressive increase in the production of new energy
carriers and magnetic fusion, with the first operational plant
expected by the beginning of 2030;
• development of CO2 storage hubs for hard-to-abate emissions
both from Eni and third-party industrial sites, reaching a
storage capacity of about 50 MtCO2 in 2050 (Eni share).
The evolution towards a portfolio of totally decarbonised
products will be supported by the progressive growth of
investments dedicated to new energy solutions and services,
reaching 30% of total investments in 2026, 70% in 2030 and up
to 85% in 2040. After 2035, these activities will generate positive
free cash flow and contribute to about 75% of the Group’s cash
flow average over 2040-2050. Spending on zero and low-carbon
activities will amount to €13.8 billion10 in the 2023-26 period. Eni
is also committed to aligning its plans and investment decisions
to its decarbonisation strategy: the share of expenditures related
to O&G activities will be gradually reduced and main investment
projects evaluated consistently with emission reduction targets
and the commitment to gradually phase out investments in
carbon-intensive “unabated” activities or products, as a necessary
condition to achieve carbon neutrality by mid-century. The
decarbonization plan is integrated into Eni’s financing strategy,
which aligns economic and environmental sustainability, with
the issuance, in 2021, of the first sustainability-linked bond
of the O&G sector and in 2022 the underwriting of a €6 billion
committed sustainability-linked credit line, both tied to the
company’s announced energy transition goals.
(10) This expenditure, unlike the EU Taxonomy regulation, also includes interventions made in JVs, all expenditures that contribute to emission reduction (e.g., energy efficiency
and routine flaring abatement interventions), and what supports the development of the Plenitude customer base.
ENI ANNUAL REPORT 2022 167
Performance metrics and comments
Eni has historically been committed to reducing its direct
GHG emissions and was among the first in the industry to
have defined, starting in 2016, a series of objectives aimed at
improving GHG emissions performance from operated assets,
with specific indicators that illustrate the progress achieved to
date. In addition to these, in 2020 new indicators were defined,
accounted for on an equity basis. These indicators refer to
a distinctive GHG accounting methodology that considers
all energy products managed by Eni’s various businesses,
including purchases from third parties, and all the emissions
they generate along the entire value chain (Scope 1+2+3),
according to a well-to-wheel approach.
The methodology was developed with the collaboration of
independent experts. The resulting indicators are subject to
third-party verification as part of Eni’s GHG data verification
process (see the Eni for Sustainability Performance 2022 for
the auditor’s report and GHG Statement).
The performance of key equity indicators is described below:
Net GHG Lifecycle Emissions: the indicator refers to all Scope
1, 2 and 3 emissions associated with Eni activities and energy
products sold by Eni, along their value chain, net of offsets,
mainly from Natural Climate Solutions. In 2022, the indicator
decreased by about 8% compared to 2021, mainly driven by
the decline in upstream production and gas sales in the GGP
sector.
Net Carbon Intensity: the indicator is calculated as the ratio
between absolute net GHG emissions (Scope 1, 2 and 3) along
the value chain of energy products and the amount of energy
they contain. In 2022, it was essentially stable compared
to 2021 (-0.4%); the trend is influenced by the increase in
renewable energy production (+160% vs. 2021), partly offset by
the reduction in GGP’s gas sales.
These metrics are integrated by specific indicators to monitor
operational emissions:
Net Carbon Footprint Upstream: the indicator considers
Scope 1+2 emissions from all upstream assets, operated by
Eni and by third parties, net of offsets mainly from Natural
Climate Solutions. In 2022, the indicator decreased by around
11% compared to 2021 mainly in relation to lower upstream
production and compensation through carbon credits, which in
2022 amount to 3 MtCO2eq. The credits are linked to Natural
Climate Solutions (NCS) projects to halt deforestation.
The indirect GHG emissions Scope 3 are accounted for in
accordance with IPIECA guidelines, which require an activity-
based analysis. These include GHG emissions related to the final
consumption of the products sold (the so-called Scope 3, end-use
category) form the largest contribution, and are calculated on the
basis of upstream production in equity share. These emissions
form part of the Scope 3 end-use emissions considered in
the Net GHG Lifecycle Emissions and Net Carbon Intensity
indicators. In particular they represent the emissions from end
users from Eni’s upstream supply chain. They decreased by 7%
in 2022 compared to 2021 due to the reduction in hydrocarbon
production sold by the upstream business. For the other Scope 3
emission categories, the trend is broadly constant over the 2016-
2022 period.
With reference to operated assets, the following is a summary
of the performance of the main indicators, accounted on a
100% basis according to the operatorship approach.
Overall, direct GHG Scope 1 emissions from the assets
operated by Eni, in 2022 amounted to 39.4 million tons of
CO2eq., a slight reduction compared to 2021, mainly due
to the decrease of emissions in the upstream, power and
chemicals sectors, partially compensated for by an increase
in the transport and gas liquefaction sector. Indirect GHG
Scope 2 Emissions decreased by about 3% in 2022 compared
to 2021 due to lower consumptions in the Chemicals sector
(new Porto Marghera plant configuration). These emissions
are related to the purchase of energy from third parties for
the consumption of the operated assets and are marginal
for Eni as electricity is generated mainly through its own
installations.
The energy efficiency interventions implemented in the year
resulted in actual primary energy savings compared to baseline
consumption of about 422 ktoe/year resulting mainly from
upstream projects (about 84%), with an emission reduction
benefit of about 1 million tons of CO2eq. If Scope 2 emissions,
i.e., those from power and heat purchase, are also considered,
the net CO2 savings from energy saving projects amount to
about 1.1 million tons of CO2eq.
In 2022, Eni’s consumption of raw primary sources decreased
also in relation to lower production levels compared to 2021.
The total energy consumed was 517 million GJ: upstream
226 million GJ, Power 161 million GJ, R&M 60 million GJ and
Chemical 55 million GJ.
Net Carbon Footprint Eni: the indicator considers Scope 1+2
emissions from activities carried out by Eni and third parties,
net of offsets, mainly from Natural Climate Solutions.
In 2022, the indicator decreased by around 11% mainly in
relation to a decrease in emissions from the Upstream and
Power businesses and compensation through carbon credits,
which in 2022 amount to 3 MtCO2eq.
Concerning upstream operated assets, the overall reduction
of the Scope 1 GHG emission intensity with respect to 2014
is around 23%, slightly behind schedule, mainly due to COVID
pandemic and local factors in Libya. Flaring down and CCS
projects are being sanctioned, and their impact on target
achievement date will be evaluated. With respect to 2021,
the index slightly increased mainly in relation to the exit
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 168
of Vår Energi from the operated domain. The volumes of
hydrocarbons sent for routine flaring decreased by around 9%
in 2022 compared to 2021, mainly due to energy efficiency
and flaring down interventions in Egypt and Nigeria. Fugitive
emissions are decreasing thanks to LDAR (Leak Detection And
Repair) campaigns implemented periodically with a reduction
of emission of about 50 ktCO2eq. compared to 2021. Methane
emission intensity is improving and equal to 0.08%, in line
with the commitment to maintain it below 0.2%.
In 2022, the renewables business reached an installed capacity
from renewable sources of 2.3 GW (doubling the result
for 2021). This growth was achieved thanks to the organic
development of projects in the United States (Brazoria, Texas),
Spain (Cerillares) and Kazakhstan (Badamsha 2), as well as
recent acquisitions in Europe (PLT Group, Fortore Energia in
Italy and Cuevas in Spain) and the United States (Corazon,
Texas). Renewable energy production reached 2.8 TWh (more
than twice the 2021 result), thanks to the contribution of both
organically developed and acquired assets in operation.
Compared to 2021, the production of biofuels has declined
due to a few stops at the biorefinery in Gela; production in
Venice grew. For 2022, the financial commitment of Eni in
scientific research and technological development amounted
to €164 million, of which €114 allocated to the process
carbon footprint reduction, circular economy, renewable
energy exploitation and magnetic confinement fusion. This
expenditure includes, in particular, the topics of biorefining,
chemistry and energy production from renewable sources
(including biomass), energy storage, CO2 capture, transport,
storage and reuse, carbon footprint reduction of processes,
gas utilization with a view to blue hydrogen production, green
hydrogen production.
Climate disclosure - Transparency in climate related disclosure
and the strategy implemented by the company have enabled
Eni to be confirmed, once again in 2022, as a leading company
in CDP Climate Change Programme. The A- rating achieved by
Eni is higher than both the global average (C) and the sector
rating of B11.
In the same year, Carbon Tracker’s12 research on Integrated
Energy Companies (IEC) placed Eni first among the peers for
the completeness of the GHG emissions methodology, the
medium/long-term intermediate targets and the emission
boundary extended to the entire company. For the second year
in a row, the Net Zero Company Benchmark of the CA100+13
investor coalition reported Eni as one of the companies most
aligned with the Benchmark requirements regarding GHG
emission reduction targets, governance and climate disclosure.
The CA100+ valuation is one of the primary references for the
dialogue with investors on aspects related to climate strategy.
Commitment to partnerships - Partnerships are one of the
strategic drivers of Eni’s decarbonization path, as the company
has long been working with the academic world, civil society,
institutions and businesses to promote the energy transition,
making it possible to exploit and generate knowledge, share
best practices and support initiatives that can simultaneously
create value for the company and its stakeholders. Within the
framework of its partnerships and advocacy activities, Eni
supports and shares clearly and transparently its positioning
on the principles considered essential in climate protection,
having published its guidelines on responsible climate change
engagement within the associations to which it belongs in
202014. The alignment between Eni’s positioning and the
business associations it participates in is periodically assessed
through the “Assessment of industry association’s climate
policy positions”14. Among the many international climate
initiatives Eni participates in, the Oil and Gas Climate Initiative
(OGCI) plays a key role in accelerating the Oil & Gas industry’s
response to the challenges of climate change. Established in
2014 by five companies, including Eni, OGCI now counts twelve
Oil & Gas companies, representing about one-third of the
global hydrocarbon production. The CEOs of the participating
companies sit on the initiative’s Steering Committee.
(11) On an assessment scale from D (minimum) to A (maximum).
(12) Independent financial think tank that has been conducting analyses for years to assess the impact of the energy transition on carbon intensive companies and financial markets.
(13) Climate Action 100+ is the largest shareholder engagement initiative on climate change issues with about 700 investors to date.
(14) Guidelines on responsible climate change engagement in trade associations can be found at Eni.com
https://www.eni.com/assets/documents/investor/2020/eng/Assessment-of-industry-associations-climate-policy-positions.pdf
ENI ANNUAL REPORT 2022
KEY TARGET INDICATORS15
Net Carbon Footprint upstream (Scope 1+2)
Net Carbon Footprint Eni (Scope 1+2)
Net GHG Lifecycle Emissions (Scope 1+2+3)
Carbon credits
Net Carbon Intensity (Scope 1+2+3)
Renewable installed capacity(a)
Capacity of biorefineries
(a) This KPI represents Eni’s share and relates primarily to Plenitude.
KEY PERFORMANCE INDICATORS
GHG EMISSIONS
Direct GHG emissions (Scope 1)
of which: equivalent CO2 from combustion and process
of which: CO2 equivalent from flaring(a)
of which: equivalent CO2 from venting
of which: CO2 equivalent from methane fugitive emissions
Carbon efficiency index (Scope 1 and 2)
Direct GHG emissions (Scope 1)/100% operated
hydrocarbon gross production
Direct GHG emissions (Scope 1)/Equivalent
electricity produced (Enipower)
Direct GHG emissions (Scope 1)/Refinery
throughputs (raw and semi-finished materials)
Direct methane emissions (Scope 1)
of which: fugitive upstream
Upstream methane emission intensity
Volumes of hydrocarbon sent to flaring
of which: Upstream routine
Indirect GHG emissions (Scope 2)
169
2022
2021
2020
(million tonnes CO2eq.)
(gCO2eq./MJ)
MW
9.9
29.9
419
3
66
11.0
33.6
456
2
67
2,256
1,188
(million tonnes/year)
1.1
1.1
11.4
33.0
439
1.5
68
351
1.1
Target
UPS Net zero @2030
ENI Net zero @2035
Net zero @2050
<25 @2050
Net zero @2050
15 GW @2030
>5 million tonnes/year @2030
2022
2021
2020
of which fully
consolidated
entities
Total
Total
Total
(million tonnes CO2eq.)
39.39
29.77
6.71
2.72
0.20
23.81
20.51
2.64
0.55
0.11
40.08
37.76
30.58
29.70
7.14
2.12
0.24
6.13
1.64
0.29
(tonnes CO2eq./thousand boe)
32.67
49.10
31.95
31.64
20.64
23.54
20.19
19.98
(gCO2eq./kWheq)
392.9
393.4
379.6
391.4
(tonnes of CO2eq./thousand of tonnes)
233
(thousands of tonnes of CH4)
49.6
7.2
(%)
0.08
(billion Sm3)
2.1
1.1
(million tonnes CO2eq.)
0.79
233
26.4
3.6
n.a.
n.a.
n.a
0.55
n.a.
2,249
359.1
260.1
99.0
14.1
11.6
2.5
1.3
228
54.5
9.2
248
55.9
11.2
0.09
0.09
2.2
1.2
0.81
176
1.8
1.0
0.73
185
1,166
393
529.1
515.3
429.0
421.9
100.1
21.7
18.3
3.4
1.7
93.4
20.2
16.9
3.3
1.8
Indirect GHG emissions (Scope 3) from use of sold products(b)
164
ENERGY
Electricity produced from renewable sources(c)
Primary source consumption
of which: natural/fuel gas
of which: other primary sources
Primary energy purchased from other companies
of which: electricity
of which: other sources(d)
Hydrogen consumption
(15) Indicators accounted for on an equity basis.
(GWh)
2,836
(millions of GJ)
498.2
395.1
103.1
17.6
15.0
2.6
1.3
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 170
KEY PERFORMANCE INDICATORS
Total energy consumption
Energy consumption must come from renewable sources
of which: electricity from photovoltaics
of which: biomass
Export of electricity to other companies
Export of heat and steam to other companies
2022
2021
2020
of which fully
consolidated
entities
374.4
5.1
4.0
1.1
Total
517.1
5.1
4.0
1.1
Total
552.5
Total
537.3
1.5
0.6
0.9
0.9
0.7
0.2
177.8
157.8
183.0
167.7
5.7
5.2
5.4
5.7
Energy Intensity Index (refineries)
(%)
115.5
115.5
116.4
124.8
Energy consumption from production activities/100% operated
hydrocarbon gross production (upstream)
Net consumption of primary sources/equivalent electricity
produced (Enipower)
(GJ/toe)
1.41
(toe/MWheq)
0.18
n.a.
0.18
1.45
0.16
1.52
0.17
PRODUCTION OF BIOFUELS
Sold production of biofuels
R&D
R&D expenditures
of which: related to decarbonization
Patent application first filings
of which: related to renewable energy sources
(ktonnes)
428
428
585
622
(€ million)
164
(number)
114
23
13
164
114
23
13
177
114
30
11
157
74
25
7
Unless otherwise indicated, the emission and consumption KPIs refer to 100% data of the assets operated.
(a) From 2020, the indicator includes all Eni emissions deriving from flaring, also aggregating the contributions of Refining & Marketing and Chemistry, which until 2019 are accounted for in the combustion
and process category.
(b) Category 11 of GHG Protocol - Corporate Value Chain (Scope 3) Standard. Estimates based on upstream (Eni’s share) production sold in line with IPIECA methodologies.
(c) In line with the company’s strategic objectives, this indicator is reported on an equity basis. This KPI represents Eni’s share and relates primarily to Plenitude.
(d) This includes steam, heat and hydrogen.
ENI ANNUAL REPORT 2022 171
OPERATIONAL EXCELLENCE
Eni’s business strives for operational excellence through a
continuous commitment to people’s value, health and safety; asset
integrity; protection of the environment; respect for human rights;
business resilience and diversification; and financial strength.
These elements allow Eni to seize the opportunities related to the
possible evolutions of the energy market and to continue on its
path of transformation.
People
The Eni business model is based on internal competencies, an
asset in which Eni continues to invest to ensure their alignment
with business needs, in line with its long-term strategy. Planned
evolution of business activities, strategic directions and the
challenges posed by changes in technology and the labour market
in general imply an important commitment to increase the value of
human capital over time through upskilling and reskilling initiatives,
aimed at enriching or redirecting the set of skills required. In 2022,
initiatives continued to communicate and assimilate a new model
of capabilities and behaviours aimed effectively managing the
transition, initiating processes to revise professional models and
upgrade skills for the growth of more complete and integrated
professionalism. Concerning the management of its resources,
Eni launched a new model for resource management and
development (People Journey) that defines development paths
throughout the corporate lifecycle. These paths are diversified
and consistent with the new business model to enhance the
various professional skills and talents in an inclusive logic
while fostering people’s motivation, sense of belonging and
proactivity. In this respect, the appointment processes for
about 400 senior profiles identified within the planned pathways
were finalised in 2022, the revision of the models concerning
about 4,400 resources was completed and the updating of
the models involving a further 5,700 resources was started. In
addition, internal mobility initiatives have resumed, recording an
increase of around 28% in 2022 over the previous year, thanks to
improvements to the internal job posting site and international
mobility initiatives to foster greater international exposure.
These actions have strengthened a cross-cultural approach that
enhances the richness of continuous exchange and comparison
between contexts.
A CULTURE OF PLURALITY AND PEOPLE DEVELOPMENT
Eni’s approach to Diversity & Inclusion (D&I) is based on
the
fundamental principles of non-discrimination, equal
opportunities and inclusion of all forms of diversity, as well
as of integrating and balancing work with personal and family
concerns of Eni people.
(a) combining business objectives with
The D&I strategy has a number of fundamental objectives,
such as
the
valorisation of uniqueness; (b) promoting the well-being
of all Eni people as individuals and as part of the corporate
system; and (c) achieving a sustainable inclusion process.
Implementation of the strategy and action plan – defined
through listening and involvement initiatives at all company
levels – envisages focusing efforts on two priority areas of
intervention: the creation of an inclusive mindset and the
identification of actions aimed at specific targets such as
gender, internationality, age, disability and sexual orientation.
In 2022, the following training and communication initiatives
continued: (i) D&I Matters, focused on some typical areas of
diversity analysed through the lens of Unconscious Biases
and actions aimed at overcoming them; (ii) Eni for Inclusion,
a month dedicated to spreading the culture of valuing
diversity; (iii) Community internal D&I confrontation; (iv)
anti-discrimination and harassment, for management and
personnel, in view of the new corporate standard, implementing
the ILO190 Convention; (v) communication campaigns to
support women (e.g. #IoConLei Orange the World United
Nations campaign to end of violence against women); (vi)
launch of the project for listening directly to people abroad
on the D&I topics. Eni also continued and enriched initiatives
to strengthen the presence and empowerment of women,
including through activities for attracting female talent and
promoting technical-scientific subjects (STEM) among female
students thanks to the growing and effective testimony of
role models and ambassadors, and with the valorisation of
the female presence in positions of corporate responsibility;
partnerships were also set up aimed at strengthening
women’s empowerment and entrepreneurship (e.g. Women
X Impact). Specific projects were launched to promote the
inclusion of people with disabilities16 and their families. For
example, assessing the accommodation capacity of offices
and workplaces (pilot on five buildings) in terms of logistics
and working tools made it possible to structure a work plan
for the coming years.
(16) Applied disability includes all forms of physical, cognitive, sensory and even temporary and hidden frailty.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
172
Particular attention was paid to the communication of an
inclusive mindset (especially sexual orientation and gender
identity) through numerous actions of engagement, listening,
awareness-raising and communication to all colleagues in Italy
and abroad while respecting the regulations of the Countries
of reference. With a focus on Age, Eni reviewed the path of its
resources in the first three years after recruitment, specifically
focusing on the first months of entry. There are also mentoring
and coaching programmes. The latter is highly recommended
for new teams, especially those facing significant transition
challenges. In 2022, the focus on internationality was confirmed
while enhancing local content through the involvement of local
personnel in the operating activities of individual Countries,
leading to the use of expatriate staff only for particular
professionalism and skills that are difficult to find in the
Country of reference. In addition, a listening activity involving 17
Countries was carried out to identify specific D&I target groups,
especially in relation to the local context. Remuneration policies
for Eni employees are defined according to an integrated model
at global level and promote salary progression linked exclusively
to meritocratic criteria referring to the skills expressed in the
role held, the performance achieved and the references of the
local remuneration market. In order to verify implementation
of these policies, Eni has been monitoring on an annual basis
the wage gap between women and men since 2011, finding a
substantial alignment of remuneration. In addition, in relation to
ILO (International Labour Organization) standards, Eni performs
annual analyses on the remuneration of local personnel in the
main Countries in which it operates, which show minimum
salary levels of Eni personnel significantly higher than both the
minimum legal salaries and the minimum market remuneration
levels, identified for each Country by international providers
(for further information, see Report on remuneration policy and
remuneration paid 2023). In 2022, performance appraisal and
management review processes covered 91% and 96% of the
target population. Potential appraisal activities covered 97% of
the planned total, with a slight decrease mainly due to the entry
of new resources (especially from abroad).
is
TRAINING
Classroom, distance and self-study training
increasingly
instrumental in achieving the corporate mission and supporting
change. To increase training quality, microlearning initiatives (a
teaching methodology characterised by small portions of training
content) were carried out, with which the platform (also accessible
by third parties (Mychange) was enriched with training content
related to energy transition, sustainable development and digital
transformation. In addition, retraining through upskilling and
reskilling initiatives continued this year (a two-year training project
linked to the Expansion Contract was presented to the Ministry
of Labour and Social Affairs), to integrate new skills necessary
for business evolution (professional and behavioural) or for the
challenges posed by technological change and the labour market.
Training efforts on the new Code of Ethics, induction courses for
new recruits on leadership and, in continuation of previous years,
on HSE and Human Rights issues were addressed. Finally, a
course on inclusive behaviour for all employees was updated, and
a first edition was delivered at the end of the year.
INDUSTRIAL RELATIONS
In Italy, on May 2nd, 2022, an Expansion Contract was signed
between Eni, the Ministry of Labour and Social Policies and
trade unions, valid for two years (2022-23). This contract
confirms itself as an instrument to support the energy transition
transformation and allows for generational change by including
new key professional figures for the decarbonization process,
the implementation of an essential investment for educating
and training all employees with upskilling and reskilling paths,
and at the same time a critical turn-over plan. In 2022, meetings
continued with the trade unions as envisaged in the INSIEME
Protocol “Industrial Relations Model to Support the Energy
Transition Path”, and in November, an agreement was signed to
integrate the results bonus, which recognised the extraordinary
contribution made by Eni people to achieving the company’s
positive results through a 30% increase in the 2022 bonus and
a simultaneous advanced payment in November. On December
12, 2022, the NOI - Protocol on initiatives and services for the
well-being of Eni people was signed with the trade unions. It
strengthens welfare by intervening in health, social security,
income support, housing and support in family management,
seeking a proper balance with work activities. It presents an
increasingly attentive approach to the personal and social
sphere, bringing the company closer to people’s needs by
further improving the existing services offered, making them
easier to access throughout the territory.
international
in June 2022,
Abroad,
industrial relations
meetings were held, namely the 25th meeting of the European
Works Council (EWC) for Eni employees, the European Agency
for Health, Safety and the Environment and the annual meeting
provided for by the Global Framework Agreement on International
Industrial Relations and Corporate Social Responsibility. The
meetings focused on Eni’s commitment to a fair and equitable
energy transition as part of its decarbonization pathway
including the R&D initiatives, and presenting the Eni Plenitude
and Versalis17 bio-circular economy models. To integrate Eni’s
strategy more fully with participatory models, including from a
transnational perspective, energy transition has been included
among the EWC’s information and consultation topics. The
EWC agreement was renewed for a further four-year period.
During the year, a gradual extension of the Smart Working
discipline to realities abroad was initiated.
CORPORATE WELFARE AND WORK-LIFE BALANCE
Eni has a system of corporate welfare and benefits that
includes a set of services, initiatives and instruments aimed
(17) Versalis is Eni’s chemical company, committed to sustainable and circular chemistry to contribute to the energy transition.
ENI ANNUAL REPORT 2022 173
at improving the well-being of employees. Eni’s Smart Working
(SW) model (agreement signed in October 2021) provides all
employees in Italy with 8 days/month for office sites and 4
days/month for operational sites and numerous Welfare
options to support not only parenthood and disability but also
the health of individuals or their cohabiting family members. It
is further enriched by an opportunity to manage a cohabiting
family member’s temporary, sudden and unplannable health
problems. The SW model has been progressively adopted
in other Countries as well, in line with local regulations.
Furthermore, again in relation to parenting, in all Countries
where Eni operates, it continues to recognise: 10 working
days 100% paid to both parents, 14 minimum weeks’ leave for
the primary carer as per the ILO convention and the payment
of an allowance equal to at least 2/3 of the salary received in
the previous period. As far as welfare services are concerned,
Eni has a system of benefits ranging from health protection
to social security coverage, from recreational and educational
services to financial and
insurance services, and from
mobility to catering. Further services have been planned that
will be provided in 2023, based on listening to the following
emerging needs: work-life balance, psychophysical well-being,
caregiving needs and new parenthood.
HEALTH
Eni considers health protection an essential Human Right
and promotes the psycho-physical and social well-being of its
people, their families and the communities of the Countries in
which it operates (see chapter “Alliances for development”).
The extreme variability of working contexts requires a constant
effort to update health risk matrices and makes it particularly
challenging to guarantee health at every stage of the business
cycle. To rise to this challenge, Eni has developed a health
management system that ensures services to its people, covering
industrial hygiene, traveller medicine,
occupational health,
health assistance and medical emergency, health promotion
initiatives, assessment of the impacts of business operations
on the health of communities, as well specific programs to
support the communities in which it operates. In addition to the
maintenance and continuous improvement of health services,
the health management strategy aims to: (i) strengthen the
access to care for all Eni people; strengthen community-based
interventions; strengthen emergency assistance services and
initiatives to support situations of fragility, in particular, regarding
to the COVID-19 pandemic, and mental health protection; (ii)
spreading the culture of health through initiatives in favour of
workers, their families and communities identified with the
analysis of the health indicators available to the general public;
(iii) implementing occupational medicine activities also with the
contribution of scientific research and in consideration of the risks
related to new projects and industrial processes, and the results
of industrial hygiene activities; (iv) promoting the digitalization
of health processes and services through the use of information
technologies, telemedicine, and mobile communications. In
2022, all of the Group companies continued the implementation
of health management systems with the objective of promoting
and maintaining the health and physical, mental and social well-
being of Eni people and ensuring adequate risk management
in the workplace. Initiatives include the pilot launch of a home
and digital assistance project, “Più Salute” (More Health),
for employees and their families; the activation of a PFA
(Psychological First Aid) service in the event of catastrophic,
sudden and unexpected events, through an external provider,
made up of specialist psychologists, available to 100% of
employees; and the strengthening of health promotion activities
through new digital tools for internal communication. Research
activities continued in cooperation with research centres and
universities to assess the health impact of new production
processes and business models related to the energy transition.
Collaboration with health institutions in Countries of presence
and with international organisations was strengthened, including
a contribution to a WBCSD report on the role of businesses in
contributing to global health. Finally, concerning the COVID-19
emergency, continued support was given to business units
through specific initiatives: monitoring epidemiological updates
and new guidelines issued by international bodies; continuous
updating and implementation of measures for prevention and
containment; implementation of travel medicine measures to
reduce the risk for travelling personnel; and use of the international
transport service with medical support for personnel suffering
serious health conditions.
Performance metrics and comments
EMPLOYMENT AND DIVERSITY
Overview - Overall employment amounts to 31,376 people, of
whom 20,471 in Italy (65.2% of Eni’s employees) and 10,905
abroad (34.8% of Eni’s employees). In 2022, employment at global
level dropped by 512 people compared to 2021, equal to -1.6%,
with a decrease both in Italy (-161 employees) and abroad (-351
employees). The decrease in employment is linked: (i) in Italy to
personnel turnover, achieved through extraordinary instruments
that minimise the social impact (Expansion and “Isopensione” -
Early Retirement - Contract), almost entirely offset by new hires
and acquisitions; (ii) abroad to M&A transactions (divestments
and deconsolidation) relating to optimising the Natural Resources
business portfolio. In 2022, the female presence increased by
0.6 percent compared to 2021, with simultaneous growth also in
positions of responsibility (1.2 percent vs. 2021).
Hires - Overall, in 2022, 2,524 people were hired (+93% approx.
vs. 2021) of which 1,796 with permanent contracts ( approx.
+86% vs. 2021). About 47% of permanent hires involved
employees up to the age of 30. Of the total number of hires,
approximately 66% were for the Energy Evolution Department
(total 1,656, including 1,199 permanent and 457 with fixed-term
contracts), 20% for the Natural Resources Department (total
502, 319 permanent and 183 fixed-term) and the remaining 14%
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 174
in Support Functions (total 366 of which 278 permanent and 88
fixed-term).
Terminations - 2,683 contracts were terminated (1,556 in Italy and
1,127 abroad), 2,215 of which were permanent contracts18, with a
30% impact on female personnel. 40% of employees with permanent
contracts who ended their employment in 2022 were under 50 years
of age. Eni’s transformation process, which requires a high skills
turnover, is also reflected in the trend in the turnover rate, which in
2022 was the highest for the last four years, equal to 12.6%.
Turnover rate - Eni’s transformation process, which needs a
strong turnover of competencies to support the energy transition,
can also be seen in the trend of the turnover rate, which in 2022
records the most important measure of the last 4 years (2019:
9.8%; 2020: 6.1%; 2021: 10.5%; 2022: 12.6%).
In the area of inclusiveness and Age Diversity, the figures of
turnover of female staff and the under-30 population increased
vs. 2021: female turnover (16.2% vs. men 11.3%) grows by 4.9
p.p., while turnover under 30 by 18.7 p.p. The turnover for staff
aged 30-50 is slightly up vs. 2021 (+3.2 p.p.), while that of staff
over 50 is essentially stable.
Diversity & Inclusion - In 2022, the percentage of female personnel
grew by 0.6% compared to 2021 and stood at 26.86%, divided by
position (ratio of women to the total): 17.51% of executives, 29.67%
of middle management, 30.73% of white collar workers, 13.86%
of blue collar workers. The overall percentage of women on the
management bodies of subsidiaries has remained unchanged from
2021, and is 24%, while it is down compared to the past, the overall
percentage of women on the supervisory bodies of subsidiaries,
which in 2022 stands at 38% (43% in 2021). In 2022, the percentage
of women in positions of responsibility rose to 28.5% compared
to 27.3% in 2021, in all, women accounted for 26.86% of the total
workforce. At Eni, 33% of those reporting directly to the CEO are
women. There were 662 permanent female hires in 2022 out of
1,796, counting for 36.9%, up slightly compared to 2021 of approx.
+4.4 p.p. with higher than average growth expected compared to the
targets set for 2030 (Gender Diversity target: 2030 vs. 2020 +3 p.p.,
average annual growth +0.3 p.p.). In recent years, about 20% of the
resources in positions of responsibility are local foreign resources.
This figure is in line with 2021, with a slight decrease of -0.8 p.p. due
to changes in the scope of consolidation (deconsolidation in Angola
and divestment in Pakistan).
Eni’s population consists of 108 different nationalities. In Italy,
Eni and its subsidiaries have about 850 employees in protected
categories as set out in Law No. 68/99. More than 60 new
employees belonging to protected categories were recorded in
2022. In addition, Eni has signed institutional commitments for
the placement of approximately 120 resources over the next few
years, a commitment that will be increased to approximately 250
resources.
(18) Of which about 56% due to retirements and 38% due to resignations.
Employment in Italy - There were 1,213 hires in Italy, of which
1,096 permanent contracts (35.2% women). The reduction
in employment of -161 units (-0.8%), carried out through
an extraordinary exit plan, together with a selective and
punctual turnover plan, has allowed the population under 30
to increase by 12.7% in favour of a reduction in the senior age
groups: the population over 50 decreased by 5.8%. Again in
Italy, in 2022, there were 1,556 terminations, 1,437 of which
related to employees with permanent contracts (of which
26% were women). Overall in Italy, at the end of 2022 there
was a replacement ratio between new permanent hires and
terminations of approximately 1:1.3 (1 hire to 1.3 terminations).
Employment abroad - Average presence of local personnel
abroad is constant and around 87% in the last three years on
average. In 2022, there were 1,311 new hires abroad, of which
700 with permanent contracts (39.4% women). The balance
between hires and terminations abroad at year-end was +184,
of which 1,311 hires (65% Energy Evolution Department; 26%
Natural Resources Department; 9% Support Functions) and
1,127 terminations of which 778 were permanent contracts.
Of these, 25.3% regarded employees under the age of 30, and
37.5% were women personnel. Abroad, there was a decrease of
-351 resources (-3.1%) compared to the previous year, compared
to -430 local resources (-4.3%), mainly related to perimeter
changes, +9 Italian expatriates (+0.9%), +70 international
resources (+22%). Abroad there are a total of 1,384 expatriates
(including 1,001 Italians and 383 international expatriates).
Employment by business unit - About 25% of permanent
hires were in the chemical sector, which has strengthened
both in Countries with traditional activities (e.g. France and
UK) and in Countries with new activities (e.g. Mexico, India,
and Romania). Growth also concerned the Retail Market
G&P, Upstream and Support business areas, that further
consolidated their skills and expertise. Terminations mainly
related to the Upstream (19%), Chemicals (22%) and Support
(24%) businesses.
Average age - The average age of Eni people worldwide is 45.1
years (45.9 in Italy and 43.6 abroad), unchanged compared
to 2021; this result was achieved thanks to the important
turnover work carried out through the use of extraordinary
early retirement incentive tools (Expansion and “Isopensione”
Contract) combined with an important recruitment programme
aimed in particular at innovative professionals: 49 years (49.7
in Italy and 47.2 abroad) for senior and middle managers, 44.2
years (45 in Italy and 42.6 abroad) for white collars workers
and 41 years (40.2 in Italy and 41.9 abroad) for blue collars
workers.
REMUNERATION
Eni annually monitors wage equity, a principle explicitly referred
ENI ANNUAL REPORT 2022
175
to in the annual implementation provisions for remuneration
policies, to assess possible corrective actions. Specifically,
in 2022, the ratio of CEO/DG’s remuneration to the median
of employees Italy (main operating location) is 35 for fixed
remuneration and 137 for total remuneration; considering all
employees, these ratios are 35 and 140, respectively. The total
remuneration of all employees compared to 2021 varied by 5.8
percent while that of the CEO/DG varied by 5.3 percent. The
gender pay ratio calculated by professional category shows a
substantial alignment of women’s and men’s remuneration for
middle managers and white collars while for senior managers and
blue collars the deviations are mainly related to a smaller female
presence. The indicator at the overall level, without considering
professional categories, is 101 for fixed remuneration (Italy 102)
and 97 for total remuneration (Italy 98).
INDUSTRIAL RELATIONS
In Italy, 100% of employees are covered by collective bargaining
by virtue of current regulations. Abroad, in relation to the
specific regulations operating in the individual Countries, this
percentage stands at 54.87%.
In Countries where employees are not covered by collective
bargaining, Eni ensures
full compliance
with international and local legislation applicable to the
employment relationship as well as some higher standards
of protection guaranteed by Eni throughout the group through
the application of its company policy worldwide.
in any case
TRAINING
In 2022, training trends tended to remain constant compared to
2021: both the total value of hours used and the average value
confirm the 2021 results with a value of 31.1 per employee
with a different combination for the professional categories.
However, there is a slight increase in the average expenditure
of about 1.4% compared to 2021 due to the resumption of in-
person training. This phenomenon also impacted the delivery
mode mix: distance training decreased slightly from 62%19 to
57% this year.
HEALTH
In 2022, the number of health services provided by Eni was
384,291, of which 243,118 for employees, 72,261 for family
members, 61,230 for contractors and 7,682 for others (e.g.
visitors and external patients). The number of participants
in health promotion initiatives in 2022 was 82,700, of whom
63,760 were employees, 16,019 contractors and 2,921 family
members. As concerns occupational illnesses, in 2022 there
were 29 claims, of which 3 related to current employees
and 26 related to former employees. Of the 29 occupational
disease claims submitted in 2022, 2 were submitted by heirs
(all relating to former employees). As part of digital initiatives
to monitor the healthiness of indoor workplaces, 20 sensors
were tested at onshore operational sites in Italy in 2022. It is
planned to extend testing to 80 sensors, including offshore
and abroad, by 2026.
(19) The data consider the total hours of employee training. The 2020-21 data were restated appropriately following the change in indicator calculation method.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 176
KEY PERFORMANCE INDICATORS
EMPLOYMENT AND DIVERSITY(a)
Employees(b)
Women
Italy
Permanent
Fixed-term
Part-time
Full-time
Atypical temporary workers (agency workers, contractors, etc.)
Abroad
Permanent
Fixed-term
Part-time
Full-time
Atypical temporary workers (agency workers, contractors, etc.)
Africa
Americas
Asia
Australia and Oceania
Rest of Europe
Under 30
30-50
Over 50
Local employees abroad
Employees by professional category:
Senior managers
Middle managers
White collars
Blue collars
Employees by educational qualification:
Degree
Secondary school diploma
Less than secondary school diploma
Permanent employees
Fixed-term employees
Employees with full-time contracts
Employees with part-time contracts(c)
Non-employees (atypical temporary workers)
New hires with permanent contracts
Terminations of permanent contracts
Rate of turnover(d)
Presence of women on the management bodies of Eni subsidiaries
Presence of women on the supervisory bodies of Eni subsidiaries(e)
Local senior managers & middle managers abroad
Non-Italian employees in positions of responsibility
Seniority
Senior managers
Middle managers
White collars
Blue collars
Employees who have taken parental leave(f)
of which: men (returnees)
of which: women (returned)
Rate of return to work after parental leave(f)
of which: men
of which: women
2022
2021
2020
(number)
31,376
31,888
30,775
8,427
20,471
20,340
131
287
8,360
20,632
20,512
120
324
7,559
21,170
21,162
8
359
20,184
20,308
20,811
259
100
10,905
11,256
10,084
10,599
821
288
657
141
10,617
11,115
2,433
2,867
1,872
2,520
89
3,557
2,771
2,728
3,189
1,731
2,786
88
3,462
2,587
17,803
17,302
10,802
11,999
(%)
87
88
(number)
65
9,605
9,003
602
126
9,479
2,329
3,143
925
2,432
87
3,018
2,037
17,225
11,513
87
948
9,056
966
9,113
965
9,172
15,479
15,554
15,941
5,893
6,255
4,697
15,885
15,583
15,345
13,032
13,564
12,826
2,459
2,741
2,604
30,424
31,111
30,165
952
777
610
30,801
31,423
30,290
465
2,828
967
2,275
10.5
24
43
18.03
20.6
22.77
19.59
16.56
13.23
485
2,394
607
1,323
6.1
26
37
19.13
18.6
23.21
20.40
17.03
14.15
575
2,692
1,796
2,215
12.6
24
38
17.73
19.8
22.62
18.86
15.99
12.79
522
129
393
98.08
95.35
98.98
(%)
(years)
(number)
(%)
ENI ANNUAL REPORT 2022 KEY PERFORMANCE INDICATORS
INDUSTRIAL RELATIONS
Employees covered by collective bargaining
Italy
Abroad
TRAINING
Hours of training used(g)
Average training hours per employee per job category(g)
Senior managers
Middle managers
White collars
Blue collars
177
2022
2021
2020
(%)
87.72
100
54.87
81.6
100
41.6
83.40
100
41.78
(number)
939,393
960,152
926,407
31.1
26.6
28.3
31.7
35.1
31.3
30.0
31.9
30.0
35.0
29.6
23.5
26.2
32.2
29
Average training and development expenditure per full time employee(a)
(€)
908.2
895.8
716.1
HEALTH
Occupational illnesses claims received
Employees
Former employees
(number)
29
3
26
30
7
23
28
7
21
(a) As of 2022, the Employment data includes FinProject.
(b) The data differ from those published in the Financial Report because they include only fully consolidated companies.
(c) There is a higher percentage of women (5.9% of the total number of women) with part-time contracts, compared to men, about 0.3% of the total number of men.
(d) Ratio of the number of recruitments + terminations of permanent contracts to permanent employment in the previous year.
(e) For abroad, only the companies in which a supervisory body similar to the Board of Statutory Auditors under Italian law operates were considered.
(f) This indicator refers only to the Italian-employee population.
(g) The data in the table consider the total hours of employee training, of which 78% taken by men and 22% by women. The 2020-21 data were restated appropriately following the change in indicator
calculation method.
GENDER PAY RATIO - 2022(a)
EMPLOYEES IN ITALY
Pay ratio (women vs. men)
Senior Manager
Middle managers and Senior staff
White collars
Blue collars
EMPLOYEES IN ITALY AND ABROAD
Pay ratio (women vs. men)
Senior Manager
Middle managers and Senior staff
White collars
Blue collars
(a) The gender pay ratio is calculated as the ratio of women’s average pay to men’s average pay.
Fixed remuneration
Total remuneration
86
97
102
91
85
93
100
92
79
98
103
91
80
92
100
93
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
178
Safety
For Eni, the culture of safety and the communication of its
indispensable value among employees, contractors and
stakeholders have always been crucial to achieving business
objectives. Eni constantly invests in research and development
for all the necessary actions to be taken to ensure safety at
work, in particular in the development of organizational models
for risk assessment and management and in the promotion of a
culture of safety, in order to pursue its commitment eliminating
accidents and protecting the integrity of its assets. In 2022,
despite the efforts, there were four fatal accidents involving
contractors’ personnel, one in Italy and three abroad. An analysis
of the year’s injuries revealed a prevalence of causes belonging
to the Integrated Systems & Human Performance area, mainly
related to the works management and execution of activities. To
prevent such incidents in the future, initiatives were introduced
to strengthen the awareness and involvement of employees
and contractors in the HSE field (Safety Leadership, Coaching
Programme, promotion of the Stop Work Authority20). Other
activities aimed to improve work areas in terms of personnel
safety, and management documents and operating instructions
were updated. Eni’s commitment also focused on three main
themes: non-technical skills, technical skills and digitalization.
For non-technical skills, the THEME methodology on worker
behaviour and human reliability analysis was applied in 2022
to identify action strategies to fortify human barriers and safe
behaviour. With regard to technical skills, (i) a new training
course on Operational Safety Management was developed and
disseminated to familiarise people with the basic principles and
minimum safety requirements to be applied in risky activities
to prevent the occurrence of possible accidents; (ii) trained
HSE personnel on the new accident root-cause investigation
methodology according
standards. Regarding
to Eni
digitalization, the Safety Presence tool was extended to all
business units. By exploiting artificial intelligence, it can predict
recurring dangerous situations from unsafe conditions/unsafe
acts/near-miss reports and send alerts to the site to implement
corrective actions before an accident occurs. Smart Safety
was extended to contractors, involving wearable devices that
alert workers in dangerous conditions and emergencies. Finally,
the dissemination of the AppHSEni was promoted, allowing for
reporting of unsafe conditions from the field, compiling of Work
Preparation Checklists and field inspections, and consulting the
Safety Golden Rules and Process Safety Fundamentals21.
In the area of process safety, to minimise accidents and improve
performance, Eni carried out several activities: the creation and
widespread communication of Process Safety Fundamentals
(the principles of process safety to be followed during plant
activities); the development of a training course to disseminate
the fundamental elements defined
in the Process Safety
Management System, aimed at all technical/operational and
HSEQ area personnel; the in-depth study of fluid management
safety issues for new energy chains, revising process safety
standards to include specific design requirements for hydrogen,
CO2 and other substances from new chains.
Eni applies the Asset Integrity process to all its plants, which
ensures that they are correctly designed and built properly
with the most appropriate materials, carefully operated and
decommissioned, managing residual risk in the best possible way,
guaranteeing maximum reliability and above all safety for people
and the environment. The Asset Integrity Management System
therefore is employed from the initial design stage (Design
Integrity), to procurement, construction, installation and testing
(Technical Integrity) through to operating and decommissioning
(Operating Integrity). During 2022, Eni continued the organisation
of initiatives to further promote the Asset Integrity culture with
the continuous build-up of its management of data, documents,
and models through the entire life cycle of its assets (“Lifecycle
Information”), taking a cross and widespread approach, including
the new energy transition supply chains.
Regarding the management of contractors, the 147 people of
the Safety Competence Centre (SCC) continued to proactively
monitor and support the process of improvement of companies
towards management models characterised by a safety culture
that is more preventive, monitoring over 2,500 suppliers, equal
to 70% of those with potential HSE criticalities in Italy, managing
the anomalies detected with immediate corrective actions and
sharing innovative good practices. In addition, Safety Pacts
(voluntary agreements with companies) have been extended
to environmental issues at all sites where Eni operates in Italy.
At the same time, they are active or being implemented with
various contractors at some Eni sites abroad (Nigeria, Tunisia,
Congo, Mexico, Angola, USA, Indonesia, Egypt, Ghana, Libya,
Albania, and Pakistan).
Eni promotes technological innovation to design innovative
processes and products, adopt methods and techniques to
reduce hazardous substances and/or encourage the adoption
of products with a lower impact on the environment, health and
safety. According to the regulation, all substances and mixtures
produced and marketed are accompanied by appropriate
technical documentation (which can also be consulted online
in real-time) aimed at informing workers and customers on
optimal handling, storage and disposal conditions and providing
guidance on the correct use of personal protective equipment,
where necessary. Finally, all substances/mixtures classified as
(20) With the Stop Work Authority, every worker at any Eni site has the authority to stop an activity when they detect a dangerous behaviour or condition.
(21) Golden Rules and Eni Principles of Process Safety.
ENI ANNUAL REPORT 2022 179
hazardous to health are assessed for health and safety impact.
Regarding the management system relating to health and
safety in the workplace, Eni’s HSE regulatory system establishes
criteria for clustering the operational units of Eni SpA and its
subsidiaries based on the HSE risk of the activities performed.
Three types of clusters are identified: significant HSE risk
clusters (industrial activities), for which there is an obligation
to adopt an HSE management system, certification to ISO
14001 and ISO 4500122 standards and annual internal HSE
audits; limited HSE risk clusters (office activities or activities
of limited relevance), for which there is an obligation to adopt
(but not certify) an HSE management system and annual or five-
yearly internal HSE audits; and no HSE risk clusters (absence
of employees and operating activities), for which there are
no specific obligations. Within this context, all companies at
significant risk have ISO 45001 and ISO 14001 certification or
have planned to achieve it. All companies at limited risk have
implemented an HSE management system or have planned its
development. In particular, by the end of 2022: 88% of those with
significant risk have already achieved ISO 45001 certification
and 87% ISO 14001, while 79% of those required to develop an
HSE management system have already implemented an HSE
management system. During 2022, more than 1,300 internal
audits on HSE issues were carried out in addition to third-party
audits for maintaining certifications.
Performance metrics and comments
In 2022, the total recordable injury rate (TRIR) of the workforce
increased compared to 2021 (+20%), due to an increase in
the number of total recordable injuries (113 compared to
88 in 2021), in particular recorded by contractors (88 vs. 55
in 2021), while the number of recordable employee injuries
decreased (25 vs. 33 in 2021).
In Italy, the number of total recordable injuries increased
(42 events compared to 35 in 2021, of which 15 employees
and 27 contractors) and the Total Recordable Injury Rate
(TRIR) deteriorated (+22%); abroad, the number of injuries
also increased (71 events compared to 53 in 2021, of which
10 employees and 61 contractors) and the total recordable
injury ratio worsened by 22%. Four fatal accidents were
recorded for contractors, two in Pakistan (a road accident
and an operator hit by an object during maintenance
activities), one in Egypt (fall from height) and one at the
Priolo petrochemical plant (operator hit by an object). The
labour force fatality index was 1.46. The value of the High-
Consequence Work-Related Injuries rate (calculated based
on accidents with more than 180 days of absence and with
consequences such as total or partial permanent disability)
is 0.01, following two accidents, the first an employee in the
UK (crushing of a limb) and the second contractor in Egypt
(operator hit by an object). During 2022, there was a further
decrease in Tier 1 and Tier 223 process safety incidents. It
has decreased steadily since 2016, indicating an increased
focus on process safety issues at all Eni sites. In particular,
17 process safety (PSE) events were recorded in Tier 1 and
21 in Tier 2. More than half of the events (53%) occurred
in upstream activities, 24% in refining activities and 16% in
petrochemicals. Two-thirds of the PSEs resulted in a product
spill, 21% in a fire and 13% in a release into the atmosphere,
to which Eni responded promptly. Concerning reporting
possible hazards at work, there was an increase in the
number of unsafe conditions and unsafe acts recorded in
2022 compared to 2021, thanks to initiatives and tools to
strengthen the reporting and analysis of weak signals.
(22) ISO 14001 relates to environmental management systems, while ISO 45001 relates to health and safety management systems.
(23) Process safety incidents are classified as a function of the severity into Tier 1 (more serious), Tier 2, or Tier 3.1 (less serious).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 180
KEY PERFORMANCE INDICATORS
2022
2021
2020
TRIR (Total Recordable Injury Rate)
(total recordable injuries/hours worked) x
1,000,000
Employees
Contractors
Process safety events
Tier 1
Tier 2
Number of fatalities as a result of work-related injury
Employees
Contractors
Fatality index
Employees
Contractors
(number)
(fatal accidents hours worked) x 100,000,000
High-consequence work-related injuries rate (excluding fatalities)
(high-consequence work-related
injuries/hours worked) x 1,000,000
Employees
Contractors
Near miss
Worked hours
Employees
Contractors
Respect for the environment
(number)
(million of hours)
of which fully
consolidated
entities
Total
Total
0.49
0.36
0.56
16
16
3
0
3
1.92
0
2.89
0.01
0.02
0
631
156.4
52.5
103.9
0.34
0.40
0.32
16
24
0
0
0
0
0
0
0
0
0
780
256.5
82.9
173.6
0.36
0.37
0.35
14
33
1
0
1
0.39
0
0.58
0
0
0
841
255.1
81.8
173.3
Total
0.41
0.29
0.47
17
21
4
0
4
1.46
0
2.13
0.01
0.01
0.01
899
273.7
85.6
188.1
Eni operates in very different geographical contexts, which
require specific assessments of the environmental aspects,
and is committed to strengthening control and monitoring of its
activities by adopting international technical and management
good practices and Best Available Technology. Particular
attention is paid to the efficient use of natural resources (like
water), to reducing oil spills, to managing waste, to managing
the interaction with biodiversity and ecosystem services.
Environmental culture is an important lever for ensuring the
proper management of environmental issues. Therefore, in
2022, Eni continued its awareness-raising activities through
a communication campaign targeting all employees, a series
of “Environmental Talks” on topical issues and the “Together
for the Environment” training course. The latter an e-learning
course on various thematic areas including: the possible
repercussions of an environmental event on a global and local
scale, the value of effective communication of risks associated
with environmental aspects, and roles and responsibilities
in environmental matters. Awareness-raising activities also
involved operational sites with specific engagement activities
on environmental issue management. In 2022, in collaboration
with the University of Padua, Eni launched the Be Green project
dedicated to evaluating and analysing the role of the human
factor and promoting a shared environmental culture at
various levels in the organisation. The campaign to promote
Environmental Golden Rules continued, aimed at employees
and suppliers adopting virtuous behaviour so that their
activities reflect Eni’s values, commitment and standards.
This path led to 19 sites, in Italy, signing Environment and
Safety Pacts involving several suppliers who have committed to
implement tangible improvement actions that can be measured
through the Safety and Environment Performance Index. In
continuity with last year, the Company has continued the
activities dedicated to environmental digitalization for process
optimisation through the creation of IT tools for the management
of environmental compliance, including international compliance,
and site-specific technical-management assessment models.
The transition path towards a circular economy represents
for Eni one of the main responses to current environmental
challenges, through the promotion of a business model
that applies circular principles to existing supply chains and
gives value to new supply chains and sustainable products.
Circular principles are internalised in the upstream, with the
maximisation of opportunities for the reuse of assets and
recycling of materials. The same topics are addressed in
procurement, with awareness-raising actions and involvement
of suppliers on the ‘Open-es’ digital platform. In the downstream
these topics are addressed with the production of biofuels
and, in the coming years, biomethane which will be partially
obtained from the valorisation of waste and scrap, and new
technologies for waste valorisation (e.g. OFMSW). Among its
businesses, Versalis is particularly involved in the developing
ENI ANNUAL REPORT 2022 181
both mechanical and chemical polymer recycling technologies.
Eni Rewind24 enhances the value of soil, water and waste with
sustainable remediation and redevelopment projects.
Eni has continued the development and application of its
Circularity analysis model25, applied to different business
contexts, validated by a third-party certification body, which is
an essential tool for the control, management, transparency
and credibility of the goals and commitments undertaken on
the path towards a circular economy model.
The biorefineries are part of a context of decarbonizing
mobility by offering
low-emission products
increasingly
and maintaining employment. Considering this, in October
2022, Eni permanently discontinued the procurement of
palm oil used in the Venice and Gela biorefineries to produce
hydrogenated biofuels. This allowed the company to reach the
declared goal of becoming “palm oil free” by the end of 2023
in advance. The amount of palm oil was permanently replaced
by alternative feedstocks (e.g. used cooking and frying oils,
animal fats and vegetable oil processing waste) and advanced
feedstocks (e.g. lignocellulosic material and bio-oils) within the
production cycle. Furthermore, in the second half of 2022, the
Gela biorefinery received the first cargo shipment of vegetable
oil produced in the Makueni agri-hub in Kenya (where castor,
croton and cotton seeds are pressed) from agri-feedstocks
produced by Eni that do not compete with the food chain,
grown in degraded areas, harvested from wild trees or resulting
from the valorisation of agricultural by-products. The plan to
spread of HVO (Hydrogenated Vegetable Oil) biofuels is part
of the circular economy, allowing for the addition of value to
agricultural and livestock waste and effluents, for light, heavy,
maritime and aviation transport.
Regarding waste management, Eni pays particular attention to
the traceability of the entire process and to the verification of the
parties involved in the disposal/recovery chain, searching for all
feasible solutions to prevent the generation of waste. Almost all
Eni waste in Italy is managed by Eni Rewind that continued the
digitalization project launched in 2020 to improve the efficiency
and monitoring of its waste management process. In order to
limit the negative impacts related to waste, exclusive use is
made of authorised parties, favouring recovery over disposal, in
line with the priority criteria indicated by European and national
regulations. Eni Rewind, on the basis of the characteristics
of the individual waste, selects technically viable recovery/
disposal solutions, prioritising recovery, treatment operations
that reduce the quantities to be sent for final disposal and
suitable plants at a shorter distance from the waste production
site; furthermore, audits are carried out on environmental
suppliers, to assess their operational waste management.
Eni assesses water use and its impacts on the ecosystem,
other users and the organisation itself to ensure the efficient
management of water resources.
Especially in water stressed areas, Eni carries out the mapping
and monitoring of water risks and drought scenarios to define
short-, medium- and long-term actions aimed at preventing
and mitigating the effects of climate change. In addition, Eni’s
supplier qualification process includes water resource use as
an evaluation element. In 2021 Eni published its own position
on water resources26, in which it undertakes to pursue the CEO
Water Mandate and, in particular, to minimise its fresh water
withdrawals in areas under water stress. The commitments
undertaken lead Eni for optimal water management beyond
the industrial boundary, integrated into the territory and to
minimise the exposure of its activities to water risk, through
an integrated approach at river basin level. In terms of
transparency, in 2022 Eni gave a public response to the CDP
Water Security questionnaire, obtaining an B rating, in line with
the industry average. Eni pursues the reduction of freshwater
withdrawals by acting on two levers: increasing the efficiency
or internal recycling of fresh water and replacing high-quality
freshwater sources (aquifer, surface, municipal or third-
party) with low-quality water, e.g. remediated, wastewater or
desalinated water. Eni Rewind is committed to making the
treated water from its contaminated groundwater treatment
plants (GTP) available for industrial use, reducing high-quality
water withdrawals by using similar quantities of water from
GTP. Efforts to increase the share of re-injected produced
water can reduce sea or brackish water withdrawals,
contributing to the preservation of water resources, especially
in water-stressed areas27. The implementation of specific
projects is carried out in compliance with the necessary local
authorisations, which may require the involvement of local
stakeholders. In addition, Eni has adopted precise internal
standards to be used when mandatory local regulations are
less stringent or absent concerning environment and water
resource conservation, ultimately complying with the primary
international standards. Concerning potentially hazardous
substances28 for which discharges are treated, Eni monitors
its water discharge, particularly hydrocarbons in the discharge
water after treatment and total oils in the discharge produced
water. Internal pre-alarm thresholds are also adopted if the
concentration of micropollutants in discharged water is
exceeded, specific to each production activity, to initiate
timely corrective action, if necessary.
With regard to the management of risks associated with oil spills,
Eni is constantly engaged in every area of intervention: prevention,
preparedness, followed by mitigation, response and recovery.
(24) Eni Rewind is Eni’s environmental company that operates in line with the principles of the circular economy to enhance industrial land, water and waste, or
waste derived from remediation activities.
(25) The model already meets several requirements of the UNI/TS 11820 standard, which was issued at the end of 2022 and is currently the only existing
benchmark/measure.
(26) https://www.eni.com/assets/documents/eng/just-transition/2021/eni-e-acqua-eng.pdf
(27) Water stress areas are identified using Aqueduct, a tool developed by the World Resources Institute, and monitored annually through an internal analysis carried out down
to the detail of the individual operational site.
(28) As regulated by Legislative Decree No. 152 (Consolidated Environmental Act) or similar regulatory reference for foreign Countries.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 182
As part of oil spill prevention in Italy, maintenance was
completed in Val d’Agri on the production network, and the
e-vpms®29 system was upgraded. This update was also
performed for the Leak Detection30 monitoring of the Val d’Agri
Oil Unit (COVA) crude oil transport line and the COVA industrial
water injection line. Once again, in Val d’Agri, Kassandra Meteo
Forecast31 was optimized, the Early Warning weather warning
monitoring programme applied to the continuous control of
hydrogeological risk, COVA water discharge management
and monitoring of agricultural crops (Agri Hub). In addition,
feasibility studies were carried out to evolve this system to
mitigate risks from natural events for use in photovoltaic
and wind power plants (Early Warning for Asset Integrity). In
Italy, the technological upgrade of the e-vpms® system and its
subsequent start-up was carried out on the Rho-Malpensa and
Pantano-Fiumicino downstream lines. Also in Italy, on the retail
network, the precautionary remediation of some underground
tanks and waste oil tank reclamation and decommissioning
was carried out. In Nigeria, the technology upgrade programme
of the e-vpms® system was completed on some trunklines with
the simultaneous start-up. On others, the installation of new
system sensors was completed. Meanwhile, an operational
plan was defined for new e-vpms® installations on the crude
oil production and transportation network. Among the various
sustainable and circular approaches within the remediation
activities is the forthcoming construction of a phyto-purification
plant, which can also be used to treat water from the industrial
process. Furthermore, a set of microbiological analyses was
included to encourage the use of more sustainable remediation
technologies to verify the applicability of bioremediation32. The
screening method for assessing risks from natural events
that may affect pipelines was completed and applied to a
case study. Eni continues to work with IPIECA and IOGP -
International Association of Oil & Gas Producers - to strengthen
marine pollution response capacity downstream of oil spills.
This includes participating in regional initiatives (in areas such
as the Caspian Sea, Black Sea and West/Central/Southern
Africa and Central Eurasia).
in environmental contexts
Operating on a global scale
with different ecological sensitivities, Eni has developed a
science-based Biodiversity and Ecosystem Services (BES)
management model over time that relies on
long-term
collaborations with recognised international organisations,
leaders
i.e. Fauna & Flora
International (since 2003), Wildlife Conservation Society
International
(since 2016) and, most recently,
in biodiversity conservation,
IUCN
-
Union for Conservation of Nature (2022); since 2009, Eni
has been a member of Proteus, a UNEP/WCMC (World
Conservation Monitoring Centre) initiative for collecting and
disseminating global data and information on biodiversity and
ecosystems. For years, this model has been an integral part
of the Integrated HSE Management System, confirming the
awareness of the risks for the natural environment33 resulting
from Eni sites and activities. The BES management model
is a risk-based approach, applied to the existing operations
and to new projects. It ensures that the interactions between
environmental aspects (such as BES, climate change,
water resource management) and social aspects (such
as the development of local communities) are identified
and managed from the early planning stages. BES studies
assess the significance of an impact for each project phase,
combining the magnitude of the impact with the sensitivity
of the BES value in the affected area34. Not only are potential
impacts on priority BES aspects assessed and managed, but
opportunities to contribute positively to their conservation
are also considered. This is done through the systematic
application of
It prioritizes
the Mitigation Hierarchy.
preventative measures over corrective ones and drives
continuous improvement of BES management performance
towards no net loss or net gain, of biodiversity depending on
project-specific risks and context. Active engagement with
stakeholders occurs from the early stages of a project and
throughout its life cycle to ensure the actual application of
the Mitigation Hierarchy. Consultation and collaboration with
communities, indigenous peoples and other local stakeholders
helps to understand their expectations and concerns,
determine how ecosystem services and biodiversity are being
used, and identify management options that include local
needs. Biodiversity risk exposure is periodically assessed
by mapping Eni’s operational sites with respect to their
geographical proximity to protected areas and areas important
for biodiversity conservation. This mapping allows identifying
priority sites where to take action with higher resolution
inquiries to characterize the operational and environmental
context and assess potential impacts to be avoided or
mitigated through Action Plans, (BAP - Biodiversity Action
Plan). Furthermore, BAPs specify the targets, monitoring,
timelines, responsibilities and performance indicators. They
are updated regularly throughout the project’s life, ensuring
effective risk exposure management. In 2019 Eni adopted
a “NO GO” policy in areas UNESCO recognises as sites with
“Outstanding Universal Value” (OUV) and communicated its
(29) e-VPMS® is a technology for detecting vibro-acoustic variations in the structure of pipelines and in the fluid transported by the same, aimed at identifying potential
spills in progress.
(30) Leak Detection is a leak detection system in fluid transport and standby conditions.
(31) Advance warning system able to support the management of oil and gas pipeline integrity and forecast possible hydrogeological risks related to natural events
(flooding and landslides).
(32) Environmental remediation technology that relies on microorganisms capable of biodegrading or detoxifying pollutants.
(33) Indeed, biodiversity loss is now globally recognised as one of the most critical risks in impact and likelihood, on par with climate change and water crises (WEF 2020).
(34) The magnitude describes the level of pressure that the project could exert on the BES value and is calculated as a combination of the duration and/or irreversibility
of the impact and the extent/scale of the affected area. The sensitivity of the BES value is assessed by combining its importance (e.g. presence of threatened species or
critical habitat affected) with its vulnerability and resilience.
ENI ANNUAL REPORT 2022 183
commitment not to carry out exploration and development
activities in Natural Sites on the UNESCO World Heritage List;
furthermore, in joint ventures where Eni is not the operator.
Eni promotes with partners the development and adoption
of good management practices in line with its BES Policy. In
2022, Eni signed a two-year partnership with IUCN to identify
good practices for mitigating biodiversity impact associated
with developing renewable energy projects. Led by IUCN and
The Biodiversity Consultancy with the collaboration of Fauna
& Flora International and four other energy companies, the
project will identify criteria and tools for selecting the the
most environmentally suitable locations for solar and wind
energy development, providing guidance on minimising the
impact on biodiversity in the extraction of raw materials used
in renewable energy components, guidance on managing
cumulative impact, spatial planning and opportunities for for
enhancing nature in solar and wind farm development areas.
Furthermore, in 2022 through industry associations (IPIECA,
WBCSD), Eni participated in the negotiations for the new
Kunming-Montreal Global Biodiversity Framework, welcoming
its objectives and global vision. Among the Framework’s most
significant goals is the requirement for large companies
to transparently monitor, assess and disclose their risks,
dependencies and impacts on biodiversity. This approach
has long been part of Eni’s BES management model, which
provides for a periodic update of biodiversity risk exposure
assessments for the Company’s portfolio operations.
Performance metrics and comments
In 2022, seawater withdrawals were significantly reduced
due to the contribution of all business areas, particularly the
R&M and Chemicals sectors (-200 Mm3 due to maintenance
shutdowns at the Porto Marghera petrochemical plant and the
Taranto Refinery and lower production at the Gela refinery),
Upstream (over -47 Mm3 due to Eni Angola SpA’s exit from the
domain) and Corporate and Other Assets (about -13 Mm3 due
to ILCV SpA’s exit from the domain). Freshwater withdrawals,
which were equal about 9% of total water withdrawals and with
more than 79% accounted for in the R&M and Chemical sector,
recorded an overall increase. This is attributable to the entry of
the Porto Marghera and Ravenna Consortia into the Versalis
consolidation domain. These provide a water management
service for the entire industrial site, including the distribution of
the water withdrawn for companies other than Eni working at
the same location. Excluding withdrawals made for third parties,
freshwater withdrawals used in Eni’s production processes in
2022 are reduced by 2% compared to the previous year, thanks
to initiatives undertaken to optimise internal recovery at the
Sannazzaro refinery, lower electricity production at Enipower,
reduced consumption at the IPP OKPAI power plant in Nigeria
and the start-up of the desalination plant at Zohr in Egypt in the
second half of 2021 with zero freshwater withdrawals.
Eni’s freshwater reuse rate was 90%, down slightly from the
2021 figure (91%), partly due to the general shutdown of
Versalis’ Dunkirk site (more than -111 Mm3 of recycled water).
The percentage of reinjected produced water in the Exploration
& Production sector increased to 59% (58% in 2021), despite
the deconsolidation of Vår Energi and the sale of some assets
in Congo, which resulted in a reduction of both produced
and reinjected water volumes. Analysis of the stress level of
hydrographic basins and further studies carried out locally show
that freshwater withdrawals from areas under stress account
for 2% of Eni’s total water withdrawals in 2022 (data slightly
increased compared to 2021 due to the entrance of the Versalis
Consoria in the domain). In 2022, in particular, Eni withdrew 131
Mm3 of fresh water, of which 30.3 Mm3 was from water-stressed
areas (15.3 Mm3 from superficial water bodies, 6.3 Mm3 from
groundwater, 3.1 Mm3 from third parties, 3.0 Mm3 from urban
networks and 2.6 Mm3 from GTP). Sea water and brackish water
withdrawals in water-stressed areas amounted to 942 Mm3 and
8 Mm3 respectively. Onshore produced water in water-stressed
areas was 21.1 Mm3. In 2022, Eni discharged 98 Mm3 of fresh
water, of which 18.8 Mm3 in water-stressed areas, equal to 19%
(20% in 2021). In 2022 Eni’s fresh water consumption was 122
Mm3 (of which 31.7 Mm3 in water-stressed areas).
Compared to 2021, operational oil spill barrels decreased by
35%. Among the most significant events were a 300-barrel spill
in Egypt from a pipeline transferring crude oil from an offshore
platform to the onshore plant (almost half of the product
was recovered). Of the barrels spilled, 38% are attributable to
activities in Egypt, 19% to those in Lybia and 13% to those in
Nigeria. Overall, almost 22% of the operational oil spill volumes
were recovered.
With regard to sabotage oil spills, the number of occurrences
in 2022 almost doubled compared to last year. Consequently,
the volumes spilt also increased by more than 70%. All events
occurred in Nigeria: among the most significant spills was a
1,250-barrel spill caused by the use of explosives on the Ogoda-
Brass line in the Niger Delta area (over 1,000 barrels were
recovered). Overall, 80 per cent of the total volume from sabotage
was recovered. Volumes spilled from operating spills impacted
45% soil and 55% water bodies, while those from sabotage
impacted 99.6% soil and 0.4% water bodies. Volumes spilled as a
result of chemical spills (47 total barrels) are mainly attributable
to a spill at the Val d’Agri Oil Unit (31 barrels of product).
Waste from production activities generated in 2022 increased
by 29% compared to 2021, mainly due to an increase in the
produced water from Zohr (Petrobel, Egypt) treated as hazardous
waste. Non-hazardous waste increased slightly compared to
2021 (+2%), particularly in refining after line shutdowns at the
Taranto and Gela refineries and for construction sites related to
new lines at the Venice and Livorno refineries.
Enipower (construction of a new boiler and two new turbines at
the Ravenna power plant) and construction activities for new
Plenitude plants in Italy and Slovenia contributed to the upward
trend. Recovered and recycled waste remained stable at 11% of
the total disposed waste35. Disposed waste at third parties was
87% of the total (92% hazardous waste and 83% non-hazardous
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 184
waste), while waste recovered and recycled at third parties was
91% of the total (100% hazardous waste and 89% non-hazardous
waste). In 2022, a total of 4.4 million tons of waste were generated
by remediation activities (of which 4.1 million from Eni Rewind),
consisting of over 84% of treated water from GTP plants, partly
reused and partly returned to the environment; the remaining
volumes are handled and transferred to third-party plants.
Expenditure on remediation activities amounted to €558 million.
Emissions of atmospheric pollutants decreased, with the
exception of particulate matter (PM) emissions, which increased
by 4% compared to the previous year. The reduction in SOx
emissions is linked to the lower volume of gas sent to acid flaring
at the Southern District COVA centre. In contrast, the reduction
in refinery and petrochemical plant production has affected
the reduction in NMVOCs. PM emissions increased overall in
connection as DLNG Service SAE (Damietta LNG) entered the
scope of consolidation and the Sergaz increased gas transport.
The 2022 biodiversity risk exposure assessment showed that
there is overlap, even partial, with biodiversity important areas36
at 21 operational sites37, all located in Italy with the exception
of two sites in Spain and one in France; additional 45 sites37 in
11 countries (Italy, Australia, Austria, France, Germany, United
Kingdom, Spain, Switzerland, Tunisia, Hungary and USA) are
located less than 1 km from protected areas or KBA. About
40% of the sites in, or adjacent to, biodiversity important areas
are sites for renewable energy generation, the remainder
are petrochemical plants, refineries or depots. As regards
the upstream sector, 29 concessions37 partially overlap with
protected areas or KBAs, with operating activities within the
overlapping area. These concessions are found in six Countries:
Italy, Nigeria, Pakistan, the United States (Alaska), Egypt and
the United Kingdom. In general, for all the Business Units, the
greatest exposure in Italy and Europe is to the protected areas
of the Natura 200038 network that is spread across Europe; this
exposure is less pronounced than last year due to the exit of the
UK Natura 2000 sites. However, the same areas fall under the
“other protected areas” category. In no case, in Italy or abroad,
is there any overlap of operating activities with UNESCO World
Heritage Sites (WHS39); only one Upstream40 site is located in
the vicinity of a WHS natural site (Mount Etna) but there are no
operating activities within the protected area, nor has significant
impact been identified that could threaten the OUV - Outstanding
Universal Value. In 2022, habitat restoration or biodiversity
protection activities were performed (initiated and/or ongoing
during the year) in Congo, Egypt, Nigeria, UK, USA (Alaska),
Mexico, Ghana, Spain and Italy. The main actions implemented
concern ecological restoration of forests or other natural habitats,
species monitoring and conservation activities, community and
worker awareness-raising activities. For example, in Alaska,
a BAP has been running since 2009 to mitigate impact and
demonstrate progress towards the No Net Loss goal and, where
possible, to help improve the status (net gain) and knowledge
of biodiversity in the Alaska North Slope area. Key actions
in 2022 include: (i) the monitoring of polar bear movements
within the operational area, (ii) the restoration of an abandoned
gravel pit as a wetland including habitats for local wild birds. In
addition, in 2022, Eni engaged a team of Arctic scientists from
the international conservation NGO WCS (Wildlife Conservation
Society) to work with local authorities and communities to test
new low-disturbance strategies for detecting polar bear dens and
approaches for protecting and restoring the Arctic tundra. In 2022,
the analysis conducted on the global IUCN Red List database41
showed the possible presence of 57 critically endangered, 155
endangered and 285 vulnerable species near Eni’s operational
areas. The near-threatened and least concern species are 318
and 4,568, respectively. It should also be noted that there are
313 species listed as “data deficient”, so the information at the
global level is inadequate for a direct or indirect assessment of
the risk of extinction. Data-poor species are treated by Eni in the
same way as intermediate risk categories because they have a
high probability of being endangered species, given the lack of
adequate data to assess the risk of extinction.
(35) Specifically, in 2022, 4% of the hazardous waste resulting from production activities disposed of by Eni was recovered/recycled, 1% was subjected to chemical/physical/
biological treatment, 6% was incinerated, 1% was disposed of in landfill, while the remaining 88% was sent to other types of disposal (including transfer to temporary storage
plants prior to final disposal). With regard to non-hazardous waste resulting from production activities, 16% was recovered/recycled, 3% was incinerated, 6% was disposed of
in landfill, while the remaining 75% was sent to other types of disposal (including transfer to temporary storage plants prior to final disposal and incineration of small quantity).
(36) Protected Areas and KBAs (Key Biodiversity Areas). KBAs are sites that contribute significantly to the global persistence of biodiversity, on land, in freshwater or in the
seas. These are identified through national processes by local stakeholders using a set of globally agreed scientific criteria. The KBAs analysed consist of two subsets: 1)
Important Bird and Biodiversity Areas 2) Alliance for Zero Extinction Sites. The sources used for the census of protected areas and KBAs are the “World Database on Protected
Areas” and the “World Database of Key Biodiversity Areas”.
(37) This total value cannot be calculated by summing up the values in the table below, as an Eni operational site/concession may overlap/be adjacent to several protected
areas or KBAs.
(38) Natura 2000 is the main European Union policy tool for biodiversity conservation. It is a network of environmental habitats throughout the territory of the European Union,
set up in pursuant to Directive 2009/147/EC on the conservation of wild birds and “Habitat” (Directive 92/43/EEC).
(39) World Heritage Site.
(40) Although it is not included among the consolidated entities, the Zubair field (Iraq) is located near the Ahwar site classified as a mixed WHS site (natural and cultural). In
this case, too, no operational infrastructure or operating activity within this protected areal, nor was significantly threatening impact identified to the site OUV.
(41) The IUCN Red List is an indicator for measuring the status of biodiversity. It reflects the resilience or vulnerability of habitats, helping to indicate priorities for action and
actions needed for conservation.
ENI ANNUAL REPORT 2022 KEY PERFORMANCE INDICATORS
2022
2021
2020
185
WATER
Total water withdrawals
of which: sea water
of which fresh water(a)
of which: from surface water bodies
of which: withdrawn from underground
of which: withdrawn from aqueduct or tank
of which: water from GTP(b) used in the production cycle
of which: third-party water resources(c)
of which: water resources from other streams
of which: brackish water from underground or surface water
Total water withdrawals from area with water stress
Fresh water reused
Total extracted produced water (upstream)(d)
Re-injected produced water
Total water discharge(e)
of which: at sea
of which: in superficial water bodies
of which: in the sewerage system
of which: given to third parties(f)
Fresh water discharge in area with water stress
Total water consumption:
of which: in area with water stress
OIL SPILL
Operational oil spills(h)
Total number of oil spills (> 1 barrel)
of which: upstream
Volumes of oil spills (> 1 barrel)
of which: upstream
Oil spills due to sabotage (including theft)(h)
Total number of oil spills (> 1 barrel)
of which: upstream
Volumes of oil spills (> 1 barrel)
of which: upstream
Volume of oil spills due to sabotage (including thefts) in Nigeria (> 1 barrel)
Chemical spills
Total number of chemical spills
Volumes of chemical spills
WASTE
Total waste from production activities
of which: hazardous
of which: non hazardous
Recycled/recovered waste
of which: hazardous
of which: non hazardous
Waste destined for disposal
of which: hazardous
of which: non hazardous
(million m3)
(%)
(million m3)
(%)
(million m3)
(number)
(barrels)
(number)
(barrels)
(number)
(barrels)
(million of tonnes)
POLLUTANT EMISSIONS TO THE ATMOSPHERE
NOx (nitrogen oxides) emissions
SOx (sulphur oxides) emissions
NMVOC (Non Methane Volatile Organic Compounds) emissions
PM (Particulate Matter) emissions
(thousands of tonnes of NO2eq)
(thousands of tonnes of SO2eq)
(ktonnes)
of which fully
consolidated
entities
Total
Total
1,367
1,268
97
69
13
5
5
4
0
2
20.3
92
20
43
1,280
1,206
61
10
3
17.7
96
12.0
20
12
375
334
244
244
5,253
5,253
5,253
11
45
1.8
0.3
1.5
0.3
0.0
0.3
1.5
0.2
1.3
27.7
3.9
12.6
0.6
1,673
1,533
125
82
23
7
6
7
0
15
25.9
91
58
58
1,723
1,599
113
71
21
7
4
10
0
11
26.5
91
57
53
1,539(g)
1,456(g)
1,584(g)
1,501
69
11
3
19
125
33.3
36
30
1,355
436
125(h)
125
3,053(h)
3,053(h)
3,053
20
68
2.1
0.5
1.6
0.2
0.0
0.2
1.9
0.4
1.5
48.8
18.5
24
1.4
67
11
4
18.3
136
39.0
46
43
958
882
110
109
5,866
5,457
4,452
24
3
1.8
0.4
1.4
0.2
0.0
0.2
1.6
0.4
1.2
51.7
15.3
21.4
1.3
Total
1,424
1,283
131
98
18
6
5
4
0
10
30.3
90
44
59
1,291
1,215
61
12
3
18.8
122
31.7
36
28
886
845
244
244
5,253
5,253
5,253
13
47
2.7
1.1
1.6
0.3
0.0
0.3
2.4
1.0
1.4
48.8
17.9
23.1
1.4
(a) Of which fresh water withdrawals transferred to third parties without use in Eni’s production processes: 15 Mm3 in 2022 (for inclusion in the Versalis Consortia domain), 3 Mm3 in 2021 and 1
Mm3 in 2020.
(b) GTP: Groundwater treatment plant.
(c) Water withdrawal from third-parties are exclusively related to fresh water.
(d) It is reported that in 2022 re-injected and injected produced water for disposal was equal to 25.6 Mm3. In addition, produced water discharged into surface water bodies and seawater or sent to
evaporation basins was 14.8 Mm3.
(e) About 7% of total water discharges is fresh water.
(f) It is water given for industrial use.
(g) The data in the 2021 NFI have been updated.
(h) The data in the 2021 NFI have been updated following the closure of some investigations after publication.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 186
NUMBER OF PROTECTED AREAS AND KBAS IN OR ADJACENT TO SITES AND CONCESSIONS OWNED BY OPE-
RATED COMPANIES(a)
UNESCO World Heritage Natural Sites (WHS)
(number)
Natura 2000
IUCN(c)
Ramsar(d)
Other Protected Areas
KBAs
Analysis carried out on the downstream operational sites
of Eni, Versalis, Enipower and Eni Plenitude
Analysis carried out on
Upstream concessions
Overlapping with operational
sites
Adjacent to operational sites
(<1km)(b)
With operating activities in
the overlapping area
2022
2022
2022
0
14
5
0
2
9
0
38
23
3
9
15
0
11
2
2
14
8
(a) The reporting boundary, in addition to fully consolidated companies, includes also 4 upstream concessions belonging to operated companies in Egypt and downstream Eni plants, which also
belonging to an operated Company. For this analysis, the upstream concessions as of June 30 of the reporting year are considered.
(b) The relevant areas for biodiversity and the operational sites do not overlap but are at distance of less than 1 km.
(c) Protected areas with an assigned IUCN (International Union for Conservation of Nature) management category.
(d) List of wetlands of international importance identified by the Countries that signed the Ramsar Convention in Iran in 1971 and which aims to ensure the sustainable development and conservation of
biodiversity in these areas.
Human Rights
Eni is committed to conducting its activities with respect
for human rights and expects its Business Partners to do
the same in carrying out the assigned activities or those
done in collaboration with and/or on behalf of Eni. This
commitment, based on the dignity of each human being and
on the responsibility of the Company to contribute to the
well-being of individuals and communities in the Countries
in which it operates, is set out in the Eni’s Statement on
Respect for Human Rights approved in December 2018 by
the BoD. The document highlights the priority areas on which
this commitment is focused and on which Eni exercises in-
depth due diligence, according to an approach developed in
line with the United Nations Guiding Principles on Business
and Human Rights (UNGP)42 and the OECD Guidelines for
Multinational Enterprises43. These aspects are described
within a dedicated report, Eni for Human Rights44, published
annually since 2019, which provides a full representation
of the management model adopted by Eni on the issue and
the activities carried out in recent years, using the UNGP
Reporting Framework to report commitments and results.
In 2022, the Sustainability and Scenarios Committee, which
makes proposals and acts as consultants for the BoD on ESG
and Human Rights, investigated the activities for the year,
including the risk-based management model adopted by Eni
and the Slavery and Human Trafficking Statement approved
by the BoD in April 2022. Again this year, Eni continued
the process of awarding management incentives linked to
human rights performance, assigning specific objectives
to all managers reporting directly to the CEO and other
management levels, based on the role.
With regard to training, following on with the multiple-
awareness programme launched in 2016, in 2022 specific
e-learning courses were provided to the functions most
involved, in order to create a common and shared language
and culture throughout the Company and to improve the
understanding of the possible impacts of the business on
human rights, including in-depth discussions on topics of
interest on the individual activities/professional families.
Eni’s commitment, the management model and the activities
carried out on human rights focus on the issues considered
most significant for the company – as also requested by
the UNGP – in light of the business activities conducted
and the contexts in which the Company operates. These
“Salient human rights issues” are identified by Eni, grouped
into 4 categories: human rights (i) in the workplace; (ii) in the
communities hosting Eni activities; (iii) in business relations
(with suppliers, contractors and other business partners);
and (iv) in security services. In 2020, a “risk-based” evaluation
model for protecting human rights at the workplace has
been issued with the aim of segmenting Eni companies on
the basis of quantitative and qualitative parameters that
(42) UN Guiding Principles on Business and Human Rights (UNGPs).
(43) OECD Guidelines for Multinational Enterprises.
(44) See: https://www.eni.com/assets/documents/eng/just-transition/2021/eni-for-human-rights-2021.pdf
ENI ANNUAL REPORT 2022
187
capture the specific characteristics and risks of the Country/
operating context and are linked to the human resources
management process (including the fight against all forms of
discrimination, gender equality, working conditions, freedom
of association and collective bargaining).
This approach identifies possible risk areas or improvements,
requiring specific actions to be defined and monitored
over time. During 2022, the application of the model in the
upstream business subsidiaries already monitored in 2021
was expanded, and an initial application in the Energy
Evolution area was performed. Eni is committed to preventing
possible negative impacts on the human rights of individuals
and host communities resulting from the implementation of
industrial projects. To this end, in 2018, Eni adopted a risk-
based model (updated in 2021) that uses elements related
to the operating context, such as risk indexes of the data
provider Verisk Maplecroft, and project characteristics, in
order to classify upstream business projects according to
potential human rights risks and to identify appropriate
management measures. Higher-risk projects are specifically
investigated through a “Human Rights Impact Assessment”
(HRIA) or a “Human Rights Risk Analysis” (HRRA) to identify
measures to prevent potential impacts on human rights and
manage the existing ones. In 2022, these in-depth studies
were conducted for agri-feedstock development projects
initiated in Kenya and Congo45, identifying recommendations
to mitigate potential negative impact. They were translated
into Action Plans to be implemented in 2023. Over the year,
follow-ups were carried out for the Action plans on the 2021
assessment: in Cabinda Province in Angola; on Block 47 in
Oman; on the Dumre block in Albania; and on Area C of the
Sharjah Emirate (UAE). All HRIA reports conducted up to
2020 and the related Action Plans adopted, including the
periodic reports on the progress of the Plans, are publicly
available on the Eni46 website. In some Countries, such as
Australia and Alaska, Eni operates in areas where indigenous
peoples are present, towards which it has adopted specific
policies to protect their rights, culture and traditions and to
promote their free, prior and informed consultation. The most
recent of these Policies, referring to the indigenous peoples
in Alaska47 affected by the business activities carried out
by the Eni US Operating company in the area, was adopted
in 2020 and renewed in 2021. No violations of the rights of
these populations were detected during the year48.
Respect for human rights in the supply chain is an essential
requirement for Eni, protected through a procurement process
that calls for adopting an assessment model dedicated to
human rights, as well as transparent, impartial, consistent
and non-discriminatory conduct in the selection of suppliers,
the evaluation of bids and the verification of contractual
activities (see chapter “Suppliers”).
To set off and reinforce their commitment to fundamental
values, in particular to respect human rights, companies
working with Eni are called upon to sign the “Supplier
Code of Conduct”, a pact that guides and characterises
relations with suppliers at all stages of the procurement
process (from candidature to qualification, purchasing
procedures to the execution phase) based on the principles
of social responsibility, including human rights. Human rights
assessment and monitoring are applied in procurement
processes through a risk-based model. This model allows the
analysis and classification of suppliers according to a level
of potential risks according to the Country context and the
activities49 carried out. To reinforce the management on the
topic and especially on the risks related to forced/compulsory
labour and the right to freedom of association and collective
bargaining, in 2022, the application of the risk-based model
was extended to 13 additional foreign companies, for a
total of 24. It allowed the identification of Nigeria, Congo
and Mozambique as Countries with the highest number of
suppliers at risk. In addition to the activities such as due
diligence, tender evaluation, performance feedback and
updates with dedicated questionnaires, in line with the
SA8000 international standards, the risk-based model calls
for carrying out audits on suppliers to monitor the respect for
human rights. In 2022, more than 350 in-depth document and
field audits were carried out on direct and indirect suppliers.
To promote knowledge of human rights safeguards, remote
training programmes and workshops were organised for
colleagues in the Vendor Management functions of foreign
subsidiaries. Further actions to counteract forms of modern
slavery and human trafficking and to prevent the exploitation
of minerals associated with human rights violations in the
supply chain are discussed respectively in the “Slavery and
Human Trafficking Statement”50 and the “Position on Conflict
Minerals”51. The Position on Conflict Minerals describes
the policies and systems for the procurement of “conflict
minerals” (tantalum, tin, tungsten and gold) by Eni, with the
aim of minimising the risk that the procurement of these
minerals may contribute to financing, directly or indirectly,
human rights violations in the Countries concerned.
Eni manages its security operations in accordance with
international principles, including the Voluntary Principles
on Security & Human Rights promoted by the Voluntary
(45) https://www.eni.com/en-IT/sustainable-mobility/biofuels-vegetable-oils.html
(46) https://eni.com/en-IT/just-transition/respect-for-human-rights.html
(47) See: https://www.eni.com/assets/documents/Indigenous%20Peoples%20Policy%201DEC2020_final.pdf
(48) Regarding the Countries mentioned above, no reports emerged through local grievance mechanisms on human rights issues during the year.
(49) Based on vulnerabilities and probabilities related to specific conditions such as the level of training and skills needed, the level of labour intensity, the use of manpower
agencies, HSE risks. Industrial activities (such as maintenance, construction, assembly, logistics) and general goods and services (such as cleaning services, catering, security
services and property management) have been classified as high-risk activities.
(50) In accordance with the English Modern Slavery Act 2015 and, from this year, the Australian Commonwealth Modern Slavery Act 2018.
(51) Compliance with the US SEC regulations.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 188
Principles Initiative (VPI), a multistakeholder initiative that
combines major energy companies in the protection and
promotion of Human Rights.
After Eni obtained admission as an “Engaged Corporate
Participant” in 2020, VPI officially communicated on December
8, 2022 that the company acquired the status of “Full Member”
of the Voluntary Principles Initiative thanks to the demonstration
of its commitment to the promotion and awareness of Human
Rights by all the functions involved. Among the most significant
activities in 2022 was the application of the Conflict Analysis
Tool in Nigeria, a project proposed and developed by VPI to
analyse the causes of conflict in a given area/Country, starting
from the identification of those causes that contribute most
to escalate the conflict, and then trying to identify possible
actions by the company that could have the mitigating effects
on the conflict’s causes. The application of this tool has led to
more than local 30 interviews being conducted. These analysed
the causes of the Nigerian conflict and an Action Plan was
prepared containing the relative mitigation actions, involving
several operational sites in the Country. Finally, in line with the
principles of “responsible contracting” suggested by the best
practices and international guidelines on Business & Human
Rights, Eni has prepared a series of standard clauses on human
rights compliance to be included on the basis of a risk-based
approach in the main Eni contractual cases, and provides
support to the business for their definition and negotiation.
Performance metrics and comments
In 2022, the three-year training cycle was completed that
began in 2020 regarding mandatory training for senior
managers and middle managers (Italy and abroad) of the
4 specific modules: “Security and Human Rights”, “Human
Rights and relations with Communities”, “Human Rights in
the Workplace” and “Human rights in the Supply Chain”. The
delivery of the other courses offered on sustainability and
human rights issues to the entire Eni population continued.
The overall course utilisation rate stood at 89% of those
enrolled. The delivery of the specialised Human Rights
courses to the target population identified in the plan was
also completed, and the basic Business & Human Rights
course was delivered to new recruits.
Awareness-raising and
training activities on combating
violence and harassment at work were launched in 2022, as
envisaged in the specific policy issued at the end of 2021 to
respond in advance to the provisions of International Labour
Organisation Convention No. 190. The percentage of personnel
from the Security professional area who have been trained on
human rights reached 93%: this number reflects the qualitative/
quantitative turnover of incoming and outgoing resources from
the Professional Area year on year. In addition, since 2009
Eni has been conducting a training programme for public and
private security forces at its subsidiaries, which was recognized
as a best practice in the 2013 joint publication by the Global
Compact and the Principles for Responsible Investment (PRI)
of the United Nations. In this regard, a Security Workshop &
Human Rights was held from 9 to 11 November 2022, at the
subsidiaries NAOC (Nigerian Agip Oil Company ltd) and NAE
(Nigerian Agip Exploration) in Port Harcourt. The workshop was
conducted by an independent consultancy firm specialised
in security management and human rights protection in the
international arena were engaged 409 participants were
engaged from the Nigerian armed forces, private security
forces as well as NAOC and NAE. This Workshop represented
the 21st edition of the training initiative that has so far involved
15 Countries. With regard to whistleblowing reports, in 2022
investigations were completed on 77 files52, of which 45
included human rights issues, mainly concerning potential
impacts on workers’ rights and occupational health and safety.
Among these, 62 assertions were verified; for 12 of these, the
reported facts were confirmed, even partially, and corrective
actions were taken to mitigate and/or minimise their impacts.
In particular, the following were undertaken: (i) actions on the
Internal Control and Risk Management System, relating to
the implementation and strengthening of controls in place;
(ii) training on the topics of the Code of Ethics and the “Zero
Tolerance” policy and (iii) actions against employees, including
disciplinary measures, in line with the collective agreements
and other applicable national laws. At the end of the year, 16
files were still open, 5 of which referred to human rights issues,
mainly concerning potential impacts on workers’ rights.
(52) Whistleblowing report: a summary document of the investigations carried out on the report(s) (which may contain one or more detailed and verifiable assertions) in which
the summary of the investigation carried out on the facts that are the subject of the report, the outcome of the investigations carried out and any action plans identified are
reported. In particular, Eni, since 2006, has had regulations governing the process of receiving, analyzing and processing reports (so-called whistleblowing) transmitted, even
in confidential or anonymous form, to Eni SpA and its subsidiaries in Italy and abroad to enable anyone, employees and third parties, to report facts pertaining to the SCIGR as
well as concerning conduct in violation of the Code of Ethics, laws, regulations, provisions of the Authorities, internal regulations, in any case likely to cause damage or harm,
even if only reputational, to Eni. As indicated in the regulations (published on the company’s website) that define roles and responsibilities related to investigative activities and
information flows, all Whistleblowing Reports are submitted to, among others, the Board of Statutory Auditors as Audit Committee for the purposes of the SOA regulations
(Sarbanes - Oxley Act of 2002), the Chairman of the Board of Directors, the Chief Executive Officer and the Independent Auditors.
ENI ANNUAL REPORT 2022 KEY PERFORMANCE INDICATORS
Human rights training hours(a)
In class
Distance
Employees trained on human rights(b)
Security personnel trained on human rights(c)
Security personnel (professional area) trained on human rights(d)
Security contracts containing clauses on human rights
189
2022
2021
2020
(number)
14,245
22,983
28,838
152
0
260
14,093
22,983
28,578
89
409
93
97
94
88
90
98
92
32
91
97
(%)
(number)
(%)
Whistleblowing files (assertions)(e) on human rights violations closed during the year
(number)
45 (62)
30 (40)
25 (28)
Founded assertions
Partially founded assertions
Unfounded assertions, with the adoption of corrective/improvement measures
Unsubstantiated allegations/not verifiable(f)/not applicable(g)
Inherent incidents of discrimination(h)
2
3
7
28
11
n.a.
9
8
12
0
0
50
3
(a) The data in the table consider the total hours of employee training. The 2020-21 data were restated appropriately following the change in indicator calculation method.
(b) This percentage is calculated as the ratio between the number of registered employees who have completed a training course and the total number of registered employees.
(c) The variations of the number of Security personnel trained on human rights, in some cases even significant from one year and the next, are related to the different characteristics of the training
projects and to the operating contingencies.
(d) This data is a cumulative percentage value. The Security Forces include both private security personnel who work contractually for Eni, and personnel of the Public Security Forces, whether military
or civilian, who carry out, also indirectly, security activities and/or operations to protect Eni’s people and assets.
(e) As of October 1st, 2021, a different classification of the results of the Files has been defined, ranging from 4 (“Founded”, “Unfounded with Actions”, “Unfounded” and “Not Applicable”) to 5 categories
(“Founded”, “Partially Founded”, “Unfounded”, “Not Ascertainable” and “Not Applicable”).
(f) Assertions that do not contain detailed, precise and/or sufficiently detailed elements and/or, for which on the basis of the investigative tools available, it is not possible to confirm or exclude the
validity of the facts reported therein.
(g) Assertions in which the reported facts coincide with the subject of pre-litigation, disputes and investigation in progress by public authorities (for example, judicial, ordinary and special authorities,
administrative bodies and independent authorities assigned to monitoring and control). The assessment is carried out after obtaining the opinion of the Legal Affairs function or other relevant
functions.
(h) The alleged incidents of discrimination did not show any grounds.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
190
Suppliers
Eni has developed a procurement model that considers the
ESG characteristics of suppliers in all its phases, from the
selection and qualification of vendors to tender process, from the
contractual management to feedback management, with the aim
of promoting the generation of shared and lasting value to the
supply chain. Eni meets this commitment by promoting its own
values with its suppliers, involving them in development initiatives
and including them in risk prevention activities. In particular, as
part of the Sustainable Procurement process, Eni: (i) periodically
subjects all suppliers to qualification and due diligence processes
to verify their ethical, reputational, economic-financial, technical-
operational reliability and the application of supervision in the
areas of health, safety, environment, governance, cyber security
and protection of human rights, to minimise the risks along the
supply chain; (ii) requires all suppliers to sign the Supplier Code
of Conduct as a mutual commitment to recognise and protect
the value of all people, to commit to tackling climate change and
its effects, to operate with integrity, protect company resources,
promoting the adoption of these principles to their people and
their supply chain; (iii) considers ESG characteristics53 in the
logic of contract awarding, relevant to the scope of the contract
and periodically monitors the respect for the commitments the
supplier assumes in the various steps of the Procurement process;
(iv) if the assessments expose critical issues, requests the
implementation of corrective actions or, if the minimum standards
are not met where provided, limits or prohibits the suppliers from
participating in the tender processes. To promote the sustainable
supply chain development, in 2022, Eni further strengthened its
Sustainable Supply Chain programme with initiatives aimed at
involving suppliers in the fair and sustainable energy transition
path, enhancing the aspects of environmental protection,
economic development and social growth. The Sustainable
Supply Chain Programme focused on: (i) Involving companies in
the sustainable development path. In 2022, the systemic path
was strengthened through the ever-widening dissemination of the
platform powered by Eni, Open-es, a tool to involve and support
all companies along the path of measurement and growth on the
dimensions of sustainability. Thanks to the open and inclusive
approach of the initiative and the adhesion of various actors
(supply chain leaders, financial institutions, associations, etc.)
and sectors in the value chain, Open-es counts more than 10,000
companies, and about 3,600 of these are in the Eni supply chain.
This platform allows companies to create and update their ESG
profile, share sustainability information with clients and other
stakeholders, access sector benchmarks to compare themselves
with similar entities and identify priority actions to implement in
order to improve their ESG profile.
For Eni’s Procurement Process, the suppliers’ participation in this
initiative is an essential requirement for evaluating and enhancing
the commitment made by each of the suppliers along a path of
sustainable development, with the aim of involving the entire supply
chain. To further support the improvement of the companies’ ESG
performance, in 2022 an analysis on Open-es’s data of 2,600
Italian companies was carried out to identify key gaps and areas of
strength while defining priorities and actions to be taken in order to
be a competitive and sustainable company. As part of the initiative,
companies can also participate in “Open-es ESG Competencies”, a
series of free events to increase the knowledge of their employees on
ESG topics. This creates an opportunity to meet experts on specific
aspects (Carbon Neutrality, Social Sustainability and Governance,
Diversity & Inclusion, Responsible Vendor Management, and
Human Rights); (ii) Supplier Training. In addition to the Open-es
training initiatives, open to all companies, Eni organised sector-
specific workshops on ESG topics and webinars on digital themes
and cyber security; (iii) Financial support to suppliers. In 2022, as
part of the “Sustainable Energy - Basket Bond” initiative, launched
in 2021 to financially support energy supply chains in the energy
transition and promote the implementation of sustainable business
models, €23 million in minibonds were financed; (iv) Sustainability
criteria and rewarding mechanisms. To enhance the commitment
and encourage the adoption of best practices by suppliers during
the procurement process, sustainability criteria and rewarding
mechanisms are applied in the evaluation of bids for a total amount
of over €4.5 billion of awarded contract value.
Performance metrics and comments
reference
During 2022, 6,622 suppliers54 were subject to checks and
assessments with
to environmental and social
sustainability aspects (including health, safety, environment,
human rights, anti-corruption and compliance). Potential critical
issues and/or areas for improvement were identified for 10% (659)
of the suppliers audited, an increase compared to 2021. The critical
issues mainly refer to gaps in compliance with health and safety
regulations and the principles established by the Code of Conduct
and the Code of Ethics. In the same way, there was an increase in
the number of suppliers with whom relations were interrupted (54),
due to negative evaluation during the qualification phase or due to
suspension or revocation of the qualification.
Finally, it should be noted that, during 2022, an influence on
price and logistical criticalities have been noticed due to the
macroeconomic dynamics but without any impact on the
continuity of procurement.
(53) Tender procedures have introduced rewarding requirements such as energy efficiency, use of energy produced from renewable sources, sustainability certifications,
vehicle fleet, use of recycled material, disposal methods, gender equality on teams, maintenance of the employment level, etc.
(54) It also includes all new suppliers.
ENI ANNUAL REPORT 2022 191
KEY PERFORMANCE INDICATORS
2022
2021
2020
Suppliers subject to assessment on social responsibility aspects
(number)
6,622
6,318
5,655
of which: suppliers with criticalities/areas for improvement
of which: suppliers with whom Eni has terminated the relations
New suppliers assessed using social criteria(b)
659
54(a)
100
487
34
100
828
124
100
(%)
(a) Includes 18 suppliers with whom Eni has terminated the relations due to violations related to corruption.
(b) Evaluation is carried out based on information available from open and/or supplier-reported sources and/or performance indicators and/or field audits, through at least one of the following
processes: reputational Due Diligence, qualification process, performance evaluation feedback on HSE or compliance areas, feedback process, assessment on human rights issues (inspired by
SA8000 standard or similar certification).
Transparency, anti-corruption and tax strategy
The ten principles of the UN Global Compact, including the
repudiation of corruption, are reflected in Eni’s Code of Ethics,
which is distributed to all employees at the time of hiring,
and in Model 231 of Eni SpA. Moreover, since 2009, Eni has
designed and developed
the Anti-Corruption Compliance
Program, in compliance with the applicable provisions in force
and international conventions and taking into account guidance
and best practices, as well as the policies adopted by leading
international organizations. It is an organic system of rules and
controls to prevent corrupt practices, and is also instrumental
to the prevention of the phenomenon of money laundering in
the context of the non-financial activities of Eni SpA and its
subsidiaries. At regulatory level, the Anti-Corruption Compliance
Program is represented by the Anti-Corruption MSG55 and by
regulatory instruments that constitute the reference framework
in the identification of the activities at risk and the control tools
that Eni makes available to its people to prevent and counter the
risk of corruption and money laundering. In Italy and abroad, each
subsidiary company where Eni holds a non-controlling interest are
encouraged to comply with the standards set forth in internal anti-
corruption regulations by adopting and maintaining an adequate
internal control system consistent with the legal requirements
through a resolution of their Board of Directors56. Eni’s Anti-
Corruption Compliance Program has evolved over the years with
the aim of continuous improvement; in January 2017, Eni SpA
was the first Italian Company to achieve the ISO 37001:2016
“Anti-bribery Management Systems” certification. To maintain
this certification, Eni underwent a recertification audit in 2022,
which concluded with a positive outcome. In addition, in order to
guarantee the effectiveness of the Anti-Corruption Compliance
Program, Eni supports its subsidiaries in Italy and abroad,
providing specialized assistance in the activity of assessing the
reliability of potential counterparties at risk (“due diligence”), the
management of any critical issues/red flags that emerge and the
development of the related contractual safeguards.
In particular, specific Business Integrity clauses (Code of Ethics,
corporate administrative liability, anti-corruption and anti-money
laundering) are included in contracts with counterparties, which
also provide for a commitment to view and abide by the principles
contained in Eni’s Code of Ethics, Model 231, and Anti-Corruption
MSG.
In the qualification process of potential suppliers (see the section
on Suppliers), the ethical and reputational profile is assessed, as
well as the adoption by them of an Anti-Corruption Compliance
Program for cases with a higher risk of corruption. In any case,
business integrity clauses are defined in the relevant contracts,
including contractual remedies in the event of breaches of anti-
corruption compliance obligations and audit rights by Eni for the
highest-risk cases. In addition, the subcontractor is also subject to
prior checks for ethical and reputational reliability and must only
operate based on a written contract that contains compliance
commitments equivalent to those of the main supplier. Eni has
defined and implemented a structured process of Compliance risk
assessment and monitoring aimed respectively at: (i) identifying,
assessing and tracking the risks of corruption in the context of
its business activities and for the definition and updating of the
control measures provided for in the Anti-Corruption Regulatory
instruments; (ii) periodically analysing the trend of the corruption
risks identified, through specific controls and the analysis of risk
indicators aimed at ensuring compliance with the regulatory
requirements and the effectiveness of the models placed under
their control. The activities at risk identified by Eni through
the Compliance risk assessment, due to its operational and
organizational context, include, for example: (i) contracts with
third parties at Risk of corruption and money laundering (such as,
for example, business associates, joint venture partners, brokers,
counterparties in real estate management operations, commercial
network operators, suppliers, credit buyers/assignees, etc.);
(ii) transactions for the purchase and sale of company shares,
companies and company branches, mining rights and securities,
etc. and joint venture contracts; (iii) non-profit initiatives, social
projects and sponsorships; (iv) the sale of goods and services
(e.g. contracts with customers in the commercial process),
trading and/or shipping operations; (v) the selection, recruitment
(55) The latest version of the Anti-Corruption MSG (which updates and replaces the previous version of 2014) was (i) illustrated and submitted to the Eni SpA Control and Risk
Committee for prior opinion and for information to the Board of Statutory Auditors and the Eni SpA Watch Structure; (ii) approved by the Eni SpA Board of Directors on June
24, 2021. The Anti-Corruption MSG was published on July 19, 2021 and is available on the website www.eni.com.
(56) Or alternatively, with resolution by the equivalent body depending on the governance of the subsidiary.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 192
and management of human resources; (vi) gifts and hospitality;
(vii) relations with Relevant Persons. Compliance risk assessment
activities and anti-corruption Compliance Monitoring interventions
are planned annually according to a risk-based approach. In 2022,
the former covered the Anti-Corruption area as a whole and the
risk activity “Sale of Goods and Services” and the latter focused on
the “Joint Ventures” and “Third Parties” and “Gifts and Hospitality”
risk activities. Both activities’ outcomes confirmed the expected
risk level and the adequacy of the mitigation measures put in
place and the effectiveness of the compliance model adopted.
Eni also implements an Anti-Corruption training programm aimed
at all its employees (including part-time employees) through
e-learning and in-classroom events divided into general workshops
and job-specific training. This optimises the identification of
recipients through a systematic segmentation methodology as
a function of the corruption risk associated with certain drivers,
such as Country, qualification and professional area. In 2022, the
new online course “Code of Ethics, Anti-Corruption and Corporate
Administrative Liability” was delivered to the whole of Eni, in Italy
and abroad, and the e-learning on the Anti-Corruption Compliance
Program for medium- and high-risk personnel was updated to be
delivered in 2023.
In addition, classroom presentations discussing practical cases
were held as part of the training course dedicated to the Managing
Directors at Eni’s subsidiaries and investee companies in Italy
and abroad, focusing on compliance and risk mitigation issues.
For its third parties, Eni (i) held a webinar aimed at some high-
risk suppliers; and (ii) trained employees of the corporate joint-
venture Isatay Operating Company llp in Kazakhstan. The relevant
activities in the Anti-Corruption Compliance Program and the
planning of such activities for the subsequent periods are the
subject of an annual report that is an integral part of the Integrated
Compliance Report to the Eni SpA management and supervisory
bodies. During 2022, the following were brought to the attention
of the Board of Directors: (i) the revision of the “Antitrust” MSG
to implement the changes made to the Integrated Compliance
process and ensure even greater alignment with the guidelines
issued by the Italian Antitrust Authority and (ii) the approval of the
“Compliance Models on Company Administrative Responsibility
for Eni’s Italian Subsidiaries” MSG, to reorganise the company
regulatory system on corporate administrative responsibility for
subsidiaries.
Periodic information and training activities for Eni employees are
performed through the preparation of short information briefs on
compliance, including any anti-corruption issues. Eni’s experience
in grows through participation in international conventions,
events and working groups, including the Partnering Against
Corruption Initiative (PACI) of the World Economic Forum, the
O&G ABC Compliance Attorney Group (a discussion group on anti-
corruption issues in the Oil & Gas sector) and, in 2021 and 2022,
the of the B20 Italy and B20 Indonesia Taskforce on Integrity and
Compliance. As part of the audit plan approved annually by the
BoD, Eni carries out specific checks to verify the fulfilment of the
Compliance Program’s provisions through dedicated audits and
analyses of processes and companies, identified according to
the relevant Country’s Risk level and the related size of business,
as well as through checks on high-risk third parties, where
contractually foreseen. Moreover, since 2006 Eni has issued an
internal procedure, updated over time and most recently in 2020,
aligned with national and international best practices as well as
with the Italian Law (L. 179/2017), in order to manage the process
of receiving, analysing and processing whistleblowing reports
received, even in confidential or anonymous form, by Eni SpA
and its subsidiaries in Italy and abroad. This regulation allows
employees and third parties to report facts pertaining to the Internal
Control and Risk Management System that concern behaviours in
violation of the Code of Ethics, any laws, regulations, provisions of
authorities, internal regulations, 231 Model or compliance models
for foreign subsidiaries that may cause damage or prejudice to
Eni, even if only to its public image. In this regard, dedicated and
easily accessible information channels have been set up and are
available on eni.com.
Eni’s tax strategy, which has been approved by the Board of
Directors and is available on the Company’s website57, is based
on the principles of transparency, honesty, fairness and good
faith set forth in its Code of Ethics and in the “OECD Guidelines
for Multinational Enterprises”58 and has as its primary objective
the payment of taxes in the various Countries in which it
operates, in the knowledge that it can contribute significantly
to tax revenues in those Countries, supporting local economic
and social development. Eni has designed and implemented
a Tax Control Framework for which Eni’s CFO is responsible,
structured in a three-step business process: (i) assessment of
tax risk (Risk Assessment); (ii) identification and establishment
of controls to monitor risks; (iii) verification of the effectiveness
of controls and related information flows (Reporting). As part of
its tax and litigation activities risk management, Eni adopts prior
communication with the tax authorities and maintains relations
based on transparency, dialogue and cooperation, participating,
where appropriate, in projects of enhanced cooperation (Co-
operative Compliance).
True to the commitment to better governance and greater
transparency in the extraction sector, which is crucial to foster
responsible use of resources and prevent corruption, Eni takes
part in the Extractive Industries Transparency Initiative (EITI)
since 2005. In this context, Eni actively participates both at
local level, through the Multi-Stakeholder Groups in the member
Countries, and in the Board’s initiatives at international level.
In accordance with Italian Law No. 208/2015, Eni prepares
the “Country-by-Country Report” required by Action 13 of the
“Base erosion and profit shifting - BEPS” project, promoted by
the OECD with the sponsorship of the G-20, whose objective
(57) https://www.eni.com/assets/documents/Tax-strategy_ENG.pdf
(58) https://www.oecd.org/daf/inv/mne/48004323.pdf
ENI ANNUAL REPORT 2022 193
is to have the profits of multinational companies declared in
the jurisdictions where the economic activities that generate
them are carried out, in proportion to the value generated.
With a view to fostering fiscal transparency for the benefit of
all interested stakeholders, this report is published voluntarily
by Eni, although there are no regulatory obligations in this
regard59. The publication of this report has been recognized
as best practice by the EITI60. Also in line with its support for
the EITI, Eni has published a position on contract transparency
in which governments are encouraged to comply with the
new requirement on contracts publication and it is expressed
the support to the mechanisms and initiatives that will be
launched by Countries to promote transparency in this area.
Finally, anticipating by two years the reporting requirements
on transparency of payments to States in the exercise of
extraction activities introduced by the EU Directive 2013/34
EU (Accounting Directive), Eni had begun in 2015 to provide
disclosure on a voluntary basis of a series of summary data
on cash flows paid to States in which it conducts hydrocarbon
exploration and production activities.
Performance metrics and comments
In 2022 the anti-corruption checks, based on the Anti-Corruption
Compliance Program’s provisions, have been performed in 25
audits, carried out in 10 Countries, moreover 19 supervisory
activities were carried out on the 231/Compliance Models of the
Italian/foreign subsidiaries. As in 2021, this year the number of
ascertained cases of corruption61 relating to Eni SpA amounted to
0. Consequently, there were no terminations for this reason.
For the proceedings in progress and for all the significant cases
of non-conformity to laws and regulations, see the section “Legal
Disputes” on page 322. In particular, in 2022, there were no
cases in which Eni SpA was identified as a participant62 in the
area of anti-competitive conduct, antitrust legislation violations
and monopolistic practices. In 2022, anti-corruption training
in e-learning mode was delivered through the new course
“Code of Ethics, Anti-Corruption and Corporate Administrative
Liability”, aimed at the entire Eni workforce in Italy and abroad
(about 28,000 employees trained). Approximately 93% of the Eni
population attended at least one anti-corruption course during the
year. In addition, in 2022, the anti-corruption training continued
through general workshops and specific job training according
to the risk-based methodology started in 2019. Regarding the
commitment with EITI, Eni follows the activities conducted at
international level and contributes to preparation of the Reports in
member Countries; additionally, as a member, Eni takes part in the
activities of the Multi Stakeholder Groups in Congo, Ghana, Timor
Est, and the United Kingdom. In Kazakhstan, Indonesia, Mexico,
Mozambique and Nigeria , Eni’s subsidiaries participate in local
EITI Multi Stakeholder Groups through the industry associations
present in the Countries.
In 2022, Eni generated an economic value of €134 billion of which
€120 billion was distributed, in particular: 85% are operating costs,
7% payments to the Public Administration, 5% payments to capital
suppliers, and 3% wages and salaries for employees. In 2022,
the Eni Group received approximately €370 million in financial
assistance from the Public Administration. This amount includes
about €200 million in tax credits recognised in Italy for energy –
and gas – consuming companies established by Decree-Laws
No. 4 of 27 January 27, No. 17 of March 1st, 2022, No. 21 of March
21, 2022, as amended, to meet the higher expenses incurred for
the purchase of natural gas and electricity.
Over the year, investments net of depreciation amounted to €6,916
million, and the total to share buy-backs and dividend payments
amounted to €5,469 million. €8,488 million in taxes were paid
during the year.
(59) For more details please see the most recent edition of the Country-by-Country Report:
https://www.eni.com/assets/documents/eng/reports/2021/Country-by-Country-2021-ENG.pdf
(60) EITI pointed out Eni and Shell as the pioneering companies among the leading Oil & Gas companies in the Country-by-Country report (for information, see:
https://eiti.org/news/ extractives-companies-champion-tax-transparency).
(61) There have been past convictions on the merits of an act of corruption relating to criminal proceedings for domestic and/or international corruption.
(62) The above information refers to possible violations of Articles 2 or 3 of Law No. 287/1990, Articles 101 or 102 TFEU, or similar regulations to protect competition in
other Countries. Therefore, any conduct in breach of Articles 20-26 of Legislative Decree No. 206/2005 (Consumer Code) or similar regulations in other Countries concerning
consumer protection does not fall within the scope of anti-competitive conduct and violations of antitrust legislation and monopolistic practices.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 194
KEY PERFORMANCE INDICATORS
2022
2021
2020
Audits covering the anti-corruption checks
General Workshops
Job specific training
Countries where Eni supports EITI’s local Multistakeholder Groups
ECONOMIC VALUE
Economic value generated
Economic value distributed(a)
of which: operating costs
of which: wages and salaries for employees
of which: payments to capital suppliers
of which: payments to the Public Administration
Economic value retained
(number)
Total
25
of which fully
consolidated
entities
Total
Total
25
20
1,346
1,223
1,284
523
9
492
9
702
9
31
904
568
9
2022
2021
2020
Total
Total
Total
(€ million)
134,232
78,092
45,638
120,451
66,138
41,437
102,529
55,549
33,551
3,015
6,419
8,488
2,888
3,975
3,726
2,863
2,974
2,049
13,781
11,954
4,201
(a) For the Economic Value Distributed item relative to the Community Investment, please refer to the section Key Performance Indicators in the chapter Alliances for Development on pp. 196-197.
ENI ANNUAL REPORT 2022 ALLIANCES FOR DEVELOPMENT
195
The Alliances for sustainable development in line with the 2030
Agenda contribute to the creation of long-term value for all
stakeholders and represent Eni’s commitment to a fair energy
transition to achieve global human development, which requires
cultural as well as social, economic and technological change.
This approach is part of the Company’s decarbonization strategy.
It encompasses crucial topics as: “Just Transition”, which
increasingly considers the impact of energy transformation on
people, starting with direct and indirect workers, and includes
communities and consumers; the promotion and respect of
human rights through a model of responsible management in the
key business processes now consolidated; strategies to counter
the effects caused by climate change, improving adaptability
and resilience; and population growth and migration flows, which
are also partly a consequence of climate change. The approach
is integrated throughout the business cycle by analysing the
human rights situation and socio-economic context, and
impact and compensation measures, as well as by assessing
local content, promoting local development and stakeholder
engagement. Specifically,
local development programmes
initiatives
promote a broad portfolio of community-based
in line with national development plans and the Sustainable
Development Goals (SDGs), including supporting the creation
of job opportunities and the transfer of know-how and skills to
local partners. An essential element to achieving the common
objectives are alliances for sustainable development with all
the players involved – from private individuals, to the public
sector, international organisations, civil society associations and
research institutes – which make it possible to pool resources
and human capital to promote inclusive growth. Starting from
the analysis of the local socio-economic context, realized on the
basis of the Multidimensional Poverty Index (PMI) developed by
UNDP and Oxford University, which accompanies the various
business project phases in order to ensure greater efficiency and
systematicity in the decision-making approach, from the time of
license acquisition to decommissioning, Eni adopts tools and
methodologies consistent with the main international standards
to meet the needs of local populations. These instruments allow,
on the one hand, to promote local development and, on the other
hand, to reduce possible negative economic impacts (direct and
indirect) of new business development activities.
To this end, Eni always produces an Environmental, Social and
Health Impact Assessment (ESHIA) beyond the mandatory
requirements for environmental authorisations in the Countries
where it is present. This guarantees the adherence of activities
to the highest international standards and provides for actions
to avoid or minimise the socio-economic impact of activities
to a level deemed acceptable. Impact studies are shared with
local communities63; moreover, thanks to a mapping of local
stakeholders affected by the activities, Eni proactively informs
civil society and minority interest organisations about the
possibility of contributing to impact assessments. In addition,
through tools such as the Eni Local Content Evaluation (ELCE) and
Eni Impact Tool64, it is possible to valorise the direct, indirect and
induced benefits Eni generates through its business operations
and cooperation model. In addition, analyses are carried out to
measure the percentage of spending on local suppliers by some
relevant foreign subsidiaries. In 2022, the rate amounted to
about 45% of total expenditures. In addition to these activities are
the definitions of the specific Local Development Programmes
(LDPs) in line with the United Nations 2030 Agenda, the National
Development Plans, the United Nations Guiding Principles on
Business and Human Rights (UNGPs) and the commitments
under the Paris Agreement (Nationally Determined Contributions
- NDCs), that include five lines of action: (i) contribution to
the socio-economic development of local communities, in
accordance with national legislation and development plans,
also based on the knowledge acquired. These initiatives are
aimed at improving access to off-grid energy and clean cooking,
economic diversification (e.g. agricultural projects, micro-credit,
infrastructure interventions) and land protection, education
and vocational training, access to water and sanitation, proper
nutrition and support of health services and systems, as well as
improving the health of vulnerable groups. Relevant projects are
developed using the Logical Framework Approach (LFA) and are
monitored using the Monitoring, Evaluation and Learning (MEL)
management tool; (ii) Local Content: generation of added value
by transferring skills and know-how, initiating labour along the
local supply chain and implementing development projects; (iii)
Land management: optimal land management starting from
the assessment of the impacts deriving from the acquisition
of land on which Eni’s activities are carried out in order to find
possible alternatives and mitigation measures; Eni undertakes
to evaluate possible project alternatives with the aim of
pursuing the well-being of local communities; (iv) Stakeholder
engagement: the Company’s ability to relate to stakeholders and
(63) Unless expressly prohibited by the local regulations.
(64) The ELCE (Eni Local Content Evaluation) Model was developed by Eni and validated by the Polytechnic of Milan to assess the direct, indirect and induced effects generated
by Eni’s activities at a local level in the areas in which it operates. Eni’s Impact Tool is a methodology developed by Eni and validated by Polytechnic of Milan that allows asses-
sing the social, economic and environmental impacts of its activities at local level, quantifying the generated benefits and directing investment choices for future initiatives.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 196
strengthen mutual understanding and trust is a fundamental
element for the definition and conduct of stakeholder dialogue
and involvement activities, as well as the best actions to be
implemented to achieve sustainable development in synergy
with local communities; (v) Human Rights: assessment of
potential or actual impacts attributable – directly or indirectly –
to Eni’s activities through HRIA or HRRA (see section “Human
Rights” on page 186-189), definition of relevant prevention or
mitigation measures in line with the United Nations Guiding
Principles (UNGP) and promotion of human rights through Local
Development Projects. The definition of Local Development
Programmes implies the commitment of Eni in the front line on
site and alongside other development players to contribute to
the sustainable development of Countries.
The partnerships developed by Eni with
International
Organizations and – more generally – with organizations
promoting cooperation for the development move in this
direction. Examples of this are the agreements signed in 2022
with a few prominent national and international actors such
as the United Nations Educational, Scientific and Cultural
Organisation (UNESCO) in Mexico to reduce hydrogeological risk
in the Tabasco region and to protect cultural heritage; the United
Nations Industrial Development Organisation (UNIDO) to launch
the Oyo Renewable Energy Research Centre in Congo and to
evaluate potential hydrogen initiatives; the Italian Agency for
Development Cooperation (AICS), in Egypt and Kenya, to promote
local community development; and the Stakeholder Alliance for
Corporate Accountability (SACA) in Nigeria to promote initiatives
for the respect of Human Rights.
Concerning health-related initiatives, agreements were signed
with several Ministries of Health and local health authorities, e.g.
in Mozambique and Egypt. A cooperation agreement was signed
with the IRCCS Centro Cardiologico Monzino to support Azule
Energy Angola implementing the cardiology capacity building
project, and the project to protect the health of internal refugees
in collaboration with Doctors with Africa CUAMM was completed.
Collaborations with the private sector launched in 2022 include
one with CNH Industrial and IVECO Group for economic
diversification, education and vocational training starting in the
Basilicata region. Employing an “internal procedure”, Eni has
defined the guiding principles for designing and implementing
the
level at
subsidiaries responsible for developing this process, analysing
and agreeing on the solution with claimants, whether individuals
or communities.
Indeed, knowledge of the context,
including the cultural
context, makes it possible to have processes with appropriate
channels of access consistent with the context and to apply
the most pertinent modes of dialogue and management for
potential conflict. In particular, when designing the mechanism,
subsidiaries may conduct dedicated consultations with
in
local communities, especially with
“Grievance Mechanism” on the operational
indigenous peoples,
cases where the context and/or past projects suggest a
high number of grievances, or where the projects or activities
involve economic or physical relocation of communities. All
subsidiaries’ grievances received, analysed and managed are
tracked in the company’s “Stakeholder Management System”
(SMS) application. The application is a management tool for
“mapping” stakeholder relations, and monitoring the progress of
projects and the results achieved. It allows them to be monitored
at subsidiary and central levels from receipt to resolution, it
enables them to be classified by theme and relevance, and it
allows the percentage of resolved projects to be verified out of
the total received in a given period. Other areas of investigation
concern the timeliness of management, the trend analysis of
associated issues to understand whether they are reiterated and
their possible evolution towards a dispute. Companies may also
request feedback from the claimants on their level of satisfaction
with the operation of the process, asking them to point out any
areas for improvement. Eni requires its suppliers, contractors
and subcontractors to make their own Grievance Mechanism
available to the workers and communities with whom they
interact on behalf of Eni.
Performance metrics and comments
In 2022, investments for local development amounted to around
€76.465 million (Eni share), about 93% of which were in the area of
Upstream activities. In Africa, a total of €39.1 million was spent,
of which €32.9 million in the Sub-Saharan area, mainly for the
development and maintenance of infrastructure, particularly
school buildings. In Asia, approximately €26.0 million was
spent, mainly on economic diversification, in particular for the
development and maintenance of infrastructure. In Italy, €6.5
million was spent. Overall, approximately €31.3 million was
invested in infrastructure development activities, of which
€17.2 million in Asia, €13.4 million in Africa, and €0.7 million in
Central and South America. The main projects implemented in
2022 included initiatives to promote: (i) access to clean cooking
in Ivory Coast, Mozambique, Ghana and Angola, through
awareness-raising campaigns and the distribution of improved
cooking systems; in Kazakhstan, the energy-efficient upgrading
of a school in the Turkestan region, carried out in partnership
with UNDP (United Nations Development Programme), was
completed; (ii) economic diversification in both the agricultural
sector in Congo, Egypt, Nigeria and Angola, and support of local
and youth entrepreneurship in Ghana, Egypt and Mozambique;
in Mexico, training and education activities were carried out to
support school programmes and initiatives aimed at improving
the social-economic conditions of communities with fishing
activity development programmes, and economic diversification
activities were launched to create a favourable environment for
the development and integration of young people; (iii) access
(65) The data includes expenses for resettlement activities which in 2022 amounted to €1.2 million, of which: €1.06 million in Mozambique, €0.07 million in Ghana
and €0.07 million in Kazakhstan.
ENI ANNUAL REPORT 2022 197
to education with training activities and instruction supporting
the school programmes in Ivory Coast, Egypt, Mozambique,
Ghana, Iraq, Mexico, and Angola; renovation of school buildings
in Ghana, Iraq, and Mexico; (iv) access to water starting up
potable water supply plants in Al-Burdjazia in the Zubair area
and continue building the new potabilization plant Al-Buradeiah
in Bassora; the activities and initiatives on the topic of water
access and renewable energy to support local development in
the operating areas of Samboja, Kutai Kartanegara and eastern
Kalimantan in Indonesia; maintenance was performed on the
wells supplied by photovoltaic systems in northwest Nigeria
and 11 water plants were completed in the states of Borno and
Yobe; maintenance of the pre-existing water points and clean
and potable water use sensibilization activities in Angola; start-
up of a multisector programme to improve the quality of life of
the residents in the Mecufi District in Mozambique through the
access to basic services like potable water.
In terms of health development projects, in 2022, Eni has carried out
initiatives in 16 Countries with a total expenditure of €10.3 million,
to improve the health status of the populations of partner Countries
as an essential prerequisite for socio-economic development,
through the strengthening of the skills of health personnel (for
example in Angola and Libya), the construction and rehabilitation
of health facilities and their equipment (for example in Mexico,
Iraq and Tunisia), information, education and awareness-raising
on health issues among the populations involved (for example in
Egypt, Ghana, Kazakhstan and Mexico). Moreover, in continuity with
its support to healthcare institutions and facilities for the COVID-19
emergency, in 2022, Eni carried out interventions to strengthen the
health system in Italy, intending to contribute to the resilience of
local facilities in facing the present and possible future pandemics,
such as the Vittorio Emanuele Hospital in Gela, the S. Elia Hospital
in Caltanissetta, the Luigi Sacco Hospital in Milan, and the S.
Matteo Hospital in Pavia. In 2022, with the aim of assessing the
potential impacts of the projects on the health of the communities
involved, Eni completed 11 Health Impact Assessments (HIAs),
of which two were preliminary integrated Environmental, Social
and Health Impact Assessments (pre-ESHIA) and seven were
integrated ESHIA studies. During 2022, 141 grievances66 were
received, 61 (equal to 43%) of which were resolved. The complaints
mainly concerned: management of relations with the communities
(most recurring category), management of environmental aspects,
land management, employment development, and economic
diversification.
KEY PERFORMANCE INDICATORS
Local development investment
of which: infrastructure
2022
2021
2020
of which fully
consolidated
entities
74.3
31.1
Total
76.4
31.3
Total
105.3
39.8
Total
96.1
41.8
(€ million)
(66) Claims or complaints made by an individual or a group of individuals relating to actual or perceived accidents or damage or other environmental or social impacts, whether
occurring, ongoing or potential, and determined by the activities of the company or by a contractor or supplier. A grievance is defined as “resolved” when the parties have
agreed on a proposed resolution.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 198
EU TAXONOMY
Introduction
Regulation EU 852/2020 of the European Parliament and of
the Council enacted in June 2020 has established the criteria
for determining whether an economic activity qualifies as
environmentally sustainable for the purposes of establishing the
degree to which an investment is environmentally sustainable.
Based on the Regulation, an economic activity qualifies as
environmentally sustainable where that economic activity:
i) contributes substantially to one or more of the environmental
objectives of the EU (set out in Article 9 of the Regulation);
ii) does not significantly harm any of the environmental
objectives;
iii) is carried out in compliance with the minimum safeguards
foreseen by the Regulation, which are procedures implemented
by an undertaking that is carrying out an economic activity
to ensure the alignment with the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles on
Business and Human Rights, including the principles and
rights set out in the eight fundamental conventions identified
in the Declaration of the International Labour Organisation
on Fundamental Principles and Rights at Work and the
International Bill of Human Rights;
iv) complies with technical screening criteria that have been
established by the Commission, which define the performance
thresholds whereby an economic activity offers a substantial
contribution to an environmental objective and at the same
time does not hurt in a significant way any of the other
objectives.
The Taxonomy Regulation has established six environmental
objectives:
a) climate change mitigation;
b) climate change adaptation;
c)
the sustainable use and protection of water and marine
resources;
the transition to a circular economy;
d)
e) pollution prevention and control;
f)
the protection and restoration of biodiversity and ecosystems.
ENI’S
ELIGIBLE AND
IDENTIFICATION OF
TAXONOMY-ALIGNED ACTIVITIES
The Taxonomy Regulation establishes technical screening
criteria “TSC” for environmental sustainability with respect to
the above-mentioned six environmental objectives, identifying
several economic activities. The technical screening criteria
(“TSC”) for each of the above-mentioned environmental objectives
are established by the Commission by means of delegated acts
based on the power conferred by the Taxonomy Regulation and
subject to the conditions laid down in the Regulation itself.
So far, criteria have been approved for activities contributing to
the first two objectives, climate change mitigation and climate
change adaptation. Criteria for the four remaining objectives are
expected to be adopted by the EU in 2023.
An activity is “taxonomy-eligible” if it is described in a delegated
act adopted under the Taxonomy Regulation, irrespective of
whether it complies with the technical screening criteria. Such
an activity could potentially make a substantial contribution to a
given environmental objective.
An activity is “taxonomy-aligned” if it contributes substantially to
one or more environmental objectives, does no significant harm
“DNSH” to any of the other objectives, is carried out in compliance
with minimum human and labor rights safeguards, and complies
with the relevant technical screening criteria.
Eni has assessed the economic activities performed by the Group
against the economic activities qualifying for the taxonomy’s
climate mitigation and climate adaptation objectives, which
have been identified by Delegated Regulation EU 2021/2139 (the
“Climate Delegated Act”) and the nuclear and gas-related activities
listed in Delegated Regulation EU 2022/1214 (the “Complementary
Climate Delegated Act”).
This assessment has comprised a two-step process: first, the
Group economic activities have been screened to score those
eligible in accordance with the above-mentioned delegated acts.
Then, the technical screening criteria have been applied to verify
alignment of each of the Group’s eligible economic activities with
the relevant TSC to verify the substantial contribution criteria and
respect of the DNSH criteria. The assessment of compliance with
the minimum safeguards provided by art. 3 “c” of the Regulation
has been performed at Group level.
REPORTING OBLIGATIONS AND BASIS OF
PRESENTATION
Based on article 8 of the Taxonomy Regulation, non-financial
undertakings which are subject to the obligation to publish a
consolidated non-financial statement pursuant to Article 19a or
Article 29a of Directive 2013/34/EU of the European Parliament
and of the Council are required to comply with a transparency
regime by disclosing in their non-financial statements three key
performance indicators (KPI) relating to the proportion of their
turnover derived from products or services associated with
economic activities that qualify as environmentally sustainable
and the proportion of their capital expenditure and the proportion
of their operating expenditure related to assets or processes
associated with economic activities that qualify as environmentally
sustainable as per the Regulation. The Commission has adopted
a delegated regulation (2178/2021) specifying the content of
KPIs and presentation of information concerning environmentally
sustainable economic activities and the reporting methodology.
Disclosures presented herein by Eni are intended to comply with
that regulation.
ENI ANNUAL REPORT 2022 199
EU Taxonomy Disclosures as per Annex I to COMMISSION DELEGATED REGULATION
(EU) 2021/2178 KPIs of non-financial undertakings
EUROPEAN TAXONOMY: SUMMARY TEMPLATE OF ENI GROUP KPI
ENI GROUP - YEAR 2022
TURNOVER
CAPEX
OPEX
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. ENVIRONMENTALLY SUSTAINABLE ACTIVITIES
(TAXONOMY- ALIGNED)
A.2. TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY
SUSTAINABLE ACTIVITIES
(NOT TAXONOMY-ALIGNED ACTIVITIES)
Absolute amount in
€ mln
proportion
%
Absolute amount in
€ mln
proportion
%
Absolute amount in
€ mln
proportion
%
7.5%
0.6%
823
17.5%
12.1%
1,753
14.1%
75
1.8%
9,051
6.9%
419
3.4%
428
10.3%
TOTAL A.1 + A.2
9,874
7.5%
2,172
17.5%
503
12.1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
122,638
92.5%
10,224
82.5%
3,657
87.9%
TOTAL A+B
132,512
100%
12,396
100%
4,160
100%
1.
Content of KPIs
1.1. Specification of key performance indicators
(KPIs)
1.1.1. KPI related to turnover (turnover KPI)
Eni Group’s consolidated financial statements are prepared in
accordance with the International Financial Reporting Standards
“IFRS” as adopted by Commission Regulation (EC) 1126/2008.
In compliance with that, the Group turnover and the turnover
relating to Taxonomy-aligned economic activities and to
Taxonomy-eligible economic activities
(not Taxonomy-
Aligned activities) have been recognised pursuant to
International Accounting Standard (IAS) 1, paragraph 82 a).
The 7.5% share of eligible and aligned turnover is calculated as
the part of turnover derived from eligible or aligned economic
activities (numerator) divided by total turnover (denominator).
Eligible and aligned economic activities are described under
paragraph 1.2.2. The denominator comprises the Sales from
operations (Revenue) line from the Consolidated Statement of
Income. A reconciliation is provided below:
TURNOVER
(€ million)
Aligned activities
Eligible activities
Total Group
Revenues from contracts with customers (sales from operations)
823
9,051
132,512
The proportion of turnover referred to in Article 8(2), point (a), of
Regulation (EU) 2020/852 “turnover KPI” is calculated as the part
of the turnover derived from products or services associated with
Taxonomy-aligned economic activities (numerator), divided by the
Group total turnover (denominator).
The Group turnover and the turnover of eligible and aligned economic
activities are recognized net of the effects of commodity derivatives
activated to manage the Group’s exposure to movements in the
prices of energy commodities, which qualify and are designated as
cash flow hedges due to the efficacy of the relationship between the
instrument and the hedged item, whereby a cash flow is either paid
or received at the delivery of the underlying commodity. The mark-
to-market of cash flow hedges relating to a forecast transaction are
taken to other comprehensive income.
Other commodity derivatives utilized by the Group to manage
exposure to the commodity risks, which lack the requirements to
be recognized in accordance with the own use exemption or to be
qualified as hedges in accordance with IFRS, are marked to market
with gains or losses recognized through profit and loss in a separate
line item from revenues. Such line item comprises the ineffective
portion of cash flow hedges.
1.1.2. KPI related to capital expenditure (CapEx)
(CapEx KPI)
Capital expenditure “CapEx” of the Eni Group and the “CapEx”
relating to eligible economic activities and to aligned economic
activities cover costs that are accounted based on:
(a) IAS 16 Property, Plant and Equipment, paragraphs 73, e),
point i) and point iii);
(b) IAS 38 Intangible Assets, paragraph 118, e), point i);
(c ) IFRS 16 Leases, paragraph 53, point h).
CapEx also covers additions to tangible and intangible assets
resulting from business combinations.
The Group does not engage in economic activities that are
recognized in accordance with IAS 40 and IAS 41.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 200
The 17.5% share of CapEx of eligible and aligned economic
activities is calculated as the part of CapEx derived from
eligible or aligned economic activities (numerator) divided
by total Group CapEx (denominator). Eligible and aligned
economic activities are described under paragraph 1.2.2. The
denominator comprises additions recognized in the financial
year to the following line items of the Group’s assets reported
in the Group statement of financial positions at December 31,
2022: “Property, plant and equipment”, “Intangible assets and
goodwill” and “Right of Use” as disclosed under footnotes no.
12, 13 and 14 to the Group consolidated financial statements.
A reconciliation is provided below:
CAPEX
Additions to tangible and intangible assets
Additions to right of use assets
Fair value of acquired tangible and intangible assets
Acquired Goodwill
Less:
Goodwill
Total Capex
(€ million) Aligned activities
Eligible activities
Total Group
460
7
1,286
408
11
1,753
419
8,056
2,404
1,936
482
(482)
12,396
The proportion of CapEx referred to in Article 8(2), point (b), of
Regulation (EU) 2020/852 “CapEx KPI” is calculated as the part
of CapEx relating to aligned economic activities (numerator)
divided by the Group total CapEx (denominator) as specified in
points 1.1.2.1. and 1.1.2.2. of Annex I to Commission Delegated
Regulation (Eu) 2021/2178.
1.1.3. KPI related to operating expenditure (OpEx)
(OpEx KPI)
The 12.1% share of eligible and aligned operating expenditure
“OpEx” is calculated as the part of OpEx relating to eligible or
aligned economic activities (numerator) divided by the Group total
Opex (denominator). Eligible and aligned economic activities are
described under paragraph 1.2.2. A reconciliation is provided below:
OPEX
Costs of R&D expensed through profit and loss
Operating expenses
Total Opex
(€ million) Aligned activities
Eligible activities
Total Group
75
75
86
342
428
164
3,996
4,160
The proportion of OpEx referred to in Article 8(2), point (b), of
Regulation (EU) 2020/852 “OpEx KPI” is calculated as the Opex of
aligned economic activities (numerator) divided by the Group total
OpEX denominator as specified in points 1.1.3.1. and 1.1.3.2. of
Annex I to Commission Delegated Regulation (Eu) 2021/2178.
1.2. Specification of disclosures accompanying the
KPIs of non-financial undertakings
1.2.1. Accounting policy
Economic and financial data relating to Eni’s eligible and aligned
economic activities for calculating the Taxonomy’s KPIs and
proportion of eligible turnover, capex and opex, have been
extracted from the Group accounting systems, the general ledger
and the management accounting systems, which are used to
prepare the separate financial statements of each consolidated
subsidiary undertakings, mostly of which are in accordance with
IFRS. Data extracted from separate financial statements are
adjusted to align with the IFRS utilized in the preparation of the
Group consolidated financial statements and for the consolidation
transactions (intercompany sales and purchases, elimination of
unrealized profit, etc.) to calculate Eni’s Taxonomy KPIs and the
eligible turnover, capex and opex proportion.
Therefore, data of turnover, OpEx and CapEx relating to Eni Group’s
aligned and eligible economic activities utilized in calculating the
Taxonomy KPIs and the proportion of eligible activities are the
same the Group used in preparing the consolidated financial
statements.
In case of mono-business consolidated subsidiary undertakings
performing a given eligible activity, relevant economic and financial
data for the calculation of the Group eligible proportions have been
extracted from the general ledger and the financial accounting to
retrieve amounts of revenues, operating expenditures, additions
to property, plant and equipment (PP&E) and intangible assets,
additions to the right-of-use and additions to PP&E and intangibles
resulting from business combinations. In case of multi-business
subsidiary undertakings, relevant data for calculating the Group
eligible proportions have been derived also from the systems of
managerial accounting that splits the accounts of the financial
system and allocates revenues and cost amounts to different
reporting objects: profit centers which correspond to business
units, product lines which can share common costs, plants,
capital projects, cost centers, etcetera, to support management’s
understanding of the drivers of the financial performance and
cost control.
Such structure of accounting flows, which is employed in
the Group consolidated financial statements,
preparing
ENI ANNUAL REPORT 2022 201
ensure that turnover, OpEx and CapEx are recognized by the
economic activity where the underlying transactions occur, by
this way avoiding double counting. This explained by evidence
that amounts recognized or allocated by the managerial
accounting system are reconciled with the accounting system
and the general ledger. Common costs are apportioned to
different reporting objectives and economic activities based
on disaggregation criteria that reflect how common inputs are
absorbed.
Operating costs of Eni Group companies to define the proportion
of the opex of aligned and eligible activities to the Group total
were determined on the basis of the managerial accounting
system and Eni’s control model of fixed costs which, starting from
accounting data relating to purchases of goods and materials,
services, labour costs and other charges, excludes raw materials
costs, industrial plant variable costs and costs of products for
resale and aggregates the remaining cost items in relation to the
different measurement and control stages in the manufacturing/
sale process:
• fixed industrial costs which include the labor costs for personnel
involved in the maintenance, operation and servicing of industrial
plants, third-party services (mainly maintenance contracted to
third parties), general plant costs, consumables (spare parts and
components to modernize plants) and include energy efficiency
actions on buildings and other properties, as well as the purchase
of outputs from aligned activities to achieve CO2 emission
reductions;
• non-capitalised research & development costs;
• commercial & marketing fixed costs;
• general and administrative costs.
For the purposes of reporting obligations, management has
identified industrial fixed costs and non-capitalised R&D costs as
the aggregate “opex” operating expenses corresponding to the
definition of the denominator adopted by the Delegated Regulation
on reporting.
In line with the provisions, the opex incurred to purchase enabling
products or in relation to enabling manufacturing processes
have been claimed by the economic activities carried out by Eni in
compliance with Art. 16 of the Taxonomy Regulation so that do not
lead to a lock-in of assets that undermine long-term environmental
goals, considering their economic life. In this context, the opex
incurred by the E&P sector to increase energy efficiency/reduce CO2
emissions at oil & gas plants were excluded. This principle has also
been applied to capex.
1.2.2. Assessment of compliance with Regulation
(EU) 2020/852
1.2.2.1. Information on assessment of compliance with
Regulation (EU) 2020/852
Eni’s eligible activities for purpose of assessing their substantial
contribution to the objective of climate change mitigation are:
3.14 manufacture of organic basic chemicals: production of
monomers and other basic chemicals from oil-based
feedstock and ethane;
3.17 manufacture of plastics
in primary form: production
of polyethylene and styrene’s obtained by processing
monomers;
electricity generation using solar photovoltaic technology:
photovoltaic
installations are managed by the Group
subsidiary Plenitude and are located mainly in Italy, Spain,
USA, Australia and France;
electricity generation from wind power: the production is
obtained from onshore windmills that are managed by
the Group subsidiary Plenitude and are located mainly in
Italy, Spain, Kazakhstan;
electricity generation from ocean energy technologies:
it is an inertial sea wave energy converter to convert the
wave energy into electrical energy. This activity is in an
experimental phase;
from bioenergy: production of
electricity generation
electricity in installations with a total rated thermal input
below 2 MW and using gaseous biomass fuels;
4.1
4.3
4.4
4.8
4.13 manufacture of biogas and biofuels for use in transport
and of bioliquids: production of biofuels by means of
hydrogenating biofeedstock or waste organic materials.
The manufactured product is a hydrogenated vegetable
oil (HVO) that can be used as pure fuel or blended with
fossil fuels to obtain a reduction in emitted CO2 from
combustion. This activity is performed at the biorefinery
of Gela (Sicily) and Venice with total production capacity
of 1.1 mln tons/y;
4.20 cogeneration of heat/cool and power from bioenergy:
production of steam and electricity by means of
cogeneration, utilizing forestry biomass at the Crescentino
plant (Italy);
5.7
5.3-5.4 construction, extension and operation of wastewater
collection, treatment and supply systems and renewal of
wastewater collection, treatment and supply system;
anaerobic digestion of bio-waste: anaerobic digestion,
biogas production and subsequent cogeneration for
electricity production, as well as compost, at the Po’ Energia
Srl plant from organic fraction coming from the separate
collection of municipal waste;
6.5
5.12 underground permanent geological storage of CO2: this
activity leverages depleted reservoirs operated by Eni. The
main ongoing projects are the Hyte hub in UK to upgrade
Eni’s depleted reservoirs in the Liverpool bay to permanently
store CO2 emitted by local businesses in hard-to-abate
industries and the Ravenna hub, off Italy;
transport by motorbikes, cars and light commercial vehicles:
Enjoy rental service based on the “free floating” model with
collection and release of the vehicle at any point within the
area covered by the service. The fleet consists of internal
combustion, hybrid and electric vehicles;
infrastructure enabling low carbon road transport and
public transport: this activity comprises construction,
maintenance, and operations of electric charging points
for EV, and is performed by Eni’s subsidiary Plenitude. As
of December 31, 2022, the network operated by Plenitude
consisted of about 13 thousand recharging points.
6.15
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 202
The Company has excluded from its eligible activities the
following activities:
3.10 manufacture of hydrogen;
6.10 sea and coastal freight water transport, vessels for
port operations and auxiliary activities, which support
hydrocarbons;
infrastructure enabling low carbon road transport and
public transport, which support fossil fuels.
6.15
The reason is their non-compliance with the lock-in clause stated
at art. 16 of the Taxonomy.
Those activities are also eligible for the objective of climate
change adaptation. However, the Group does not engage in
economic activities that manufacture productions and solutions
for climate change adaptation. Therefore, the objective of climate
change adaptation has been assessed as far as necessary to
verify that each of Eni’s eligible economic activities does not
significantly harm any of the environmental objectives of the
Taxonomy, in compliance with art. 3 of regulation (UE) 2020/852.
Eni has assessed whether its eligible economic activities are
environmentally sustainable in compliance with the provisions of
art. 3 of regulation (UE) 2020/852 complemented by Commission
delegated regulation (UE) 2021/2139 adopted pursuant to articles
10-11 par. 3 of the above mentioned regulation, which establishes
the technical screening criteria which set the performance
conditions whereby an economic activity can be claimed to
contribute substantially to the objective of climate change
mitigation, does not significantly harm any of the environmental
objectives of the Taxonomy and is carried out in compliance with
the minimum safeguards laid down in Article 18 of regulation (UE)
2020/852. Based on those evaluations, the Group concluded that
the following activities are environmentally sustainable as per
regulation (UE) 2020/852.
4.1. Electricity generation using solar photovoltaic technology
Substantial contribution to climate change mitigation
The activity generates electricity using solar PV technology.
Do no significant harm (“DNSH”)
Climate change adaptation
Climate change adaptation. The management has assessed the
risk of exposure of the Group’s assets to climate-related acute
and chronic hazards, following the guidelines of Appendix A to the
Climate Delegated Regulation, setting generic criteria for DNSH to
climate change adaptation.
The Group has put in place management control systems and
procedures to identify, evaluate and mitigate physical climate
risks, which the Company defines as the risk that potential
perspective changes in meteorological patterns and extreme
weather phenomena linked to climate change expected in the
long-term may have adverse and significant effects on assets’
future performance, on the safety of operations and on expected
future cash flows, so to significantly harm the objective of climate
change adaptation.
The management regularly reviews the exposure of the Group’s
assets to the acute and chronic climate-related hazards described
in the above-mentioned Appendix A and other natural hazards
based on a proprietary methodology to identify physical climate
risks over a long-term horizon. The purpose of this risk assesment
is to define and execute mitigation plans designated to adapt the
Group assets to current or expected risks, considering the already
existing barriers at each Company’s asset.
Eni’s assessment methodology of assets’ exposure to natural
hazards features the following steps:
• it utilizes input data furnished by an external provider (currently
Verisk Maplecroft), which has elaborated geographic maps
of prospective climate-related risks ensuring a full coverage
of onshore and offshore areas where Eni’s assets are
located. The sources of such climate maps combine the
most updated climate forecast models, also incorporating
historical weather patterns, to provide expected qualitative
trends in the evolution of climate-related events;
• it develops a stress test of the current asset portfolio, without
limiting to assets’ residual useful lives, to evaluate the potential,
perspective exposure to climate-related risks till 2050;
• it
is performed yearly, and
it will undergo continuous
improvement based on the experience that will be accumulated
over time, as well as the evolution in the framework on how to
identify and measure climate-related risks;
• it utilizes the IPCC RPC 8.5 scenario to project the expected
future geographical maps of climate-related hazards;
• it utilizes the geographic coordinates of each Company’s
asset (longitude and latitude) to locate it in a given quadrant
(each with an area of twenty square kilometers) as defined by
the external provider to recognize the climate-related risks,
which each asset is potentially exposed to over a thirty-year
horizon based on the adopted climate scenario;
• it considers in the risk-evaluating process also third-party
assets and assets of the supply chain, where relevant to a full
understanding of the risks which each Eni’s asset is exposed.
Once climate-related hazards have been identified and classified,
the management evaluates each asset’s existing barriers or factors
both physical ones (structural characteristics of an asset design,
materials used in its construction, distance from the sources
of possible hazards, containment walls, etc.) and systems and
procedures (early warning systems, procedures to put in safety
plants and equipment, existence of monitoring and verification
plans, etc.).
The outcome of that review informs the management of the residual
risk which each assets remains exposed to, and how to define the
action plan to achieve the objective of climate change adaptation:
• in case of chronic climate-related hazards, monitoring activities
are designed, planned, and carried out leading to the possible
implementation and follow-up of remediation measures;
• in case of acute climate-related hazards, an adaptation plan is
assessed, designed, and implemented, which can comprise
updates to operating procedures, the execution of works to
upgrade or increase assets’ safety and the resilience to the
identified physical climate risks, or an asset reconfiguration
taking into account its useful residual life.
ENI ANNUAL REPORT 2022 203
Based on the assessment of this activity’s exposure to climate-
related hazards following the methodology and procedures
described herein, the management has concluded that the
Company’s PV facilities are not exposed to any significant
physical climate risk considering the facilities residual useful
lives and assets features and barriers. Therefore, this activity
does not significantly harm the objective of climate change
adaptation.
Transition to a circular economy
The activity has assessed availability of and, where feasible, it is
using equipment and components of high durability and recyclability
and that are easy to dismantle and refurbish.
Protection and restoration of biodiversity and ecosystem
Eni’s PV installations have obtained before the start of construction
works an Environmental Impact Assessment in compliance
with Directive 2011/92/EU or a proper authorization based on
an equivalent environmental assessment in case of installations
located outside EU. Therefore, this activity does not significantly
harm the objective of the protection and restoration of biodiversity
and ecosystem.
with a total rated thermal input below 2 MW, which are using
gaseous biomass fuels. The installations are located in Italy.
DNSH
Climate change adaptation
Based on the assessment of this activity’s exposure to climate-related
hazards following the methodology and procedures described herein,
the management has concluded that the Company’s electricity
generation installations are not exposed to any significant physical
climate risk. Therefore, this activity does not significantly harm the
objective of climate change adaptation.
Sustainable use and protection of water and marine resources
Protection and restoration of biodiversity and ecosystem
Eni’s electricity generation
installations have obtained
before the start of construction works an Environmental
Impact Assessment in compliance with Directive 2011/92/
EU. Therefore, this activity does not significantly harm the
objectives of the sustainable use and protection of water
and marine resources and of protection and restoration of
biodiversity and ecosystem.
4.3. Electricity generation from wind power
4.13. Manufacture of biogas and biofuels for use in transport
and of bioliquids
Substantial contribution to climate change mitigation
The activity generates electricity from wind power.
The activity consists in manufacturing HVO for use in transport. The
activity is performed at the biorefinery of Gela (Sicily) and Venice.
DNSH
Climate change adaptation
Based on the assessment of this activity’s exposure to climate-
related hazards following the methodology and procedures
described herein, the management has concluded that the
Company’s PV windmills are not exposed to any significant physical
climate risk considering the facilities residual useful lives and assets
features and barriers. Therefore, this activity does not significantly
harm the objective of climate change adaptation.
Transition to a circular economy
The activity has assessed availability of and, where feasible, it is
using equipment and components of high durability and recyclability
and that are easy to dismantle and refurbish.
Protection and restoration of biodiversity and ecosystem
Eni’s windmills have obtained before the start of construction
works an Environmental Impact Assessment in compliance
with Directive 2011/92/EU or a proper authorization based
on an equivalent environmental assessment in case of
installations located outside EU. Therefore, this activity does
not significantly harm the objective of the protection and
restoration of biodiversity and ecosystem.
4.8. Electricity generation from bioenergy
Substantial contribution to climate change mitigation
Eni’s activity comprises electricity generation installations each
Substantial contribution to climate change mitigation
Each batch of HVO manufactured in 2022 has been reviewed to
assess the substantial contribution to climate change mitigation.
Volumes of HVO manufactured using food and feed crops as
feedstock have been excluded from the KPI, as well as those
produced using agricultural biomass that does not comply with the
criteria laid down in Article 29, paragraphs 2 to 5, of Directive (EU)
2018/2001.
The greenhouse gas emission savings from the HVO volumes
manufactured from sustainable feedstock have been measured
by applying the GHG saving methodology and the relative fossil
fuel comparator set out in Annex V to Directive (EU) 2018/2001.
The saving has been calculated for each kind of biomass used
as feedstock. Based on the outcome of this review, 98% of the
marketed to third parties volumes of HVO at the Gela biorefinery
have been assessed to contribute substantially to climate change
mitigation.
The activity turnover, OpEx, and Capex have apportioned to the
relevant KPIs in proportion to the percentage of environmentally
sustainable manufactured volumes of HVO.
DNSH
Climate change adaptation
Based on the assessment of this activity’s exposure to climate-
related hazards following the methodology and procedures
described herein, the management has concluded that the
Company’s biorefinery of Gela exposed to a risk of water stress.
A monitoring plan is being implemented to check how the risk
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 204
exposure evolves over time with the goal of adapting the activity to
climate change within five years.
6.15. Infrastructure enabling low carbon road transport and
public transport
Sustainable use and protection of water and marine resources
Protection and restoration of biodiversity and ecosystem
Eni’s biorefineries have obtained before
the start of
construction works and subsequently on occasion of any major
upgrading, reconfiguration or restructuring an Environmental
Impact Assessment in compliance with Directive 2011/92/
EU. Therefore, this activity does not significantly harm the
objectives of the sustainable use and protection of water
and marine resources and of protection and restoration of
biodiversity and ecosystem.
5.12. Underground permanent geological storage of CO2
The activity consists in building and operating the permanent
underground Hyte hub to store CO2 by leveraging Eni’s depleted
reservoirs, off the Liverpool Bay in UK. The storage service
will be made available to local businesses in hard-to-abate
industries according to a regulated tariff which is currently
under negotiation. Italian authorities approved a pilot project
to build and operate a plant for the storage of CO2 utilizing
the depleted natural gas fields of Eni offshore Ravenna in the
Adriatic Sea.
Substantial contribution to climate change mitigation
The UK activity complies with ISO 27914:2017 for geological
storage of CO2. The Italian activity complies with provisions of
Directive 2009/31/EC.
DNSH
Climate change adaptation
Based on the assessment of this activity’s exposure to climate-
related hazards following the methodology and procedures
described herein, the management has concluded that it is
adapted to climate change.
Pollution prevention and control
The management
the risk
foresees
management systems and the procedures of monitoring &
verification provided by the above-mentioned ISO rules, the
activity will comply with the pollution thresholds and markers
set by Directive 2009/31/C.
that by adopting
Sustainable use and protection of water and marine resources
Protection and restoration of biodiversity and ecosystem
The management foresees that by adopting the risk management
systems and the monitoring&verification procedures provided
by the above-mentioned ISO rules and by implementing all of the
planned measures to ensure the environmental sustainability
of the project to be granted all necessary authorizations by
the relevant UK authorities, the DNSH criteria will be met with
respect to the objectives of Sustainable use and protection of
water and marine resources and of Protection and restoration of
biodiversity and ecosystem.
Substantial contribution to climate change mitigation
The activity consists in installing and operating a network of
electric charging points for EV.
DNSH
Climate change adaptation
Based on the assessment of this activity’s exposure to climate-related
hazards following the methodology and procedures described herein,
the management has concluded that it is adapted to climate change.
Pollution prevention and control
In the installation of electric charging points, the Company
limits waste generation in processes related construction
and demolition, in accordance with the EU Construction
and Demolition Waste Management Protocol and taking
into account best available techniques and using selective
demolition to enable removal and safe handling of hazardous
substances and facilitate reuse and high-quality recycling
by selective removal of materials, using available sorting
systems for construction and demolition waste.
Measures are taken to reduce noise, dust and pollutant
emissions during construction or maintenance works, such
as for example:
1. utilization of equipment with low environmental impact, which
reduces noise, dust and pollutant emissions compare to
traditional equipment;
2. limiting working hours by scheduling, when and where
possible, construction or maintenance activities during
the hours when there is less traffic to limit the impact on
surrounding activities.
Sustainable use and protection of water and marine resources
Protection and restoration of biodiversity and ecosystem
Eni’s electric charging points have obtained before the start of
construction works an Environmental Impact Assessment in
compliance with Directive 2011/92/EU. Therefore, this activity
does not significantly harm the objectives of the sustainable
use and protection of water and marine resources and of
protection and restoration of biodiversity and ecosystem.
The installation of charging points for electric vehicles
complies with specific laws and technical rules to ensure the
safety of users and the integrity of the infrastructure, which
also include the protection of biodiversity/ecosystems.
1.2.2.2. Contribution to multiple objectives
Not applicable.
1.2.2.3. Disaggregation of KPIs
In the activity 4.13 manufacture of biofuels for use in transport, the
biorefinery of Gela is a common facility for both the production of
Taxonomy-aligned biofuels and for Taxonomy-eligible biofuels. The
facility common costs have been apportioned to each activity in
proportion to the manufactured volumes of biofuels.
ENI ANNUAL REPORT 2022 205
The management believes that such disaggregation is based
on criteria that are appropriate for the production process being
implemented and reflects the technical specificities of that process.
expected in 2024. All those projects are included in the
Company’s four-year industrial plan approved by the Board of
Directors on February 22, 2023;
1.2.3. Contextual information
1.2.3.1. Contextual information about turnover KPI
The amounts that sum up the numerator of the turnover KPI have
derived from contracts with customers and were recognized
based on IFRS 15. The total amount of the numerator was €823
million and the break-down is as follows:
• €31 million from the sale of electricity generated by the Group’s
PV installations;
• €79 million from the sale of electricity generated by the Group’s
windmills;
• €41 million from the sale of electricity generated by installations
using gaseous biomass fuels;
• €667 million from the sale of biofuels (HVO).
1.2.3.2. Contextual information about CapEx KPI
The numerator of the CapEX KPI amounted to €1,753 million and
comprised:
• €603 million related to the activity of electricity generation from
photovoltaic installations, out of which €220 million related to
additions to PP&E for progressing the construction program of
which €188 million related to the new capacity installed in 2022
for 319 MW (or the revamping of existing installations) and €383
million related to acquisitions closed in the year of installations
from third parties for a capacity in operation of 311 MW.
In particular, the additions to PP&E of €220 million related: (i)
for €146 million to the Brazoria project in Texas completed
during 2022; (ii) for about €30 million to the Cerillares project
being completed in Spain with a fid taken in December 2021;
• €906 million related to the activity of electricity generation
from wind power, which included €8 million additions to PP&E
for progressing the construction program of which around
€5 million related to new installed capacity in 2022 for 5 MW
(Badamsha 2 project in Kazakhstan) and €898 million related
to acquisitions closed in the year of plants from third parties
for a capacity in operation of 368 MW;
• €97 million relating to the production of biofuels, all of which
related to additions to PP&E, mainly relating to the bio-
refineries in Venice and Gela for €94 million. With reference
to Venice, several projects are underway to upgrade the
biorefinery, of which the main ones concerned: construction
of a new section (degumming) of the biomass treatment
unit to enhance the processing of more complex feedstock
with expected start-up in 2023; construction of a steam
reforming system that is designated to replace the fuel cycle
for the supply of hydrogen needed to produce pure HVO, with
a consequent increase in processing capacity up to 0.6 million
tons/year, with completion expected in 2024. With reference
to Gela the main projects concerned: the upgrading of the
biomass treatment unit (BTU) to enhance the processing of
more complex feedstock, with completion expected in 2024;
construction of a manufacturing unit of biojet, with completion
• €78 million relating to the activity of underground permanent
storage of CO2, fully consisting of additions to PP&E as part of an
ongoing project to build and operate the Hynet storage hub in UK
and a pilot project to develop a CO2 storage hub off Ravenna, Italy.
Both projects have been included in the Group four-year capital
budget that was approved by the Board of Directors on February
22, 2023. Total capital expenditures for the Hynet project are
estimated at €125 million in the four-year plan, with expected
start-up in 2025 when the first volume of CO2 is forecast to be
injected in the depleted reservoirs operated by Eni, offshore the
Liverpool Bay. The expected expenditures for the Italian hub
amount to €150 million in the four-year plan, with expected start-
up at industrial scale within the term of five years;
• €60 million relating to the activity of installing recharging
points for EV, fully consisting of additions to PP&E as about 6.8
thousand new charging points with the Plenitude logo were
completed and commissioned in the financial year.
1.2.3.3. Contextual information about the OpEx KPI
The numerator of the OpEx KPI comprises €75 million of
expenses that mainly related to maintenance and repair, and
other direct expenditures relating to the day-to-day servicing of
assets of property, plant and equipment by the Eni or third party
to whom activities are outsourced that were necessary to ensure
the continued and effective functioning of such assets.
Compliance with the Minimum Safeguards (Ms) - Article 3 “c”
of the EU Taxonomy Regulation
The criteria for the eco-sustainability of economic activities
outlined in article 3 of the Taxonomy Regulation call for respecting
minimum safeguards when conducting business (referred
to in paragraph “c”) in addition to the principles of substantial
contribution and “do no significant harm”. The rule under Article
18 identifies the MS with the procedures implemented by a
company to ensure that business conduct complies with the
OECD Guidelines for Multinational Enterprises and the United
Nations Guiding Principles on Business and Human Rights.
This includes identifying the principles and rights set out in the
eight core conventions identified in the International Labour
Organisation’s Declaration on Fundamental Principles and
Rights at Work and the International Bill of Human Rights.
When companies implement these procedures, they must comply
with the “do no significant harm” principle outlined in Article
2(17) of Regulation (EU) 2019/2088, the Sustainable Finance
Disclosure Regulation (SFDR). The SFDR requires financial market
participants to assess the ESG risk of the investments within the
financial products they intend to offer investors, measuring the
performance of the investee companies against a predefined
set of key impact indicators in critical “principal adverse impact”
areas. Five of these indicators have a social nature: (i) violations
of the UN Global Compact principles and the OECD Guidelines for
Multinational Enterprises; (ii) lack of processes and compliance
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
206
mechanisms to monitor compliance with the previous point’s
principles; (iii) unadjusted gender pay gap; (iv) Board gender
diversity; and (v) exposure to controversial weapons. The definition
of sustainable investment in article 2 (17) of the SFDR states that
an investment is sustainable if it contributes to broadly defined
environmental or social objectives, provided that it does not harm
any of these objectives. Thus, Eni assumes that in complying with
the SFDR principle to “do no significant harm”, it is understood to
refer to the five social impact indicators described above, four of
which are included in Eni’s human rights due diligence processes.
Regarding the fifth, Eni confirms that it does not participate in the
controversial weapons sector.
The OECD Guidelines for Multinational Enterprises are principles
for responsible business conduct related to eight business areas:
• three relate to the theme of human rights (human rights,
consumer protection, employment and industrial relations);
• Anti-Corruption;
• fair competition;
• taxation.
Finally, the other sustainability criteria in article 3 of the
Taxonomy Regulation address the environment, while science/
technology are out of the scope.
The ILO’s eight labour conventions are related as a whole to
respect for human rights.
Observance of the fundamental principles of human rights
contained in the International Bill of Human Rights (Universal
Declaration of Human Rights, International Covenant on Civil
and Political Rights and International Covenant on Economic
Social and Cultural Rights) is ensured by Eni’s compliance with
the Italian Constitution and rules intended to implement it, which
embody human rights principles. As a company incorporated in
Italy, Eni is obliged to observe them.
The verification of compliance with the safeguard clause is
based on establishing and maintaining adequate company due
diligence processes and systems in the following areas:
• human rights;
• Anti-corruption;
• compliance with competition law;
• business taxation.
Furthermore, evidence of compliance with the MS is given
by absence of legal proceedings against each of the Group
companies or members of its top management for violations of
national or international laws relating to such matters that have
resulted in final convictions; or the absence of complaints or
reports of alleged human rights violations submitted by individual
stakeholders or groups of stakeholders to an OECD National
Contact Point or to the Business and Human Rights Resource
Centre, in the wake of which the Company has not demonstrated
concrete commitment to addressing and managing the report,
failing to cooperate in its resolution and/or to adopt a remediation
plan in the event it is responsible for causing and/or contributing
to the negative impact of the complaint.
Eni’s due diligence systems:
• ANTI-CORRUPTION. Within the context of the Company’s
zero tolerance for corruption , Eni has adopted a controlled
to
in significant
environment that includes processes and controls designed
to minimize the risk of behaviour or transactions that could
lead to wilful or negligent acts of corruption. This aims to
ensure the constant and punctual compliance of persons
working at Eni or on behalf of Eni with the anti-corruption
laws in force in the countries where the Company operates.
This system also applies to money laundering. The control
environment is based on values the organisation shares,
starting with top management. It includes establishing a
code of ethics inspired by the principles of transparency,
honesty, fairness and good faith in conducting business,
the UN Ten Principles of Corporate
adherence
Responsibility, participation in the Global Compact and
personnel training on ethical issues. The processes and
controls are designed to ensure accurate and transparent
transactions, assessment of
recording of corporate
economic counterparties
transactions
(acquisitions/transfers of companies, company branches,
mining rights, business combinations, etc.), involvement of
certain types of counterparties (business associates, joint
venture partners, brokers) or in areas (trading, non-profit
initiatives, sponsorships) exposed to corruption risks, as well
as compliance of business conduct with internal rules under
all circumstances where a breach of the code of ethics might
be possible, to prevent any form of corruption in managing
the business. The establishment of a whistleblowing
mechanism even for managing anonymous reports received
by the Company through a well-identified and recognisable
channel of alleged violations of anti-corruption and anti-
money laundering regulations (this mechanism also applies
to the DD on Human Rights) is an integral part of Eni’s DD on
Anti-Corruption. In 2022, neither the Company nor members
of senior management were party to criminal proceedings
for violating anti-corruption regulations that resulted in a
final verdict of conviction. Please refer to the notes to the
consolidated financial statements for more information on
the status of the Group’s legal proceedings.
• TAXATION. Eni has adopted a due diligence system for
managing relations with the tax authorities of the countries
in which it operates. The aim is to minimize the risk that
business operations violate applicable tax regulations. The
Company’s tax guidelines provide for the payment of taxes
in the countries where operations take place according
to the merit as well as the letter of local rules and rejects
aggressive tax policy choices, including delocalisation of
economic activities to so-called tax havens. The Company
has a Tax Control Framework, i.e. a specific tax risk
control system. Management is responsible for verifying
consistency between tax management choices and the
Board-approved strategy. The control environment and
processes/procedures are designed to mitigate the risk
of violations which could trigger significant financial or
reputational impact (tax risk). In 2022, no Group company
was party to any tax dispute for violations of tax rules or
tax fraud resulting in a final verdict of conviction. For more
information on the status of the Group’s tax litigation, please
ENI ANNUAL REPORT 2022 refer to the notes to the consolidated financial statements.
These disputes relate to the technical interpretation of local
tax regulations, which are often very complex. They are
managed with a view to reconciliation.
• FAIR COMPETITION. Eni has set up a controlled environment
and a set of procedures and controls to minimize the risk that
business and corporate activities violate the rules protecting
competition in the various countries where it operates. Among
the fundamental values of the Company are the principles
of fair competition – understood as a market environment
that encourages companies to excel in the quality and cost-
effectiveness of the products and/or services sold/supplied –
and compliance with antitrust legislation. Eni’s control system
has three phases: prevention, risk monitoring/mitigation and
counteracting unlawful conduct. It is designed to minimize
the risk that Eni’s business units and subsidiaries engage in
anti-competitive conduct, adopt practices that restrict the
free market or collude with competing companies. Corporate
transactions to increase market share (mergers) are executed
after the antitrust authorities of the jurisdictions concerned
have been informed. Appropriate remediation plans are
formulated in response to any comments received and in
compliance with standstill obligations and the prohibition
of unlawful exchange of information during the negotiation
and due diligence phases. In 2022, no Group company or
senior management member was party to disputes for
antitrust legislation violations that resulted in a final verdict
of conviction. On the reporting date, there was no pending
antitrust disputes.
• HUMAN RIGHTS. Human rights are at the heart of Eni’s vision
as a responsible company and integral to the organisation’s
values, culture and practices. Eni is committed to respecting
human rights in all business activities and places similar
expectations on business partners operating on behalf of
Eni or who are contracted over the course of Eni’s industrial
activities. Eni has adopted a human rights due diligence
process that complies with the OECD Guidelines for
Multinational Enterprises and the United Nations Guiding
Principles on Business and Human Rights (UNGP), which
envisage five steps:
i) adoption of a commitment statement, by
top
management, upholding respect for human rights and the
integration of human rights into company processes and
policies;
the
ii) a risk-based process of identifying and assessing the
adverse impacts of the company’s activities on human
rights, including the involvement of stakeholders;
iii) the definition and adoption of measures to prevent, cease or
mitigate any adverse impact;
iv) the verification of the effectiveness of the measures taken;
v) public reporting on the processes undertaken by the
company to prevent, cease or mitigate the adverse impact
and the measures taken.
Eni has established a mechanism for collecting and evaluating
complaints and concerns brought to the Company’s attention
through appropriate channels for listening and for the receipt of
207
communications by individuals, communities or associations
of individuals, including providing a remedy to address the
adverse impact on human rights that the company caused or
contributed to. Eni actively cooperates with other state and non-
state complaint mechanisms.
In this respect, Eni’s Statement on Respect for Human Rights,
approved by the Board in December 2018, in addition to
reaffirming the commitment to this topic, highlights salient
issues which are subject to in-depth due diligence, according to
an approach developed in coherence with the OECD Guidelines
for Multinational Enterprises and the UNGPs.
To effectively implement this Statement of Commitment, Eni
has gradually employed risk-based models that use context
elements (risks specific to the countries in which Eni operates)
and characteristics of the business activities that, according to
potential risks to human rights, allow the company to identify and
adopt appropriate management measures.
Eni
is actively committed to reviewing complaints and
providing or cooperating to provide remedies for adverse
human rights impacts that it may have caused or contributed
to, and to make every effort to promote the achievement of the
same objective in cases where the impact is directly related
to its operations. Eni has adopted a whistleblowing system
and a grievance mechanism for addressing possible cases of
violations. This is a dedicated channel for the receipt and the
settlement of complaints from communities and stakeholders.
Eni cooperates actively and in good faith with other access
facilities to reach a judicial or non-judicial resolution to open
issues. In no case does Eni prohibit potential claimants access
to remediation measures. The company is committed to
preventing reprisals against workers and other stakeholders
for raising human rights concerns. It does not tolerate or
contribute to threats, intimidation, reprisals or attacks against
human rights defenders and stakeholders involved with its
operations.
An integral part of due diligence is the communication of
the obtained results. Eni publishes a yearly report “Eni for”
sustainability, which includes a human rights report, “Eni for -
Human Rights” to inform stakeholders on the progress made to
address human rights issues.
In conclusion, in 2022, Eni did not receive any final verdict of
conviction for violations of laws, regulations or other regulatory
institutions relating to human rights, bribery, competition or tax
violations. The Company is cooperating actively and in good
faith with the OECD National Contact Points to resolve pending
Specific Instances.
On the subject of human rights, Eni also maintains an ongoing
dialogue with stakeholders. Refer to, for example, the responses
to the Business and Human Rights Resource Centre and the
assessment by the World Benchmarking Alliance, in whose
latest survey Eni was ranked first (along with a company from
another segment) out of all the companies analysed.
Considering the draft Report “Minimum Safeguards”, Eni believes
it is in compliance with the safeguard clause of Article 3,
paragraph “c” of the EU Taxonomy Regulation.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT Substantial contribution criteria
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
)
6
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
7
(
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
)
8
(
n
o
i
t
u
l
l
o
P
)
9
(
%
%
d
n
a
y
t
i
s
r
e
v
i
d
o
B
i
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
1
1
(
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
2
1
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
)
3
1
(
Y/N
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
r
e
v
o
n
r
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o
p
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p
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e
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g
i
l
a
y
m
o
n
o
x
a
T
%
2
2
0
2
r
a
e
y
)
8
1
(
g
n
i
l
b
a
n
e
(
y
r
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g
e
t
a
C
)
r
o
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t
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v
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t
c
a
E
)
0
2
(
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
DNSH
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
4
1
(
Y/N
y
y
y
y
y
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
Y/N
)
6
1
(
y
y
y
y
y
n
o
i
t
u
l
l
o
P
)
5
1
(
Y/N
y
y
y
y
y
s
d
r
a
u
g
e
f
a
S
m
u
m
i
n
i
M
)
7
1
(
Y/N
y
y
y
y
y
0.0%
0.1%
0.0%
0.5%
0.0%
0.6%
208
Turnover KPI
Economic activities (1)
r
e
v
o
n
r
u
T
e
t
u
o
s
b
A
l
)
3
(
m€
f
o
n
o
i
t
r
o
p
o
r
P
r
e
v
o
n
r
u
T
%
)
4
(
)
s
(
e
d
o
C
)
2
(
e
g
n
a
h
C
e
t
a
m
i
l
C
e
g
n
a
h
C
e
t
a
m
i
l
C
)
5
(
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
%
A. TAXONOMY-ELIGIBLE ACTIVITIES
9,874
7.5%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from bioenergy
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Anaerobic digestion of bio-waste
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Manufacture of organic basic chemicals
Manufacture of plastics in primary form
Manufacture of biogas/biofuels for use in transport
Transmission and distribution of electricity
Cogeneration of heat/cool and power from bioenergy
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Transport by motorbikes, passenger cars
and commercial vehicles
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
Totale (A.1 + A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.13 (Annex I)
/(D35.21)
5.7 (Annex I)
/(E38.21)
3.14 (Annex I)
/(C20.14)
3.17 (Annex I)
/(C20.16)
4.13 (Annex I)
/(D35.21)
4.9 (Annex I)
/(D35.12,
D35.13)
4.20 (Annex
I)/(D35.11,
D35.30)
4.30 (Annex
I)/(D35.11,
D35.30)
5.3 (Annex
I)/(E37.00,
F42.99)
6.5 (Annex
I)/(N77.11,
H49.32,
H49.39)
31
79
41
0.0%
100%
0.1%
100%
0.0%
100%
667
0.5%
100%
5.0
0.0%
100%
823
0.6%
100%
2,126
1.6%
2,186
1.6%
8
7
0.0%
0.0%
11
0.0%
4,682
3.5%
9
0.0%
22
0.0%
9,051
6.9%
9,874
7.5%
Turnover of Taxonomy-non-eligible activites (B)
122,638
92.5%
Total (A+B)
132,512
100%
ENI ANNUAL REPORT 2022
209
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
)
r
o
y
t
i
v
i
t
c
a
E
)
0
2
(
g
n
i
l
b
a
n
e
(
y
r
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a
C
)
A
C
C
(
n
o
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p
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d
A
)
2
1
(
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n
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r
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d
n
a
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W
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c
r
u
o
s
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r
)
3
1
(
DNSH
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l
)
4
1
(
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B
i
s
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s
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)
6
1
(
)
5
1
(
s
d
r
a
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f
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S
m
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n
M
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)
7
1
(
n
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o
P
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g
n
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C
e
t
a
m
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l
C
)
1
1
(
)
M
C
C
(
n
o
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t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
d
e
n
g
i
l
a
y
m
o
n
o
x
a
T
r
e
v
o
n
r
u
T
n
o
i
t
r
o
p
o
r
p
%
2
2
0
2
r
a
e
y
)
8
1
(
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
0.0%
0.1%
0.0%
0.5%
0.0%
0.6%
Economic activities (1)
Substantial contribution criteria
r
e
v
o
n
r
u
T
e
t
u
l
o
s
b
A
)
3
(
m€
f
o
n
o
i
t
r
o
p
o
r
P
r
e
v
o
n
r
u
T
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
4
(
)
5
(
)
6
(
)
7
(
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
8
(
%
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
n
o
i
t
u
l
l
o
P
)
9
(
%
)
s
(
e
d
o
C
)
2
(
A. TAXONOMY-ELIGIBLE ACTIVITIES
9,874
7.5%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from bioenergy
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Anaerobic digestion of bio-waste
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Manufacture of organic basic chemicals
Manufacture of plastics in primary form
Manufacture of biogas/biofuels for use in transport
Transmission and distribution of electricity
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Transport by motorbikes, passenger cars
and commercial vehicles
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
Totale (A.1 + A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.13 (Annex I)
/(D35.21)
5.7 (Annex I)
/(E38.21)
3.14 (Annex I)
/(C20.14)
3.17 (Annex I)
/(C20.16)
4.13 (Annex I)
/(D35.21)
4.9 (Annex I)
/(D35.12,
D35.13)
4.20 (Annex
I)/(D35.11,
D35.30)
4.30 (Annex
I)/(D35.11,
D35.30)
5.3 (Annex
I)/(E37.00,
F42.99)
6.5 (Annex
I)/(N77.11,
H49.32,
H49.39)
31
79
41
0.0%
100%
0.1%
100%
0.0%
100%
667
0.5%
100%
5.0
0.0%
100%
823
0.6%
100%
2,126
1.6%
2,186
1.6%
8
7
0.0%
0.0%
4,682
3.5%
9
0.0%
22
0.0%
9,051
6.9%
9,874
7.5%
Cogeneration of heat/cool and power from bioenergy
11
0.0%
Turnover of Taxonomy-non-eligible activites (B)
122,638
92.5%
Total (A+B)
132,512
100%
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
Substantial contribution criteria
DNSH
e
g
n
a
h
C
e
t
a
m
i
l
C
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
)
6
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
7
(
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
)
8
(
n
o
i
t
u
l
l
o
P
)
9
(
%
%
d
n
a
y
t
i
s
r
e
v
i
d
o
B
i
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
1
1
(
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
2
1
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
)
3
1
(
Y/N
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
4
1
(
Y/N
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
Y/N
)
6
1
(
n
o
i
t
u
l
l
o
P
)
5
1
(
Y/N
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
s
d
r
a
u
g
e
f
a
S
m
u
m
i
n
i
M
)
7
1
(
Y/N
y
y
y
y
y
y
y
y
d
e
n
g
i
l
a
y
m
o
n
o
x
a
T
x
E
p
a
C
n
o
i
t
r
o
p
o
r
p
%
2
2
0
2
r
a
e
y
)
8
1
(
g
n
i
l
b
a
n
e
(
y
r
o
g
e
t
a
C
)
r
o
y
t
i
v
i
t
c
a
E
)
0
2
(
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
4.9%
7.3%
0.0%
0.0%
0.8%
0.6%
0.0%
0.5%
14.1%
0.0%
0.5%
0.5%
0.0%
0.0%
210
Capex KPI
Economic activities (1)
x
E
p
a
C
f
o
n
o
i
t
r
o
p
o
r
P
)
4
(
x
E
p
a
C
e
t
u
o
s
b
A
l
)
3
(
)
s
(
e
d
o
C
)
2
(
e
g
n
a
h
C
e
t
a
m
i
l
C
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
)
5
(
A. TAXONOMY-ELIGIBLE ACTIVITIES
2,172
17.5%
m€
%
%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from bioenergy
Storage of electricity
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Underground permanent geological storage of CO2
Transport by motorbikes, passenger cars
and commercial vehicles
Infrastructure enabling road transport and public transport
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Manufacture of organic basic chemicals
Manufacture of plastics in primary form
Transmission and distribution of electricity
Manufacture of biogas/biofuels for use in transport
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Transport by motorbikes, passenger cars
and commercial vehicles
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activites (B)
Total (A+B)
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.10
4.13 (Annex I)
/(D35.21)
5.12 (Annex I)
/(E39.00)
6.5 (Annex I)/
(N77.11,
H49.32,
H49.39)
6.15 (Annex I)/
(F71.1, F71.20)
603
4.9%
100%
906
7.3%
100%
1
5
97
78
3
0.0%
100%
0.0%
100%
0.8%
100%
0.6%
100%
0.0%
100%
60
0.5%
100%
1,753
14.1%
100%
3.14 (Annex I)
(C20.14)
3.17 (Annex I)
/(C20.16)
4.9 (Annex
I)/(D35.12,
D35.13)
4.13 (Annex I)
/(D35.21)
4.30 (Annex
I)/(D35.11,
D35.30)
5.3 (Annex
I)/(E37.00,
F42.99)
6.5 (Annex
I)/(N77.11,
H49.32,
H49.39)
109
0.9%
77
2
28
0.6%
0.0%
0.2%
148
1.2%
44
0.4%
11
0.1%
419
3.4%
2,172
17.5%
10,224
82.5%
12,396
100%
ENI ANNUAL REPORT 2022
Substantial contribution criteria
DNSH
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
)
2
1
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
)
3
1
(
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
)
4
1
(
e
g
n
a
h
C
e
t
a
m
i
l
C
)
1
1
(
d
n
a
y
t
i
s
r
e
v
i
d
o
B
i
s
m
e
t
s
y
s
o
c
e
)
6
1
(
)
5
1
(
s
d
r
a
u
g
e
f
a
S
m
u
m
n
M
i
i
)
7
1
(
n
o
i
t
u
l
l
o
P
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
d
e
n
g
i
l
a
y
m
o
n
o
x
a
T
x
E
p
a
C
n
o
i
t
r
o
p
o
r
p
%
2
2
0
2
r
a
e
y
)
8
1
(
211
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
)
r
o
y
t
i
v
i
t
c
a
E
)
0
2
(
g
n
i
l
b
a
n
e
(
y
r
o
g
e
t
a
C
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
4.9%
7.3%
0.0%
0.0%
0.8%
0.6%
0.0%
0.5%
14.1%
0.0%
0.5%
0.5%
0.0%
0.0%
Economic activities (1)
x
E
p
a
C
f
o
n
o
i
t
r
o
p
o
r
P
)
4
(
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
5
(
)
6
(
)
7
(
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
8
(
%
x
E
p
a
C
e
t
u
l
o
s
b
A
)
3
(
m€
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
n
o
i
t
u
l
l
o
P
)
9
(
%
)
s
(
e
d
o
C
)
2
(
A. TAXONOMY-ELIGIBLE ACTIVITIES
2,172
17.5%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
603
4.9%
100%
Electricity generation (wind)
906
7.3%
100%
Electricity generation from bioenergy
0.0%
100%
Storage of electricity
4.10
0.0%
100%
Infrastructure enabling road transport and public transport
60
0.5%
100%
Manufacture of organic basic chemicals
109
0.9%
1
5
97
78
3
77
2
28
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.13 (Annex I)
/(D35.21)
5.12 (Annex I)
/(E39.00)
6.5 (Annex I)/
(N77.11,
H49.32,
H49.39)
6.15 (Annex I)/
(F71.1, F71.20)
3.14 (Annex I)
(C20.14)
3.17 (Annex I)
/(C20.16)
4.9 (Annex
I)/(D35.12,
D35.13)
4.13 (Annex I)
/(D35.21)
4.30 (Annex
I)/(D35.11,
D35.30)
5.3 (Annex
I)/(E37.00,
F42.99)
6.5 (Annex
I)/(N77.11,
H49.32,
H49.39)
0.8%
100%
0.6%
100%
0.0%
100%
1,753
14.1%
100%
0.6%
0.0%
0.2%
148
1.2%
44
0.4%
11
0.1%
419
3.4%
2,172
17.5%
10,224
82.5%
12,396
100%
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Underground permanent geological storage of CO2
Transport by motorbikes, passenger cars
and commercial vehicles
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Manufacture of plastics in primary form
Transmission and distribution of electricity
Manufacture of biogas/biofuels for use in transport
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Transport by motorbikes, passenger cars
and commercial vehicles
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activites (B)
Total (A+B)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
Substantial contribution criteria
DNSH
e
g
n
a
h
C
e
t
a
m
i
l
C
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
)
6
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
7
(
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
)
8
(
n
o
i
t
u
l
l
o
P
)
9
(
%
%
d
n
a
y
t
i
s
r
e
v
i
d
o
B
i
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
1
1
(
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
)
2
1
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
)
3
1
(
Y/N
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
d
e
n
g
i
l
a
y
m
o
n
o
x
a
T
x
E
p
O
n
o
i
t
r
o
p
o
r
p
%
2
2
0
2
r
a
e
y
)
8
1
(
g
n
i
l
b
a
n
e
(
y
r
o
g
e
t
a
C
)
r
o
y
t
i
v
i
t
c
a
E
)
0
2
(
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
4
1
(
Y/N
y
y
y
y
y
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
Y/N
)
6
1
(
y
y
y
y
y
n
o
i
t
u
l
l
o
P
)
5
1
(
Y/N
y
y
y
y
y
s
d
r
a
u
g
e
f
a
S
m
u
m
i
n
i
M
)
7
1
(
Y/N
y
y
y
y
y
0.4%
0.7%
0.1%
0.6%
0.1%
1.8%
212
OpEx KPI
Economic activities (1)
x
e
p
O
f
o
n
o
i
t
r
o
p
o
r
P
)
4
(
x
e
p
O
e
t
u
o
s
b
A
l
)
3
(
)
s
(
e
d
o
C
)
2
(
e
g
n
a
h
C
e
t
a
m
i
l
C
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
)
5
(
A. TAXONOMY-ELIGIBLE ACTIVITIES
503
12.1%
m€
%
%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from bioenergy
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Anaerobic digestion of bio-waste
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
Manufacture of other low carbon technologies
Manufacture of organic basic chemicals
Manufacture of plastics in primary form
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from ocean energy technologies
Transmission and distribution of electricity
Storage of electricity
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Cogeneration of heat/cool and power from bioenergy
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Collection and transport of non-hazardous waste
in source segregated fract.
Underground permanent geological storage of CO2
Transport by motorbikes, passenger cars
and commercial vehicles
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activites (B)
Total (A+B)
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.13 (Annex I)
/(D35.21)
5.7 (Annex I)
/(E38.21)
3.6 (Annex I)
/(C22, C25, C26,
C27, C28)
3.14 (Annex I)
(C20.14)
3.17 (Annex I)
/(C20.16)
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.4 (Annex I)
/(D35.11,
F42.22)
4.9 (Annex I)
/(D35.12,
D35.13)
4.10
4.13 (Annex I)
/(D35.21)
4.20 (Annex I)
/(D35.11,
D35.30)
4.30 (Annex I)
/(D35.11,
D35.30)
5.3 (Annex I)/
(E37.00,
F42.99)
5.5 (Annex I)
/(E38.11)
5.12 (Annex I)
/(E39.00)
6.5 (Annex I)
/(N77.11,
H49.32,
H49.39)
15
28
5
24
3
75
26
69
68
11
1
7
2
3
30
8
49
0.4%
100%
0.7%
100%
0.1%
100%
0.6%
100%
0.1%
100%
1.8%
100%
0.6%
1.7%
1.6%
0.3%
0.0%
0.2%
0.0%
0.1%
0.7%
0.2%
1.2%
136
3.3%
5
9
4
0.1%
0.2%
0.1%
428
503
10.3%
12.1%
3,657
87.9%
4,160
100%
ENI ANNUAL REPORT 2022
213
l
a
n
o
i
t
i
s
n
a
r
t
(
y
r
o
g
e
t
a
C
)
y
t
i
v
i
t
c
a
)
1
2
(
T
)
r
o
y
t
i
v
i
t
c
a
E
)
0
2
(
g
n
i
l
b
a
n
e
(
y
r
o
g
e
t
a
C
Substantial contribution criteria
DNSH
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
)
2
1
(
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
)
3
1
(
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
)
4
1
(
e
g
n
a
h
C
e
t
a
m
i
l
C
)
1
1
(
d
n
a
y
t
i
s
r
e
v
i
d
o
B
i
s
m
e
t
s
y
s
o
c
e
)
6
1
(
)
5
1
(
s
d
r
a
u
g
e
f
a
S
m
u
m
n
M
i
i
)
7
1
(
n
o
i
t
u
l
l
o
P
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
d
e
n
g
i
l
a
y
m
o
n
o
x
a
T
x
E
p
O
n
o
i
t
r
o
p
o
r
p
%
2
2
0
2
r
a
e
y
)
8
1
(
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
y
0.4%
0.7%
0.1%
0.6%
0.1%
1.8%
Economic activities (1)
x
e
p
O
f
o
n
o
i
t
r
o
p
o
r
P
)
4
(
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
M
C
C
(
n
o
i
t
a
g
i
t
i
M
%
e
g
n
a
h
C
e
t
a
m
i
l
C
)
A
C
C
(
n
o
i
t
a
t
p
a
d
A
%
e
n
i
r
a
m
d
n
a
r
e
t
a
W
s
e
c
r
u
o
s
e
r
%
)
5
(
)
6
(
)
7
(
y
m
o
n
o
c
e
r
a
l
u
c
r
i
C
)
8
(
%
x
e
p
O
e
t
u
l
o
s
b
A
)
3
(
m€
d
n
a
y
t
i
s
r
e
v
i
d
o
i
B
s
m
e
t
s
y
s
o
c
e
%
)
0
1
(
n
o
i
t
u
l
l
o
P
)
9
(
%
)
s
(
e
d
o
C
)
2
(
0.4%
100%
0.7%
100%
0.1%
100%
0.6%
100%
0.1%
100%
1.8%
100%
A. TAXONOMY-ELIGIBLE ACTIVITIES
503
12.1%
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from bioenergy
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Anaerobic digestion of bio-waste
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
A.2. Taxonomy-Eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
Manufacture of other low carbon technologies
Manufacture of organic basic chemicals
Manufacture of plastics in primary form
Electricity generation using solar photovoltaic technology
Electricity generation (wind)
Electricity generation from ocean energy technologies
Transmission and distribution of electricity
Storage of electricity
Manufacture of biogas and biofuels for use
in transport and of bioliquids
Cogeneration of heat/cool and power from bioenergy
High-efficiency co-generation of heat/cool
and power from fossil gaseous fuels
Construction, extension and operation
of waste water collection and treatmen
Collection and transport of non-hazardous waste
in source segregated fract.
Underground permanent geological storage of CO2
Transport by motorbikes, passenger cars
and commercial vehicles
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.8 (Annex I)
/(D35.11)
4.13 (Annex I)
/(D35.21)
5.7 (Annex I)
/(E38.21)
3.6 (Annex I)
/(C22, C25, C26,
C27, C28)
3.14 (Annex I)
(C20.14)
3.17 (Annex I)
/(C20.16)
4.1 (Annex I)
/D35.11
4.3 (Annex I)
/D.35.11
4.4 (Annex I)
/(D35.11,
F42.22)
4.9 (Annex I)
/(D35.12,
D35.13)
4.10
4.13 (Annex I)
/(D35.21)
4.20 (Annex I)
/(D35.11,
D35.30)
4.30 (Annex I)
/(D35.11,
D35.30)
5.3 (Annex I)/
(E37.00,
F42.99)
5.5 (Annex I)
/(E38.11)
5.12 (Annex I)
/(E39.00)
6.5 (Annex I)
/(N77.11,
H49.32,
H49.39)
15
28
5
24
3
75
26
69
68
11
30
1
7
2
3
8
5
9
4
0.6%
1.7%
1.6%
0.3%
0.0%
0.2%
0.0%
0.1%
0.7%
0.2%
0.1%
0.2%
0.1%
49
1.2%
136
3.3%
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
Total (A.1 + A.2)
428
503
10.3%
12.1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activites (B)
Total (A+B)
3,657
87.9%
4,160
100%
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
214
Template 1: Nuclear and fossil gas related activities
Row Nuclear energy related activities
1
2
3
4
5
6
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best
available technologies.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for
the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil
gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
2022
No
No
No
No
Yes
No
Template 2: Taxonomy-aligned economic activities (denominator), 2022 € million, except where indicated
Turnover
Capex
CCM+CCA
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Opex
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
t
n
u
o
m
A
%
t
n
u
o
m
A
t
n
u
o
m
% A
%
t
n
u
o
m
A
%
t
n
u
o
m
A
t
n
u
o
m
% A
%
t
n
u
o
m
A
t
n
u
o
m
A
t
n
u
o
m
A
%
%
%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
823 0.6%
823 0.6%
0
0% 1,753 14.1% 1,753 14.1%
0
0%
75 1.8%
75 1.8%
0
0%
Row Economic activities
1
2
3
4
5
6
7
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.26 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.27 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.28 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.29 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.30 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.31 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
other taxonomy-aligned
economic activities not
referred to in rows 1 to 6
above in the denominator of
the applicable KPI
8
Total applicable KPI
132,512 100% 132,512 100%
0
0% 12,396 100% 12,396 100%
0
0% 4,160 100% 4,160 100%
0
0%
ENI ANNUAL REPORT 2022
215
Template 3: Taxonomy-aligned economic activities (numerator), 2022 € million, except where indicated
Row Economic activities
CCM+CCA
Turnover
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Capex
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Opex
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
t
n
u
o
m
A
t
n
u
o
m
A
%
t
n
u
o
m
A
%
%
t
n
u
o
m
A
t
n
u
o
m
A
%
%
t
n
u
o
m
A
t
n
u
o
m
A
%
t
n
u
o
m
A
t
n
u
o
m
A
%
%
%
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.26 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.27 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.28 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.29 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.30 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section
4.31 of Annexes I and II
to Delegated Regulation
2021/2139 in the numerator of
the applicable KPI
Amount and proportion of
other taxonomy-aligned
economic activities not
referred to in rows 1 to 6
above in the numerator of the
applicable KPI
Total amount and proportion
of taxonomy-aligned
economic activities in the
numerator of the applicable
KPI
1
2
3
4
5
6
7
8
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
823 100%
823 100%
0
0% 1,753 100% 1,753 100%
0
0%
75 100%
75 100%
0
0%
823 100%
823 100%
0
0% 1,753 100% 1,753 100%
0
0%
75 100%
75 100%
0
0%
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 216
Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities, 2022 € million, except where indicated
Row Economic activities
CCM+CCA
Turnover
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Capex
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
CCM+CCA
Opex
Climate
change
mitigation
(CCM)
t
n
u
o
m
A
%
t
n
u
o
m
A
t
n
u
o
m
A
%
%
t
n
u
o
m
A
t
n
u
o
m
A
t
n
u
o
m
A
t
n
u
o
m
A
t
n
u
o
m
A
%
%
%
%
%
Climate
change
adaptation
(CCA)
t
n
u
o
m
A
%
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.26 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.27 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.28 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.29 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.30 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
taxonomy-eligible but not
taxonomy-aligned economic
activity referred to in Section
4.31 of Annexes I and II
to Delegated Regulation
2021/2139 in the denominator
of the applicable KPI
Amount and proportion of
other taxonomy-eligible
but not taxonomy-aligned
economic activities not
referred to in rows 1 to 6
above in the denominator of
the applicable KPI
Total amount and proportion
of taxonomy-eligible but not
taxonomy-aligned economic
activities in the denominator
of the applicable KPI
1
2
3
4
5
6
7
8
4,682 51.7% 4,682 51.7%
0
0%
148 35.3%
148 35.3%
0
0%
49 11.4%
49 11.4%
0
0%
4,369 48.3% 4,369 48.3%
0
0%
271 64.7%
271 64.7%
0
0%
379 88.6%
379 88.6%
0
0%
9,051 100% 9,051 100%
0
0%
419 100%
419 100%
0
0%
428 100%
428 100%
0
0%
ENI ANNUAL REPORT 2022 Template 5: Taxonomy non-eligible economic activities, 2022 € million, except where indicated
Row Economic activities
Turnover
Capex
Opex
Amount
% Amount
% Amount
%
217
1
2
3
4
5
6
7
8
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy
non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
0
0%
0
0%
0
0%
Amount and proportion of other taxonomy non-eligible economic activities not referred to in
rows 1 to 6 above in the denominator of the applicable KPI
122,638
100%
10,224
100%
3,657
100%
Total amount and proportion of taxonomy non-eligible economic activities in the denominator
of the applicable KPI
122,638
100%
10,224
100%
3,657
100%
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 218
MATERIAL TOPICS FOR ENI
Materiality analysis aims to identify the sustainability issues
most relevant to Eni and its stakeholders. The material topics
are instrumental for defining the Strategic Plan - the origin of the
formulation of the sustainability Managerial Objectives (MBO
- Management by Objectives) for all managers - and directing
reporting. In 2022, the analysis was updated based on the new
GRI Standard that provides for the identification of material
topics as a function of the most significant impacts (positive and
negative, actual and potential) generated by the organisation on
the economy, environment and people, including impact on human
rights (so-called Impact Materiality perspective). Anticipating the
entry into force of the new Corporate Sustainability Reporting
Directive (CSRD), which envisages a dual materiality approach, the
analysis considered also the Financial Materiality perspective. The
latter requires identifying issues that present sustainability risks
and opportunities that significantly influence or may influence
the company’s future cash flow, affecting its development,
performance and positioning in the short-, medium- or long-term.
Eni’s materiality process included the following steps:
• Identification of relevant issues and their impacts, combining
the results of the 2021 materiality analysis with the most
significant ones for the 2022 context and sector of operations,
also based on the GRI’s new Sector Standard for Oil & Gas;
• Evaluation of the themes through the Double Materiality
approach: (i) Impact Materiality perspective - by submitting a
TOPIC
TREND
compared with
2021
IMPACT
MATERIALITY
Positive Impacts
Negative Impacts
FINANCIAL
MATERIALITY
Significance
Significance
Combating climate change
SDG: 7 9 12 13 15 17
Reducing climate-altering emissions with decarbonization strategies, technology
development and consumer awareness
Climate-changing emissions in the course of their activities or along the value chain
Development of human capital
SDG: 4 5 8 10
Diversity, inclusion and work-life
balance
SDG: 3 4 5 8 10
Health and safety of workers
SDG: 2 3 6 8
Asset integrity
SDG: 8 9 11 14
Expanding employees’ skills and improving career opportunities through continuous
training
Inadequate employee training, non-compliance with contractual rules, freedom of association and
collective bargaining, job insecurity
Increase employee well-being through adequate welfare and equal opportunity plans
Worsening well-being of workers and their families and cases of discrimination
Training and awareness-raising activities on health and safety; reduction of accidents
and injuries thanks to the use of technology
Injuries, occupational disease and/or damage to health due to non-compliance with regulations;
breakdown and/or malfunction of company facilities and assets; exposure to hazardous substances; etc.
Service reliability through proper maintenance and constant monitoring of
infrastructure and asset integrity
Business disruptions caused by infrastructure and asset failure
Reduction of environmental impacts
SDG: 3 6 9 11 12 14 15
Creation of new natural habitats through the use of abandoned structures, land
conservation projects, land restoration/land remediation and forest conservation
Environmental damage, loss of biodiversity and increased risk of droughts
Circular economy
SDG: 6 12 14 15
Protection of human rights
SDG: 1 2 3 8 10 16
Responsible supply chain
management
SDG: 3 5 7 8 9 10 12 13 16 17
Customer relations
SDG: 7 12 16
Transparency, anti-corruption
and tax strategy
SDG: 16 17
Closure and rehabilitation
SDG: 4 8 11 14 15
Reducing the use of natural resources through business practices and processes
aimed at recycling and recovery
Protection and respect of human rights through due diligence on corporate activities
and those of suppliers and business partners
Violation of the human rights of workers, local communities and indigenous peoples
Spreading environmental and social sustainability principles through the involvement of
suppliers and supply chain partners
them
Suppliers’ violation of workers’ rights and negative environmental impact due to Eni’s failure to monitor
Fostering strong customer relationships through engagement, listening and customer care
Interruption of the service offered (e.g. energy supply) to customers for reasons attributable to Eni
Countering the spread of illicit practices with headmasters and training in anti-
corruption, creation of economic value in the territories of presence with investments,
payment of taxes and royalties
New
Re-use of abandoned facilities, materials and plants for the benefit of local
communities and the circular economy
Incidents of corruption and illegal conduct with possible economic repercussions on markets and companies
caused by tax evasion, monopolistic policies and lobbying practices
Loss of jobs and failure to upgrade employees’ skills due to plant or site closures
Local development
SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17
Development of communities and local entrepreneurship through initiatives in various
policy areas, including partnerships and business agreements with local suppliers
Violation of community rights, well-being and involuntary resettlement; unequal compensation; and exploitation
of natural resources to the detriment of local communities
Access to energy
SDG: 7 13
Innovation
SDG: 7 9 12 13
Building infrastructure and improving service quality in remote areas
Dispersion and inefficiency in the distribution network with effects on the community and environment
Innovation and transformation initiatives, also involving supply chain companies and
partners
Digitalization and Cyber Security
SDG: 9 13 16
—
Improving cybersecurity in Countries of presence through partnerships with institutions
and companies
Loss of data and personal information of employees, customers, partners, etc.
Carbon neutrality by 2050
Operational excellence
Alliances for development
Transversal themes
ENI ANNUAL REPORT 2022
219
questionnaire to internal and external stakeholders to assess
the importance of the issues based on the significance of the
impacts and their likelihood to occur (for more details on the
categories of stakeholders interviewed and the results, see
“Stakeholder Engagement Activities” on pp. 16-17); and (ii)
Financial Materiality perspective - considering the results of
the Integrated Risk Management risk assessment process (for
more details, see “Integrated Risk Management” on pp. 24-29
and “Main ESG Risks” on pp. 162-163);
• Sharing the results of the materiality analysis with the Control
and Risk Committee, the Sustainability and Scenarios Committee
and the BoD, which subsequently approved the NFI in its entirety.
Under the changing context, the analysis results show a certain
dynamism over time, both in terms of significance and the merge67
or introduction of new topics. Among the new ones are “Closure
and Rehabilitation” emerging from the GRI Sector Standard and
“Energy Security and Independence” as an emerging theme from
questionnaires and social media listening.
• Topics were prioritised by combining the outcomes of the
two evaluations. The topics submitted for evaluation, which
were all found to be material, were divided into three different
significance levels;
The table shows the results of the two materiality analyses; some
current/potential positive and negative impacts are shown as
examples and the trend compared to the last financial year.
IMPACT
MATERIALITY
TREND
compared with
TOPIC
2021
Positive Impacts
Negative Impacts
Combating climate change
SDG: 7 9 12 13 15 17
Reducing climate-altering emissions with decarbonization strategies, technology
development and consumer awareness
Climate-changing emissions in the course of their activities or along the value chain
Expanding employees’ skills and improving career opportunities through continuous
training
Inadequate employee training, non-compliance with contractual rules, freedom of association and
collective bargaining, job insecurity
Increase employee well-being through adequate welfare and equal opportunity plans
Worsening well-being of workers and their families and cases of discrimination
Health and safety of workers
Training and awareness-raising activities on health and safety; reduction of accidents
and injuries thanks to the use of technology
Injuries, occupational disease and/or damage to health due to non-compliance with regulations;
breakdown and/or malfunction of company facilities and assets; exposure to hazardous substances; etc.
Reduction of environmental impacts
SDG: 3 6 9 11 12 14 15
Creation of new natural habitats through the use of abandoned structures, land
conservation projects, land restoration/land remediation and forest conservation
Environmental damage, loss of biodiversity and increased risk of droughts
Service reliability through proper maintenance and constant monitoring of
infrastructure and asset integrity
Business disruptions caused by infrastructure and asset failure
FINANCIAL
MATERIALITY
Significance
Significance
Reducing the use of natural resources through business practices and processes
aimed at recycling and recovery
Protection and respect of human rights through due diligence on corporate activities
and those of suppliers and business partners
Violation of the human rights of workers, local communities and indigenous peoples
Spreading environmental and social sustainability principles through the involvement of
suppliers and supply chain partners
Suppliers’ violation of workers’ rights and negative environmental impact due to Eni’s failure to monitor
them
Fostering strong customer relationships through engagement, listening and customer care
Interruption of the service offered (e.g. energy supply) to customers for reasons attributable to Eni
Countering the spread of illicit practices with headmasters and training in anti-
corruption, creation of economic value in the territories of presence with investments,
payment of taxes and royalties
New
communities and the circular economy
Re-use of abandoned facilities, materials and plants for the benefit of local
Incidents of corruption and illegal conduct with possible economic repercussions on markets and companies
caused by tax evasion, monopolistic policies and lobbying practices
Loss of jobs and failure to upgrade employees’ skills due to plant or site closures
Local development
SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17
Development of communities and local entrepreneurship through initiatives in various
policy areas, including partnerships and business agreements with local suppliers
Violation of community rights, well-being and involuntary resettlement; unequal compensation; and exploitation
of natural resources to the detriment of local communities
Building infrastructure and improving service quality in remote areas
Dispersion and inefficiency in the distribution network with effects on the community and environment
Digitalization and Cyber Security
Improving cybersecurity in Countries of presence through partnerships with institutions
Loss of data and personal information of employees, customers, partners, etc.
Innovation and transformation initiatives, also involving supply chain companies and
partners
—
and companies
(67) Compared to the previous analysis, three topics were merged into existing topics in 2022: “Low carbon technologies” with “Combating climate change”, “Biodiversity” with
“Reducing environmental impact” and “Local content” with “Local development”.
Development of human capital
SDG: 4 5 8 10
Diversity, inclusion and work-life
balance
SDG: 3 4 5 8 10
SDG: 2 3 6 8
Asset integrity
SDG: 8 9 11 14
Circular economy
SDG: 6 12 14 15
Protection of human rights
SDG: 1 2 3 8 10 16
Responsible supply chain
management
SDG: 3 5 7 8 9 10 12 13 16 17
Customer relations
SDG: 7 12 16
Transparency, anti-corruption
and tax strategy
SDG: 16 17
Closure and rehabilitation
SDG: 4 8 11 14 15
Access to energy
SDG: 7 13
Innovation
SDG: 7 9 12 13
SDG: 9 13 16
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 220
REPORTING PRINCIPLES AND CRITERIA
Information was prepared
Standards, guidelines and recommendations. The Consolidated
in
Disclosure of Non-Financial
accordance with the Legislative Decree 254/2016 implementing
the European Directive on Non-Financial Information, and the
“Sustainability Reporting Standards”, published by the Global
Reporting Initiative (GRI Standards) and has been subject to
a limited review by the independent Company, which is also
the auditor of Eni’s consolidated financial statement as of
December 31, 2022. All GRI indicators in the Content Index refer
to the version of the GRI Standards published in 2016, with the
exception of those of: (i) “Standard 403: Occupational Health
and Safety”, (ii) “Standard 303: Water and Effluents” - which refer
to the 2018 edition -, (iii) “Standard 207: Taxes” from 2019 and
(iv) “Standard 306: Waste” in 2020. The update of the new GRI
standard Universal and Sector Standard Oil & Gas published
in 2021 and mandatory from this year was also considered. In
addition, the recommendations reported by ESMA (European
Securities and Markets Authority) on non-financial statements
were implemented both within the NFI and in the Management
Report, as well as the set of “core” metrics defined by the WEF
in the September 2020 White Paper “Measuring Stakeholder
- Towards Common Metrics and Consistent
Capitalism
Reporting of Sustainable Value Creation” from September 2020.
The Declaration includes the information required by article 8
of Regulation (EU) 2020/852 of June 18, 2020 (the “Taxonomy
Regulation”) and the related Delegated Regulations (EU)
2021/2178 and (EU) 2021/2139. The limited examination carried
out by the auditing firm (PwC SpA) on the NFI does not extend to
the information, provided pursuant to the Taxonomy Regulation,
contained in the dedicated paragraph (pp. 198-217).
Performance indicators. KPIs are selected based on the topics
identified as most significant, are collected on an annual basis
according to the consolidation scope of the reference year
and refer to the 2020-2022 period. In general, trends in data
and performance indicators are also calculated using decimal
places not shown in the document. The data for the year 2022
are the best possible estimate with the data available at the
time of preparation of this report. The data are also subject to
review and approval by the competent bodies and the BoD. In
addition, some data published in previous years may be subject
to restatement in this edition for one of the following reasons:
refinement/change
in estimation or calculation methods,
significant changes in the consolidation scope, or if significant
updated information becomes available, possible errors during
the calculation and related to boundary.
If a restatement is made, the reasons for it are appropriately
disclosed in the text. Most of the KPIs presented are collected
and aggregated automatically through the use of Company
software specific for the topic area. This data is sent to a platform
dedicated to saving and storing all the data published by Eni in
the non-financial statement. This system also allows tracking
the control and approval of each data by its Process Owners.
Boundary. The boundary of the key performance indicators is
aligned with the objectives set by the company and represents
the potential impact of the activities Eni manages. In particular:
i)
for KPIs relating to safety, the environment and climate, the
perimeter consists not only of Eni SpA’s subsidiaries, but
also of the companies in joint operation, jointly controlled or
associated companies reported in note68;
ii) the perimeter relating to KPIs relating to health is also
extended to companies in joint operation, jointly controlled
or associated companies in which Eni has control of
operations (with the sole exception of data relating to reports
of occupational illness, included in the OIFR, which refer only
to consolidated companies);
iii) with regard to data referring to anti-corruption training, the
perimeter includes Eni SpA and its subsidiaries;
iv) with regard to data referring to investments for local
development, the perimeter includes Eni SpA, subsidiaries
and jointly controlled companies;
v) the perimeter referring to data relating to whistleblowing files
includes Eni SpA and its subsidiaries;
vi) finally, the perimeter of the data related to the audits covering the
anti-corruption checks includes subsidiaries controlled directly
and indirectly (excluding listed companies that have their own
internal audit department), associated companies based on
specific agreements and third parties deemed to have a higher
risk, as provided for under the contracts entered with Eni.
The comments on performance refer to these perimeters. In
addition, these performance indicators are accompanied by an
additional view only relating to 2022 in which the data of fully
consolidated companies are presented. It should be noted that
the figures reported do not include the FinProject group - unless
otherwise stated - as it recently entered the scope and is still
in the process of aligning its systems with Eni’s requirements.
With regard to all other KPIs/data, the perimeter, consistently
with the reference legislation, coincides with the companies
consolidated on a line-by-line basis for the purpose of preparing
the consolidated financial statements by the Eni Group.
(68) In addition to fully consolidated companies, the boundary includes the following companies: Mozambique Rovuma Venture S.p.A; Agiba Petroleum Co; Cardon IV SA; Eni
Iran BV; Eni Mozambique Engineering Ltd; Eni South Africa BV; Groupment Sonatrach-Eni; Karachaganak Petroleum Operating BV; Mellitah Oil & Gas BV; LLC “EniEnerghia”;
Petrobel Belayim Petroleum Co; Eni Gas Transport Services Srl; DLNG Service SAE; Société énergies renouvelables Eni-Etap (Seree); Costiero Gas Livorno SpA; SeaPad S.p.A.;
Servizio Fondo Bombole Metano SpA; Società Oleodotti Meridionali - SOM S.p.A.; Eni Abu Dhabi Refining & Trading Services BV; Esacontrol SA; Oléoduc du Rhone SA; LLC
“Eni-Nefto”; Tecnoesa SA; Brindisi Servizi Generali S. c. a r. l.(BSG); and Ravenna Servizi Industriali S.C.p.A. (RSI); Servizi Porto Marghera S.c. a r. l. (SPM); Versalis Pacific (India)
Private Limited; ISAF (Industria Siciliana Acido Fosforico - Sicilian Phosphoric Acid Industry) SpA; Oleodotto del Reno SA; Società Enipower Ferrara Srl - Ferrara; and EniProgetti
Egypt Ltd; and Eniverse Ventures Srl.
ENI ANNUAL REPORT 2022 221
KPIs
METHODOLOGY
CLIMATE CHANGE
GHG EMISSIONS
Scope 1: direct GHG emissions are those deriving from sources associated to the company’s assets (e.g.
combustion, flaring, fugitive and venting), and include CO2, CH4 and N2O; the Global Warming Potential used
for conversion to CO2 equivalent is 25 for CH4 and 298 for N2O. Contributions of biogenic CO2 emissions are not
included.
Scope 2: GHG emissions indirectly related to electricity generation, steam and heat purchased from third parties
for internal consumption and include CO2, CH4 and N2O; the Global Warming Potential used for conversion to
CO2 equivalent is 25 for CH4 and 298 for N2O. Contributions of biogenic CO2 emissions are not included. They
are reported according to a “location-based” approach (specific information on supply contracts is also being
collected to construct the “market-based” view).
Scope 3: indirect GHG emissions associated with the value chain of Eni’s products, which involve an analysis
by category of activity. In the Oil & Gas sector, the most significant category is that related to the use of
energy products (end-use), which Eni calculates according to internationally consolidated methodologies
(GHG Protocol and IPIECA), based on upstream production. Emissions include CO2, CH4 and N2O; the Global
Warming Potential used for conversion to equivalent CO2 is 25 for CH4 and 298 for N2O. Since the indicator
refers to equity production O&G Upstream, emissions do not include contributions of biogenic CO2 emissions
are not included.
EMISSION
INTENSITY
Indicators include direct GHG emissions (Scope 1) which are derived from assets operated by Eni, include CO2,
CH4 and N2O and are accounted for on a 100% basis.
• Upstream: indicator focused on emissions associated to development and production of hydrocarbons.
Denominator refers to gross operated production.
• R&M: indicator focused on emissions related to traditional and biorefineries. Denominator refers to refinery
OPERATIONAL
EFFICIENCY
ENERGY
INTENSITY
NET CARBON
FOOTPRINT
NET GHG
LIFECYCLE
EMISSIONS
throughputs (raw and semi-finished materials).
• Enipower: indicator focused on emissions related to electricity and steam production from thermoelectric power
plants. The denominator refers to equivalent electricity produced (excluding the Bolgiano cogeneration plant).
• Upstream methane emission intensity: calculated as the ratio of direct methane emissions expressed in CH4
m3 to the natural gas production sold by assets operated upstream.
Operational efficiency expresses the intensity of GHG emissions (Scope 1 and Scope 2 in tonCO2eq.) of the
main industrial activities operated by Eni divided by the production (converted by homogeneity into barrels of oil
equivalent using Eni’s average conversion factors) of the single businesses of reference, thus measuring their
degree of operating efficiency in a decarbonization scenario. In particular, the following specifications apply:
• Upstream: includes the hydrocarbon production and electricity plants;
• R&M: includes only refineries;
• Chemicals: includes all plants;
• Enipower: includes thermoelectric plants except for the Bolgiano cogeneration plant.
Unlike the other emission intensity indices that refer to individual business areas and consider only GHG Scope
1 emissions, the Carbon Efficiency Index summarily measures Eni’s commitment to reducing GHG emission
intensity, including Scope 2 emissions.
The refining energy intensity index represents the total amount of energy actually used in the reference
year among the various refinery processing plants, divided by the corresponding value of preset standard
consumption values for each processing plant. To allow comparison over the years, 2009 data is taken as a
reference (100%). For other sectors, the index represents the ratio between significant energy consumption
associated to operated plants and the related production.
Eni Net Carbon Footprint: the indicator considers GHG Scope 1+2 emissions associated to hydrocarbons
development and production activities, operated by Eni and by third parties, accounted for on an equity
basis (Revenue Interest), net of offsets mainly deriving from Natural Climate Solutions occurred in the
reference reporting year.
Net Carbon Footprint Upstream: the indicator considers the GHG Scope 1+2 emissions associated to
hydrocarbon development and production activities operated or not by Eni, accounted for on an equity
basis (revenue interest) and net of the offsets mainly deriving from Natural Climate Solutions occurred
in the reference year.
The indicator refers to GHG Scope 1+2+3 emissions associated with the value chain of the energy
products sold by Eni, including both those deriving from own productions and those purchased from third
parties, accounted for on an equity basis, net of offsets mainly deriving from Natural Climate Solutions.
Differently from Scope 3 end-use emissions, which Eni reports based on upstream production, the Net
GHG Lifecycle Emissions indicator considers a much wider perimeter, including Scope 1, 2 and Scope 3
emissions referred to the whole value chain of energy products sold by Eni, thus including Scope 3 end-
use emissions associated to gas purchased by third parties and petroleum products sold by Eni.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 222
KPIs
NET CARBON
INTENSITY
RENEWABLE
INSTALLED
CAPACITY
ENERGY
CONSUMED
METHODOLOGY
The indicator, accounted for on an equity basis, is defined as the ratio between Net GHG Lifecycle Emissions
(see Net GHG Lifecycle Emissions definition) and the energy content of the products sold by Eni.
The indicator is measured as the maximum generating capacity of Eni’s share power plants that use
renewable energy sources (wind, solar and wave, and any other non-fossil fuel source of generation
deriving from natural resources, excluding nuclear energy) to produce electricity. The capacity is considered
“installed” once the power plants are in operation or the mechanical completion phase has been reached.
The mechanical completion represents the final construction stage excluding the grid connection.
Eni’s energy consumption balance is calculated as follows: (i) each energy carrier is converted into millions of
gigajoules (a standard unit of measure) according to the appropriate conversion factors at the site/company
level; (ii) for each energy vector, Eni’s consumption is calculated as the sum of the production and import (from
companies outside Eni’s scope of consolidation) values, from which export values (to companies outside Eni’s
scope of consolidation) are then subtracted (to calculate Eni’s energy balance, data consolidation is performed
excluding internal exchanges between group sites/companies); (iii) the sum, in millions of gigajoule, of consumption
by all individual energy vectors represents Eni’s energy balance.
Specifically, the parameters considered are: (i) Total energy consumption (with primary source consumption, primary
energy purchased from third parties (electricity, steam and direct process heat) and hydrogen consumption); (ii)
Energy consumption from renewable sources; (iii) Sale of electricity; (iv) Sale of heat and steam.
PEOPLE, HEALTH AND SAFETY
NON-EMPLOYEES
With regard to non-employees whose work is controlled by the organization, it has been considered the
administered personnel considered in Italy and abroad.
INDUSTRIAL RELATIONS Regarding industrial relations, the minimum notice period for operational changes is in line with the provisions of
the laws in force and the trade union agreements signed in the Countries in which Eni operates.
Employees covered by collective bargaining agreements: those employees whose employment relationship is
governed by collective contracts or agreements, whether national, category, company or site. This is the only
KPI dedicated to people that considers role-based employees (Company with which the employee enters into
the employment contract). All others, including indicators on training, are calculated according to the utilisation
method (company where the work is actually done). It should be noted that, using this second method, the two
aspects (role companies and service) could coincide.
Gender Pay Ratio: The Gender Pay Ratio is calculated as the ratio of the average remuneration of the female
population to the average remuneration of the male population for the individual job title and for the overall
population.
Change in CEO/DG and in employee median remuneration: Year-on-year percentage change in total
remuneration of the CEO/DG and the median Italian and foreign employee.
REMUNERATION
SENIORITY
Average number of years worked by employees at Eni and its subsidiaries.
PARENTAL LEAVE
TRAINING HOURS
LOCAL SENIOR
AND MIDDLE
MANAGERS ABROAD
TURNOVER RATE
SAFETY
The parental leave re-entry rate is calculated through the ratio of the number of persons who returned from
parental leave after taking it to the number of persons who took parental leave in 2022.
Hours used by Eni SpA and subsidiaries employees in training courses managed and carried out by Eni Corporate
University (classroom and remote) and in activities carried out by the organizational units of Eni’s Business
areas/Companies independently, also through on-the-job training. Average training hours are calculated as total
training hours divided by the average number of employees in the year.
Number of local senior managers + middle managers (employees born in the Country in which their main
working activity is based) divided by total employment abroad.
Ratio of the number of recruitments + terminations of permanent contracts to permanent employment in the
previous year.
Eni uses a large number of contractors to carry out activities at its sites.
TRIR: total recordable injury rate (injuries leading to days of absence, medical treatments and cases of work
limitations). Numerator: number of total recordable injuries; denominator: hours worked in the same period.
Result of the ratio multiplied by 1,000,000.
High-consequence work-related injuries rate: injuries at work with days of absence exceeding 180 days or
resulting in total or permanent disability. Numerator: number of injuries at work with serious consequences;
denominator: hours worked in the same period. Result of the ratio multiplied by 1,000,000.
Near miss: an incidental event, the origin, execution and potential effect of which is accidental in nature, but
which is however different from an accident only in that the result has not proved damaging, due to luck or
favourable circumstances, or to the mitigating intervention of technical and/or organizational protection
systems. Accidental events that do not turn into accidents or injuries are therefore considered to be near misses.
For the assessment of accident KPIs, in addition to the GRI standard, Eni adopts and integrates, through its
own internal procedures, the IOGP guidelines on work-relatedness events, also taking into account Country risk.
Process safety events: loss of primary containment (unplanned or uncontrolled release of any material, including
non-toxic and flammable materials) from a “process”. Process safety incidents are classified as a function of the
severity into Tier 1 (more serious), Tier 2, or Tier 3.1 (less serious).
ENI ANNUAL REPORT 2022 KPIs
HEALTH
ENVIRONMENT
BIODIVERSITY
223
METHODOLOGY
Number of occupational disease claims filed by heirs: indicator used as a proxy for the number of deaths due
to occupational diseases.
Recordable cases of occupational diseases: number of occupational disease reports.
Main types of diseases: reports of suspected occupational disease made known to the employer concern
pathologies that may have a causal connection with the risk at work, as they may have been contracted in the
course of work and due to prolonged exposure to risk agents present in the workplace. The risk may be caused
by the processing carried out, or by the environment in which the processing takes place. The main risk agents
whose prolonged exposure may lead to an occupational disease are: (i) chemical agents (example of disease:
neoplasms, respiratory system diseases, blood diseases); (ii) biological agents (example of disease: malaria); (iii)
physical agents (example of disease: hearing loss).
Number of sites overlapping with protected areas and Key Biodiversity Areas (KBAs): operational sites in Italy
and abroad, which are located within (or partially within) the boundaries of one or more protected areas or KBAs
(December of each reference year).
Number of sites adjacent to protected areas or Key Biodiversity Areas (KBAs): operational sites in Italy and
abroad which, although outside the boundaries of protected areas or KBA, are less than 1 km away (December
of each reference year).
Number of upstream concessions overlapping protected areas and Key Biodiversity Areas (KBAs)
with activities in the overlapping area: active national and international concessions, operated, under
development or in production, present in the Company’s databases in June of each reference year that
overlap one or more protected areas or KBAs, where development/production operations (wells, sealines,
pipelines and onshore and offshore installations as documented in the Company’s GIS geodatabase) are
located within the intersection area.
Number of upstream concessions overlapping protected areas or Key Biodiversity Areas (KBAs), without
activities in the overlapping area: active national and international concessions, operated, under development
or in production, present in the Company’s databases in June of each reference year that overlap one or
more protected areas or KBAs, where development/production operations (wells, sealines, pipelines and
onshore and offshore installations as documented in the Company’s GIS geodatabase) are located outside
the intersection area.
The sources used for the census of protected areas and KBAs are the “World Database on Protected Areas” and
the “World Database of Key Biodiversity Areas” respectively; the data was made available to Eni in the framework
of its membership in the UNEP-WCMC Proteus Partnership (UN Environment Programme – World Conservation
Monitoring Center). There are some limitations to consider when interpreting the results of this analysis:
• it is globally recognized that there is an overlap between the different databases of protected areas and KBAs,
which may have led to a certain degree of duplication in the analysis (some protected areas/KBAs could be
counted several times);
• the databases of protected or key biodiversity areas used for the analysis, while representing the most up-to-
date information available at global level, may not be complete for each Country.
Significant impact of activities, products and services on biodiversity: potential impact may vary
depending on the complexity of each project, the value of the natural environment and the social context
of the activities. Among the most significant impacts for all types of Eni assets are those related to
land (or sea) use change due to the physical presence of plants and infrastructure, which may result in
the removal, degradation or fragmentation of habitats with consequences for species. Possible impact
of activities in the upstream, refining and petrochemical sectors include the degradation of habitats
and loss of biodiversity due to: pressure on fresh water availability; degradation of water, air and soil
quality; contamination and pollution due to accidental events (e.g. spills and leakage); climate-altering
emissions that contribute to climate change with direct and indirect effects on nature (e.g. anticipation
of plant flowering and changes to the reproductive period of some animal species, migration of biomes
at different latitudes and altitudes, and coral bleaching). For activities related to renewables, in addition
to impact due to the occupation of land and sea, potential impact on birds and bats due to the presence
of turbines and distribution lines are mentioned. Wind turbines pose a potential risk to particularly
vulnerable species groups such as birds of prey.
Species listed on the IUCN Red List and national lists that find their habitat in the organisation’s
areas of operation: the data source is the IUCN Red List Spatial Data database, which contains global
assessments of species by taxonomic groups. The spatial data of species distribution are downloaded in
ESRI shapefile format in their latest update from the database and uploaded to Eni’s ArcGIS systems. The
total number of species with habitats inside the organisation’s areas of operation is verified. The species
are classified according to their level of extinction risk: critically endangered, endangered, vulnerable,
near threatened, or least concern. “Data Deficient” species are those species that lack of data for which
it impossible to assign a risk category.
In interpreting the data, it is essential to note that the analysis is subject to the inherent limitations
associated with global species mapping and is sensitive to periodic database updates, as more species
are mapped yearly.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 224
KPIs
METHODOLOGY
WATER RESOURCES
SPILL
WASTE
AIR PROTECTION
HUMAN RIGHTS
Water withdrawals: sum of sea water, freshwater, and brackish water from subsoil or surface withdrawn. TAF
(groundwater treatment plant) water represents the amount of polluted groundwater treated and reused in the
production cycle. The limit for freshwater, which is more conservative than that indicated by the GRI reference
standard (equal to 1,000 ppm), is 2,000 ppm TDS, as provided in the IPIECA/API/IOGP 2020 guidance.
Water discharges: The internal procedures relating to the operational management of water discharges
regulate the control of the minimum quality standards and the authorization limits prescribed for each
operational site, ensuring that they are respected and promptly resolved if they are exceeded.
Sea water: water with a total dissolved solids content (TDS) greater than or equal to 30,000 mg.
Brackish water: water with a total dissolved solids content (TDS) between 2,000 mg/l and 30,000 mg/l.
Fresh water: water with a maximum total dissolved solids content (TDS) of 2,000 mg/l.
Spills from primary or secondary containment into the environment of oil or petroleum derivative from refining
or oil waste occurring during operation or as a result of sabotage, theft or vandalism. For sabotage oil spills, the
timing of the closure of some investigations and the subsequent recording of the data may be extended due to
the duration of the investigation.
Waste from production: waste from production activities, including waste from drilling activities and construction
sites.
Waste from remediation activities: this includes waste from soil securing and remediation activities, demolition
and groundwater classified as waste.
The waste disposal method is communicated to Eni by the third party authorised for disposal.
Possible negative impacts related to waste: loss of resources, possible contamination of environmental
matrices due to possible unapproved management, impacts related to transport and treatment at the destination
plants, land consumption related to plants for waste, and legal and reputational consequences related to any
objections.The treatment of waste at off-site third-party facilities results from the unavailability of suitable
facilities at the site and/or the legal requirements to carry it out; by way of example, within the EU, the waste
treatment operations are subject to possessing suitable permits. The weight of generated and delivered waste
can be measured or estimated, as the case may be. The difference between waste generated and waste sent for
recovery/disposal may arise from both a variation in the quantities in storage and from the fact that the weight
of waste generated is often estimated, whereas the weight of waste delivered is more frequently measured at
the site’s exit or the destination facility.
Recycled/recovered waste is understood to be waste diverted from disposal
NOx: total direct emissions of nitrogen oxide due to combustion processes with air. It includes emissions of NOx
from flaring activities, sulphur recovery processes, FCC regeneration, etc. It includes emissions of NO and NO2,
excluding N2O.
SOx: total direct emissions of sulphur oxides, including emissions of SO2 and SO3.
NMVOC: total direct emissions of hydrocarbons, hydrocarbon substitutes and oxygenated hydrocarbons that
evaporate at normal temperature. They include LPG and exclude methane.
PM: direct emissions of finely divided solid or liquid material suspended in gaseous flows. Standard emission
factors.
SECURITY CONTRACTS
WITH HUMAN RIGHTS
CLAUSES
The indicator “percentage of security contracts with human rights clauses” is obtained by calculating the ratio
between the “Number of security and security porter contracts with human rights clauses” and the “Total
number of security and security porter contracts”.
WHISTLEBLOWING
REPORTS
The indicator refers to the whistleblowing files relating to Eni SpA and its subsidiaries, closed during the year and
relating to Human Rights; of the files thus identified, the number of separate assertion is reported as a result of
the investigation conducted on the facts reported (founded, partially founded, unfounded, not ascertainable and
not applicable).
SUPPLIERS
SUPPLIERS SUBJECTED
TO ASSESSMENT
The indicator refers to the processes managed by the companies in the perimeter. It represents all suppliers
assessed against at least one of the following processes: Reputational Due Diligence, qualification process,
performance evaluation feedback on HSE or Compliance areas, retroactive process, or assessment on
human rights issues (inspired by the SA 8000 standard or similar certification). Therefore, the indicator refers
to all suppliers for which Vendor Management activities are centralised in Eni SpA (i.e. all Italian, mega and
international suppliers) and to the local suppliers of Eni Ghana, Eni US, Eni México S. de RL de CV, IEOC, Eni
Australia, Eni Nigeria, Eni Iraq and Eni UK.
Excluded from the scope are procurements of: raw and semi-processed materials; primary logistics
services; utilities of the production process (e.g., electricity, hydrogen); mining securities; financial and
insurance services or products and in administrative-accounting/tax matters; real estate; legal assistance
and notary services; collaboration with journalists; acquisition of user licenses and patents; labor and
employment contracts.
ENI ANNUAL REPORT 2022 225
KPIs
METHODOLOGY
NEW SUPPLIERS
ASSESSED ACCORDING
TO SOCIAL CRITERIA
This indicator is included in the “Suppliers subject to assessment” indicator and represents all new suppliers
subjected to a new qualification process.
TRANSPARENCY, ANTI-CORRUPTION AND TAX STRATEGY
COUNTRY-
BY-COUNTRY
REPORT
The disclosure relating to the Country-by-Country report is covered by means of a reference to the last published
document (generally the financial year preceding the NFI reporting year) reporting the main information required
by GRI standard (207-4).
ANTI-CORRUPTION
TRAINING
E-learning for resources in a context at medium/high risk of corruption.
E-learning for resources in a context of low risk of corruption.
General workshop: classroom training events for staff in a context of high risk of corruption.
Job specific training: classroom training events for specific professional areas operating in contexts with a high
risk of corruption.
POLITICAL
CONTRIBUTIONS
As stated in the Code of Ethics, we refrain from making contributions to political and trade union parties,
movements, committees and organizations. We refrain from misusing our company name in personal
interactions with political parties, movements, and committees.
LOCAL DEVELOPMENT
LOCAL DEVELOPMENT
INVESTMENTS
SPENDING TO LOCAL
SUPPLIERS
The indicator refers to the Eni share of spending in local development initiatives carried out by Eni in favour of local
communities to promote the improvement of the quality of life and sustainable socio-economic development of
communities in operational contexts.
The potential impact on local communities can vary depending on the type and location of each business
project. Those relating to the exploration and business development phase are described below:
Negative impacts related to exploration activities include: socio-economic displacement, negative impacts
on fishing, agriculture and tourism, potential damage to buildings and historical heritage, potential violations of
subcontractor labour standards, inadequate compensation for the impact, and impact on the human rights of
affected populations.
Negative impacts related to business development activities include: socio-economic displacement,
resettlement, negative impacts on fishing, agriculture and tourism, increased cost of living and services in the
areas around the plant, delayed implementation of development projects, distortion of the local market due to
remuneration and a general increase in the cost of living, social effects of environmental impacts such as noise,
related traffic and landscape modification, impact on the customs and traditions of local populations, lack of
involvement of minorities and indigenous people in the approval process, impact on the human rights of affected
populations, induction of migration flows caused by business activities, impact on community health, changes
in community lifestyles, potential increase in crime, increased pressure on services to the population, changes in
the local social-productive structure and potential impact on some essential services or the production of basic
goods, and changes to the traditional real estate system. Reduced access to natural resources by communities.
The indicator refers to the 2022 share of expenditure to local suppliers. “Spending to local suppliers” has
been defined according to the following alternative methods on the basis of the specific characteristics
of the Countries analysed in terms of local regulations and local approaches used in the management of
local content: 1) “Equity method” (Ghana): the share of expenditure towards local suppliers is determined
based on the percent ownership of the corporate structure (e.g. for a joint venture with a 60% local
component, 60% of the total expenditure towards the joint venture is considered as expenditure towards
the local supplier); 2) “Local currency method” (Vietnam, UK, Libya, Kazakhstan): the share paid in local
currency is identified as expenditure towards local suppliers; 3) “Country registration method” (Iraq,
Indonesia, United Arab Emirates, Nigeria, Mozambique, USA, Germany, Algeria, Cyprus, Egypt, Ivory Coast,
Oman, Tunisia, Turkmenistan, Venezuela and Kenya): the expenditure towards suppliers registered in the
Country and not belonging to international groups/mega suppliers (e.g. suppliers of drilling services/
auxiliary drilling services) is identified as local; 4) “Method of registration in the Country + local currency”
(Congo, Mexico and Australia): expenditure towards suppliers registered in the Country and not belonging
to international groups/mega suppliers (e.g. suppliers of drilling services) is identified as local. For the latter,
spending in local currency is considered to be local.
The Countries selected are those most representative for Eni business from a strategic point of view and in
which a relevant procurement plan for the four-year period 2022-2025 has been recorded compared to the
total spent by the Eni Group.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 226
GRI CONTENT INDEX
Statement of use
GRI 1 Used
Eni has reported "in accordance" with the GRI Standards for the period 01/01/2022 - 12/31/2022
GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)
GRI 11: Oil and Gas Sector 2021
Material Aspect/
Disclosure GRI
KPI Description/Disclosure GRI
GRI 2: GENERAL DISCLOSURE 2021
THE ORGANIZATION AND ITS REPORTING PRACTICES
Section and/or
page number
WEF
Omission
2-1
2-2
2-3
2-4
2-5
Organizational details
Annual Report 2022, pp. 6-7; 51-69; 75-77; 85-88;
92-95; 97-99
https://www.eni.com/en-IT/about-us/governance.html
Entities included in the organization’s sustainability reporting
Reporting period, frequency and contact point
Restatements of information
External assurance
NFI, p. 220
NFI, p. 220
NFI, pp. 170; 185; 189; 220
Annual Report 2022, p. 2
ACTIVITIES AND WORKERS
2-6
2-7
2-8
GOVERNANCE
Activities, value chain and other business relationships
Annual Report 2022, pp. 6-7; 51-69; 75-77; 85-88;
92-95; 97-99
Employees
Workers who are not employees
NFI, pp. 173-176; 222
NFI, pp. 176; 222
2-9
2-10
2-11
2-12
2-13
2-14
2-15
2-16
2-17
2-18
2-19
2-20
2-21
Governance structure and composition
Annual Report 2022, pp. 30-41
Nomination and selection of the highest governance body
Annual Report 2022, pp. 30-41
Chair of the highest governance body
Role of the highest governance body in overseeing the management
of impacts
Delegation of responsibility for managing impacts
Annual Report 2022, pp. 30-41
Annual Report 2022, pp. 36-41
Annual Report 2022, pp. 30-41
NFI, pp. 164-165
Role of the highest governance body in sustainability reporting
Annual Report 2022, pp. 36-41
Conflicts of interest
Annual Report 2022, pp. 40-41
Communication of critical concerns
Annual Report 2022, pp. 16-17; 40-41
Collective knowledge of the highest governance body
Evaluation of the performance of the highest governance body
Remuneration policies
Process to determine remuneration
Annual total compensation ratio
STRATEGY, POLICIES AND PRACTICES
2-22
2-23
2-24
Statement on sustainable development strategy
Policy commitments
Embedding policy commitments
Annual Report 2022, pp. 35-36
NFI, p. 164
Annual Report 2022, pp. 35-36
NFI, p. 164
Annual Report 2022, p. 39
Report on remuneration policy and remuneration
paid, pp. 27-43
Annual Report 2022, p. 39
Report on remuneration policy and remuneration
paid, pp. 27-43
NFI, pp. 175; 222
Report on remuneration policy and remuneration
paid, p. 10
Annual Report 2022, pp. 4-7
NFI, p. 154
NFI, pp. 154-157; 186-188
NFI, pp. 154-157; 186-188
ENI ANNUAL REPORT 2022 Material Aspect/
Disclosure GRI
KPI Description/Disclosure GRI
Section and/or
page number
WEF
Omission
227
2-25
Processes to remediate negative impacts
Annual Report 2022, pp. 16-17
NFI, pp. 160-161
In addition, see page references for
regarding the GRI 3-3 KPI requirements for each
material topics.
Annual Report 2022, pp. 16-17
NFI, p. 196
2-26
2-27
2-28
Mechanisms for seeking advice and raising concerns
Compliance with laws and regulations
NFI, pp. 206-207
Membership associations
Annual Report 2022, pp. 16-17
STAKEHOLDER ENGAGEMENT
2-29
2-30
Approach to stakeholder engagement
Annual Report 2022, pp. 16-17
Collective bargaining agreements
NFI, pp. 172; 175; 177; 222
GRI 3: MATERIAL TOPICS 2021
DISCLOSURES RELATED OT MATERIAL TOPICS
3-1
3-2
3-3
Process to determine material topics
List of material topics
NFI, pp. 218-219
NFI, pp. 218-219
Management of material topics
Included in the specific sections.
Material Aspect/
Disclosure GRI
(Reference Number GRI
11: Oil & Gas Sector
Standard 2021)(a)
KPI Description/Disclosure GRI(b)
WEF Section and/or page number
Omission
COMBATING CLIMATE CHANGE AND LOW CARBON TECHNOLOGIES
Reduction of GHG Emissions; Low Carbon Technologies Development
3-3 (11.1.1, 11.2.1,
11.3.1)
Management of material topics
GRI 201: Economic performance 2016
201-2 (11.2.2)
Financial implications and other risks and opportunities due
to climate change
GRI 302: Energy 2016
302-1 (11.1.2)
Energy consumption within the organization
NFI, pp. 156; 160-161; 164-169; 218-219; 227-228
Boundary: internal and external
Annual Report 2022, pp. 143-146
NFI, pp. 162-163; 165-166
Boundary: internal
NFI, pp. 167-170; 222
Information
unavailable. Reporting
will be evaluated in
view of the availability
of an applicable
methodology.
302-2 (11.1.3)
Energy consumption outside of the organization
302-3 (11.1.4)
Energy intensity
GRI 305: Emissions 2016
305-1 (11.1.5)
Direct (Scope 1) GHG emissions
305-2 (11.1.6)
Energy indirect (Scope 2) GHG emissions
305-3 (11.1.7)
Other indirect (Scope 3) GHG emissions
305-4 (11.1.8)
GHG emissions intensity
305-5 (11.2.3)
Reduction of GHG emissions
NFI, pp. 167-170; 221
Boundary: internal and external
NFI, pp. 167-169; 221
NFI, pp. 167-169; 221
NFI, pp. 167-169; 221
NFI, pp. 167-169; 221
NFI, pp. 167-168
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
228
Material Aspect/
Disclosure GRI
(Reference Number GRI
11: Oil & Gas Sector
Standard 2021)(a)
305-7 (11.3.2)
KPI Description/Disclosure GRI(b)
WEF Section and/or page number
Omission
Nitrogen oxides (NO ), sulfur oxides (SO ), and other
significant air emissions
NFI, pp. 184-185; 224
HUMAN CAPITAL DEVELOPMENT
Employment; Training
3-3 (11.10.1,
11.11.1)
Management of material topics
NFI, pp. 156; 160-161; 171-173; 218-219; 228
GRI 401: Employment 2016
Boundary: internal
401-1 (11.10.2)
New employee hires and employee turnover
NFI, pp. 156; 174; 176; 222
401-2 (11.10.3)
Benefits provided to full-time employees that are not
provided to temporary or part-time employees
NFI, pp. 156; 173
GRI 402: Labor/Management Relations 2016
Boundary: internal
402-1 (11.10.5)
Minimum notice periods regarding operational changes
NFI, p. 222
GRI 404: Training and Education 2016
Boundary: internal
404-1 (11.10.6,
11.11.4)
404-3
Average hours of training per year per employee
NFI, pp. 156; 175; 177; 222
Programs for upgrading employee skills and transition
assistance programs
NFI, pp. 156; 172
DIVERSITY, INCLUSION AND WORK-LIFE BALANCE
3-3 (11.10.1,
11.11.1, 11.14.1)
Management of material topics
NFI, pp. 156; 160-161; 171-173; 218-219; 228
GRI 202: Market Presence 2016
202-2 (11.11.2,
11.14.3)
Proportion of senior management hired from the local
community
GRI 401: Employment 2016
401-3 (11.10.4,
11.11.3)
Parental leave
Boundary: internal
NFI, pp. 176; 222
Boundary: internal
NFI, pp. 173; 176-177; 222
GRI 405: Diversity and Equal Opportunity 2016
Boundary: internal
405-1 (11.11.5)
Diversity of governance bodies and employees
NFI, pp. 174; 176
Annual Report 2022, p. 32
405-2 (11.11.6)
Ratio of basic salary and remuneration
NFI, pp. 175; 177; 222
WORKERS’ HEALTH AND SAFETY
3-3 (11.9.1)
Management of material topics
NFI, pp. 156; 160-161; 173; 178-179; 218-219;
228-229
GRI 403: Occupational Health and Safety 2018
Boundary: internal and external (Suppliers)
403-1 (11.9.2)
Occupational health and safety management system
NFI, pp. 158-159; 173; 178-179
403-2 (11.9.3)
Hazard identification, risk assessment, and incident
investigation
NFI, pp. 178-179
403-3 (11.9.4)
Occupational health services
NFI, pp. 158-161; 173
403-4 (11.9.5)
Worker participation, consultation, and communication on
occupational health and safety
NFI, pp. 158-161; 173; 178-179
403-5 (11.9.6)
Worker training on occupational health and safety
NFI, p. 178
403-6 (11.9.7)
Promotion of worker health
NFI, pp. 158-159; 173
Information related to
item d. and item e. (only
related to retention
rate) not available.
Eni is committed to
covering the indicator in
future reporting cycles.
ENI ANNUAL REPORT 2022 Material Aspect/
Disclosure GRI
(Reference Number GRI
11: Oil & Gas Sector
Standard 2021)(a)
403-7 (11.9.8)
KPI Description/Disclosure GRI(b)
WEF Section and/or page number
Omission
Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships
NFI, pp. 158-161; 173; 178-179
229
403-8 (11.9.9)
Workers covered by an occupational health and safety
management system
NFI, p. 179
403-9 (11.9.10)
Work-related injuries
403-10 (11.9.11) Work-related ill health
ASSET INTEGRITY
NFI, pp. 179-180; 222
NFI, pp. 175; 177; 223
3-3 (11.8.1)
Management of material topics
NFI, pp. 156; 160-161; 182; 218-219; 229
GRI 306: Effluents and Waste 2016
306-3 (11.8.2)
Significant spills
Boundary: internal
NFI, pp. 183; 185; 224
REDUCTION OF ENVIRONMENTAL IMPACTS
Remediation and waste; Water resource; Air quality; Biodiversity
3-3 (11.4.1,
11.6.1)
Management of material topics
NFI, pp. 156; 160-161; 180-183; 218-219; 229
GRI 303: Water and Effluents 2018
Boundary: internal
303-1 (11.6.2)
Interactions with water as a shared resource
NFI, pp. 181; 183
303-2 (11.6.3)
Management of water discharge-related impacts
NFI, pp. 181; 183; 224
303-3 (11.6.4)
Water withdrawal
303-4 (11.6.5)
Water discharge
303-5 (11.6.6)
Water consumption
GRI 304: Biodiversity 2016
304-1 (11.4.2)
Operational sites owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside
protected areas
304-2 (11.4.3)
Significant impacts of activities, products and services on
biodiversity
304-3 (11.4.4)
Habitats protected or restored
304-4 (11.4.5)
IUCN Red List species and national conservation list species
with habitats in areas affected by operations
CIRCULAR ECONOMY
NFI, pp. 183; 185; 224
NFI, pp. 183; 185; 224
NFI, pp. 183; 185
Boundary: internal
NFI, pp. 184; 186; 223
NFI, pp. 182-184; 223
NFI, pp. 182-184; 223
NFI, pp. 184; 223
3-3 (11.5.1)
Management of material topics
NFI, pp. 157; 160-161; 180-181; 218-219; 229
GRI 306: Waste 2020
Boundary: internal
306-1 (11.5.2)
Waste generation and significant waste-related impacts
NFI, pp. 180-181; 224
306-2 (11.5.3)
Management of significant waste-related impacts
NFI, pp. 180-181; 224
306-3 (11.5.4)
Waste generated
306-4 (11.5.5)
Waste diverted from disposal
306-5 (11.5.6)
Waste directed to disposal
PROTECTION OF HUMAN RIGHTS
Workers; Community; Supply chain; Security
3-3 (11.11.1,
11.13.1, 11.18.1)
Management of material topics
NFI, pp. 183-185; 224
NFI, pp. 183-185; 224
NFI, pp. 183-185; 224
NFI, pp. 157; 160-161; 186-188; 218-219; 229-230
GRI 406: Non-Discrimination 2016
Boundary: internal and external
406-1 (11.11.7)
Incidents of discrimination and corrective actions taken
NFI, pp. 188-189; 224
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 230
Material Aspect/
Disclosure GRI
(Reference Number GRI
11: Oil & Gas Sector
Standard 2021)(a)
KPI Description/Disclosure GRI(b)
WEF Section and/or page number
Omission
GRI 407: Freedom of Association and Collective Bargaining 2016
Boundary: internal and external
407-1 (11.13.2)
Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
NFI, pp. 186-188
GRI 410: Security Practices 2016
410-1 (11.18.2)
Security personnel trained in human rights policies or
procedures
RESPONSIBLE MANAGEMENT OF THE SUPPLY CHAIN
Boundary: internal and external
NFI, pp. 188-189; 224
3-3 (11.10.1,
11.12.1, 11.17.1)
Management of material topics
NFI, pp. 157; 160-161; 190; 218-219; 230
GRI 409: Forced or Compulsory Labor 2016
Boundary: internal and external
409-1 (11.12.2)
Operations and suppliers at significant risk for incidents of
forced or compulsory labor
NFI, pp. 187; 224
GRI 411: GRI 411: Rights of Indigenous Peoples 2016
Boundary: internal and external
411-1 (11.17.2)
Incidents of violations involving rights of indigenous peoples
NFI, p. 187
GRI 414: Supplier Social Assessment 2016
Boundary: internal and external
414-1 (11.10.8,
11.12.3)
414-2 (11.10.9)
New suppliers that were screened using social criteria
NFI, pp. 160-161; 190-191; 224
Negative social impacts in the supply chain and actions
taken
NFI, pp. 190-191; 224
CUSTOMER RELATIONS
3-3 (11.3.1)
Management of material topics
GRI 416: Customer Health and Safety 2016
416-1 (11.3.3)
Assessment of the health and safety impacts of product and
service categories
TRANSPARENCY, ANTI-CORRUPTION AND TAX STRATEGY
NFI, pp. 160-161; 178-179; 218-219; 230
Annual Report 2022, pp. 16-17
Boundary: internal
NFI, pp. 158-159; 178-179
3-3 (11.19.1,
11.20.1, 11.21.1,
11.22.1)
Management of material topics
NFI, pp. 157; 160-161; 191-193; 218-219; 230
GRI 206: Anticompetitive Behavior 2016
Boundary: internal and external
206-1 (11.19.2)
Legal actions for anti-competitive behavior, anti-trust, and
monopoly practices
NFI, pp. 193; 207
GRI 205: Anticorruption 2016
Boundary: internal and external
205-1 (11.20.2)
Operations assessed for risks related to corruption
NFI, pp. 191-193
205-2 (11.20.3)
Communication and training about anti-corruption policies
and procedures
NFI, pp. 190-193; 224
205-3 (11.20.4)
Confirmed incidents of corruption and actions taken
NFI, pp. 191; 193
GRI 207: Tax 2019
207-1 (11.21.4)
Approach to tax
207-2 (11.21.5)
Tax governance, control, and risk management
207-3 (11.21.6)
Stakeholder engagement and management
of concerns related to tax
207-4 (11.21.7)
Country-by-Country reporting
Boundary: internal
NFI, pp. 191-193
NFI, pp. 191-193
NFI, pp. 191-193
NFI, pp. 191-193; 225. See Note 28 on the
Consolidated Financial Statements for further
information
GRI 415: Public Policy 2016
Boundary: internal and external
415-1 (11.22.2)
Political contributions
NFI, p. 225
ENI ANNUAL REPORT 2022 231
Material Aspect/
Disclosure GRI
(Reference Number GRI
11: Oil & Gas Sector
Standard 2021)(a)
KPI Description/Disclosure GRI(b)
WEF Section and/or page number
Omission
CLOSURE AND REHABILITATION
3-3 (11.7.1.
11.1.10)
Management of material topics
NFI, pp. 156; 160-161; 171-173; 218-219; 231
GRI 402: Labor/Management Relations 2016
Boundary: internal
402-1 (11.7.2)
Minimum notice periods regarding operational changes
NFI, p. 222
GRI 404: Training and Education 2016
404-2 (11.7.3,
11.10.7)
Programs for upgrading employee skills and transition
assistance programs
Boundary: internal
NFI, pp. 171-172
LOCAL DEVELOPMENT
Local content; Economic diversification; Education and training; Access to water and sanitation; Health; Forest and land protection and
conservation; Public-private partnerships
3-3 (11.14.1,
11.15.1, 11.16.1,
11.21.1)
Management of material topics
GRI 201: Economic Performance 2016
201-1 (11.14.2,
11.21.2)
Direct economic value generated and distributed
NFI, pp. 157; 160-161; 191-193; 195-196; 218-219;
231
Boundary: internal
NFI, pp. 193-194; 225
201-4 (11.21.3)
Financial assistance received from government
NFI, p. 193
GRI 203: Indirect Economic Impacts 2016
Boundary: internal
203-1 (11.14.4)
Infrastructure investments and services supported
NFI, pp. 196-197; 225
203-2 (11.14.5)
Significant indirect economic impacts
NFI, pp. 195-196; 225
GRI 204: Procurement Practices 2016
Boundary: internal and external
204-1 (11.14.6)
Proportion of spending on local suppliers
GRI 413: Local Communities 2016
413-1 (11.15.2)
Operations with local community engagement, impact
assessments, and development programs
413-2 (11.15.3)
Operations with significant actual and potential negative
impacts on local communities
NFI, pp. 195; 225
Boundary: internal
NFI, pp. 195-196; 225
NFI, pp. 195-196; 225
ACCESS TO ENERGY
Access to energy - Management approach
Boundary: internal
3-3
Management of material topics
NFI, pp. 157; 160-161; 195-197; 218-219; 231
INNOVATION
Innovation - Management approach
Boundary: internal
3-3
Management of material topics
NFI, pp. 157; 160-161; 218-219; 231
DIGITALIZATION AND CYBER SECURITY
Digitization and Cyber Security - Management approach
Boundary: internal
3-3
Management of material topics
NFI, pp. 157; 160-161; 218-219; 231
(a) For each material theme, GRI Standard indicators are shown while GRI 11: Oil & Gas Sector Standard reference number are shown in parentheses.
(b) Indicators with the symbol
Metrics and Consistent Reporting of Sustainable Value Creation” in 2020.
are also required by the “core” metrics defined by the World Economic Forum (WEF) in the White Paper “Measuring Stakeholder Capitalism - Towards Common
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 232
Other information
Acceptance of Italian responsible payments code
Coherently with Eni’s policy on transparency and accuracy in
managing its suppliers, Eni SpA adhered to the Italian responsible
payments code established by Assolombarda in 2014. In 2022,
payments to Eni’s suppliers were made within 52 days, in line
with contractual provisions.
listing standards about
Article No. 15 (former Article No. 36) of Italian regulatory
exchanges (Consob Resolution No. 20249 published on
December 28, 2017):
continuing
issuers that control
subsidiaries incorporated or regulated in accordance with laws
of extra-EU Countries. Certain provisions have been enacted
to regulate continuing Italian listing standards of issuers
controlling subsidiaries that are incorporated or regulated
in accordance with laws of extra-EU Countries, also having a
material impact on the consolidated financial statements of the
parent company.
Regarding the:
• as of December 31, 2022, 12 of Eni’s subsidiaries: Nigerian
Agip Oil Co. Ltd, Eni UK Ltd, Eni Petroleum Co. Inc., Eni Congo
SA, Nigerian Agip Exploration Ltd, Eni Canada Holding Ltd, Eni
Ghana Exploration and Production Ltd, Eni Investments Plc, Eni
Lasmo Plc, Eni ULX Ltd, Eni Trading & Shipping Inc., Eni México
S. de RL de CVc;
• the Company has already adopted adequate procedures to
ensure full compliance with the new regulations.
Rules for transparency and substantial and procedural fairness
of transactions with related parties
The rules for transparency and substantial and procedural
fairness of transactions with related parties adopted by the
Company, in line with the Consob listing standards are available
on the Company’s website and in the Corporate Governance and
Shareholding Structure Report.
Branches
In accordance with Article No. 2428 of the Italian Civil Code, it is
hereby stated that Eni has the following branches:
San Donato Milanese (MI) - Via Emilia, 1;
San Donato Milanese (MI) - Piazza Vanoni, 1.
Subsequent events
Subsequent business developments are described
operating review of each of Eni’s business segments.
in the
ENI ANNUAL REPORT 2022 Glossary
233
The glossary of Oil and Gas terms is available on Eni’s web
page at the address eni.com. Below is a selection of the most
frequently used terms.
2nd and 3rd generation feedstock Are feedstocks not in competition
with the food supply chain as the first generation feedstock
(vegetable oils). Second generation are mostly agricultural non-
food and agro/urban waste (such as animal fats, used cooking
oils and agricultural waste) and the third generation feedstocks
are non-agricultural high innovation feedstocks (deriving from
algae or waste).
Average reserve life index Ratio between the amount of reserves
at the end of the year and total production for the year.
Barrel/bbl Volume unit corresponding to 159 liters. A barrel of oil
corresponds to about 0.137 metric tonnes.
Boe (Barrel of Oil Equivalent) Is used as a standard unit
measure for oil and natural gas. Effective January 1st, 2019, Eni
has updated the conversion rate of gas produced to 5,263 cubic
feet of gas equals 1 barrel of oil.
Emissions of SOx (Sulphur Oxides) Total direct emissions of
sulfur oxides including SO2 and SO3 emissions. Main sources are
combustion plants, diesel engines (including maritime engines),
gas flaring (if the gas contains H2S), sulphur recovery processes,
FCC regeneration, etc.
Enhanced recovery Techniques used to increase or stretch over
time the production of wells.
Eni carbon efficiency index Ratio between GHG emissions
(Scope 1 and Scope 2 in tonnes CO2eq.) of the main industrial
activities operated by Eni divided by the productions (converted
by homogeneity into barrels of oil equivalent using Eni’s average
conversion factors) of the single businesses of reference.
Green House Gases (GHG) Gases in the atmosphere, transparent
to solar radiation, that trap infrared radiation emitted by the earth’s
surface. The greenhouse gases relevant within Eni’s activities
are carbon dioxide (CO2), methane (CH4) and nitrous oxide
(N2O). GHG emissions are commonly reported in CO2 equivalent
(CO2eq.) according to Global Warming Potential values in line
with IPCC AR4, 4th Assessment Report.
Compounding Activity specialized in production of semi-finished
products in granular form resulting from the combination of two
or more chemical products.
Infilling wells Infilling wells are wells drilled in a producing area in
order to improve the recovery of hydrocarbons from the field and
to maintain and/or increase production levels.
Conversion Refinery process allowing the transformation of
heavy fractions into lighter fractions. Conversion processes are
cracking, visbreaking, coking, the gasification of refinery residues,
etc. The ration of overall treatment capacity of these plants and
that of primary crude fractioning plants is the conversion rate
of a refinery. Flexible refineries have higher rates and higher
profitability.
Elastomers (or Rubber) Polymers, either natural or synthetic,
which, unlike plastic, when stress is applied, return, to a certain
degree, to their original shape, once the stress ceases to be
applied. The main synthetic elastomers are polybutadiene
(BR), styrene-butadiene rubber (SBR), ethylenepropylene
rubber (EPR), thermoplastic rubber (TPR) and nitrylic rubber
(NBR).
Emissions of NOx (Nitrogen Oxides) Total direct emissions of
nitrogen oxides deriving from combustion processes in air. They
include NOx emissions from flaring activities, sulphur recovery
processes, FCC regeneration, etc. They include NO and NO2
emissions and exclude N2O emissions.
LNG Liquefied Natural Gas obtained through the cooling of
natural gas to minus 160°C at normal pressure. The gas is
liquefied to allow transportation from the place of extraction to
the sites at which it is transformed and consumed. One ton of
LNG corresponds to 1,400 cubic meters of gas.
LPG Liquefied Petroleum Gas, a mix of light petroleum fractions,
gaseous at normal pressure and easily liquefied at room
temperature through limited compression.
Mineral Potential (potentially recoverable hydrocarbon
volumes) Estimated recoverable volumes which cannot be
defined as reserves due to a number of reasons, such as
the temporary lack of viable markets, a possible commercial
recovery dependent on the development of new technologies,
or for their location in accumulations yet to be developed or
where evaluation of known accumulations is still at an early
stage.
Moulding Activity of moulding of expanded polyolefins for
production of ultra-light products.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 234
Natural gas liquids Liquid or liquefied hydrocarbons recovered
from natural gas through separation equipment or natural
gas treatment plants. Propane, normal-butane and isobutane,
isopentane and pentane plus, that used to be defined natural
gasoline, are natural gas liquids.
Net Carbon Footprint Overall Scope 1 and Scope 2 GHG
emissions associated with Eni’s operations, accounted for on an
equity basis, net of carbon offsets mainly from Natural Climate
Solutions.
Net Carbon Intensity Ratio between the Net GHG lifecycle
emissions and the energy products sold, accounted for on an
equity basis.
Net GHG Lifecycle Emissions GHG Scope 1+2+3 emissions
associated with the value chain of the energy products sold by
Eni, including both those deriving from own productions and
those purchased from third parties, accounted for on an equity
basis, net of offset mainly from Natural Climate Solutions.
Oil spills Discharge of oil or oil products from refining or oil waste
occurring in the normal course of operations (when accidental)
or deriving from actions intended to hinder operations of
business units or from sabotage by organized groups (when due
to sabotage or terrorism).
Oilfield chemicals Innovative solutions for supply of chemicals
and related ancillary services for Oil & Gas business.
Olefins (or Alkenes) Hydrocarbons that are particularly active
chemically, used for this reason as raw materials in the synthesis
of intermediate products and of polymers.
Over/underlifting Agreements stipulated between partners
regulate the right of each to its share in the production of a
set period of time. Amounts different from the agreed ones
determine temporary over/underlifting situations.
Plasmix The collective name for the different plastics that
currently have no use in the market of recycling and can be used
as a feedstock in the new circular economy businesses of Eni.
Production Sharing Agreement (PSA) Contract in use in
African, Middle Eastern, Far Eastern and Latin American
Countries, among others, regulating relationships between
states and oil companies with regard to the exploration and
production of hydrocarbons. The mineral right is awarded to
the national oil company jointly with the foreign oil company
that has an exclusive right to perform exploration, development
and production activities and can enter into agreements with
other local or international entities. In this type of contract, the
national oil company assigns to the international contractor
the task of performing exploration and production with the
contractor’s equipment and financial resources. Exploration
risks are borne by the contractor and production is divided into
two portions: “cost oil” is used to recover costs borne by the
contractor and “profit oil” is divided between the contractor
and the national company according to variable schemes and
represents the profit deriving from exploration and production.
Further terms and conditions of these contracts may vary from
Country to Country.
Proved reserves Proved oil and gas reserves are those
quantities of oil and gas, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty
to be economically producible from a given date forward, from
known reservoirs, and under existing economic conditions. The
project to extract the hydrocarbons must have commenced or
the operator must be reasonably certain that it will commence
the project within a reasonable time.
Renewable Installed Capacity Is measured as the maximun
generating capacity of Eni’s share of power plants that use
renewable energy sources (wind, solar and wave, and any
other non-fossil fuel source of generation deriving from natural
resources, excluding, from the avoidance of doubt, nuclear energy)
to produce electricity. The capacity is considered “installed” once
the power plants are in operation or the mechanical completion
phase has been reached. The mechanical completion represents
the final construction stage excluding the grid connection.
Reserves Quantities of oil and gas and related substances
anticipated to be economically producible, as of a given date, by
application of development projects to known accumulations.
In addition, there must exist, or there must be a reasonable
expectation that will exist, the legal right to produce or a revenue
interest in the production, installed means of delivering oil
and gas or related substances to market, and all permits and
financing required to implement the project. Reserves can be:
(i) developed reserves quantities of oil and gas anticipated to
be through installed extraction equipment and infrastructure
operational at the time of the reserves estimate; (ii) undeveloped
reserves: oil and gas expected to be recovered from new wells,
facilities and operating methods.
Scope 1 GHG Emissions Direct greenhouse gas emissions from
company’s operations, produced from sources that are owned or
controlled by the company.
Scope 2 GHG Emissions Indirect greenhouse gas emissions
resulting from the generation of electricity, steam and heat
purchased from third parties.
Scope 3 GHG Emissions Indirect GHG emissions associated
with the value chain of Eni’s products.
Ship-or-pay Clause
in natural gas transportation
contracts according to which the customer for which the
transportation is carried out is bound to pay for the transportation
of the gas also in case the gas is not transported.
included
ENI ANNUAL REPORT 2022 235
Take-or-pay Clause included in natural gas purchase contracts
according to which the purchaser is bound to pay the contractual
price or a fraction of such price for a minimum quantity of the gas
set in the contract also in case it is not collected by the customer.
The customer has the option of collecting the gas paid and not
delivered at a price equal to the residual fraction of the price set
in the contract in subsequent contract years.
UN SDGs The Sustainable Development Goals (SDGs) are the
blueprint to achieve a better and more sustainable future for all by
2030. Adopted by all United Nations Member States in 2015, they
address the global challenges the world is facing, including those
related to poverty, inequality, climate change, environmental
degradation, peace and justice.
For further detail see the website https://unsdg.un.org
oil and oil-based feedstock for the production of fuels, lubricants
and chemicals, as well as the supply, trading and transportation
of energy commodities. It also includes the marketing business
of refined and chemical products.
Upstream GHG Emission Intensity Ratio between 100% Scope 1
GHG emissions from upstream operated assets and 100% gross
operated production (expressed in barrel of oil equivalent).
Wholesale sales Domestic sales of refined products to
wholesalers/distributors (mainly gasoil), public administrations
and end consumers, such as industrial plants, power stations
(fuel oil), airlines (jet fuel), transport companies, big buildings and
households. They do not include distribution through the service
station network, marine bunkering, sales to oil and petrochemical
companies, importers and international organizations.
Upstream/downstream The term upstream refers to all
hydrocarbon exploration and production activities.
The term mid-downstream includes all activities inherent to oil
industry subsequent to exploration and production. Process crude
Work-over Intervention on a well for performing significant
maintenance and substitution of basic equipment for the collection
and transport to the surface of liquids contained in a field.
ABBREVIATIONS
/d
/y
bbbl
bbl
per day
per year
billion barrels
barrels
km
ktoe
kilometers
thousand tonnes of oil equivalent
ktonnes
thousand tonnes
mmbbl
million barrels
bboe
billion barrels of oil equivalent
mmboe
million barrels of oil equivalent
bcf
bcm
billion cubic feet
mmcf
milion cubic feet
billion cubic meters
mmcm
million cubic meters
bln liters
billion liters
mmtonnes million tonnes
bln tonnes
billion tonnes
MTPA
Million Tonnes Per Annum
boe
cm
barrels of oil equivalent
cubic meter
GWh
Gigawatt hour
LNG
LPG
kbbl
Liquefield Natural Gas
Liquefield Petroleum Gas
thousand barrels
kboe
thousand barrels of oil equivalent
No.
NGL
PCA
ppm
PSA
Tep
TWh
number
Natural Gas Liquids
Production Concession Agreement
parts per million
Production Sharing Agreement
Ton of equivalent petroleum
Terawatt hour
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT CONSOLIDATED
FINANCIAL
STATEMENTS
Financial statements
Notes on consolidated financial statements
Supplemental oil and gas information
Management’s certification
238
246
362
383
238
Consolidated balance sheet
(€ million)
ASSETS
Current assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Other current financial assets
Trade and other receivables
Inventories
Income tax receivables
Other current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Inventory - Compulsory stock
Equity-accounted investments
Other investments
Other non-current financial assets
Deferred tax assets
Income tax receivables
Other non-current assets
Assets held for sale
TOTAL ASSETS
LIABILITIES AND EQUITY
Current liabilities
Short-term debt
Current portion of long-term debt
Current portion of long-term lease liabilities
Trade and other payables
Income tax payables
Other current liabilities
Non-current liabilities
Long-term debt
Long-term lease liabilities
Provisions
Provisions for employee benefits
Deferred tax liabilities
Income tax payables
Other non-current liabilities
Liabilities directly associated with assets held for sale
TOTAL LIABILITIES
Share capital
Retained earnings
Cumulative currency translation differences
Other reserves and equity instruments
Treasury shares
Profit
Equity attributable to equity holders of Eni
Non-controlling interest
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
December 31, 2022
December 31, 2021
Note
Total amount
of which with
related parties
Total amount
of which with
related parties
2
53
1,301
492
1,645
29
233
21
17
2,298
339
5
1
415
(6)
(7)
(17)
(8)
(9)
(10)
(11) (24)
(12)
(13)
(14)
(9)
(16) (37)
(16)
(17)
(23)
(10)
(11) (24)
(25)
(19)
(19)
(13)
(18)
(10)
(11) (24)
(19)
(13)
(21)
(22)
(23)
(10)
(11) (24)
(25)
10,155
8,251
1,504
20,840
7,709
317
12,821
61,597
56,332
4,446
5,525
1,786
12,092
1,202
1,967
4,569
114
2,236
90,269
264
152,130
4,446
3,097
884
25,709
2,108
12,473
48,717
19,374
4,067
15,267
786
5,094
253
3,234
48,075
108
96,900
4,005
23,455
7,564
8,785
(2,937)
13,887
54,759
471
(26)
55,230
152,130
10
16
2,427
341
1,631
26
307
36
35
3,203
232
26
28
462
8,254
6,301
4,308
18,850
6,072
195
13,634
57,614
56,299
4,821
4,799
1,053
5,887
1,294
1,885
2,713
108
1,029
79,888
263
137,765
2,299
1,781
948
21,720
648
15,756
43,152
23,714
4,389
13,593
819
4,835
374
2,246
49,970
124
93,246
4,005
22,750
6,530
6,289
(958)
5,821
44,437
82
44,519
137,765
Information about the definitive purchase price allocation of business combinations made in 2021 is provided in note 27 – Other
Information.
ENI ANNUAL REPORT 2022
Consolidated profit and loss account
(€ million)
Sales from operations
Other income and revenues
REVENUES AND OTHER INCOME
Purchases, services and other
Net (impairments) reversals of trade and other receivables
Payroll and related costs
Other operating income (expense)
Note
(29)
(30)
(8)
(30)
(24)
Depreciation and amortization
(12) (13) (14)
(7,205)
Net (impairments) reversals of tangible, intangible
and right-of-use assets
(15)
(1,140)
Write-off of tangible and intangible assets
(12) (14)
(599)
OPERATING PROFIT (LOSS)
Finance income
Finance expense
Net finance income (expense) from financial assets
at fair value through profit or loss
Derivative financial instruments
FINANCE INCOME (EXPENSE)
Share of profit (loss) from equity-accounted investments
Other gain (loss) from investments
(31)
(31)
(31)
(24) (31)
INCOME (EXPENSE) FROM INVESTMENTS
(16) (32)
PROFIT (LOSS) BEFORE INCOME TAXES
17,510
8,450
(9,333)
(55)
13
(925)
1,841
3,623
5,464
22,049
Income taxes
PROFIT (LOSS)
Attributable to Eni
Attributable to non-controlling interest
Earnings per share (€ per share)
(34)
- basic
- diluted
(33)
(8,088)
13,961
13,887
74
3.96
3.95
239
2022
2021
2020
Total
amount
132,512
1,175
133,687
of which
with related
parties
Total
amount
of which
with related
parties
Total
amount
of which
with related
parties
10,872
76,575
3,000
43,987
156
1,196
52
960
1,164
35
77,771
44,947
(102,529)
(15,327)
(55,549)
(8,644)
(33,551)
(6,595)
47
(3,015)
(1,736)
(2)
(18)
(279)
(2,888)
3,306
903
(6)
(21)
735
(6)
(36)
13
114
(26)
(226)
(2,863)
(766)
(7,304)
(3,183)
(329)
(3,275)
3,531
(4,958)
31
351
(1,045)
(1,733)
75
(1,658)
(5,978)
(2,650)
(8,628)
(8,635)
7
(2.42)
(2.42)
(7,063)
(167)
(387)
12,341
160
3,723
(164)
(4,216)
79
(46)
2
30
11
(306)
(788)
(1,091)
223
(868)
10,685
(4,845)
5,840
5,821
19
1.61
1.60
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
240
Consolidated statement of comprehensive income
(€ million)
Profit (loss)
Other items of comprehensive income (loss)
Items that are not reclassified to profit or loss in later periods
Remeasurements of defined benefit plans
Share of other comprehensive income (loss) on equity-accounted investments
Change of minor investments measured at fair value with effects to OCI
Tax effect
Items that may be reclassified to profit or loss in later periods
Currency translation differences
Change in the fair value of cash flow hedging derivatives
Share of other comprehensive income (loss) on equity-accounted investments
Tax effect
Total other items of comprehensive income (loss)
Total comprehensive income (loss)
Attributable to Eni
Attributable to non-controlling interest
Note
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
2022
13,961
2021
5,840
2020
(8,628)
60
3
56
(5)
114
1,095
794
(12)
(234)
1,643
1,757
15,718
15,643
75
119
2
105
(77)
149
2,828
(1,264)
(34)
372
1,902
2,051
7,891
7,872
19
(16)
24
25
33
(3,314)
661
32
(192)
(2,813)
(2,780)
(11,408)
(11,415)
7
ENI ANNUAL REPORT 2022
Consolidated statement of changes in equity
Equity attributable to equity holders of Eni
(€ million)
Balance at December 31, 2021
Profit for the year
Other items of comprehensive income (loss)
Remeasurements of defined benefit plans net of tax effect
Share of “Other comprehensive income” (loss) on equity-accounted
investments
Change of minor investments measured at fair value with effects to OCI
Items that are not reclassified to profit or loss in later periods
Currency translation differences
Change in the fair value of cash flow hedge derivatives net of tax effect
Share of “Other comprehensive income (loss)” on equity-accounted
investments
Items that may be reclassified to profit or loss in later periods
Total comprehensive income (loss) of the year
Dividend distribution of Eni SpA
Interim dividend distribution of Eni SpA
Dividend distribution of other companies
Allocation of 2021 profit
Capital contribution by non-controlling interests
Purchase of treasury shares
Cancellation of treasury shares
Long-term share-based incentive plan
Coupon payment on perpetual subordinated bonds
Change in non‐controlling interest
Transactions with holders of equity instruments
Other changes
Other changes in equity
Balance at December 31, 2022
241
y
t
i
u
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e
l
a
t
o
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v
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t
s
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a
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t
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c
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r
r
u
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v
i
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a
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u
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c
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r
e
f
f
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f
)
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s
o
l
(
t
fi
o
r
P
s
e
r
a
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s
y
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u
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a
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r
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l
a
t
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i
s
g
n
n
r
a
e
d
e
n
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t
e
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i
l
a
t
i
p
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r
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e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
(26)
4,005
22,750
6,530
6,289
(958)
5,821
44,437
13,887
13,887
82
74
44,519
13,961
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26) (30)
(26)
(26)
55
3
56
114
1
560
(12)
549
663
1,093
1,093
1,093
(1,500)
4,299
55
3
56
114
55
3
56
114
1,094
1
1,095
560
(12)
560
(12)
1,642
1
1,643
13,887
15,643
75
15,718
(1,522)
(1,522)
(1,500)
(1,522)
(1,500)
(4,299)
(60)
(60)
92
92
(2,400)
2,400 (2,400)
(2,400)
(2,400)
(400)
(21)
400
21
18
(138)
196
281
18
(138)
477
1,979 (1,979)
(5,821)
(5,346) 313
(5,033)
(59)
(146)
(59)
(146)
25
25
1
1
26
26
18
(138)
196
475
230
230
(26)
4,005
23,455
7,564
8,785 (2,937) 13,887
54,759 471
55,230
(continued)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
242
(continued) Consolidated statement of changes in equity
Equity attributable to equity holders of Eni
(€ million)
Balance at December 31, 2020
Profit for the year
Other items of comprehensive income (loss)
Remeasurements of defined benefit plans net of tax effect
Share of “Other comprehensive income (loss)” on equity-accounted
investments
Change of minor investments measured at fair value with effects to OCI
Items that are not reclassified to profit or loss in later periods
Currency translation differences
Change in the fair value of cash flow hedge derivatives net of tax effect
Share of “Other comprehensive income (loss)” on equity-accounted
investments
Items that may be reclassified to profit or loss in later periods
Total comprehensive income (loss) of the year
Dividend distribution of Eni SpA
Interim dividend distribution of Eni SpA
Dividend distribution of other companies
Allocation of 2020 loss
Purchase of treasury shares
Long-term share-based incentive plan
Increase in non‐controlling interest relating to acquisition of consolidated
entities
Issue of perpetual subordinated bonds
Coupon payment on perpetual subordinated bonds
y
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m
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f
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o
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s
s
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(
t
fi
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y
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u
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a
t
o
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i
s
g
n
n
r
a
e
d
e
n
a
t
e
R
i
l
a
t
i
p
a
c
e
r
a
h
S
e
t
o
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e
r
e
t
n
i
g
n
i
l
l
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t
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y
t
i
u
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e
l
a
t
o
T
4,005
34,043
3,895
4,688
(581)
(8,635)
37,415
5,821
5,821
78
19
37,493
5,840
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26)
(26) (30)
(26)
(26)
42
2
105
149
(892)
(34)
2,828
2,828
(926)
42
2
105
149
2,828
(892)
(34)
1,902
42
2
105
149
2,828
(892)
(34)
1,902
2,828
(777)
5,821
7,872
19
7,891
429
(1,533)
(9,921)
(400)
16
(61)
(1,286)
(857)
(1,533)
(857)
(1,533)
(5)
(5)
9,921
(400)
16
2,000
(61)
(400)
16
(11)
(11)
2,000
(61)
400
(400)
(23)
23
2,000
Transactions with holders of equity instruments
(11,470)
2,377
(377)
8,635
(835)
(16)
(851)
Costs for the issue of perpetual subordinated bonds
Other changes
Other changes in equity
(15)
192
(193)
177
(193)
1
1
(15)
(15)
1
1
(15)
1
(14)
Balance at December 31, 2021
(26)
4,005
22,750
6,530
6,289
(958)
5,821
44,437
82
44,519
(continued)
ENI ANNUAL REPORT 2022
243
y
t
i
u
q
e
l
a
t
o
T
(continued) Consolidated statement of changes in equity
Equity attributable to equity holders of Eni
(€ million)
Balance at December 31, 2019
Profit (loss) for the year
Other items of comprehensive profit (loss)
Remeasurements of defined benefit plans net of tax effect
Change of minor investments measured at fair value with effects to OCI
Items that are not reclassified to profit or loss in later periods
Currency translation differences
Change in the fair value of cash flow hedge derivatives net of tax effect
Share of “Other comprehensive income (loss)” on equity-accounted investments
Items that may be reclassified to profit or loss in later periods
Total comprehensive profit (loss) of the year
Dividend distribution of Eni SpA
Interim dividend distribution of Eni SpA
Dividend distribution of other companies
Allocation of 2019 profit
Cancellation of treasury shares
Long-term share-based incentive plan
Increase in non‐controlling interest relating to acquisition of consolidated
entities
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N
4,005 35,894
7,209
1,564
(981)
148 47,839
61 47,900
(8,635)
(8,635)
7
(8,628)
9
24
33
(1)
469
32
500
533
(3,313)
(3,313)
(3,313)
9
24
33
9
24
33
(3,314)
(3,314)
469
32
469
32
(2,813)
(2,813)
(8,635) (11,415)
7 (11,408)
(3,078)
(1,536)
(429)
(1,536)
(429)
(3)
(3)
2,930
(400)
400
7
7
15
15
1,542
(429)
(2,930)
7
Issue of perpetual subordinated bonds
3,000
3,000
3,000
Transactions with holders of equity instruments
(1,810)
2,600
400
(148)
1,042
12
1,054
Costs for the issue of perpetual subordinated bonds
Other changes
Other changes in equity
Balance at December 31, 2020
(25)
(16)
(41)
(1)
(1)
(9)
(9)
(25)
(26)
(51)
(25)
(28)
(53)
(2)
(2)
4,005 34,043
3,895
4,688
(581)
(8,635)
37,415
78 37,493
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
244
Consolidated statement of cash flows
(€ million)
Profit (loss)
Adjustments to reconcile profit (loss) to net cash provided by operating activities
Depreciation and amortization
Net impairments (reversals) of tangible, intangible and right-of-use assets
Write-off of tangible and intangible assets
Share of (profit) loss of equity-accounted investments
Net gain on disposal of assets
Dividend income
Interest income
Interest expense
Income taxes
Other changes
Cash flow from changes in working capital:
- inventories
- trade receivables
- trade payables
- provisions
- other assets and liabilities
Change in the provisions for employee benefits
Dividends received
Interest received
Interest paid
Income taxes paid, net of tax receivables received
Net cash provided by operating activities
- of which with related parties
Cash flow from investing activities
- tangible assets
- prepaid right-of-use assets
- intangible assets
- consolidated subsidiaries and businesses net of cash and cash equivalents acquired
- investments
- securities and financing receivables held for operating purposes
- change in payables in relation to investing activities
Cash flow from disposals
- tangible assets
- intangible assets
Note
(12) (13) (14)
(15)
(12) (14)
(16) (32)
(32)
(33)
(36)
(12)
(13)
(14)
(27)
(16)
- consolidated subsidiaries and businesses net of cash and cash equivalents disposed of
(27)
- tax on disposals
- investments
- securities and financing receivables held for operating purposes
- change in receivables in relation to disposals
Net change in securities and financing receivables held for non-operating purposes
Net cash used in investing activities
- of which with related parties
(36)
2022
13,961
7,205
1,140
599
(1,841)
(524)
(351)
(159)
1,033
8,088
(2,773)
(1,279)
(2,528)
(1,036)
2,284
2,028
(2,027)
39
1,545
116
(851)
(8,488)
17,460
223
(10,793)
(7,700)
(3)
(356)
(1,636)
(1,675)
(350)
927
2,989
149
17
(60)
1,096
483
1,304
786
(7,018)
(32)
2021
5,840
7,063
167
387
1,091
(102)
(230)
(75)
794
4,845
(194)
(3,146)
(2,033)
(7,888)
7,744
(406)
(563)
54
857
28
(792)
(3,726)
12,861
(4,331)
(7,815)
(4,950)
(2)
(284)
(1,901)
(837)
(227)
386
536
207
1
76
(35)
155
141
(9)
(4,743)
(12,022)
(976)
2020
(8,628)
7,304
3,183
329
1,733
(9)
(150)
(126)
877
2,650
92
(18)
1,054
1,316
(1,614)
(1,056)
282
509
53
(928)
(2,049)
4,822
(4,640)
(5,959)
(4,407)
(237)
(109)
(283)
(166)
(757)
216
12
16
136
52
1,156
(4,587)
(1,372)
(continued)
ENI ANNUAL REPORT 2022
245
(continued) Consolidated statement of cash flows
(€ million)
Increase in long-term financial debt
Repayments of long-term financial debt
Payments of lease liabilities
Increase (decrease) in short-term financial debt
Dividends paid to Eni's shareholders
Dividends paid to non-controlling interest
Capital contribution by non-controlling interests
Sale (purchase) of additional interests in consolidated subsidiaries
Purchase of treasury shares
Issue of perpetual subordinated bonds
Coupon payment on perpetual subordinated bonds
Net cash used in financing activities
- of which with related parties
Effect of exchange rate changes and other changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of the year
Cash and cash equivalents - end of the year(a)
Note
(19)
(19)
(13)
(19)
(26)
(26)
(26)
(36)
(6)
(6)
2022
130
(4,074)
(994)
1,375
(3,009)
(60)
92
536
(2,400)
(138)
(8,542)
(88)
16
1,916
8,265
10,181
2021
3,556
(2,890)
(939)
(910)
(2,358)
(5)
(17)
(400)
1,985
(61)
(2,039)
(13)
52
(1,148)
9,413
8,265
2020
5,278
(3,100)
(869)
937
(1,965)
(3)
2,975
3,253
164
(69)
3,419
5,994
9,413
(a) As of December 31, 2022, cash and cash equivalents included €26 million of cash and cash equivalents of consolidated subsidiaries held for sale that were reported in the item “Assets held
for sale” (€11 million at December 31, 2021).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
246
Notes on Consolidated Financial
Statements
1 Significant accounting policies,
estimates and judgments
BASIS OF PREPARATION
The Consolidated Financial Statements of Eni SpA and its
subsidiaries (collectively referred to as Eni or the Group) have
been prepared on a going concern basis in accordance with
International Financial Reporting Standards (IFRS)1 as issued
by the International Accounting Standards Board (IASB) and
adopted by the European Union (EU) pursuant to article 6 of the
EC Regulation No. 1606/2002 of the European Parliament and
of the Council of July 19, 2002, and in accordance with article
9 of the Italian Legislative Decree No. 38/052. The Consolidated
Financial Statements have been prepared under the historical
cost convention, taking into account, where appropriate, value
adjustments, except for certain items that under IFRSs must be
measured at fair value as described in the accounting policies
that follow. The principles of consolidation and the significant
accounting policies that follow have been consistently applied to
all years presented, except where otherwise indicated.
The 2022 Consolidated Financial Statements, approved by the
Eni’s Board of Directors on March 16, 2023, were audited by the
external auditor PricewaterhouseCoopers SpA. The external
auditor of Eni SpA, as the main external auditor, is wholly in
charge of the auditing activities of the Consolidated Financial
Statements.
Consolidated companies’ financial statements, as well as their
reporting packages prepared for use by the Group in preparing the
Consolidated Financial Statements, are audited by external auditors;
when there are other external auditors, PricewaterhouseCoopers
SpA takes the responsibility of their work.
The Consolidated Financial Statements are presented in euros
and all values are rounded to the nearest million euros (€ million),
except where otherwise indicated.
SIGNIFICANT ACCOUNTING ESTIMATES AND
JUDGMENTS
The preparation of the Consolidated Financial Statements
requires the use of estimates and assumptions that affect the
assets, liabilities, revenues and expenses recognised in the
financial statements, as well as amounts included in the notes
thereto, including disclosure of contingent assets and contingent
liabilities. Estimates made are based on complex judgments
and past experience of other assumptions deemed reasonable
in consideration of the information available at the time. The
accounting policies and areas that require the most significant
judgments and estimates to be used in the preparation of
the Consolidated Financial Statements are in relation to the
accounting for oil and natural gas activities, specifically in the
determination of reserves, impairment of financial and non-
leases, decommissioning and restoration
financial assets,
liabilities, environmental
liabilities, business combinations,
employee benefits, revenue from contracts with customers, fair
value measurements and income taxes. Although the Company
uses its best estimates and judgments, actual results could
differ from the estimates and assumptions used. The accounting
estimates and judgments relevant for the preparation of the
Consolidated Financial Statement are described below.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
MADE IN ASSESSING THE IMPACTS OF CLIMATE-RELATED
RISKS
Significant accounting estimates and judgments made by
management for the preparation of the 2022 Consolidated
Financial Statements are affected by the effects of actions to
address climate change and by the potential impact of the energy
transition. In particular, the global pressure towards a low carbon
economy, increasingly restrictive regulatory requirements for Oil
& Gas activities and hydrocarbons consumption, carbon pricing
schemes, the technological evolution of alternative energy
sources for transportation, as well as changes in consumer
preferences could imply a structural decline of the demand for
hydrocarbons in the medium/long-term, an increase in operating
costs and a higher risk of stranded assets for Eni.
The Eni strategy provides for the achievement of carbon
neutrality by 2050, in line with the provisions of the scenarios
compatible with maintaining global warming within the 1.5°C
threshold; furthermore, this strategy sets intermediate targets
for 2030 and 2040 in terms of reduction in absolute emissions
and carbon intensity. Scenarios adopted by management take
into account policies, regulatory requirements and current and
expected developments in technology and set out a development
path of the future energy system, on the basis of an economic
and demographic framework, analysis of existing and announced
policies and
those which can
reasonably reach maturity within the considered time horizon.
Price variables reflect the best estimate by management of the
fundamentals of several energy markets, which incorporates
the ongoing and reasonably expected decarbonisation trends,
and are subject to continuous benchmarking with the views of
market analysts and peers.
Such scenarios represent the basis for significant estimates
and judgments relating to: (i) the assessment of the intention
technologies,
identifying
(1) IFRSs include also International Accounting Standards (IAS), currently effective, as well as the interpretations developed by the IFRS Interpretations Committee, pre-
viously named International Financial Reporting Interpretations Committee (IFRIC) and initially Standing Interpretations Committee (SIC).
(2) As applied to Eni, there are no differences between IFRSs as issued by the IASB and those adopted by the EU, effective for the year 2022.
ENI ANNUAL REPORT 2022 247
case, the activities are financed proportionally based on a budget
approved by the participating companies upon presentation
of periodical reports of proceeds and expenses. Costs and
revenue and other operating data (production, reserves, etc.) of
the project, as well as the related obligations arising from the
project, are recognised directly in the financial statements of the
companies involved based on their own share.
When the proportion of the equity held by non-controlling
interests changes, any difference between the consideration
paid/received and the amount by which the related non-
controlling interests are adjusted is attributed to Eni owners’
equity. Conversely, the sale of equity interests with loss of
control determines the recognition in the profit and loss account
of: (i) any gain or loss calculated as the difference between
the consideration received and the corresponding transferred
net assets; (ii) any gain or loss recognised as a result of the
remeasurement of any investment retained in the former
subsidiary at its fair value; and (iii) any amount related to the
former subsidiary previously recognised in other comprehensive
income which may be reclassified subsequently to the profit and
loss account5. Any investment retained in the former subsidiary
is recognised at its fair value at the date when control is lost
and shall be accounted for in accordance with the applicable
measurement criteria.
Interests in joint arrangements
Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties
sharing control. A joint venture is a joint arrangement whereby
the parties that have joint control of the arrangement have
rights to the net assets of the arrangement. Investments in joint
ventures are accounted for using the equity method as described
in the accounting policy for “The equity method of accounting”.
A joint operation is a joint arrangement whereby the parties that
have joint control of the arrangement have enforceable rights
to the assets, and enforceable obligations for the liabilities,
relating to the arrangement; in the Consolidated Financial
Statements, Eni recognises its share of the assets/liabilities and
revenues/expenses of joint operations on the basis of its rights
and obligations relating to the arrangements. After the initial
recognition, the assets/liabilities and revenues/ expenses of the
joint operations are measured in accordance with the applicable
measurement criteria. Immaterial joint operations structured
through a separate vehicle are accounted for using the equity
to continue exploration projects; (ii) the assessment of the
recoverability of non-current assets and credit exposures
towards National Oil Companies; (iii) the definition of useful lives
and residual values of fixed assets; (iv) impacts on provisions (e.g.
the bringing forward of the expected timing of decommissioning
and restoration costs).
For further information on sensitivity analyses performed on
the values of assets considering the low carbon scenarios of
international bodies, see the Management Report - Consolidated
disclosure of Non-Financial Information.
PRINCIPLES OF CONSOLIDATION
liabilities,
Subsidiaries
The Consolidated Financial Statements comprise the financial
statements of the parent Company Eni SpA and those of its
subsidiaries, being those entities over which the Company has
control, either directly or indirectly, through exposure or rights
to their variable returns and the ability to affect those returns
through its power over the investees.
To have power over an investee, the investor must have existing
rights that give it the current ability to direct the relevant activities
of the investee, i.e. the activities that significantly affect the
investee’s returns. Subsidiaries are consolidated, on the basis of
consistent accounting policies, from the date on which control is
obtained until the date that control ceases.
Assets,
income and expenses of consolidated
subsidiaries are fully recognised with those of the parent in the
Consolidated Financial Statements, taking into account the
appropriate eliminations of intragroup transactions (see the
accounting policy for “Intragroup transactions”); the parent’s
is eliminated against the
investment
corresponding parent’s portion of equity of each subsidiary.
Non-controlling interests are presented separately on the balance
sheet within equity; the profit or loss and comprehensive income
attributable to non-controlling interests are presented in specific
line items, respectively, in the profit and loss account and in the
statement of comprehensive income.
Taking into account the lack of any material3 impact on the
representation of the financial position and performance of
the Group4, the Consolidated Financial Statements do not fully
consolidate: (i) some subsidiaries that are immaterial, both
individually and in the aggregate, and; (ii) subsidiaries acting as
sole-operator in the management of oil and gas contracts on
behalf of companies participating in a joint project. In the latter
in each subsidiary
(3) According to IFRSs, information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of gene-
ral-purpose financial statements make on the basis of those financial statements.
(4) Unconsolidated subsidiaries are accounted for as described in the accounting policy for “The equity method of accounting”; for further information, see the annex “List
of companies owned by Eni SpA as of December 31, 2022”.
(5) Conversely, any amount related to the former subsidiary previously recognised in other comprehensive income, which may not be reclassified subsequently to the profit
and loss account, are reclassified in another item of equity.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 248
method or, if this does not result in a misrepresentation of the
Company’s financial position and performance, at cost less any
impairment losses. Investments in joint ventures previously
classified as joint operations are measured on the date of change
in the classification of the joint arrangement at the net amount
of the carrying amounts of the assets and liabilities that Eni had
previously recognised, line by line, on the basis of its rights and
obligations relating to the arrangement.
Investments in associates
An associate is an entity over which Eni has significant influence,
that is the power to participate in the financial and operating
policy decisions of the investee but is not control or joint control
of those policies.
Investments in associates are accounted for using the equity
method as described in the accounting policy for “The equity
method of accounting”.
Investments in subsidiaries, joint arrangements and associates
are presented separately in the annex “List of companies owned
by Eni SpA as of December 31, 2022”. This annex includes also
the changes in the scope of consolidation.
in
joint ventures, associates and
The equity method of accounting
immaterial
Investments
unconsolidated subsidiaries, are accounted for using the equity
method6.
Under the equity method, investments are initially recognised
at cost7, allocating it, similarly to business combinations
procedures, to the investee’s identifiable assets/liabilities; any
excess of the cost of the investment over the share of the net
fair value of the investee’s identifiable assets and liabilities
is accounted for as goodwill, not separately recognised but
included in the carrying amount of the investment. If this
allocation is provisionally recognised at initial recognition, it can
be retrospectively adjusted within one year from the acquisition
date, to reflect new information obtained about facts and
circumstances that existed at the acquisition date. Subsequently,
the carrying amount is adjusted to reflect: (i) the investor’s share
of the profit or loss of the investee after the date of acquisition,
adjusted to account for depreciation, amortization and any
impairment losses of the equity-accounted entity’s assets
based on their fair values at the date of acquisition; and (ii) the
investor’s share of the investee’s other comprehensive income.
Distributions received from an equity-accounted investee reduce
the carrying amount of the investment. In applying the equity
method, consolidation adjustments are considered (see also
the accounting policy for “Subsidiaries”). Losses arising from
the application of the equity method in excess of the carrying
amount of the investment, recognised in the profit and loss
account within “Income (Expense) from investments”, reduce
the carrying amount, net of the related expected credit losses
(see below), of any financing receivables towards the investee
for which settlement is neither planned nor likely to occur in the
foreseeable future (the so-called long-term interests), which are,
in substance, an extension of the investment in the investee. The
investor’s share of any losses of an equity-accounted investee
that exceeds the carrying amount of the investment and any
long-term interests (the so-called net investment), is recognised
in a specific provision only to the extent that the investor has
incurred legal or constructive obligations or made payments on
behalf of the investee.
Whenever there is objective evidence of impairment (e.g.
relevant breaches of contracts, significant financial difficulty,
probable default of the counterparty, etc.), the carrying amount
of the net investment, resulting from the application of the
abovementioned measurement criteria, is tested for impairment
by comparing it with the related recoverable amount, determined
by adopting the criteria indicated in the accounting policy for
“Impairment of non-financial assets”. When an impairment loss
no longer exists or has decreased, any reversal of the impairment
loss is recognised in the profit and loss account within “Income
(Expense) from investments”. The impairment reversal of the
net investment shall not exceed the previously recognised
impairment losses.
The sale of equity interests with loss of joint control or significant
influence over the investee determines the recognition in the
profit and loss account of: (i) any gain or loss calculated as
the difference between the consideration received and the
corresponding transferred share; (ii) any gain or loss recognised
as a result of the remeasurement of any investment retained
in the former joint venture/ associate at its fair value8; and
(iii) any amount related to the former joint venture/associate
previously recognised in other comprehensive income which
may be reclassified subsequently to the profit and loss account9.
Any investment retained in the former joint venture/associate
is recognised at its fair value at the date when joint control
or significant influence is lost and shall be accounted for in
accordance with the applicable measurement criteria.
Business combination
Business combinations are accounted for by applying the
acquisition method. The consideration transferred in a business
combination is the sum of the acquisition-date fair value of the
assets transferred, the liabilities incurred and the equity interests
issued by the acquirer. The consideration transferred includes
also the fair value of any assets or liabilities resulting from
(6) Joint ventures, associates and immaterial unconsolidated subsidiaries are accounted for at cost less any impairment losses, if this does not result in a misrepresenta-
tion of the Company’s financial position and performance.
(7) If an investment in an equity instrument becomes an equity-accounted investee, the related cost is the sum of the fair value of the previously held equity interest in the
investee and the fair value of any consideration transferred.
(8) If the retained investment continues to be classified either as a joint venture or an associate and so accounted for using the equity method, no remeasurement at fair
value is recognised in the profit and loss account.
(9) Conversely, any amount related to the former joint venture/associate previously recognised in other comprehensive income, which may not be reclassified subsequent-
ly to the profit and loss account, are reclassified in another item of equity.
ENI ANNUAL REPORT 2022 249
contingent considerations, contractually agreed and dependent
upon the occurrence of specified future events. Acquisition
related costs are accounted for as expenses when incurred.
The acquirer shall measure the identifiable assets acquired and
liabilities assumed at their acquisition-date fair values10, unless
another measurement basis is required by IFRSs. The excess
of the consideration transferred over the Group’s share of the
acquisition-date fair values of the identifiable assets acquired
and liabilities assumed is recognised, on the balance sheet, as
goodwill; conversely, a gain on a bargain purchase is recognised
in the profit and loss account.
Any non-controlling interests are measured as the proportionate
share in the recognised amounts of the acquiree’s identifiable
net assets at the acquisition date excluding the portion of
goodwill attributable to them (partial goodwill method). In a
business combination achieved in stages, the purchase price
is determined by summing the acquisition-date fair value
of previously held equity interests in the acquiree and the
consideration transferred for obtaining control; the previously
held equity interests are remeasured at their acquisition-date
fair value and the resulting gain or loss, if any, is recognized in
the profit and loss account. Furthermore, on obtaining control,
any amount recognised in other comprehensive income related
to the previously held equity interests is reclassified to the profit
and loss account, or in another item of equity when such amount
may not be reclassified to the profit and loss account.
If the initial accounting for a business combination is incomplete
by the end of the reporting period in which the combination
occurs, the provisional amounts recognised at the acquisition
date shall be retrospectively adjusted within one year from the
acquisition date, to reflect new information obtained about facts
and circumstances that existed as of the acquisition date.
The acquisition of interests in a joint operation whose activity
constitutes a business is accounted for applying the principles
on business combinations accounting. In this regard, if the entity
obtains control over a business that was a joint operation, the
previously held interest in the joint operation is remeasured at
the acquisition-date fair value and the resulting gain or loss is
recognised in the profit and loss account11.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
INVESTMENTS AND BUSINESS
The assessment of the existence of control, joint control,
significant influence over an investee, as well as for joint
operations, the assessment of the existence of enforceable
rights to the investee’s assets and enforceable obligations for
the investee’s liabilities imply that management makes complex
judgments on the basis of the characteristics of the investee’s
structure, arrangements between parties and other relevant
facts and circumstances. Significant accounting estimates by
management are required also for measuring the identifiable
assets acquired and the liabilities assumed in a business
combination at their acquisition-date fair values. For such
measurement, to be performed also for the application of the
equity method, Eni adopts the valuation techniques generally
used by market participants taking into account the available
information; for the most significant business combinations, Eni
engages external independent evaluators.
Intragroup transactions
All balances and transactions between consolidated companies,
and not yet realised with third parties, including unrealised profits
arising from such transactions, have been eliminated. Unrealised
profits arising from transactions between the Group and its
equity-accounted entities are eliminated to the extent of the
Group’s interest in the equity-accounted entity; such accounting
treatment is applied also for transfer of businesses to equity-
accounted entities (the so-called downstream transactions).
In both cases, unrealised losses are not eliminated as the
transaction provides evidence of an impairment loss of the
asset transferred.
Foreign currency translation
The financial statements of foreign operations having a
functional currency other than the euro, that represents the
parent’s functional currency as well as the presentation currency
of the Consolidated Financial Statements, are translated into
euros using the spot exchange rates on the balance sheet date
for assets and liabilities, historical exchange rates for equity and
average exchange rates for the profit and loss account and the
statement of cash flows.
The cumulative resulting exchange differences are presented
in the separate component of Eni owners’ equity “Cumulative
currency translation differences”12. Cumulative amount of
exchange differences relating to a foreign operation are
reclassified to the profit and loss account when the entity
disposes the entire interest in that foreign operation or when
the partial disposal involves the loss of control, joint control
or significant influence over the foreign operation. On a partial
disposal that does not involve loss of control of a subsidiary
that includes a foreign operation, the proportionate share of
the cumulative exchange differences is reattributed to the
non-controlling interests in that foreign operation. On a partial
disposal of interests in joint arrangements or in associates that
does not involve loss of joint control or significant influence, the
proportionate share of the cumulative exchange differences is
(10) Fair value measurement principles are described in the accounting policy for “Fair value measurements”.
(11) If the entity acquires additional interests in a joint operation that is a business, while retaining joint control, the previously held interest in the joint operation is not
remeasured.
(12) When the foreign subsidiary is partially owned, the cumulative exchange difference, that is attributable to the non-controlling interests, is allocated to and recognized
as part of “Non-controlling interest”.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 250
reclassified to the profit and loss account. The repayment of
share capital made by a subsidiary having a functional currency
other than the euro, without a change in the ownership interest,
implies that the proportionate share of the cumulative amount
of exchange differences relating to the subsidiary is reclassified
to the profit and loss account.
The financial statements of foreign operations which
are translated into euro are denominated in the foreign
operations’ functional currencies which generally is the U.S.
dollar. The main foreign exchange rates used to translate the
financial statements into the parent’s functional currency
are indicated below:
(currency amount for €1)
Annual average
exchange rate 2022
Exchange rate at
December 31, 2022
Annual average
exchange rate 2021
Exchange rate at
December 31, 2021
Annual average
exchange rate 2020
Exchange rate at
December 31, 2020
U.S. Dollar
Pound Sterling
Australian Dollar
1.05
0.85
1.52
1.07
0.89
1.57
1.18
0.86
1.57
1.13
0.84
1.56
1.14
0.89
1.66
1.23
0.90
1.59
Significant accounting policies
The most significant accounting policies used in the preparation
of the Consolidated Financial Statements are described below.
Oil and natural gas exploration, appraisal,
development and production activities
Oil and natural gas exploration, appraisal and development
activities are accounted for using the principles of the successful
efforts method of accounting as described below.
Acquisition of exploration rights
Costs incurred for the acquisition of exploration rights (or their
extension) are initially capitalised within the line item “Intangible
assets” as “exploration rights - unproved” pending determination
of whether the exploration and appraisal activities in the reference
areas are successful or not. Unproved exploration rights are not
amortised but reviewed to confirm that there is no indication that
the carrying amount exceeds the recoverable amount. This review
is based on the confirmation of the commitment of the Company to
continue the exploration activities and on the analysis of facts and
circumstances that indicate the absence of uncertainties related
to the recoverability of the carrying amount. If no future activity
is planned, the carrying amount of the related exploration rights
is recognised in the profit and loss account as write-off. Lower
value exploration rights are pooled and amortised on a straight-
line basis over the estimated period of exploration. In the event
of a discovery of proved reserves (i.e. upon recognition of proved
reserves and internal approval for development), the carrying
amount of the related unproved exploration rights is reclassified to
“proved exploration rights”, within the line item “Intangible assets”.
Upon reclassification, as well as whether there is any indication of
impairment, the carrying amount of exploration rights to reclassify
as proved is tested for impairment considering the higher of their
value in use and their fair value less costs of disposal. From the
commencement of production, proved exploration rights are
amortised according to the unit of production method (the so-
called UOP method, described in the accounting policy for “UOP
depreciation, depletion and amortisation”).
Acquisition of mineral interests
Costs incurred for the acquisition of mineral interests are
capitalised in connection with the assets acquired (such as
exploration potential, possible and probable reserves and
proved reserves). When the acquisition is related to a set of
exploration potential and reserves, the cost is allocated to the
different assets acquired based on their expected discounted
cash flows. Acquired exploration potential is measured in
accordance with the criteria illustrated in the accounting policy
for “Acquisition of exploration rights”. Costs associated with
proved reserves are amortised according to the UOP method
(see the accounting policy for “UOP depreciation, depletion
and amortisation”). Expenditure associated with possible and
probable reserves (unproved mineral interests) is not amortised
until classified as proved reserves; in case of a negative result
of the subsequent appraisal activities, it is written off.
Exploration and appraisal expenditure
Geological and geophysical exploration costs are recognised
as an expense as incurred. Costs directly associated with an
exploration well are initially recognised within tangible assets
in progress, as “exploration and appraisal costs - unproved”
(exploration wells in progress) until the drilling of the well is
completed and can continue to be capitalised in the following
12-month period pending the evaluation of drilling results
(suspended exploration wells). If, at the end of this period, it is
ascertained that the result is negative (no hydrocarbon found)
or that the discovery is not sufficiently significant to justify the
development, the wells are declared dry/unsuccessful and the
related costs are written-off. Conversely, these costs continue
to be capitalised if and until: (i) the well has found a sufficient
quantity of reserves to justify its completion as a producing
well, and (ii) the entity is making sufficient progress assessing
the reserves and the economic and operating viability of the
project; on the contrary, the capitalised costs are recognised in
the profit and loss account as write-off. Analogous recognition
criteria are adopted for the costs related to the appraisal
activity. When proved reserves of oil and/or natural gas are
determined, the relevant expenditure recognised as unproved
is reclassified to proved exploration and appraisal costs within
tangible assets in progress. Upon reclassification, or when
ENI ANNUAL REPORT 2022 251
there is any indication of impairment, the carrying amount
of the costs to reclassify as proved is tested for impairment
considering the higher of their value in use and their fair value
less costs of disposal. From the commencement of production,
proved exploration and appraisal costs are depreciated
according to the UOP method (see the accounting policy for
“UOP depreciation, depletion and amortisation”).
Development costs
Development costs, including the costs related to unsuccessful
and damaged development wells, are capitalised as “Tangible
asset in progress - proved”. Development costs are incurred
to obtain access to proved reserves and to provide facilities
for extracting, treating, gathering and storing the oil and gas.
They are amortised, from the commencement of production,
generally on a UOP basis. When development projects are
unfeasible/not carried on, the related costs are written off
when it is decided to abandon the project. Development costs
are tested for impairment in accordance with the criteria
described in the accounting policy for “Property, plant and
equipment”.
UOP depreciation, depletion and amortisation
Proved oil and gas assets are depreciated generally under
the UOP method, as their useful life is closely related to the
availability of proved oil and gas reserves, by applying, to
the depreciable amounts at the end of each quarter a rate
representing the ratio between the volumes extracted during
the quarter and the reserves existing at the end of the quarter,
increased by the volumes extracted during the quarter. This
method is applied with reference to the smallest aggregate
representing a direct correlation between expenditures to
be depreciated and oil and gas reserves. Proved exploration
rights and acquired proved mineral interests are amortised
over proved reserves; proved exploration and appraisal costs
and development costs are depreciated over proved developed
reserves, while common facilities are depreciated over total
proved reserves. Proved reserves are determined according to
US SEC rules that require the use of the yearly average oil and
gas prices for assessing the economic producibility; material
changes in reference prices could result in depreciation charges
not reflecting the pattern in which the assets’ future economic
benefits are expected to be consumed to the extent that, for
example, certain non-current assets would be fully depreciated
within a short-term. In these cases, the reserves considered
in determining the UOP rate are estimated on the basis of
economic viability parameters, reasonable and consistent
with management’s expectations of production, in order to
recognise depreciation charges that more appropriately reflect
the expected utilization of the assets concerned.
Production costs
Production costs are those costs incurred to operate and
maintain wells and field equipment and are recognised as an
expense as incurred.
Production sharing agreements and service
contracts
Oil and gas reserves related to Production Sharing Agreements
are determined on the basis of contractual terms related to the
recovery of the contractor’s costs to undertake and finance
exploration, development and production activities at its own risk
(Cost Oil) and the Company’s stipulated share of the production
remaining after such cost recovery (Profit Oil). Revenues from
the sale of the lifted production, against both Cost Oil and Profit
Oil, are accounted for on an accrual basis, whilst exploration,
development and production costs are accounted for according
to the above-mentioned accounting policies. A similar scheme
applies to service contracts where the Group is entitled to a share
of the production as consideration for the rendered service.
The Company’s share of production volumes and reserves
includes the share of hydrocarbons that corresponds to the
taxes to be paid, according to the contractual agreement,
by the national government on behalf of the Company. As a
consequence, the Company has to recognise at the same time
an increase in the taxable profit, through the increase of the
revenue, and a tax expense.
Plugging and abandonment of wells
Costs expected to be incurred with respect to the plugging
and abandonment of a well, dismantlement and removal of
production facilities, as well as site restoration, are capitalised,
consistent with the accounting policy described under “Property,
plant and equipment”, and then depreciated on a UOP basis.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
OIL AND NATURAL GAS ACTIVITIES
Engineering estimates of the Company’s oil and gas reserves are
inherently uncertain. Proved reserves are the estimated volumes of
crude oil, natural gas and gas condensates, liquids and associated
substances which geological and engineering data demonstrate
that can be economically producible with reasonable certainty
from known reservoirs under existing economic conditions and
operating methods. Although there are authoritative guidelines
regarding the engineering and geological criteria that must be
met before estimated oil and gas reserves can be categorised as
“proved”, the accuracy of reserve estimates depends on a number
of factors, assumptions and variables, including: (i) the quality
of available geological, technical and economic data and their
interpretation and judgment; (ii) projections regarding future rates
of production and operating costs and development costs; (iii)
changes in the prevailing tax rules, other government regulations
and contractual conditions; (iv) results of drilling, testing and the
actual production performance of Company’s reservoirs after
the date of the estimates which may drive substantial upward
or downward revisions; and (v) changes in oil and natural gas
commodity prices which could affect expected future cash
flows and the quantities of Company’s proved reserves since
the estimates of reserves are based on prices and costs existing
as of the date when these estimates are made. Lower oil prices
or the projections of higher operating and development costs
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 252
may impair the ability of the Company to economically produce
reserves leading to downward reserve revisions.
Many of the factors, assumptions and variables involved in
estimating proved reserves are subject to change over time and
therefore affect the estimates of oil and natural gas reserves.
Similar uncertainties concern unproved reserves.
The determination of whether potentially economic oil and natural
gas reserves have been discovered by an exploration well is
made within a year after well completion. The evaluation process
of a discovery, which requires performing additional appraisal
activities on the potential oil and natural gas field and establishing
the optimum development plans, can take longer, in most cases,
depending on the complexity of the project and on the size of
capital expenditures required. During this period, the costs related
to these exploration wells remain suspended on the balance
sheet. In any case, all such capitalised costs are reviewed, at least,
on an annual basis to confirm the continued intent to develop, or
otherwise to extract value from the discovery.
Field reserves will be categorised as proved only when all the
criteria for attribution of proved status have been met. Proved
reserves can be classified as developed or undeveloped. Volumes
are classified into proved developed reserves as a consequence
of development activity. Generally, reserves are booked as proved
developed at the start of production. Major development projects
typically take one to four years from the time of initial booking to
the start of production.
Estimated proved reserves are used in determining depreciation,
amortisation and depletion charges (see the accounting policy
for “UOP depreciation, depletion and amortisation”). Assuming
all other variables are held constant, an increase in estimated
proved developed reserves for each field decreases depreciation,
amortisation and depletion charge under the UOP method.
Conversely, a decrease in estimated proved developed reserves
increases depreciation, amortisation and depletion charge.
Property, plant and equipment
Property, plant and equipment, including investment properties,
are recognized using the cost model and initially stated at their
purchase price or construction cost including any costs directly
attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended
by management. For assets that necessarily take a substantial
period of time to get ready for their intended use, the purchase
price or construction cost comprises the borrowing costs incurred
in the period to get the asset ready for use that would have been
avoided if the expenditure had not been made.
In the case of a present obligation for dismantling and removal
of assets and restoration of sites, the initial carrying amount of
an item of property, plant and equipment includes the estimated
(discounted) costs to be incurred when the removal event occurs; a
corresponding amount is recognised as part of a specific provision
(see the accounting policy for “Decommissioning and restoration
liabilities”). Analogous approach is adopted for present obligations
to realise social projects in oil and gas development areas.
Property, plant and equipment are not revalued for financial
reporting purposes.
Expenditures on upgrading, revamping and reconversion are
recognised as items of property, plant and equipment when it is
probable that they will increase the expected future economic
benefits of the asset. Assets acquired for safety or environmental
reasons, although not directly increasing the future economic
benefits of any particular existing item of property, plant and
equipment, qualify for recognition as assets when they are
necessary for running the business.
Depreciation of tangible assets begins when they are available
for use, i.e. when they are in the location and condition necessary
for it to be capable of operating as planned. Property, plant and
equipment are depreciated on a systematic basis over their useful
life. The useful life is the period over which an asset is expected
to be available for use by the Company. When tangible assets are
composed of more than one significant part with different useful
lives, each part is depreciated separately. The depreciable amount
is the asset’s carrying amount less its residual value at the end of
its useful life, if it is significant and can be reasonably determined.
Land is not depreciated, even when acquired together with a
building. Tangible assets held for sale are not depreciated (see
the accounting policy for “Assets held for sale and discontinued
operations”). Changes in the asset’s useful life, in its residual value
or in the pattern of consumption of the future economic benefits
embodied in the asset, are accounted for prospectively.
Assets to be handed over for no consideration are depreciated
over the shorter term between the duration of the concession or
the asset’s useful life.
Replacement costs of identifiable parts in complex assets are
capitalised and depreciated over their useful life; the residual
carrying amount of the part that has been substituted is
charged to the profit and loss account. Nonremovable leasehold
improvements are depreciated over the earlier of the useful life of
the improvements and the lease term. Expenditures for ordinary
maintenance and repairs are recognised as an expense as incurred.
The carrying amount of property, plant and equipment is
derecognised on disposal or when no future economic benefits
are expected from its use or disposal; the arising gain or loss is
recognized in the profit and loss account.
Leasing13
A contract is, or contains, a lease, if the contract conveys the
right to control the use of an identified asset for a period of
(13) As expressly provided for in IFRS 16, this accounting policy does not apply to leases to explore for and extract resources such as those for oil and gas rights, leases
of land and any rights of way related to oil and gas activities.
ENI ANNUAL REPORT 2022 253
time in exchange for consideration14; such right exists whether,
throughout the period of use, the customer has both the right
to obtain substantially all of the economic benefits from use
of the identified asset and the right to direct the use of the
identified asset.
At the commencement date of the lease (i.e. the date on which
the underlying asset is available for use), a lessee recognises
on the balance sheet an asset representing its right to use the
underlying leased asset (hereinafter also referred as right-of-use
asset) and a liability representing its obligation to make lease
payments during the lease term (hereinafter also referred as
lease liability15). The lease term is the non-cancellable period of a
contract, together with, if reasonably certain, periods covered by
extension options or by the non-exercise of termination options.
In particular, the lease liability is initially recognised at the
present value of the following lease payments16 that are not paid
at the commencement date: (i) fixed payments (including in-
substance fixed payments), less any lease incentives receivable;
(ii) variable lease payments that depend on an index or a rate17;
(iii) amounts expected to be payable by the lessee under residual
value guarantees; (iv) the exercise price of a purchase option
if the lessee is reasonably certain to exercise that option; and
(v) payments of penalties for terminating the lease, if the lease
term reflects the lessee exercising an option to terminate the
lease. The lease payments are discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined,
the lessee’s incremental borrowing rate. The latter is determined
considering the term of the lease, the frequency and currency of
the contractual lease payments, as well as the features of the
lessee’s economic environment (reflected in the country risk
premium assigned to each country where Eni operates).
After the initial recognition, the lease liability is measured on
an amortised cost basis and is remeasured, normally, as an
adjustment to the carrying amount of the related right-of- use
asset, to reflect changes to the lease payments due, essentially,
to: (i) modifications in the lease contract not accounted as a
separate lease; (ii) changes in indexes or rates (used to determine
the variable lease payments); or (iii) changes in the assessment
of contractual options (e.g. options to purchase the underlying
asset, extension or termination options).
The right-of-use asset is initially measured at cost, which
comprises: (i) the amount of the initial measurement of the
lease liability; (ii) any initial direct costs incurred by the lessee18;
(iii) any lease payments made at or before the commencement
date, less any lease incentives received; and (iv) an estimate of
costs to be incurred by the lessee in dismantling and removing
the underlying asset, restoring the site on which it is located or
restoring the underlying asset to the condition required by the
terms and conditions of the lease. After the initial recognition,
the right-of-use asset
is adjusted for any accumulated
depreciation19, any accumulated impairment losses (see the
accounting policy for “Impairment of non-financial assets”) and
any remeasurement of the lease liability.
The depreciation charges of the right-of-use asset and the
interest expenses on the lease liability directly attributable to the
construction of an asset are capitalised as part of the cost of
such asset and subsequently recognised in the profit and loss
account through depreciation/impairments or write-off, mainly
in the case of exploration assets.
In the oil and gas activities, the operator of an unincorporated
joint operation which enters into a lease contract as the sole
signatory recognises on the balance sheet: (i) the entire lease
liability if, based on the contractual provisions and any other
relevant facts and circumstances, it has primary responsibility
for the liability towards the third-party supplier; and (ii) the
entire right-of-use asset, unless, on the basis of the terms and
conditions of the contract, there is a sublease with the followers.
The followers’ share of the right-of-use asset, recognised by
the operator, will be recovered according to the joint operation’s
contractual arrangements by billing the project costs attributable
to the followers and collecting the related cash calls. Costs
recovered from the followers are recognised as “Other income
and revenues” in the profit and loss account and as net cash
provided by operating activities in the statement of cash flows.
Differently, if a lease contract is signed by all the partners, Eni
recognises its share of the right-of-use asset and lease liability
on the balance sheet based on its working interest.
If Eni does not have primary responsibility for the lease liability
and, on the basis of the terms and conditions of the contract,
there is not a sublease, it does not recognise any right-of-use
asset and lease liability related to the lease contract.
When lease contracts are entered into by companies other
than subsidiaries that act as operators on behalf of the other
participating companies (the so-called operating companies),
consistent with the provision to recover from the followers
the costs related to the oil and gas activities, the participating
companies recognise their share of the right-of-use assets
and the lease liabilities based on their working interest, defined
(14) The assessment of whether the contract is, or contains, a lease is performed at the inception date, that is the earlier of the date of a lease agreement and the date of
commitment by the parties to the principal terms and conditions of the lease.
(15) Eni applies the recognition exemptions allowed for short-term leases (for certain classes of underlying assets) and low-value leases, by recognising the lease paymen-
ts associated with those leases as an expense on a straight-line basis over the lease term.
(16) Eni, in accordance with the practical expedient allowed by the accounting standard, does not separate non-lease components from lease components except for main
contracts related to upstream activities (drilling rigs), which provide for single payments relating to both lease and non-lease components.
(17) Conversely, the other kinds of variable lease payments (e.g. payments that depend on the use of an underlying leased asset) are not included in the carrying amount
of the lease liability, but are recognised in the profit and loss account as operating expenses over the lease term.
(18) Initial direct costs are incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained.
(19) Depreciation charges are recognised on a systematic basis from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end
of the lease term. Nevertheless, if the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, or if the cost of the right-of-use asset
reflects that the lessee will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of the useful life of the underlying
asset.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 254
according to the expected use, to the extent that it is reliably
determinable, of the underlying assets.
its use or disposal; any arising gain or loss is recognised in the
profit and loss account.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
LEASE TRANSACTIONS
With reference to
lease contracts, management makes
significant estimates and judgments related to: (i) determining
the lease term, making assumptions about the exercise of
extension and/or termination options; (ii) determining the
lessee’s incremental borrowing rate; (iii) identifying and, where
appropriate, separating non-lease components from
lease
components, where an observable stand-alone price is not
readily available, taking into account also the analysis performed
with external experts; (iv) recognising lease contracts, for which
the underlying assets are used in oil and gas activities (mainly
drilling rigs and FPSOs), entered into as operator within an
unincorporated joint operation, considering if the operator has
primary responsibility for the liability towards the third-party
supplier and the relationships with the followers; (v) identifying
the variable lease payments and the related characteristics in
order to include them in the measurement of the lease liability.
Intangible assets
Intangible assets are identifiable non-monetary assets without
physical substance, controlled by the Company and able to
produce future economic benefits, and goodwill. An asset is
classified as intangible when management is able to distinguish
it clearly from goodwill.
Intangible assets are initially recognized at cost as determined
by the criteria used for tangible assets and they are never
revalued for financial reporting purposes.
Intangible assets with finite useful lives are amortised on a
systematic basis over their useful life; the amortisation is carried
out in accordance with the criteria described in the accounting
policy for “Property, plant and equipment”.
Goodwill and intangible assets with indefinite useful lives are
not amortised. For the recoverability of the carrying amounts of
goodwill and other intangible assets see the accounting policy
for “Impairment of non-financial assets”.
Costs of obtaining a contract with a customer are recognised
on the balance sheet if the Company expects to recover those
costs. The intangible asset arising from those costs is amortised
on a systematic basis, that is consistent with the transfer to the
customer of the goods or services to which the asset relates,
and is tested for impairment.
Costs of technological development activities are capitalised
when: (i) the cost attributable to the development activity can be
measured reliably; (ii) there is the intention and the availability of
financial and technical resources to make the asset available for
use or sale; and (iii) it can be demonstrated that the asset is able
to generate probable future economic benefits.
The carrying amount of intangible assets is derecognised on
disposal or when no future economic benefits are expected from
Impairment of non-financial assets
Non-financial assets (tangible assets, intangible assets and
right-of-use assets) are tested for impairment whenever events
or changes in circumstances indicate that the carrying amounts
for those assets may not be recoverable.
The recoverability assessment is performed for each cash
generating unit (hereinafter also CGU) represented by the
smallest identifiable group of assets that generate cash inflows
that are largely independent of the cash inflows from other assets
or group of assets.
CGUs may include corporate assets which do not generate cash
inflows independently of other assets or group of assets but which
contribute to the future cash flows of more CGUs; the portions of
corporate assets are allocated to a specific CGU or, if not possible,
to a group of CGUs on a reasonable and consistent basis. Goodwill
is tested for impairment at least annually, and whenever there is any
indication of impairment, at the lowest level within the entity at which
it is monitored for internal management purposes. Right-of-use
assets, which generally do not generate cash inflows independently
of other assets or groups of assets, are allocated to the CGU to which
they belong; the right-of-use assets which cannot be fully attributed
to a CGU are considered as corporate assets. The recoverability of
the carrying amount of common facilities within the E&P operating
segment is assessed by considering the set of recoverable amounts
of the CGUs benefiting from the common facility.
The recoverability of a CGU is assessed by comparing its
carrying amount with the recoverable amount, which is the
higher of the CGU’s fair value less costs of disposal and its value
in use. Value in use is the present value of the future cash flows
expected to be derived from continuing use of the CGU and, if
significant and reliably measurable, the cash flows expected
to be obtained from its disposal at the end of its useful life,
after deducting the costs of disposal. The expected cash flows
are determined on the basis of reasonable and supportable
assumptions that represent management’s best estimate of the
range of economic conditions that will exist over the remaining
useful life of the CGU, giving greater weight to external evidence.
The value in use of CGUs which include material right-of-use
assets is calculated, normally, by ignoring lease payments
included in the measurement of the lease liabilities.
With reference to commodity prices, management uses the
price scenario adopted for economic and financial projections
and for the evaluation of investments over their entire life. In
particular, for the cash flows associated with oil, natural gas
and petroleum products prices (and prices derived from them),
the price scenario is approved by the Board of Directors (see
“Significant accounting estimates and judgments used to take
into account the impacts of climate-related risks”).
For impairment test purposes, cash outflows expected to be
incurred to guarantee compliance with laws and regulations
ENI ANNUAL REPORT 2022
regarding CO2 emissions (e.g. Emission Trading Scheme) or
on a voluntary basis (e.g. cash outflows related to forestry
certificates acquired or produced consistent with the Company’s
decarbonization strategy - hereinafter also forestry) are taken
into account.
In particular, in estimating value in use, the cash outflows for
forestry projects20 are included, consistent with the targets of
the decarbonization strategy, within the expected operating
cash outflows; in this regard, considering that the forestry
projects can be developed in countries where Eni does not carry
out operating activities and given the difficulty to allocate such
cash outflows, on a reasonable and consistent basis, to CGUs
of the relevant operating segment, the related discounted cash
outflows are treated as a reduction of the headroom of the E&P
operating segment.
For the determination of value in use, the estimated future cash
flows are discounted using a rate that reflects a current market
assessment of the time value of money and of the risks specific
to the asset that are not reflected in the estimated future cash
flows. In particular, the discount rate used is the Weighted
Average Cost of Capital (WACC) adjusted for the specific country
risk of the CGU. These adjustments are measured considering
information from external parties. WACC differs considering
the risk associated with each operating segment/business
where the asset operates. In particular, for the assets belonging
to the Global Gas & LNG Portfolio (GGP) operating segment,
the Chemical business, the Power business and Plenitude
business, the riskiness is determined on the basis of a sample
of comparable companies. For the E&P operating segment and
R&M business, the riskiness is determined, on a residual basis,
as the difference between the risk of Eni as a whole and the
risk of other operating segments/ businesses. Value in use is
calculated net of the tax effect as this method results in values
similar to those resulting from discounting pre-tax cash flows
at a pre-tax discount rate derived, through an iteration process,
from a post-tax valuation.
When the carrying amount of the CGU, including goodwill
allocated
into account any
impairment loss of the non-current assets belonging to the
CGU, exceeds its recoverable amount, the excess is recognised
as an impairment loss. The impairment loss is allocated first to
reduce the carrying amount of goodwill; any remaining excess is
allocated to the other assets of the unit pro rata on the basis of
the carrying amount of each asset in the CGU, up to the related
recoverable amount.
When an impairment loss no longer exists or has decreased,
a reversal of the impairment loss is recognised in the profit
and loss account. The impairment reversal shall not exceed
the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the
thereto, determined
taking
255
asset in prior years. An impairment loss recognised for goodwill
is not reversed in a subsequent period21.
Grants related to assets
Government grants related to assets are recognized by
deducting them in calculating the carrying amount of the related
assets when there is reasonable assurance that the Company
will comply with the conditions attaching to them and the grants
will be received.
Inventories
Inventories, including compulsory stock, are measured at the
lower of purchase or production cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion
and the estimated costs necessary to make the sale, or, with
reference to inventories of crude oil and petroleum products
already included in binding sale contracts, the contractual
selling price. Inventories which are principally acquired with the
purpose of selling in the near future and generating a profit from
fluctuations in price are measured at fair value less costs to sell
and any subsequent changes in fair value are recognised in the
profit and loss account. Materials and other supplies held for
use in production are not written down below cost if the finished
products in which they will be incorporated are expected to be
sold at or above cost.
The cost of inventories of hydrocarbons (crude oil, condensates
and natural gas) and petroleum products is determined by
applying the weighted average cost method on a three-month
basis, or on a different time period (e.g. monthly), when it is
justified by the use and the turnover of inventories of crude oil
and petroleum products; the cost of inventories of the Chemical
business is determined by applying the weighted average cost
on an annual basis.
When take-or-pay clauses are included in long-term gas purchase
contracts, pre-paid gas volumes that are not withdrawn to fulfill
minimum annual take obligations are measured using the
pricing formulas contractually defined. They are recognised
within “Other assets” as “Deferred costs”, as a contra to
“Trade and other payables” or, after settlement, to “Cash and
cash equivalents”. The allocated deferred costs are charged
to the profit and loss account: (i) when natural gas is actually
withdrawn - the related cost is included in the determination of
the weighted average cost of inventories; and (ii) for the portion
which is not recoverable, when it is not possible to withdraw
the previously pre-paid gas within the contractually defined
(20) For the recognition criteria of forestry certificates see the accounting policy for “Costs”.
(21) Impairment losses recognised for goodwill in an interim period are not reversed also when, considering conditions existing in a subsequent interim period, they would
have been recognised in a smaller amount or would not have been recognised.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 256
deadlines. Furthermore, the allocated deferred costs are tested
for economic recoverability by comparing the related carrying
amount and their net realisable value, determined adopting the
same criteria described for inventories.
recoverability of non-financial assets
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
IMPAIRMENT OF NON-FINANCIAL ASSETS
is assessed
The
whenever events or changes in circumstances indicate that
carrying amounts of the assets may not be recoverable. Such
impairment indicators include changes in the Group’s business
plans, changes in commodity prices leading to unprofitable
performance, a reduced capacity utilisation of plants and,
for oil and gas properties, significant downward revisions of
estimated reserve quantities or significant increase of the
estimated development and production costs. Determination
as to whether and how much an asset is impaired involves
management estimates on highly uncertain and complex
matters such as future commodity prices, future discount
rates, future development costs and production costs, the
effects of inflation and technology improvements on operating
expenses, production profiles and the outlook for global or
regional market supply-and-demand conditions also with
reference to the decarbonization process and the effects of
changes in regulatory requirements. The definition of CGUs
and the identification of their appropriate grouping for the
purpose of testing for impairment the carrying amount of
goodwill, corporate assets as well as common facilities within
the E&P operating segment, require judgment by management.
In particular, CGUs are identified considering, inter alia, how
management monitors the entity’s operations (such as by
business lines) or how management makes decisions about
continuing or disposing of the entity’s assets and operations.
Similar remarks are valid for assessing the physical recoverability
of assets recognised on the balance sheet (deferred costs - see
also the accounting policy for “Inventories”) related to natural
gas volumes not withdrawn under long-term supply contracts
with take-or-pay clauses.
The determination of the expected future cash flows used for
impairment analyses takes into account the energy transition
process and is based on judgmental assessments of future
production volumes, prices and costs, considering available
information at the date of review; the expected future cash flows
are discounted using a rate which considers the risks specific
to the asset. For oil and natural gas properties, the expected
future cash flows are estimated based on proved and probable
reserves, including, among other elements, production taxes and
the costs to be incurred for the reserves yet to be developed.
In limited cases (e.g. for mineral interests acquired from third
parties as part of a business combination) the expected cash
flows may take into account also the risk-adjusted possible
reserves, if they are considered to determine the consideration
transferred. The estimate of the future rates of production is
based on assumptions related to future commodity prices,
operating costs, lifting and development costs, field decline
rates, market demand and other factors.
More details on the main assumptions underlying the
determination of the recoverable amount of tangible, intangible
and right-of-use assets are set out in note 15 – Reversals
(Impairments) of tangible and intangible assets and right-of-use
assets. Sensitivity of outcomes to alternative scenarios.
Financial instruments
Financial assets
Financial assets are classified, on the basis of both contractual
cash flow characteristics and the entity’s business model for
managing them, in the following categories: (i) financial assets
measured at amortised cost; (ii) financial assets measured at
fair value through other comprehensive income (hereinafter also
OCI); (iii) financial assets measured at fair value through profit or
loss (hereinafter also FVTPL).
At initial recognition, a financial asset is measured at its fair value
plus, in the case of a financial asset not at FVTPL, transaction
costs that are directly attributable; at initial recognition, trade
receivables that do not have a significant financing component
are measured at their transaction price.
After initial recognition, financial assets whose contractual terms
give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding are measured at
amortised cost if they are held within a business model whose
objective is to hold financial assets in order to collect contractual
cash flows (the so-called hold to collect business model). For
financial assets measured at amortised cost, interest income
determined using the effective interest rate, foreign exchange
differences and any impairment losses22 (see the accounting
policy for “Impairment of financial assets”) are recognised in the
profit and loss account.
Conversely, financial assets that are debt instruments are
measured at fair value through OCI (hereinafter also FVTOCI) if they
are held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets
(the so-called hold to collect and sell business model). In these
cases: (i) interest income determined using the effective interest
rate, foreign exchange differences and any impairment losses
(see the accounting policy for “Impairment of financial assets”)
are recognised in the profit and loss account; (ii) changes in fair
value of the instruments are recognised in equity, within other
comprehensive income. The accumulated changes in fair value,
recognised in the equity reserve related to other comprehensive
income, is reclassified to the profit and loss account when the
financial asset is derecognised. Currently the Group does not have
any financial assets measured at fair value through OCI.
(22) Receivables and other financial assets measured at amortised cost are presented on the balance sheet net of their loss allowance.
ENI ANNUAL REPORT 2022 257
A financial asset represented by a debt instrument that is neither
measured at amortised cost nor at FVTOCI, is measured at
FVTPL; financial assets held for trading, as well as the portfolios
of financial assets managed and evaluated on a fair value
basis, fall into this category. Interest income on such financial
assets contributes to the related fair value measurement and is
recognised in “Finance income (expense)”, within “Net finance
income (expense) from financial assets at fair value through profit
or loss”.
When the purchase or sale of a financial asset is under a
contract whose terms require delivery of the asset within the
time frame established generally by regulation or convention in
the marketplace concerned, the transaction is accounted for on
the settlement date.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand
deposits, as well as financial assets originally due, generally, up
to three months, readily convertible to known amount of cash
and subject to an insignificant risk of changes in value.
Impairment of financial assets
The expected credit loss model is adopted for the impairment of
financial assets that are debt instruments, but are not measured
at FVTPL23.
In particular, the expected credit losses are generally measured
by multiplying: (i) the exposure to the counterparty’s credit
risk net of any collateral held and other credit enhancements
(Exposure At Default, EAD); (ii) the probability that the default of
the counterparty occurs (Probability of Default, PD); and (iii) the
percentage estimate of the exposure that will not be recovered
in case of default (Loss Given Default, LGD), considering the
past experiences and the range of recovery tools that can be
activated (e.g. extrajudicial and/or legal proceedings, etc.).
With reference to trade and other receivables, Probabilities
of Default of counterparties are determined by adopting the
internal credit ratings already used for credit worthiness and are
periodically reviewed using, inter alia, backtesting analyses; for
government entities (e.g. National Oil Companies), the Probability
of Default, represented essentially by the probability of a delayed
payment, is determined by using, as input data, the country risk
premium adopted to determine WACC for the impairment review
of non-financial assets.
For customers without internal credit ratings, the expected credit
losses are measured by using a provision matrix, defined by
grouping, where appropriate, receivables into adequate clusters
to which apply expected loss rates defined on the basis of their
historical credit loss experiences, adjusted, where appropriate,
to take into account forward-looking information on credit risk of
the counterparty or clusters of counterparties24.
Considering the characteristics of the reference markets,
financial assets with more than 180 days past due or, in any
case, with counterparties undergoing litigation, restructuring or
renegotiation, are considered to be in default. Counterparties are
considered undergoing litigation when judicial/legal proceedings
aimed to recover a receivable have been activated or are going to
be activated. Impairment losses of trade and other receivables
are recognised in the profit and loss account, net of any
impairment reversal, within the line item of the profit and loss
account “Net (impairment losses) reversals of trade and other
receivables”.
The financing receivables held for operating purposes, granted
to associates and joint ventures, for which settlement is neither
planned nor likely to occur in the foreseeable future and which
in substance form part of the entity’s net investment in these
investees, are tested for impairment, first, on the basis of the
expected credit loss model and, then, together with the carrying
amount of the investment in the associate/joint venture, in
accordance with the criteria indicated in the accounting policy
for “The equity method of accounting”. In applying the expected
credit loss model, any adjustments to the carrying amount of
long-term interest that arise from applying the accounting policy
for “The equity method of accounting” are not taken into account.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
IMPAIRMENT OF FINANCIAL ASSETS
Measuring impairment losses of financial assets requires
management evaluation of complex and highly uncertain
elements such as, for example, Probabilities of Default of
counterparties, the assessment of any collateral or other credit
enhancements, the expected exposure that will not be recovered
in case of default, as well as the definition of customers’ clusters to
be adopted. Further details on the main assumptions underlying
the measurement of expected credit losses of financial assets
are provided in note 8 – Trade and other receivables.
Investments in equity instruments
Investments in equity instruments that are not held for trading
are measured at fair value through other comprehensive income,
without subsequent transfer of fair value changes to profit or loss
on derecognition of these investments; conversely, dividends from
these investments are recognised in the profit and loss account,
within the line item “Income (Expense) from investments”, unless
they clearly represent a recovery of part of the cost of the investment.
In limited circumstances, an investment in equity instruments can
be measured at cost if it is an appropriate estimate of fair value.
Financial liabilities
At initial recognition, financial liabilities, other than derivative
financial instruments, are measured at their fair value, minus
transaction costs that are directly attributable, and are
subsequently measured at amortised cost.
(23) The expected credit loss model is also adopted for issued financial guarantee contracts not measured at FVTPL. Expected credit losses recognised on issued financial
guarantees are not material.
(24) For credit exposures arising from intragroup transactions, the recovery rate is normally assumed equal to 100% taking into account, inter alia, the Group central trea-
sury function which supports both financial and capital needs of subsidiaries.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 258
The sustainability-linked bonds, i.e. financial liabilities where
the interest rate is periodically adjusted to reflect changes in
the borrower’s performance relative to certain sustainability
targets (the so-called ESG metrics), are measured at
amortised cost.
Generally, changes in the interest rate result in an update of
the effective interest rate to be used for the recognition of
interest expense.
SIGNIFICANT JUDGMENTS: FINANCIAL LIABILITIES
The Group’s companies can negotiate with suppliers an
extension of payment terms, without the involvement of a
financial institution. In such cases, management judges whether
or not payables towards suppliers have to be reclassified as
financial liabilities from trade/investing activity payables. In order
to make such judgment, management considers if the payment
terms differ from the ones that are customary in the industry,
any additional security is provided as part of the arrangement
as well as any other facts and circumstances. The classification
as a financial liability determines: (i) upon reclassification/initial
recognition of the liability, a non-monetary change in financial
liabilities, with no impacts on the statement of cash flows; (ii)
upon the settlement of the liability, the classification of the
payment within net cash used in financing activities. With
reference to sustainability-linked bonds, management assesses
whether the non-compliance with an ESG metric could adversely
impact operations and, therefore, revenue generation and
creditworthiness of the Company.
financial
instruments and hedge
Derivative
accounting
Derivative financial instruments, including embedded derivatives
(see below) that are separated from the host contract, are assets
and liabilities measured at their fair value.
With reference to the defined risk management objectives and
strategy, the qualifying criteria for hedge accounting requires: (i) the
existence of an economic relationship between the hedged item and
the hedging instrument in order to offset the related value changes
and the effects of counterparty credit risk do not dominate the
economic relationship between the hedged item and the hedging
instrument; and (ii) the definition of the relationship between
the quantity of the hedged item and the quantity of the hedging
instrument (the so-called hedge ratio) consistent with the entity’s
risk management objectives, under a defined risk management
strategy; the hedge ratio is adjusted, where appropriate, after taking
into account any adequate rebalancing. A hedging relationship
is discontinued prospectively, in its entirety or a part of it, when it
no longer meets the risk management objectives on the basis of
which it qualified for hedge accounting, it ceases to meet the other
qualifying criteria or after rebalancing it.
When derivatives hedge the risk of changes in the fair
value of the hedged items (fair value hedge, e.g. hedging of
the variability in the fair value of fixed interest rate assets/
liabilities), the derivatives are measured at fair value through
profit and loss. Consistently, the carrying amount of the hedged
item is adjusted to reflect, in the profit and loss account, the
changes in fair value of the hedged item attributable to the
hedged risk; this applies even if the hedged item should be
otherwise measured.
When derivatives hedge the exposure to variability in cash flows
of the hedged items (cash flow hedge, e.g. hedging the variability
in the cash flows of assets/liabilities as a result of the fluctuations
of exchange rate), the effective changes in the fair value of the
derivatives are initially recognised in the equity reserve related to
other comprehensive income and then reclassified to the profit
and loss account in the same period during which the hedged
transaction affects the profit and loss account.
If a hedged forecast transaction subsequently results in the
recognition of a non-financial asset or a non-financial liability,
the accumulated changes in fair value of hedging derivatives,
recognised in equity, are included directly in the carrying
amount of the hedged non-financial asset/liability (commonly
referred to as a “basis adjustment”).
The changes in the fair value of derivatives that are not designated
as hedging instruments, including any ineffective portion of
changes in fair value of hedging derivatives, are recognised in the
profit and loss account. In particular, the changes in the fair value
of non-hedging derivatives on interest rates and exchange rates
are recognised in the profit and loss account line item “Finance
income (expense)”; conversely, the changes in the fair value of
non-hedging derivatives on commodities are recognised in the
profit and loss account line item “Other operating (expense)
income”. Derivatives embedded in financial assets are not
accounted for separately; in such circumstances, the entire
hybrid instrument is classified depending on the contractual cash
flow characteristics of the financial instrument and the business
model for managing it (see the accounting policy for “Financial
assets”). Derivatives embedded in financial liabilities and/or non-
financial assets are separated if: (i) the economic characteristics
and risks of the embedded derivative are not closely related to
the economic characteristics and risks of the host contract; (ii)
a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative; and (iii) the
entire hybrid contract is not measured at FVTPL.
Eni assesses the existence of embedded derivatives to
be separated when it becomes party to the contract and,
afterwards, when a change in the terms of the contract that
modifies its cash flows occurs.
Contracts to buy or sell commodities entered into and
continued to be held for the purpose of their receipt or delivery
in accordance with the Group’s expected purchase, sale or
usage requirements are recognised on an accrual basis (the
so-called normal sale and normal purchase exemption or own
use exemption).
Offsetting of financial assets and liabilities
Financial assets and liabilities are set off on the balance sheet if
the Group currently has a legally enforceable right to set off and
ENI ANNUAL REPORT 2022
259
intends to settle on a net basis (or to realise the asset and settle
the liability simultaneously).
Derecognition of financial assets and liabilities
Transferred financial assets are derecognised when the contractual
rights to receive the cash flows from the financial assets expire or
are transferred to another party. Financial liabilities are derecognised
when they are extinguished, or when the obligation specified in the
contract is discharged, cancelled or expired.
Provisions, contingent liabilities and
contingent assets
A provision is a liability of uncertain timing or amount on the
balance sheet date. Provisions are recognised when: (i) there is
a present obligation, legal or constructive, as a result of a past
event; (ii) it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation; and
(iii) the amount of the obligation can be reliably estimated.
The amount recognised as a provision is the best estimate of
the expenditure required to settle the present obligation or to
transfer it to third parties on the balance sheet date. The amount
recognised for onerous contracts is the lower of the cost
necessary to fulfill the obligations, net of expected economic
benefits deriving from the contracts, and any compensation or
penalties arising from failure to fulfill these obligations. Where
the effect of the time value is material, and the payment date
of the obligations can be reasonably estimated, provisions to
be accrued are the present value of the expected cash outflows
determined taking into account the risks associated with the
obligation. The change in provisions due to the passage of time
is recognised within “Finance income (expense)” in the profit and
loss account.
A provision for restructuring costs is recognised only when the
Company has a detailed formal plan for the restructuring and
has raised a valid expectation in the affected parties that it will
carry out the restructuring.
Provisions are periodically reviewed and adjusted to reflect
changes in the estimates of costs, timing and discount rates.
Changes in provisions are recognised in the same profit and loss
account line item where the original provision was charged.
Contingent liabilities are: (i) possible obligations arising from
past events, whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company; or (ii)
present obligations arising from past events, whose amount
cannot be reliably measured or whose settlement will probably
not result in an outflow of resources embodying economic
benefits. Contingent liabilities are not recognised in the financial
statements but are disclosed.
Contingent assets, that are possible assets arising from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company, are not
recognised in financial statements unless the realisation of
economic benefits is virtually certain. Contingent assets are
disclosed when an inflow of economic benefits is probable.
Contingent assets are assessed periodically to ensure that
developments are appropriately reflected
in the financial
statements.
Decommissioning and restoration liabilities
Liabilities for decommissioning and restoration costs are
recognized, together with a corresponding amount as part of
the related property, plant and equipment, when the conditions
indicated in the accounting policy “Provisions, Contingent
Liabilities And Contingent Assets” are met.
Considering the long-time span between the recognition of the
obligation and its settlement, the amount recognised is the
present value of the future expenditures expected to be required
to settle the obligation. Any change due to the unwinding of
discount on provisions is recognised within “Finance income
(expense)”.
Such liabilities are reviewed regularly to take into account the
changes in the expected costs to be incurred, contractual
obligations, regulatory requirements and practices in force in the
countries where the tangible assets are located.
The effects of any changes in the estimate of the liability are
recognised generally as an adjustment to the carrying amount
of the related property, plant and equipment; however, if the
resulting decrease in the liability exceeds the carrying amount
of the related asset, the excess is recognised in the profit and
loss account.
Analogous approach is adopted for present obligations to realise
social projects related to operating activities carried out by the
Company.
Environmental liabilities
Environmental liabilities are recognised when the Group has a
present obligation, legal or constructive, relating to environmental
clean-up and remediation of soil and groundwater in areas
owned or under concession where the Group performed in the
past industrial operations that were progressively divested, shut
down, dismantled or restructured. Liabilities for environmental
costs are recognised when a clean-up is probable and the
associated costs can be reliably estimated. The liability is
measured on the basis of on the costs expected to be incurred
in relation to the existing situation at the balance sheet date,
considering virtually certain future developments in technology
and legislation that are known.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
DECOMMISSIONING AND RESTORATION
LIABILITIES,
ENVIRONMENTAL LIABILITIES AND OTHER PROVISIONS
The Group holds provisions for dismantling and removing items
of property, plant and equipment, and restoring land or seabed
at the end of the oil and gas production activity. Estimating
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 260
obligations to dismantle, remove and restore items of property,
plant and equipment is complex. It requires management
to make estimates and judgments with respect to removal
obligations that will come to term many years into the future
and contracts and regulations are often unclear as to what
constitutes removal. In addition, the ultimate financial impact of
environmental laws and regulations is not always clearly known
as asset removal technologies and costs constantly evolve in
the countries where Eni operates, as do political, environmental,
safety and public expectations.
The estimates about the timing and amount of future cash
outflows, any related update as well as the related discounting
are based on complex managerial judgments.
Decommissioning and restoration provisions, recognised in
the financial statements, include, essentially, the present value
of the expected costs for decommissioning oil and natural
gas facilities at the end of the economic lives of fields, well-
plugging, abandonment and site restoration of the Exploration
& Production operating segment. Any decommissioning and
restoration provisions associated with the other operating
segments’ assets, given their indeterminate settlement dates,
also considering the strategy to reconvert plants in order to
produce low carbon products, are recognised when it is possible
to make a reliable estimate of the discounted abandonment
costs. In this regard, Eni performs periodic reviews for any
changes
in facts and circumstances that might require
recognition of a decommissioning and restoration provision.
Eni is subject to numerous EU, national, regional and local
environmental laws and regulations concerning its oil and
gas operations, production and other activities. They include
international conventions or
legislations
protocols. Environmental liabilities are recognised when it
becomes probable that an outflow of resources will be required
to settle the obligation and such obligation can be reliably
estimated. On this regard, with reference to groundwater
treatment plants, during the 2022, the enhancement of the
know-how gained on water contamination trends, as well as the
evolution of the positions of the competent authorities, have
allowed the definition of a predictive model for estimating the
time horizon within which the operations of those plants will be
terminated and, therefore, for estimating the cost of managing
and monitoring them.
The reliable determinability is verified on the basis of the available
information such as, for example, the approval or filing of the
environmental projects to the relevant administrative authorities
or the making of a commitment to the relevant administrative
authorities, where supported by adequate estimates.
Management, considering the actions already taken, insurance
policies obtained to cover environmental risks and provisions
already recognised, does not expect any material adverse effect
on Eni’s consolidated results of operations and financial position
as a result of such laws and regulations. However, there can be
no assurance that there will not be a material adverse impact on
Eni’s consolidated results of operations and financial position due
to: (i) the possibility of an unknown contamination; (ii) the results
implement
that
of the ongoing surveys and other possible effects of statements
required by applicable laws; (iii) the possible effects of future
environmental legislations and rules; (iv) the effects of possible
technological changes relating to future remediation; and (v)
the possibility of litigation and the difficulty of determining Eni’s
liability, if any, against other potentially responsible parties with
respect to such litigations and the possible reimbursements.
In addition to environmental and decommissioning and
restoration liabilities, Eni recognises provisions primarily related
to legal and trade proceedings. These provisions are estimated
on the basis of complex managerial judgments related to
the amounts to be recognised and the timing of future cash
outflows. After the initial recognition, provisions are periodically
reviewed and adjusted to reflect the current best estimate.
Employee benefits
plans,
including
Employee benefits are considerations given by the Group
in exchange for service rendered by employees or for the
termination of employment.
Post-employment
informal
benefit
arrangements, are classified as either defined contribution plans
or defined benefit plans depending on the economic substance
of the plan as derived from its principal terms and conditions.
Under defined contribution plans, the Company’s obligation,
which consists in making payments to the State or to a trust or a
fund, is determined on the basis of contributions due.
The liabilities related to defined benefit plans, net of any plan
assets, are determined on the basis of actuarial assumptions
and charged on an accrual basis during the employment period
required to obtain the benefits.
Net interest includes the return on plan assets and the interest
cost. Net interest is measured by applying to the liability, net of
any plan assets, the discount rate used to calculate the present
value of the liability; net interest of defined benefit plans is
recognised in “Finance income (expense)”.
Remeasurements of the net defined benefit liability, comprising
actuarial gains and losses, resulting from changes in the actuarial
assumptions used or from changes arising from experience
adjustments, and the return on plan assets excluding amounts
included in net interest, are recognised within the statement of
comprehensive income. Remeasurements of the net defined
benefit liability, recognised within other comprehensive income,
are not reclassified subsequently to the profit and loss account.
Obligations for long-term benefits are determined by adopting
actuarial assumptions. The effects of remeasurements are
taken to profit and loss account in their entirety.
The liabilities for termination benefits are recognised at the
earlier of the following dates: (a) when the entity can no longer
withdraw the offer of those benefits; and (b) when the entity
recognises costs for a restructuring that involves the payment of
termination benefits. Such liabilities are measured in accordance
with the nature of the employee benefit. Liabilities for termination
benefits are determined applying the requirements: (i) for short-
ENI ANNUAL REPORT 2022 261
term employee benefits, if the termination benefits are expected
to be settled wholly before twelve months after the end of
the annual reporting period in which the termination benefits
are recognised; or (ii) for long-term benefits if the termination
benefits are not expected to be settled wholly before twelve
months after the end of the annual reporting period.
Share-based payments
The line item “Payroll and related costs” includes the cost of
the share-based incentive plan, consistent with its actual
remunerative nature. The cost of the share-based incentive
plan is measured by reference to the fair value of the equity
instruments granted and the estimate of the number of shares
that eventually vest; the cost is recognised on an accrual basis
pro rata temporis over the vesting period, that is the period
between the grant date and the settlement date. The fair value
of the shares underlying the incentive plan is measured at the
grant date, taking into account the estimate of achievement
of market conditions (e.g. Total Shareholder Return), and is
not adjusted in subsequent periods; when the achievement
is linked also to nonmarket conditions, the number of shares
expected to vest is adjusted during the vesting period to reflect
the updated estimate of these conditions. If, at the end of the
vesting period, the incentive plan does not vest because of
failure to satisfy the performance conditions, the portion of
cost related to market conditions is not reversed to the profit
and loss account.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
EMPLOYEE BENEFITS AND SHARE-BASED PAYMENTS
Defined benefit plans are evaluated with reference to uncertain
events and based upon actuarial assumptions including, among
others, discount rates, expected rates of salary increases,
mortality rates, estimated retirement dates and medical cost
trends. The significant assumptions used to account for defined
benefit plans are determined as follows: (i) discount and inflation
rates are based on the market yields on high quality corporate
bonds (or, in the absence of a deep market of these bonds, on
the market yields on government bonds) and on the expected
inflation rates in the reference currency area; (ii) the future salary
levels of the individual employees are determined including an
estimate of future changes attributed to general price levels
(consistent with
inflation rate assumptions), productivity,
seniority and promotion; (iii) healthcare cost trend assumptions
reflect an estimate of the actual future changes in the cost of the
healthcare related benefits provided to the plan participants and
are based on past and current healthcare cost trends, including
healthcare inflation, changes in healthcare utilisation, changes
in health status of the participants and the contributions paid
to health funds; and (iv) demographic assumptions such as
mortality, disability and turnover reflect the best estimate of
these future events for individual employees involved.
Differences in the amount of the net defined benefit liability (asset),
deriving from the remeasurements, comprising, among others,
changes in the current actuarial assumptions, differences in the
previous actuarial assumptions and what has actually occurred
and differences in the return on plan assets, excluding amounts
included in net interest, usually occur. Similar to the approach
followed for the fair value measurement of financial instruments,
the fair value of the shares underlying the incentive plans is
measured by using complex valuation techniques and identifying,
through structured judgments, the assumptions to be adopted.
Equity instruments
Treasury shares
Treasury shares, including shares held to meet the future
requirements of the share-based incentive plans, are recognised
as deductions from equity at cost. Any gain or loss resulting
from subsequent sales is recognised in equity.
Hybrid bonds
The perpetual subordinated hybrid bonds are classified in the
financial statements as equity instruments considering that the
issuer has the unconditional right to defer, until the date of its
own liquidation, the repayment of the principal amount and the
payment of accrued interest25. Therefore, the issuer recognises
the cash received from the bondholders, net of costs incurred in
issuing the hybrid bonds, as an increase in Eni owners’ equity;
differently, the repayments of the principal amount and the
payments of accrued interest (upon the arising of the related
contractual payment obligation) are accounted for as a decrease
in Eni owners’ equity.
Revenue from contracts with customers
Revenue from contracts with customers is recognised on the
basis of the following five steps: (i) identifying the contract with
the customer; (ii) identifying the performance obligations, that
are promises in a contract to transfer goods and/or services to
a customer; (iii) determining the transaction price; (iv) allocating
the transaction price to each performance obligation on the
basis of the relative stand-alone selling prices of each good or
service; and (v) recognising revenue when (or as) a performance
obligation is satisfied, that is when a promised good or service
is transferred to a customer. A promised good or service is
transferred when (or as) the customer obtains control of it.
Control can be transferred over time or at a point in time. With
reference to the most important products sold by Eni, revenue is
generally recognised for:
• crude oil, upon shipment;
• natural gas and electricity, upon delivery to the customer;
• petroleum products sold to retail distribution networks, upon
delivery to the service stations, whereas all other sales of
petroleum products are recognised upon shipment;
• chemical products and other products, upon shipment.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 262
Revenue from crude oil and natural gas production from
properties in which Eni has an interest together with other
producers is recognised on the basis of the quantities actually
lifted and sold (sales method); costs are recognised on the basis
of the quantities actually sold.
Revenue is measured at the fair value of the consideration to which
the Company expects to be entitled in exchange for transferring
promised goods and/or services to a customer, excluding
amounts collected on behalf of third parties. In determining
the transaction price, the promised amount of consideration is
adjusted for the effects of the time value of money if the timing
of payments agreed to by the parties to the contract provides
the customer or the entity with a significant benefit of financing
the transfer of goods or services to the customer. The promised
amount of consideration is not adjusted for the effect of the
significant financing component if, at contract inception, it is
expected that the period between the transfer of a promised
good or service to a customer and when the customer pays for
that good or service will be one year or less. If the consideration
promised in a contract includes a variable amount, the Company
estimates the amount of consideration to which it will be entitled
in exchange for transferring the promised goods and/or services
to a customer; in particular, the amount of consideration can vary
because of discounts, refunds, incentives, price concessions,
performance bonuses, penalties or if the price is contingent on
the occurrence or non-occurrence of future events.
If, in a contract, the Company grants a customer the option to
acquire additional goods or services for free or at a discount
(e.g. sales incentives, customer award points, etc.), this option
gives rise to a separate performance obligation in the contract
only if the option provides a material right to the customer that
it would not receive without entering into that contract. When
goods or services are exchanged for goods or services which
are of a similar nature and value, the exchange is not regarded as
a transaction which generates revenue. The payment of accrued
interest is required upon the occurrence of events under the
issuer’s control such as, for example, a distribution of dividends
to shareholders.
distributed and allocated, communicated by third parties, likely to
be adjusted, according to applicable regulations, within the fifth
year following the one in which they are accrued, as well as on
estimates about volumes consumed by customers. Considering
the contractual obligations on the supply delivery points, revenue
from sales of electricity and gas to retail customers includes
costs for transportation and dispatching and in these cases the
gross amount of consideration to which the Company is entitled
is recognised.
Costs
Costs are recognised when the related goods and services
are sold or consumed during the year, when they are allocated
on a systematic basis or when their future economic benefits
cannot be identified. Costs associated with emission quotas,
incurred to meet the compliance requirements (e.g. Emission
Trading Scheme) and determined on the basis of market
prices, are recognised in relation to the amounts of the carbon
dioxide emissions that exceed free allowances. Costs related
to the purchase of the emission rights that exceed the amount
necessary to meet regulatory obligations are recognised as
intangible assets. Revenue related to emission quotas is
recognised when they are sold. Emission rights held for trading
are recognised within inventories. The costs incurred on a
voluntary basis for the acquisition or production of forestry
certificates, also taking into account the absence of an active
market, are recognised in the profit and loss account when
incurred.
The costs for the acquisition of new knowledge or discoveries,
the study of products or alternative processes, new techniques
or models, the planning and construction of prototypes or, in
any case, costs incurred for other scientific research activities
or technological development, which cannot be capitalised (see
also the accounting policy for “Intangible assets”), are included
in the profit and loss account when they are incurred.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue from sales of electricity and gas to retail customers
includes the amount accrued for electricity and gas supplied
between the date of the last invoiced meter reading (actual or
estimated) of volumes consumed and the end of the year. These
estimates consider information provided by the grid managers
about the volumes allocated among the customers of the
secondary distribution network, about the actual and estimated
volumes consumed by customers, as well as internal estimates
about volumes consumed by customers. Therefore, revenue is
accrued as a result of a complex estimate based on the volumes
Exchange differences
Revenues and costs associated with transactions in foreign
currencies are translated into the functional currency by applying
the exchange rate at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are translated
into the functional currency at the spot exchange rate on the
balance sheet date and any resulting exchange differences are
included in the profit and loss account within “Finance income
(expense)” or, if designated as hedging instruments for the
foreign currency risk, in the same line item in which the economic
effects of the hedged item are recognised. Non-monetary assets
and liabilities denominated in foreign currencies, measured at
(26) Il pagamento delle cedole non è differibile in presenza di eventi sotto il controllo della società emittente, quali, ad esempio, una distribuzione di dividendi agli azionisti.
ENI ANNUAL REPORT 2022 263
cost, are not retranslated subsequent to initial recognition. Non-
monetary items measured at fair value, recoverable amount or
net realisable value are retranslated using the exchange rate at
the date when the value is determined.
Dividends
Dividends are recognised when the right to receive payment of
the dividend is established.
Dividends and interim dividends to owners are shown as changes
in equity when the dividends are declared by, respectively, the
shareholders’ meeting and the Board of Directors.
Income taxes
Current income taxes are determined on the basis of estimated
taxable profit. Current income tax assets and liabilities are
measured at the amount expected to be paid to (recovered from)
the taxation authorities, using the tax rates and tax laws that
have been enacted or substantively enacted by the end of the
reporting period.
Deferred tax assets and liabilities are recognised for temporary
differences arising between the carrying amounts of the assets
and liabilities and their tax bases, based on tax rates and tax
laws that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates and tax laws
that have been enacted or substantively enacted by the end of
the reporting period. Deferred tax assets are recognised when
their recoverability is considered probable, i.e. when it is probable
that sufficient taxable profit will be available in the same year
as the reversal of the deductible temporary difference. Similarly,
deferred tax assets for the carry-forward of unused tax credits
and unused tax losses are recognised to the extent that their
recoverability is probable. The carrying amount of the deferred
tax assets is reviewed, at least, on an annual basis.
If there is uncertainty over income tax treatments, if the
company concludes it is probable that the taxation authority
will accept an uncertain tax treatment, it determines the
(current and/or deferred) income taxes to be recognised in the
financial statements consistent with the tax treatment used
or planned to be used in its income tax filings. Conversely, if
the company concludes it is not probable that the taxation
authority will accept an uncertain tax treatment, the company
reflects the effect of uncertainty in determining the (current
and/or deferred) income taxes to be recognised in the financial
statements.
Relating to the taxable temporary differences associated with
investments in subsidiaries and associates, and interests in
joint arrangements, the related deferred tax liabilities are not
recognised if the investor is able to control the timing of the
reversal of the temporary differences and it is probable that
the temporary differences will not reverse in the foreseeable
future. Deferred tax assets and liabilities are presented within
non-current assets and liabilities and are offset at a single entity
level if related to offsettable taxes. The balance of the offset, if
positive, is recognised in the line item “Deferred tax assets” and,
if negative, in the line item “Deferred tax liabilities”. When the
results of transactions are recognised in other comprehensive
income or directly in equity, the related current and deferred
taxes are also recognised in other comprehensive income or
directly in equity.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
INCOME TAXES
The computation of income taxes involves the interpretation
of applicable tax laws and regulations in many jurisdictions
throughout the world. Although Eni aims to maintain a
relationship with the taxation authorities characterised by
transparency, dialogue and cooperation (e.g. by not using
aggressive tax planning and by using, if available, procedures
intended to eliminate or reduce tax litigations), there can be no
assurance that there will not be a tax litigation with the taxation
authorities where the legislation could be open to more than
one interpretation. The resolution of tax disputes, through
negotiations with relevant taxation authorities or through
litigation, could take several years to complete. The estimate of
liabilities related to uncertain tax treatments requires complex
judgments by management. After the initial recognition, these
liabilities are periodically reviewed for any changes in facts and
circumstances.
Management makes complex judgments regarding mainly the
assessment of the recoverability of deferred tax assets, related
both to deductible temporary differences and unused tax losses,
which requires estimates and evaluations about the amount and
the timing of future taxable profits.
Assets held for sale and discontinued
operations
Non-current assets and current and non-current assets included
within disposal groups are classified as held for sale if their
carrying amounts will be recovered principally through a sale
transaction rather than through continuing use. This condition
is regarded as met only when the sale is highly probable and
the asset or the disposal group is available for immediate sale
in its present condition. When there is a sale plan involving loss
of control of a subsidiary, all the assets and liabilities of that
subsidiary are classified as held for sale, regardless of whether
a non-controlling interest in its former subsidiary will be retained
after the sale.
Non-current assets held for sale, current and non-current assets
included within disposal groups that have been classified as
held for sale and the liabilities directly associated with them are
recognised on the balance sheet separately from other assets
and liabilities.
Immediately before the initial classification of a noncurrent
asset and/or a disposal group as held for sale, the non-current
asset and/or the assets and liabilities in the disposal group are
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 264
measured in accordance with applicable IFRSs. Subsequently,
non-current assets held for sale are not depreciated or
amortised and they are measured at the lower of the fair
value less costs to sell and their carrying amount. If an equity-
accounted investment, or a portion of that investment meets
the criteria to be classified as held for sale, it is no longer
accounted for using the equity method and it is measured at
the lower of its carrying amount at the date the equity method
is discontinued, and its fair value less costs to sell. Any retained
portion of the equity-accounted investment that has not been
classified as held for sale is accounted for using the equity
method until disposal of the portion that is classified as held
for sale takes place.
Any difference between the carrying amount of the noncurrent
assets and the fair value less costs to sell is taken to the profit
and loss account as an impairment loss; any subsequent reversal
is recognised up to the cumulative impairment losses, including
those recognised prior to qualification of the asset as held for sale.
Non-current assets classified as held for sale and disposal groups
are considered a discontinued operation if they, alternatively: (i)
represent a separate major line of business or geographical area
of operations; (ii) are part of a disposal program of a separate
major line of business or geographical area of operations; or (iii)
are a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations, as well as any gain or loss
recognised on the disposal, are indicated in a separate line item
of the profit and loss account, net of the related tax effects; the
economic figures of discontinued operations are indicated also
for prior periods presented in the financial statements.
If events or circumstances occur that no longer allow to classify
a non-current asset or a disposal group as held for sale, the
non-current asset or the disposal group is reclassified into the
original line items of the balance sheet and measured at the
lower of: (i) its carrying amount at the date of classification
as held for sale adjusted for any depreciation, amortisation,
impairment
losses and reversals that would have been
recognised had the asset or disposal group not been classified
as held for sale, and (ii) its recoverable amount at the date of
the subsequent decision not to sell.
Fair value measurements
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants (not in a forced liquidation or a distress sale)
at the measurement date (exit price). Fair value measurement
is based on the market conditions existing at the measurement
date and on the assumptions of market participants (market-
based measurement). A fair value measurement assumes that
the transaction to sell the asset or transfer the liability takes
place in the principal market for the asset or liability, or in the
absence of a principal market, in the most advantageous market
to which the entity has access, independently from the entity’s
intention to sell the asset or transfer the liability to be measured.
A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its
highest and best use. Highest and best use is determined from
the perspective of market participants, even if the entity intends
a different use; an entity’s current use of a non-financial asset
is presumed to be its highest and best use, unless market or
other factors suggest that a different use by market participants
would maximise the value of the asset.
The fair value of a liability, both financial and non-financial, or
of the Company’s own equity instrument, in the absence of a
quoted price, is measured from the perspective of a market
participant that holds the identical item as an asset at the
measurement date. The fair value of financial instruments takes
into account the counterparty’s credit risk for a financial asset
(Credit Valuation Adjustment, CVA) and the Company’s own
credit risk for a financial liability (Debit Valuation Adjustment,
DVA). In the absence of available market quotation, fair value is
measured by using valuation techniques that are appropriate in
the circumstances, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are categorized
into the fair value hierarchy which is defined on the basis of
the significance of the inputs used to measure fair value. In
particular, on the basis of the features of the inputs used in the
measurement, the fair value hierarchy provides for the following
levels:
a) level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities;
b) level 2: measurement based on inputs, other than quoted
prices included within the previous point, that are observable
for the asset or liability under measurement, either directly or
indirectly;
c) level 3: unobservable inputs for the asset or liability.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS:
FAIR VALUE
Fair value measurement, although based on the best available
information and on the use of appropriate valuation techniques,
is inherently uncertain, requires the use of professional judgment
and could result in expected values other than the actual ones.
2 Primary financial statements
Assets and liabilities on the balance sheet are classified as
current and non-current. Items in the profit and loss account are
presented by nature.
The balance sheet and the profit and loss account are the
same of the ones used in the previous reporting period, except
for the redenomination of the line items “Financial assets held
for trading” and “Net finance income (expense) from financial
assets held for trading” respectively in “Financial assets at fair
value through profit or loss” and “Net finance income (expense)
from financial assets at fair value through profit or loss”; such
line items include, respectively, the carrying amounts and the
ENI ANNUAL REPORT 2022 265
related profit and loss effects of the liquidity portfolio managed
and evaluated on a fair value basis, as well as of the financial
assets held for trading.
The statement of comprehensive income (loss) shows net profit
integrated with income and expenses that are not recognised
directly in the profit and loss account according to IFRSs.
The statement of changes
includes the total
comprehensive income (loss) for the year, transactions with
owners in their capacity as owners and other changes in equity.
The statement of cash flows is presented using the indirect
method, whereby net profit (loss) is adjusted for the effects of
non-cash transactions.
in equity
3 Changes in accounting policies
The amendments to IFRSs effective from January 1st, 2022
and adopted by Eni did not have a material impact on the
Consolidated Financial Statements.
4 IFRSs not yet effective e
IFRSs ISSUED BY THE IASB AND ADOPTED BY THE EU
By the Commission Regulation No. 2021/2036 issued by
the European Commission on November 19, 2021, IFRS 17
“Insurance Contracts” (hereinafter IFRS 17), which replaces
IFRS 4 “Insurance Contracts” and sets out the accounting for the
insurance contracts issued and the reinsurance contracts held.
IFRS 17 shall be applied for annual reporting periods beginning
on or after January 1st, 2023.
By the Commission Regulation No. 2022/357 issued on March
2, 2022, the European Commission adopted:
the insurance contracts issued and the reinsurance contracts
held. IFRS 17 shall be applied for annual reporting periods
beginning on or after January 1st, 2023.
• by the Commission Regulation No. 2022/357 issued on March
2nd, 2022, the European Commission adopted:
By the Commission Regulation No. 2022/1392 issued on August
11, 2022, the European Commission adopted the amendments
to IAS 12 “Deferred Tax related to Assets and Liabilities arising
from a Single Transaction” (hereinafter the amendments), aimed
to require companies to recognise deferred tax on particular
transactions that, on initial recognition, give rise to equal
amounts of taxable and deductible temporary differences.
The amendments shall be applied for annual reporting periods
beginning on or after January 1st, 2023.
IFRSs ISSUED BY THE IASB AND NOT YET ADOPTED
BY THE EU
On January 23, 2020, the IASB issued the amendments to IAS 1
“Classification of Liabilities as Current or Non-current” (hereinafter
the amendments to IAS 1), which clarify how to classify debt and
other liabilities as current or non-current. Further clarifications
about the classification, as current or non-current, of liabilities
with covenants have been provided by the amendments issued
on October 31, 2022 (“Non-current Liabilities with Covenants”).
The amendments to IAS 1shall be applied for annual reporting
periods beginning on or after January 1st, 2024.
On September 22, 2022, the IASB issued the amendments to
IFRS 16 “Lease Liability in a Sale and Leaseback” (hereinafter the
amendments), aimed to clarify the subsequent measurement
of lease liabilities arising from sale and leaseback transactions.
The amendments shall be applied for annual reporting periods
beginning on or after January 1st, 2024.
• by the Commission Regulation No. 2021/2036 issued by
the European Commission on November 19, 2021, IFRS 17
“Insurance Contracts” (hereinafter IFRS 17), which replaces
IFRS 4 “Insurance Contracts” and sets out the accounting for
Eni is currently reviewing the IFRSs not yet adopted in order
to determine the likely impact on the Consolidated Financial
Statements.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 266
5 Business combinations and other significant transactions
Acquisitions
In 2022 Eni finalized acquisitions for a total consideration of
€1,667 million, assuming net financial liabilities for €541 million, of
which cash and cash equivalents for €31 million.
On January 12, 2022, Eni finalized the 100% acquisition of the
company SKGR Energy Single Member SA (now Eni Plenitude
Renewables Hellas Single Member SA), which owns a pipeline of
photovoltaic projects totalling around 800 MW in Greece. The total
cash consideration of the transaction amounted to €51 million
with assumption of net financial liabilities for €1 million. The price
allocation of net assets acquired was made on a definitive basis
with recognition of goodwill for €52 million. The acquisition is part
of the Plenitude business line.
On February 18, 2022, Eni finalized the acquisition of the Corazon
I Solar plant with 266 MW of capacity, in Texas (USA). The
transaction comprised a storage facility with a capacity of 200
to 400 MW, and the Guajillo storage project, which is expected
to become operational before the end of 2023. The total cash
consideration of the transaction amounted to €121 million with
assumption of net financial liabilities for €88 million, of which
cash and cash equivalents totaled €2 million. The price allocation
of net assets acquired was made on a definitive basis without
recognition of goodwill. The acquisition is part of the Plenitude
business line.
On August 4, 2022, Eni finalized the acquisition of 100% of the
company Energía Eólica Boreas SLU, with a generation capacity of
104.5 MW. The cash consideration of the transaction amounted
to €87 million, net of €16 million advance paid in 2021, with
assumption of net financial liabilities for €59 million, of which
cash and cash equivalents totaled €12 million. The price allocation
of net assets acquired was made on a provisional basis with
recognition of goodwill for €18 million. The acquisition is part of
the Plenitude business line.
On August 26, 2022, the acquisition of a 100% stake in the
company Export LNG Ltd which owns the Tango FLNG floating
liquefaction plant was finalized. The plant has a treatment
capacity of approximately 3 million standard cubic metres/day
and an LNG production capacity of approximately 0.6 million
tonnes/year (approximately 1 billion standard cubic metres/year).
The acquisition is part of the Exploration & Production sector.
On December 29, 2022, Eni finalized the acquisitions from Italian
group PLT of PLT Energia Srl and SEF Srl, engaged in the production
of electricity from renewables and in supplying energy to retail
customers, with generation capacity of over 400 MW. The total
cash consideration of the transactions amounted to €750 million,
with a assumption of net financial liabilities for €390 million, of
which the cash and cash equivalents totaled €17 million. The price
allocation of net assets acquired for each transaction was made
on a provisional basis with total recognition of goodwill for €412
million. These acquisitions are part of the Plenitude business line.
Balance sheet values at the acquisition date of the business
combinations realized in 2022 are shown in the following table:
l
s
e
b
a
w
e
n
e
R
e
d
u
t
i
n
e
P
l
i
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(
A
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e
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e
M
i
l
e
g
n
S
y
g
r
e
n
E
R
G
K
S
(€ million)
Cash and cash equivalents
Current financial assets
Other current assets
Current assets
Property, plant and equipment
Goodwill
Other non-current assets
Non-current assets
TOTAL ASSETS
Current financial liabilities
Other current liabilities
Current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
TOTAL LIABILITIES
Equity attributable to Eni
Non-controlling interest
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
r
e
b
m
e
M
e
g
n
S
s
a
i
l
l
l
e
H
)
A
S
52
52
52
1
1
1
51
51
52
o
l
l
i
j
a
u
G
/
I
n
o
z
a
r
o
C
2
1
3
189
45
234
237
3
1
4
87
7
3
97
101
121
15
136
237
d
t
L
G
N
L
t
r
o
p
x
E
650
i
l
r
S
a
g
r
e
n
E
T
L
P
(
T
L
P
)
l
r
S
F
E
S
d
n
a
17
11
145
173
532
412
288
650
650
1,232
1,405
79
166
245
339
7
63
1
410
655
750
750
1,405
3
3
3
647
647
650
i
s
n
o
i
t
i
s
u
q
c
a
r
e
h
t
O
i
s
s
e
n
s
u
b
d
n
a
s
n
o
i
t
a
n
b
m
o
c
i
l
a
t
o
T
31
11
147
189
1
1,472
482
509
2,463
2,652
86
171
257
497
14
78
103
692
949
1,688
15
1,703
2,652
19
20
20
1
1
3
3
4
16
16
20
a
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i
l
í
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g
r
e
n
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U
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B
12
1
13
100
18
157
275
288
4
4
67
15
99
181
185
103
103
288
ENI ANNUAL REPORT 2022
267
The qualitative factors that make up the goodwill recognized
within the Plenitude business line are disclosed in Note 14 –
Intangible assets.
For transactions where the purchase allocations are provisional
as of December 31, 2022, not all relevant information has been
obtained by the Company in order to finalize related estimates of
the fair values of certain assets and liabilities acquired.
Information about the definitive purchase price allocation of
business combinations made in 2021 is provided in note 27 –
Other Information.
Divestments
In 2022 Eni finalized divestments for a total consideration of
€10 million and acquisition of interests in joint ventures of
€5,726 million, dismissing net financial liabilities for €2,085
million, of which cash and cash equivalents for €70 million.
On August 1st, 2022, bp and Eni finalized the establishment of
Azule Energy Holdings Ltd, a 50/50 joint venture combining
the two partners’ Angolan hydrocarbon exploration and
production assets. The transaction resulted in the loss of
control of Eni Angola SpA, Eni Angola Exploration BV and
Eni Angola Production BV which were contributed to Azule
Energy Holdings Ltd in exchange of a 50% stake in the new
entity and, consequently, determined the derecognition of net
assets and liabilities of €5,183 million, of which net financial
liabilities of €1,756 million including cash and cash equivalents
of €35 million. It was determined that the fair value of these
shares at the date of the transaction was €7,130 million, and
the transaction resulted in a gain on disposal of €3,556 million,
of which €1,778 million (50%) has been eliminated against the
investment on the balance sheet and will be amortised over
time. This resulted in a carrying amount of the investment of
€5,352 million at the date of the transaction. A gain from the
reversal of the reserve for exchange rate differences of €764
million was also recognized. Further, a former intercompany
operating receivable financing to Azule Energy Holdings Ltd
in the amount of €1,609 million was recognized upon loss of
control; €1,310 million of this loan was repaid within 2022.
On October 14, 2022, Eni disposed of 100% of the consolidated
company Eni North Sea Wind Ltd which owned a 20% interest
in the Dogger Bank A, B and C projects in the United Kingdom to
the Norwegian joint venture Vårgrønn AS (Eni’s interest 65%).
The three phases of the project (A, B and C) provide for a total
installed capacity of 3.6 GW (720 MW in Vårgrønn’s interest). The
transaction resulted in the loss of control of Eni North Sea Wind Ltd
which was contributed to Vårgrønn AS and the derecognition of net
assets and liabilities of €368 million, of which net financial liabilities
of €363 million, the recognition of an investment in Vårgrønn AS
for €374 million, a gain of €74 million including the reversal to the
income statement of the effects recognized in the comprehensive
income reserves of €68 million, of which a loss from the reversal of
the reserve for exchange rate differences of €33 million.
On December 29, 2022, Eni disposed of the stakes in the Pakistan
operations to Prime International Oil & Gas Company, the main
Pakistan power producer. The assets sold consisted of investments in
eight gas development and production licenses in the Kithar Fold Belt
and Middle Indus basins and four exploration licenses in the Middle
Indus and Indus Offshore basins. The sale involved Eni AEP Ltd, Eni
Pakistan Ltd, Eni Pakistan (M) Ltd Sàrl and Eni New Energy Pakistan
(Private) Ltd and, consequently, determined the derecognition
of net liabilities of €1 million, of which net financial assets of €27
million including cash and cash equivalents of €28 million, and the
recognition in the income statement of a gain from the reversal of the
reserve for exchange rate differences of €86 million.
Balance sheet values of the divestments and/or business
combinations realized in 2022 are shown in the following table:
(€ million)
Cash and cash equivalents
Current financial assets
Other current assets
Current assets
Property, plant and equipment
Other non-current assets
Non-current assets
TOTAL ASSETS
Current financial liabilities
Other current liabilities
Current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
TOTAL LIABILITIES
Equity attributable to Eni
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
y
g
r
e
n
E
e
u
z
A
l
d
t
L
s
g
n
d
o
H
l
i
35
221
1,266
1,522
4,358
3,512
7,870
9,392
302
990
1,292
1,710
632
528
47
2,917
4,209
5,183
5,183
9,392
S
A
n
n
ø
r
g
r
å
V
731
731
731
173
173
190
190
363
368
368
731
n
i
s
t
e
s
s
A
n
a
t
s
k
a
P
i
28
106
134
9
7
16
150
58
58
1
75
17
93
151
(1)
(1)
150
s
t
n
e
m
t
s
e
v
i
d
7
r
e
h
t
O
5
12
1
1
13
3
3
1
1
4
9
9
l
a
t
o
T
70
221
1,377
1,668
4,368
4,250
8,618
10,286
475
1,051
1,526
1,901
707
528
65
3,201
4,727
5,559
5,559
13
10,286
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
268
6 Cash and cash equivalents
Cash and cash equivalents of €10,155 million (€8,254 million
at December 31, 2021) included financial assets with maturity
of up to three months at the date of inception amounting to
€6,804 million (€5,496 million at December 31, 2021) and mainly
included deposits with financial institutions, having notice of
more than 48 hours.
Expected credit losses on deposits with banks and financial
institutions measured at amortized cost were immaterial.
Cash and cash equivalents mainly consisted of deposits in euros
(€5,143 million) and in US dollars (€4,134 million) representing
the use of cash on hand in the market for the financial needs of
the Group.
Restricted cash amounted to approximately €97 million (€115
million at December 31, 2021) in relation to foreclosure measures
by third parties and obligations relating to the payment of debts.
The average maturity of financial assets originally due within
3 months was 12 days with an effective interest rate of 1.75%
for bank deposits in euros (€3,631 million) and 21 days with an
effective interest rate of 4.43% for bank deposits in U.S. dollars
(€2,581 million).
7 Financial assets at fair value through profit or loss
(€ million)
Financial assets held for trading
Bonds issued by sovereign states
Other
Other financial assets at fair value through profit or loss
Other
December 31, 2022 December 31, 2021
1,244
5,243
6,487
1,764
8,251
1,149
5,152
6,301
6,301
The Company has established a liquidity reserve as part of its
internal targets and financial strategy with a view of ensuring
an adequate level of flexibility to the Group development
plans and of coping with unexpected fund requirements or
difficulties in accessing financial markets. The management
of this liquidity reserve is performed through trading activities
with the aim of optimizing returns, within a predefined and
authorized level of risk threshold, targeting the preservation
of the invested capital and the ability to promptly convert it
into cash.
Financial assets held for trading include securities subject to
lending agreements of €1,090 million (€1,398 million at December
31, 2021).
The breakdown by currency is provided below:
(€ million)
Financial assets held for trading
Euro
U.S. dollars
Other currencies
Other financial assets at fair value through profit or loss
Euro
U.S. dollars
December 31, 2022 December 31, 2021
3,599
2,885
3
6,487
1,201
563
1,764
8,251
3,913
2,336
52
6,301
6,301
ENI ANNUAL REPORT 2022
The breakdown by issuing entity and credit rating is presented below:
Quoted bonds issued by sovereign states
Fixed rate bonds
Italy
United States of America
Spain
Chile
France
Germany
Other(*)
Floating rate bonds
Italy
Other
269
’
s
y
d
o
o
M
-
g
n
i
t
a
R
Baa3
Aaa
Baa1
A2
Aa2
Aaa
P
&
S
-
g
n
i
t
a
R
BBB
AA+
A
A
AA
AAA
l
e
u
a
V
r
i
a
F
)
n
o
i
l
l
i
m
€
(
148
300
179
120
76
60
147
from Aaa to A3
from AAA to A-
l
e
u
a
v
l
i
a
n
m
o
N
)
n
o
i
l
l
i
m
€
(
152
301
179
125
75
60
149
1,041
1,030
205
7
212
207
7
214
Baa3
Aaa
BBB
AAA
Total quoted bonds issued by sovereign states
1,253
1,244
Other Bonds
Fixed rate bonds
Quoted bonds issued by industrial companies
Quoted bonds issued by financial and insurance companies
Other bonds
Floating rate bonds
Quoted bonds issued by industrial companies
Quoted bonds issued by financial and insurance companies
Other bonds
Total other bonds
Total other financial assets held for trading
Other financial assets at fair value through profit or loss
(*) Amounts included herein are lower than €50 million.
1,210
804
1,041
3,055
643
998
610
2,251
5,306
6,559
1,781
8,340
1,195
from Aa1 to Baa3
from AA+ to BBB-
762
from Aaa to Baa3 from AAA to BBB-
1,039
from Aaa to Baa3 from AAA to BBB-
2,996
647
from Aa2 to Baa3
from AA to BBB-
988
from Aa1 to Baa3
from AA+ to BBB-
612
from Aaa to Baa2
from AAA to BBB
2,247
5,243
6,487
1,764
8,251
Aaa
AAA
Other financial assets at fair value through profit or loss
consisted of investments in Money Market funds.
The fair value hierarchy is level 1 for €4,749 million and
level 2 for €3,502 million. During 2022, there were no
significant transfers between the different hierarchy levels
of fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
270
8 Trade and other receivables
(€ million)
Trade receivables
Receivables from divestments
Receivables from joint ventures in exploration and production activities
Other receivables
December 31, 2022 December 31, 2021
16,556
301
1,645
2,338
20,840
15,524
8
1,888
1,430
18,850
Generally, trade receivables do not bear interest and provide
payment terms within 180 days.
The increase in trade receivables of €1,032 million referred to
the segments Refining & Marketing and Chemical for €408
million, Plenitude & Power for €313 million, Global Gas & LNG
Portfolio for €350 million, and reflected the noticeable increase
in the prices of energy commodities which increased the
nominal value of the receivables.
At December 31, 2022, Eni divested without recourse receivables
due in 2023 with a nominal value of €2,212 million (€2,059
million at December 31, 2021 due in 2022). Derecognized
receivables in 2022 related to the segments Global Gas & LNG
Portfolio for €970 million, Refining & Marketing and Chemical
segment for €928 million and Plenitude & Power segment for
€314 million.
At December 31, 2022, a trade receivable for the supply of
natural gas to the customer Acciaierie d’Italia (ex-ILVA) was
outstanding for an amount of €373 million, past due and
subject to a repayment plan. A parent company guarantee has
been issued by the shareholders of the debtor, which cover the
entire amount of the receivable. A risk provision was accrued
to account for the time value of the receivable and other
counterparty risks, reflecting a higher probability of default of
commercial partners in the current economic environment.
Receivables from joint ventures in exploration and production
activities included amounts past due of €611 million (€681
million at December 31, 2021) in connection with Eni’s activities
in Nigeria. Those receivables were in respect to the share of
development costs of the joint operators in oil projects operated
by Eni, where the Company was bearing upfront all the costs
of the initiative and was billing the partners’share through a
cash call mechanism. At the balance sheet date, the overdue
amount relating to net receivables due to Eni by the Nigerian
state oil company NNPC was €475 million (€474 million at
December 31, 2021). Approximately a quarter of this amount
related to past receivables covered by a repayment plan which
was awarding Eni the share of profit oil of the state-owned
company in low-risk “rig-less” development initiatives with total
collection expected by 2024. The residual credit at the end of
the year has been discounted. The remaining amounts relate to
the net receivables accrued for 2022 operations.
In 2022, a cash call exposure towards a privately held
items. The
Nigerian oil company amounted to €242 million (€195 million
at December 31, 2021), whose amounts were stated net of a
provision based on the loss given default (LGD) estimated by
Eni for defaulting international oil companies. During 2022, the
partner suspended the payments of the cash calls, claiming
inaccuracy of the billed amounts. Arbitration procedures have
been started for the resolution of the dispute.
Receivables from other counterparties comprised several
largest amounts were: (i) the
miscellaneous
recoverable amount of €566 million (€538 million at December
31, 2021) of overdue trade receivables owed to Eni by the state-
owned oil company of Venezuela, PDVSA, in relation to equity
volumes of natural gas supplied by the joint venture Cardón IV,
equally participated by Eni and Repsol. Those trade receivables
were divested by the joint venture to the two shareholders.
The receivables were stated net of an allowance for doubtful
accounts, calculated with an expected credit loss rate of about
53% to discount the sovereign default risk assuming a structural
delay in collecting natural gas invoices. This risked ratio was
applied to assess recoverability of the carrying amount of
the investment and of the long-term interest in the initiative,
as described in note 17 – Other financial assets. During the
year, under the approval of US authorities within the context of
the sanctions framework against Venezuela, receivable from
offsetting-transaction operations were carried out by lifting
crude oil volumes of PDVSA for 3.1 million barrels, thus capping
the expected increase in overdue amounts; (ii) €309 million of
receivables owed to Eni by Italian local distributors of natural
gas and electricity to account for the financial support granted
by the Italian State to low-income households by reducing the
burden of energy bills, resulting in the Company collecting
lower amounts than what has been billed to natural gas and
electricity customers with the balance due to be reimbursed by
distributors; (iii) prepayments for services of €278 million (€208
million at December 31, 2021); (iv) €239 million of the amounts
to be received from customers following the triggering of the
take-or-pay clause of long-term natural gas supply contracts;
(v) €193 million of receivables from factoring companies. The
remaining amount was composed of miscellaneous balances
for approximately €753 million.
Trade and other receivables stated in euro and U.S. dollars
amounted to €13,650 million and €6,102 million, respectively.
ENI ANNUAL REPORT 2022 271
Credit risk exposure and expected losses relating to trade and other receivables has been prepared on the basis of internal ratings as
follows:
(€ million)
December 31, 2022
Business customers
National Oil Companies and Public Administrations
Other counterparties
Gross amount
Allowance for doubtful accounts
Net amount
Expected loss (% net of counterpart risk mitigation factors)
December 31, 2021
Business customers
National Oil Companies and Public Administrations
Other counterparties
Gross amount
Allowance for doubtful accounts
Net amount
Expected loss (% net of counterpart risk mitigation factors)
Performing receivables
Low risk
Medium
Risk
High Risk
Defaulted
receivables
Plenitude
customers
Total
4,815
7,970
378
215
1,673
6,703
(23)
852
725
9,547
(169)
6,680
9,378
0.4
1.8
4,348
6,628
331
1,854
6,533
(25)
884
311
7,823
(416)
6,508
7,407
0.4
5.3
13
391
(15)
376
3.8
818
1
16
835
(69)
766
8.3
1,583
2,248
122
3,953
(2,176)
1,777
55.0
1,560
2,674
137
4,371
(2,209)
2,162
50.5
14,746
3,315
5,733
3,200
3,200
23,794
(571)
(2,954)
2,629
20,840
17.8
12.4
13,354
3,890
4,919
2,601
2,601
22,163
(594)
(3,313)
2,007
18,850
22.8
14.9
The classification of
the Company’s customers and
counterparties and the definition of the classes of counterparty
risk are disclosed in note 1 – Significant accounting policies,
estimates and judgments.
The assessments of the recoverability of trade receivables for the
supply of hydrocarbons, products and power to retail, business
customers and national oil companies and of receivables
towards joint operators of the Exploration & Production segment
for cash calls (national oil companies, local private operators or
international oil companies) are reviewed at each annual deadline
to reflect the current economic environment and business
trends, as well as any possible increase in the counterparty risks.
The gradual recovery of worldwide economies from the fallout
caused by COVID-19 crisis and the improvement in the oil scenario
have lessened the debt burden of many state oil companies,
with the exception of Venezuela due to specific factors relating
to the sanctioning framework. On the other hand, the significant
increase in the prices of natural gas and electricity significantly
increased the Company’s exposures towards large industrial
accounts, requiring an upward revision in the credit loss rate to
incorporate an increased economic risk. With regard to customers
of the Plenitude business line, the recoverability assessment was
based on the most updated information relating the performance
in credit collection and the ageing of overdue amounts.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
272
The exposure to credit risk and expected losses relating to customers of Plenitude was assessed based on a provision matrix as follows:
Not-past due
from 0
to 3 months
from 3
to 6 months
from 6
to 12 months
over
12 months
Total
Ageing
(€ million)
December 31, 2022
Plenitude customers:
- Retail
- Middle
- Other
Gross amount
Allowance for doubtful accounts
Net amount
Expected loss (%)
December 31, 2021
Plenitude customers:
- Retail
- Middle
- Other
Gross amount
Allowance for doubtful accounts
Net amount
Expected loss (%)
1,508
657
436
2,601
(83)
2,518
3.2
1,291
424
57
1,772
(63)
1,709
3.6
74
33
1
108
(31)
77
28.7
70
22
43
135
(22)
113
16.3
35
11
5
51
(31)
20
60.8
55
5
6
66
(27)
39
40.9
63
7
4
74
(66)
8
89.2
92
7
1
100
(52)
48
52.0
The following table analyses the allowance for doubtful accounts for trade and other receivables:
(€ million)
Allowance for doubtful accounts - beginning of the year
Additions for trade and other performing receivables
Additions for trade and other defaulted receivables
Utilizations for trade and other performing receivables
Utilizations for trade and other defaulted receivables
Other changes
Allowance for doubtful accounts - end of the year
The allowance
for doubtful accounts was determined
considering mitigation factors of the counterparty risk amounting
to €5,744 million (€5,350 million at December 31, 2021), which
included escrow accounts, insurance policies, sureties and bank
guarantees.
Additions to allowance for doubtful accounts for trade and
other performing receivables related to: (i) the Global Gas &
LNG Portfolio segment for €70 million (€94 million in 2021) as a
consequence of the noticeable increase in the exposure due to
market conditions; (ii) the Plenitude business line for €61 million
(€71 million in 2021), mainly in the retail business.
Additions to allowance for doubtful accounts for trade and other
defaulted receivables related to: (i) the Exploration & Production
segment for €122 million (€229 million in 2021) for receivables
towards joint operators, state oil companies and local private
companies for cash calls in oil projects operated by Eni; (ii) to
the Plenitude business line for €99 million (€101 million in 2021),
particularly in the retail business.
Utilizations of allowance for doubtful accounts for trade and
other performing and defaulted receivables amounted to €795
million and mainly related to: (i) the Exploration & Production
segment for €455 million of unused provisions primarily due
to the settlement of a dispute relating to the recognition of
past investment costs by the state-owned company NNPC in
Nigeria, which were completely provisioned in previous reporting
periods. Other utilizations were made to consider the in-kind
reimbursement of part of the overdue receivables owed to Eni
by the state-owned company PDVSA in Venezuela during the
year; (ii) the Plenitude business line for €184 million, in particular
utilizations against charges of €121 million.
203
162
1
366
(360)
6
98.4
337
188
3
528
(430)
98
81.4
2022
3,313
166
253
(37)
(758)
17
2,954
1,883
870
447
3,200
(571)
2,629
17.8
1,845
646
110
2,601
(594)
2,007
22.8
2021
3,157
202
348
(135)
(421)
162
3,313
ENI ANNUAL REPORT 2022 Allowance for doubtful accounts
(€ million)
December 31, 2022
Plenitude customers:
- Retail
- Middle
- Other
Gross amount
Net amount
Expected loss (%)
December 31, 2021
Plenitude customers:
- Retail
- Middle
- Other
Gross amount
Net amount
Expected loss (%)
Allowance for doubtful accounts
Not-past due
to 3 months
to 6 months
to 12 months
12 months
Total
from 0
from 3
from 6
over
Ageing
1,508
657
436
2,601
(83)
2,518
3.2
1,291
424
57
1,772
(63)
1,709
3.6
74
33
1
108
(31)
77
28.7
70
22
43
135
(22)
113
16.3
35
11
5
51
(31)
20
60.8
55
5
6
66
(27)
39
40.9
63
7
4
74
(66)
8
89.2
92
7
1
100
(52)
48
52.0
203
162
1
366
(360)
6
98.4
337
188
3
528
(430)
98
81.4
1,883
870
447
3,200
(571)
2,629
17.8
1,845
646
110
2,601
(594)
2,007
22.8
273
Net (impairments) reversals of trade and other receivables are disclosed as follows:
(€ million)
New or increased provisions
Net credit losses
Reversals
Net (impairments) reversals of trade and other receivables
2022
(419)
(81)
547
47
2021
(550)
(66)
337
2020
(343)
(36)
153
(279)
(226)
Receivables with related parties are disclosed in note 36 – Transactions with related parties.
9 Current and non-current inventories
Current inventories are disclosed as follows:
(€ million)
Raw and auxiliary materials and consumables
Components and spare parts for drilling operations, plans and equipment
Finished products and goods
Other
Current inventories
December 31, 2022 December 31, 2021
1,228
1,515
4,962
4
7,709
1,001
1,611
3,452
8
6,072
Raw and auxiliary materials and consumables include oil-
based feedstock and other consumables pertaining to refining
and chemical activities.
Components to be consumed in drilling activities and spare
parts of the Exploration & Production segment amounted to
€1,387 million (€1,481 million at December 31, 2021).
Finished products and goods included natural gas and oil
products for €3,818 million (€2,414 million at December 31,
2021) and chemical products for €790 million (€626 million at
December 31, 2021).
Inventories are stated net of write-down provisions of €672
million (€570 million at December 31, 2021).
Non-current inventories of €1,786 million (€1,053 million
at December 31, 2021) are held for compliance purposes
and related to Italian subsidiaries for €1,764 million (€1,032
million at December 31, 2021) in accordance with minimum
stock requirements for oil and petroleum products set forth
by applicable laws.
The increase in current and non-current inventories was
essentially due to the recovery in oil and hydrocarbons
prices.
Natural gas inventories of €750 million were pledged to
guarantee the potential imbalance exposure towards Snam
SpA.
10 Income tax receivables and payables
(€ million)
Income taxes
Current Non-current
Current Non-current
Current Non-current
Current Non-current
317
114
2,108
253
195
108
648
374
December 31, 2022
December 31, 2021
Receivables
Payables
Receivables
Payables
Income taxes are described in note 33 — Income taxes.
Non-current income tax payables include the likely outcome of
pending litigation with tax authorities in relation to uncertain
tax matters relating to foreign subsidiaries of the Exploration
& Production segment for €206 million (€230 million at
December 31, 2021).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 274
11 Other assets and liabilities
December 31, 2022
December 31, 2021
Assets
Liabilities
Assets
Liabilities
(€ million)
Current Non-current
Current Non-current
Current Non-current
Current Non-current
Fair value of derivative financial instruments
11,076
129
Contract liabilities
Other Taxes
Other
807
938
12,821
157
1,950
2,236
9,042
1,145
1,463
823
12,473
286
706
34
2,208
3,234
12,460
51
12,911
442
732
182
796
482
1,435
928
13,634
1,029
15,756
115
726
27
1,378
2,246
The fair value related to derivative financial instruments is
disclosed in note 24 – Derivative financial instruments and
hedge accounting.
Assets related to other taxes included VAT for €569 million,
of which €432 million are current, and advances made in
December (€498 million at December 31, 2021, of which €340
million current).
Other assets included: (i) Tax credits current of €366 million
(€110 million at December 31, 2021) and non-current of €903
million (€324 million at December 31, 2021) deriving from certain
Italian tax measures to incentivize the renovation of residential
buildings and energy saving by entitling contractors with a credit
equal to the whole amount of works. The activity of building
renovation was being performed by the subsidiary Plenitude
who has been acting as lead contractor in many of those works.
Those tax credits can be used to offset the settlement of income
and other taxes; (ii) gas volumes prepayments that were made
in previous years due to the take-or-pay obligations in relation
to the Company’s long-term supply contracts, whose underlying
current portion Eni plans to recover within the next 12 months
for €41 million (same amount as of December 31, 2021), and
beyond 12 months for €357 million (€94 million at December
31, 2021); (iii) current underlifting positions of the Exploration &
Production segment of €239 million (€316 million at December
31, 2021); (iii) non-current receivables for investing activities
for €23 million (same amount as of December 31, 2021). The
remaining amount was composed of miscellaneous items, of
which €292 million current and €667 million non current.
(i) advances received from
Contract
customers for future gas supplies for €538 million (€77 million
at December 31, 2021); (ii) advances received from Società
Oleodotti Meridionali SpA for the infrastructure upgrade of the
crude oil transport system at the Taranto refinery for €430 million
(€391 million at December 31, 2021); (iii) prepaid electronic fuel
vouchers for €338 million (€242 million at December 31, 2021);
(iv) advances received from Engie SA (former Suez) relating to
a long-term agreement for supplying natural gas and electricity.
included:
liabilities
The current portion amounted to €58 million (€60 million at
December 31, 2021), the non-current portion amounted to €275
million (€333 million at December 31, 2021). The remaining
amount was composed of miscellaneous items, essentially
current, of €212 million.
Revenues recognized during the year related to contract
liabilities stated at December 31, 2022 are indicated in note 29
– Revenues and other income.
Liabilities related to other current taxes include excise duties
and consumer taxes for €613 million (€700 million at December
31, 2021) and VAT liabilities for €332 million (€248 million at
December 31, 2021).
Other liabilities included: (i) non-current payables to factoring
companies connected with the transfer of the abovementioned
tax credit for €758 million (€240 million at December 31,
2021); (ii) current overlifting imbalances of the Exploration &
Production segment for €479 million (€630 million at December
31, 2021); (iii) the value of gas paid and undrawn by customers
due to the triggering of the take-or-pay clause provided for by
the relevant long-term contracts for €443 million (€112 million
at December 31, 2021), of which the underlying volumes are
expected to be drawn within the next 12 months for €85 million
(€73 million at December 31, 2021) and beyond 12 months for
€358 million (€39 million at December 31, 2021); (iv) prepaid
revenues and deferred income of which current for €104 million
(€90 million at December 31, 2021) and non-current for €247
million (€271 million at December 31, 2021); (v) non-current
cautionary deposits for €305 million (€268 million at December
31, 2021), of which €222 million from retail customers for the
supply of gas and electricity (€223 million at December 31,
2021); (vi) payables related to investing activities for €83 million
(€103 million at December 31, 2021) of which non-current for
€79 million and current for €4 million. The remaining amount
was composed of miscellaneous items, of which €151 million
current and €461 million non-current.
Transactions with related parties are described in note 36 —
Transactions with related parties.
ENI ANNUAL REPORT 2022
12 Property, plant and equipment
n
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1,071
22
(51)
3
(21)
(1)
2
9
(1)
41
14
1,088
4,255
3,167
42,342
132
(5,467)
40
(313)
2,422
(173)
650
(3,687)
4,403
143
40,492
143,433
102,941
1,128
18
39,648
8
(49)
(5,421)
(101)
(1)
2
22
50
2
1,071
4,175
3,104
1,080
(90)
2,956
200
3,841
120
42,342
149,117
106,775
3,850
456
(554)
191
(485)
(2)
55
2
695
(6)
425
(347)
4,280
31,327
27,047
3,299
277
(496)
118
(768)
(2)
66
1,001
409
(54)
3,850
30,618
26,768
1,244
655
11
(365)
74
(7)
(119)
(149)
1
1,345
1,345
1,341
380
28
(331)
106
(9)
(199)
(44)
(28)
1,244
1,244
6,545
5,471
179
141
(149)
(218)
364
98
(546)
(4,254)
(4)
7,627
11,787
4,160
7,118
3,413
90
337
(85)
(18)
546
4
(1,119)
(3,797)
56
6,545
10,485
3,940
1,247
964
38
(414)
9
118
(466)
4
1,500
3,665
2,165
1,409
854
(582)
12
43
(459)
(30)
1,247
3,107
1,860
(€ million)
2022
Net carrying amount - beginning of the year
Additions
Depreciation capitalized
Depreciation(*)
Reversals
Impairments
Write-off
Currency translation differences
Initial recognition and changes in estimates
Changes in the scope of consolidation - included entities
Changes in the scope of consolidation - excluded entities
Transfers
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for depreciation and impairments
2021
Net carrying amount - beginning of the year
Additions
Depreciation capitalized
Depreciation(*)
Reversals
Impairments
Write-off
Currency translation differences
Initial recognition and changes in estimates
Changes in the scope of consolidation
Transfers
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for depreciation and impairments
(*) Before capitalization of depreciation of tangible assets.
275
l
a
t
o
T
56,299
7,700
190
(6,072)
413
(1,382)
(586)
2,926
(80)
1,472
(4,359)
(189)
56,332
195,812
139,480
53,943
4,950
118
(5,966)
1,535
(1,626)
(352)
3,688
195
(252)
66
56,299
198,746
142,447
Capital expenditures included capitalized finance expenses of
€38 million (€68 million in 2021) related to the Exploration &
Production segment for €22 million (€54 million in 2021) at an
interest rate of 2.1% (0.4% to 2.1% at December 31, 2021).
Capital expenditures primarily related to the Exploration &
Production segment for €6,295 million (€3,843 million in
2021).
Expenditures to purchase plant and equipment from suppliers
whose payment terms matched classification as financing
payables, have been recognized among other changes (€61
million).
Capital expenditures by industry segment and geographical
area of destination are reported in note 35 – Segment
information and information by geographical area.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
276
Depreciation other than that of Oil & Gas plants, relating to
biorefineries, petrochemical plants, thermoelectric plants,
photovoltaic or wind power systems, and other ancillary
assets are calculated on a straight-line basis, based on
their economic-technical lives. The main depreciation rates
adopted are included in the following ranges and have
remained unchanged compared to 2021:
(%)
Buildings
Refining and chemical plants
Gas pipelines and compression stations
Power plants
Other plant and machinery
Industrial and commercial equipment
Other assets
2 - 10
3 - 17
4 - 12
3 - 5
6 - 12
5 - 25
10 - 20
Plants and equipment used in the extraction and treatment of
hydrocarbons were depreciated according to the UOP method,
where depreciation depends on production of the estimated
proved reserves according to the US Securities & Exchange
Commission “SEC” criteria (see note 1 – Accounting standards,
accounting estimates and significant
judgements, section
Valuation criteria – Mining activity – UOP depreciation). The
production plans associated with the existing assets would
gradually deplete the SEC proved reserves recorded at the
balance sheet date, which are expected to be produced within
about ten years.
Asset impairment losses were recognized at petrochemical
plants for production of basic chemicals and intermediates
(€385 million) due to lower future expected cash flows driven
by a deteriorated industry outlook and Oil & Gas properties
(€279 million) due to downward reseves and costs revisions.
Pre-development costs related to projects considered no longer
economical (€190 million) were written-off, as expenditures
incurred for compliance and stay-in-business at CGUs of the
refining sector, which were impaired in previous reporting
periods and continued lacking any profitability prospects (€330
million). More information about Eni’s impairment review and the
sensitivity of the outcome to different commodities scenarios is
reported in note 15 – Reversals (Impairments) of tangible and
intangible assets and right-of-use assets.
Currency translation differences related to subsidiaries utilizing
the U.S. dollar as functional currency (€2,971 million).
Initial recognition and change in estimates include the decrease
in the asset retirement cost of the tangible assets of the
Exploration & Production sector, mainly due to discounting
factors and the derecognition of the activities in Angola, partially
offset by revised estimates of future decommissioning and
restoration costs and recognition of social projects costs to be
incurred in relation to the commitments undertaken between Eni
SpA and the Basilicata region in relation to the oil development
program in the Val d’Agri concession area.
Changes in the scope of consolidation related: (i) for €4,358
million to the derecognition of Eni Angola SpA, Eni Angola
Exploration BV and Eni Angola Production BV which were
contributed to the joint venture Azule Energy Holdings Ltd; (ii)
for €650 million to the acquisition of the company Export LNG
Ltd, owner of the Tango FLNG floating liquefaction vessel that
is expected to be deployed in Congo, as part of a natural gas
development project in Block Marine XII; (iii) to the acquisition
for €532 million of PLT Energia Srl and SEF Srl engaged in the
production of electricity from renewable sources and in the
supply of energy to retail customers; (iv) for €189 million to
the companies acquired as part of the Corazon and Guajillo
projects; (iv) for €100 million to the acquisition of the company
Energía Eólica Boreas SLU. More information on business
combinations is provided in note 5 – Business combinations
and other significant transactions.
Other changes in other tangible assets related for €169 million
to the definitive allocation of the purchase price of some
acquisitions made in previous year for which the allocation of
the price was made on a provisional basis.
Transfers from E&P tangible assets in progress to E&P UOP
wells, plant and equipment related for €4,190 million to the
commissioning of wells, plants and machinery primarily in United
States, Mexico, Egypt, Kazakhstan, Congo, Iraq, Italy and Nigeria.
In 2022, exploration and appraisal activities decreased by
€365 million due to the write-offs of the capitalized costs of
exploration wells in progress and completed pending economic
and technical evaluation which were found to be unsuccessful,
relating to initiatives in Libya, Egypt, Ivory Coast, Vietnam and
Kenya.
ENI ANNUAL REPORT 2022 277
Exploration and appraisal activities related for €1,085 million
to the costs of suspended exploration wells pending final
determination of commerciality based on management’s
continuing commitment and for €253 million to costs of
exploration wells in progress at the end of the year. Changes
relating to suspended wells are reported below:
(€ million)
Costs for exploratory wells suspended - beginning of the year
Increases for which is ongoing the determination of proved reserves
Amounts previously capitalized and expensed in the year
Reclassification to successful exploratory wells following the estimation of proved reserves
Disposals
Changes in the scope of consolidation
Currency translation differences
Other changes
Costs for exploratory wells suspended - end of the year
2022
1,101
547
(374)
(147)
(2)
(114)
65
9
1,085
2021
1,268
288
(286)
(43)
(3)
(199)
100
(24)
1,101
2020
1,246
408
(226)
(48)
(112)
1,268
The following information relates to the stratification of the suspended wells pending final determination (ageing):
Costs capitalized and suspended for exploratory well activity
- within 1 year
- between 1 and 3 years
- beyond 3 years
Costs capitalized for suspended wells
- fields including wells drilled over the last 12 months
- fields for which the delineation campaign is in progress
- fields including commercial discoveries that are progressing to a FID
2022
2021
2020
(€ million)
(number of wells
in Eni’s interest)
(€ million)
(number of wells
in Eni’s interest)
(€ million)
(number of wells
in Eni’s interest)
216
246
623
1,085
204
579
302
1,085
5.0
4.9
13.9
23.8
4.5
11.3
8.0
23.8
175
269
657
1,101
175
567
359
1,101
4.0
12.2
19.7
35.9
4.0
17.9
14.0
35.9
157
250
861
1,268
157
631
480
1,268
6.7
11.0
19.3
37.0
6.7
14.9
15.4
37.0
Suspended wells costs awaiting a final investment decision amounted
to €302 million and primarily related to initiatives in the main countries
of presence (Nigeria, Egypt, Indonesia, Congo and Algeria).
Unproved mineral interests, comprised in assets in progress of
the Exploration & Production segment, include the purchase price
allocated to unproved reserves following business combinations or
acquisition of individual properties. Unproved mineral interests were
as follows:
(€ million)
2022
Carrying amount - beginning of the year
Additions
Net (impairments) reversals
Reclassification to Proved Mineral Interest
Currency translation differences
Carrying amount - end of the year
2021
o
g
n
o
C
218
(28)
(6)
14
198
a
i
r
e
g
N
i
892
11
55
958
Carrying amount - beginning of the year
203
860
Additions
Net (impairments) reversals
Reclassification to Proved Mineral Interest
Currency translation differences
Carrying amount - end of the year
(1)
16
218
(48)
80
892
i
n
a
t
s
n
e
m
k
r
u
T
3
93
(1)
95
3
3
A
S
U
68
(56)
4
16
114
3
35
(92)
8
68
a
i
r
e
g
A
l
114
110
(19)
6
211
100
6
8
114
t
p
y
g
E
16
(2)
(12)
1
3
18
(2)
(1)
1
16
b
a
r
A
d
e
t
i
n
U
s
e
t
a
r
i
m
E
508
(19)
31
520
468
40
508
y
l
a
t
I
2
l
a
t
o
T
1,819
121
9
(56)
110
2
2,003
1,763
9
35
(141)
153
1,819
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
278
interests comprised the Oil Prospecting
Unproved mineral
License 245 property (“OPL 245”), offshore Nigeria, for €920
million corresponding to the price paid in 2011 to the Nigerian
Government to acquire a 50% interest in the asset. As of December
31, 2022, the net book value of the property was €1,250 million,
including capitalized exploration costs and pre-development
costs. The management considers that the legal risks due to
allegations of international corruption in respect of the Resolution
Agreement signed on April 29, 2011 by Eni to acquire the license
have significantly declined following a favorable outcome of the
judicial proceeding before an Italian court. A proceeding featuring
an alleged indirect involvement of Eni’s subsidiary operating in
Nigeria regarding OPL 245 is still pending before a Nigerian Court
as disclosed in note 28 – Guarantees, Commitments and Risks
– Legal proceedings. The exploration period of the license OPL
245 expired on May 11, 2021. Eni has applied for the conversion
of the license into an Oil Mining Lease (OML) before the relevant
Nigerian authorities to start the development of the reserves,
having verified the contractual requirements and compliance
with all terms and conditions. Given the inaction of the Nigerian
authorities and a continuing deadlock, in 2020 Eni started an
arbitration before an ICSID tribunal, the International Centre for
Settlement of Investment Disputes, to preserve the value of the
investment, claiming compensation of the asset’s fair value.
Eni believes to have solid arguments to support its claims and,
on this basis, management has evaluated the book value of
the assets to be recoverable. The asset recoverability has been
also tested by estimating the asset’s value-in-use assuming its
conversion and the development of the reserves and discounting
the expected cash flows at the country WACC (8%), also stress-
testing the outcome by assuming further delays in the start-up of
the activities.
Accumulated provisions for impairments amounted to €21,715
million (€20,796 million at December 31, 2021).
Property, plant and equipment include assets subject to operating
leases for €380 million, essentially relating to service stations of the
Refining & Marketing business line.
As of December 31, 2022, Eni pledged property, plant and equipment
for €24 million to guarantee payments of excise duties (same
amount as of December 31, 2021).
Government grants recorded as a decrease of property, plant and
equipment amounted to €115 million (€105 million at December
31, 2021).
Contractual commitments related to the purchase of property,
plant and equipment are disclosed in note 28 – Guarantees,
commitments and risks — Liquidity risk.
Property, plant and equipment under concession arrangements are
described in note 28 – Guarantees, commitments and risks.
13 Right-of-use assets and lease liabilities
)
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2,667
1,342
(226)
239
(1,878)
(2)
2,142
2,507
365
2,672
(217)
183
189
(197)
12
(34)
(5)
148
516
368
244
215
(170)
575
530
(303)
(5)
14
10
(39)
(100)
682
1,360
678
446
583
(274)
(25)
11
(166)
575
1,268
693
454
76
(70)
3
(6)
457
734
277
424
104
(63)
(6)
3
(8)
454
666
212
14
28
(13)
(5)
(5)
19
87
68
11
23
(11)
(14)
5
14
66
52
618
108
(130)
3
(1)
(3)
595
1,010
415
652
34
(122)
8
(6)
52
618
948
330
48
21
(21)
(1)
(5)
42
86
44
32
40
(22)
(2)
48
84
36
r
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h
t
O
l
a
t
o
T
262
110
(53)
(7)
73
(24)
361
562
201
162
105
(49)
(14)
6
116
(64)
262
433
171
4,821
2,404
(1,013)
(18)
14
267
(1,879)
(150)
4,446
6,862
2,416
4,643
1,104
(928)
(59)
253
110
(302)
4,821
7,403
2,582
(€ million)
2022
Net carrying amount - beginning of the year
Additions
Depreciation(*)
Impairments
Reversals
Currency translation differences
Changes in the scope of consolidaion
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for depreciation and impairment
2021
Net carrying amount - beginning of the year
Additions
Depreciation(*)
Impairments
Currency translation differences
213
12
Changes in the scope of consolidaion
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for depreciation and impairment
(*) Before capitalization of depreciation of tangible assets.
(1)
2,667
3,366
699
(118)
183
572
389
ENI ANNUAL REPORT 2022
279
Right-of-use assets (RoU) of €4,446 million related: (i) for €2,653
million (€3,195 million at December 31, 2021) to the Exploration
& Production segment and mainly comprised leases of certain
FPSO vessels hired in connection with operations at offshore
development projects in Ghana (OCTP) and Area 1 in Mexico with
an expected term ranging between 17 and 18 years, including a
renewal option as well as multi-year leases of offshore drilling
rigs; (ii) for €800 million (€765 million at December 31, 2021)
to the Refining & Marketing and Chemical segment relating to
highways concessions to market fuels, land leases, leases of
service stations for the sale of oil products, leasing of vessels
for shipping activities and the car fleet dedicated to the car
sharing business; (iii) for €548 million (€541 million at December
31, 2021) to the Corporate and other activities segment mainly
regarding property rental contracts.
The increase recorded in 2022 mainly referred to: (i) the
Exploration & Production segment for €1,835 million relating
to the start of operations of the FPSO vessel operating Area 1
offshore Mexico (€1,342 million), vessels and related logistics
equipments for Oil & Gas transport (€223 million) and the rental of
drilling rigs (€189 million); (ii) the Refining & Marketing business
line for €357 million, relating in particular to the lease of vessels
for shipping and storage activities of Eni Trade & Biofuels SpA
(€252 million), new contracts and extension of existing contracts
relating motorway concessions, land leases, service station
leases and the car fleet dedicated to the car sharing business
(€83 million); (iii) to the Corporate and other activities segment
for €91 million relating to a new aircraft sold and repurchased
through the leaseback agreement (€54 million) and leasing of
assets for staff activities (company cars, IT, real estate) (€33
million); (iv) the Global Gas & LNG Portfolio sector for €82 million
relating to LNG transport vessels (€78 million).
Changes in the scope of consolidation referred for €1,952 million
to the derecognition of the Angolan companies transferred to
the JV Azule Energy Holdings Ltd and positive €73 million to
the consolidation of the companies acquired from the Plenitude
business line.
The main leasing contracts signed for which the asset is not yet
available concern: (i) a contract with a nominal value of €437
million relating to leasing of office buildings with an expiry date
of 20 years including an extension option of 6 years; (ii) storage
capacity and time charter vessels rental contracts of €268
million; (iii) contracts relating to new drilling rigs for €188 million.
Main future cash outflows potentially due not reflected in the
measurements of lease liabilities related to: (i) options for the
extension or termination of lease for office buildings of €1,180
million; (ii) extension options related to service stations for the sale
of oil products of €121 million; (iii) other extension options related
to ancillary assets in the upstream business for €168 million.
Liabilities for leased assets were as follows:
(€ million)
2022
Carrying amount - beginning of the year
Additions
Decreases
Currency translation differences
Changes in the scope of consolidation
Other changes
Carrying amount - end of the year
2021
Carrying amount - beginning of the year
Additions
Decreases
Currency translation differences
Changes in the scope of consolidation
Other changes
Carrying amount - end of the year
n
o
i
t
r
o
p
t
n
e
r
r
u
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m
r
e
t
-
g
n
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t
-
g
n
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L
948
(980)
43
(299)
1,172
884
849
(934)
38
14
981
948
4,389
2,401
(14)
242
(1,654)
(1,297)
4,067
4,169
1,102
(5)
231
89
(1,197)
4,389
5,337
2,401
(994)
285
(1,953)
(125)
4,951
5,018
1,102
(939)
269
103
(216)
5,337
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
280
Lease liabilities related for €494 million (€1,684 million at
December 31, 2021) to the portion of the liabilities attributable to
joint operators in Eni-led projects which will be recovered through
the mechanism of the cash calls.
Total cash outflows for leases consisted of the following: (i) cash
payments for the principal portion of the lease liability for €994
million; (ii) cash payments for the interest portion of €315 million.
Lease liabilities stated in U.S. dollars and euro amounted to
€3,296 million and €1,491 million, respectively.
liabilities
in right-of-use assets and
Other changes
essentially related to early termination or renegotiation of lease
contracts.
lease
Liabilities for leased assets with related parties are described in
note 36 — Transactions with related parties.
The amounts recognised in the profit and loss account consist
of the following:
(€ million)
Other income and revenues
Income from remeasurement of lease liabilities
Purchases, services and other
Short-term leases
Low-value leases
Variable lease payments not included in the measurement of lease liabilities
Capitalized direct cost associated with self-constructed assets - tangible assets
Depreciation and impairments
Depreciation of RoU leased assets
Capitalized direct cost associated with self-constructed assets - tangible assets
Impairments of RoU leased assets
Reversals of RoU leased assets
Finance income (expense) from leases
Interests on lease liabilities
Capitalized finance expense of RoU leased assets - tangible assets
Net currency translation differences on lease liabilities
2022
2021
2020
6
6
113
27
14
(5)
149
1,013
(186)
18
(14)
831
(315)
8
(4)
(311)
18
18
85
31
14
(4)
126
928
(110)
59
877
(304)
5
(34)
(333)
12
12
67
37
7
(2)
109
928
(96)
47
879
(347)
7
24
(316)
ENI ANNUAL REPORT 2022
14 Intangible assets
(€ million)
2022
Net carrying amount - beginning of the year
Additions
Amortization
Impairments
Write-off
Changes in the scope of consolidation
Currency translation differences
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for amortization and impairment
2021
Net carrying amount - beginning of the year
Additions
Amortization
Impairment
Reversals
Write-off
Changes in the scope of consolidation
Currency translation differences
Other changes
Net carrying amount - end of the year
Gross carrying amount - end of the year
Provisions for amortization and impairment
s
t
h
g
i
r
n
o
i
t
a
r
o
p
x
E
l
913
53
(12)
(13)
(200)
54
(2)
793
1,428
635
888
12
(30)
21
(35)
57
913
1,707
794
281
s
e
v
i
l
l
a
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T
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s
t
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d
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fi
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d
h
t
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w
s
t
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a
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v
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u
f
e
s
u
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b
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f
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fi
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d
h
t
i
w
155
28
(74)
67
176
1,806
1,630
162
28
(89)
(2)
11
45
155
1,709
1,554
845
275
(224)
(14)
391
1
120
1,394
3,705
2,311
589
244
(168)
(14)
226
2
(34)
845
4,843
3,998
1,913
356
(310)
(14)
(13)
191
55
185
2,363
6,939
4,576
1,639
284
(287)
(16)
21
(35)
237
59
11
1,913
8,259
6,346
2,862
24
(153)
482
11
(64)
4,799
356
(310)
(167)
(13)
673
66
121
3,138
24
5,525
1,297
(22)
1,574
13
2,936
284
(287)
(38)
21
(35)
24
1,835
72
11
2,862
24
4,799
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
282
Exploration rights comprised the residual book value of signature
bonuses and acquisition costs of exploration licenses relating to
areas with proved reserves, which are amortized based on UOP
criteria and are regularly reviewed for impairment. The costs of
licenses with unproved reserves are also in this item and are
suspended pending a final determination of the success of the
exploration activity or until management confirms its commitment
to the initiative. Additions for the year related to signature bonuses
paid for the acquisition of new exploration acreage in Egypt,
Mozambique, United Arab Emirates, Ivory Coast and Gabon.
The breakdown of exploration rights by type of asset was as
follows:
(€ million)
Proved licence and leasehold property acquisition costs
Unproved licence and leasehold property acquisition costs
December 31, 2022 December 31, 2021
104
689
793
236
677
913
Industrial patents and intellectual property rights mainly regarded
the acquisition and internal development of software and rights
for the use of production processes and software.
Write-offs of €13 million related to the abandonment of
underlying initiatives.
Changes in the scope of consolidation of assets with a finite
useful life concerned: (i) for €200 million the deconsolidation
of the companies Eni Angola SpA, Eni Angola Exploration BV
and Eni Angola Production BV which were transferred to the
joint venture Azule Energy Holdings Ltd; (ii) for €391 million
the acquisitions made in relation to renewables activities of
Plenitude, in particular to PLT (PLT Energia Srl and SEF Srl) (€217
million) and Energía Eólica Boreas SLU (€153 million).
Other changes relating to intangible assets with a finite useful life
related for €277 million to the definitive purchase price allocation
of acquisitions made in 2021 with a corresponding decrease
in goodwill (further information is provided in note 27 – Other
information) and for €115 million the decrease relating to the
reclassification to assets held for sale of the trasportation rights
of natural gas imported from Algeria following the agreement
with Snam SpA relating to the sale of 49.9% of the consolidated
company Eni Corridor Srl (further information is disclosed in note
25 – Assets held for sale and liabilities directly associated with
assets held for sale).
Other intangible assets comprised: (i) concessions, licenses,
trademarks and similar items for €692 million (€139 million at
December 31, 2021), of which €615 million relating to Plenitude
business line, mainly for activities related to renewable energy; (ii)
customer acquisition costs relating to Plenitude business line for
€358 million (€348 million at December 31, 2021); (iii) customer
relationship for €101 million recognized following the acquisition
of Finproject group (€109 million at December 31, 2021).
The main amortization rates used were substantially unchanged
from the previous year and ranged as follows:
(%)
Exploration rights
Other concessions, licenses, trademarks and similar items
Industrial patents and intellectual property rights
Capitalized costs for customer acquisition
Other intangible assets
UOP
3 - 33
20 - 33
17 - 33
3 - 20
Cumulative impairments charges of goodwill at the end of the year amounted to €2,662 million. The breakdown of goodwill by
segment and business line is provided below:
(€ million)
Plenitude
Refining & Marketing
Exploration & Production
Chemical
Corporate and Other activities
December 31, 2022 December 31, 2021
2,927
102
93
16
3,138
2,446
173
139
93
11
2,862
ENI ANNUAL REPORT 2022
283
The impairment loss of goodwill for 2022 was essentially recorded in
relation to the Exploration & Production segment.
Changes in the scope of consolidation of goodwill related: (i) for
€412 million to the acquisition of 100% of PLT Energia Srl and SEF
Srl; (ii) for €52 million to the acquisition of 100% of SKGR Energy
Single Member SA (now Eni Plenitude Renewables Hellas Single
Member SA); (iii) for €18 million to the acquisition of 100% of the
company Energía Eólica Boreas SLU.
Information about the allocations of goodwill deriving from business
combinations are provided in note 5 – Business combinations and
other significant transactions.
Goodwill acquired through business combinations has been
allocated to the CGUs that are expected to benefit from the
synergies of the acquisition.
The Plenitude business line engaged in the retail sale of natural
gas and electricity, in the electricity generation from renewable
sources and in installing and managing a network of charging point
for electric vehicles. Plenitude has closed several acquisitions in
past reporting years and in 2022, those latter commented in note
5 – Business combinations and other significant transactions,
leading to the recognition of significant amounts of goodwill in
each of those activities.
Goodwill allocated to the activity of retail sale of natural gas and
electricity amounted to €1,214 million and to test its recoverability
has been allocated to a single CGU encompassing all European
retail markets, where Plenitude is operating, considering the
significant cross-market synergies and geographic integration. The
impairment review performed at the balance sheet date confirmed
the recoverability of the carrying amount of this CGU comprising the
book value of the allocated goodwill.
The impairment review of the CGU Retail, including goodwill, was
performed by comparing the carrying amount to the value in use of the
CGU, which was estimated based on the cash flows of the four-year
plan approved by management and on a terminal value calculated as
the perpetuity of the cash flow of the last year of the plan by assuming
a nominal long-term growth rate equal to zero, unchanged from the
previous year. These cash flows were discounted by using the post-
tax WACC of the retail business adjusted considering the country
risks of operation comprised in a range of 4.2% - 4.3%. There are no
reasonable assumptions of changes in the discount rate, growth
rate, profitability or volumes that would lead to zeroing the headroom
amounting to about €7 billion of the value in use of the CGU Retail
with respect to its book value, including the allocated goodwill.
In the renewable business of Plenitude, the CGUs have been identified
at a significant project level, in some cases grouped at company
level for projects/plants characterized by relevant synergies. Cash
flows included both those relating to existing assets (acquired or
build internally) and those associated with the repowering process
in the case of acquired assets. For the acquisitions of 2022, the
impairment was assessed by updating the valuation model used
for the acquisition which confirmed the recoverability of the goodwill
allocated to the complex of the CGUs.
Goodwill allocated to the business of renewables amounted to
€995 million and related to the business combinations made in
Italy and in other European markets where operations are being
developed (Spain, France, Greece) in the latest two years. To test
its recoverability a single CGU has been defined to which the entire
goodwill has been allocated.
The impairment test was performed based on the discounted cash
flows which comprised the financial projections of the four-year
industrial plan approved by management and subsequently the
cash flows associated with the useful lives of the plants. Cash flows
have been discounted at sector and country-specific WACC, which
were comprised in a range of 5.2% - 5.8%. This test confirmed the
recoverability of the book values of the complex of plants generating
renewable electricity, including the allocated goodwill. The headroom
of €250 million is being zeroed in case of a one percentage point
increase in the WACC.
Goodwill of the E-mobility business of Plenitude of €718 million
recognized in connection with the acquisition in 2021 of the entire
share capital of Be Power SpA, which through the subsidiary Be
Charge is the second Italian operator in the segment of charging
infrastructures for electric mobility, was assessed by updating the
valuation model of the operation. The recoverability of the allocated
goodwill was tested based on the discounted cash flows of the
activity, which comprised the financial projections of the four-year
industrial plan approved by management and subsequently the
perpetuity of the final year of the plan discounted at a WACC of
10.7% and a growth rate reflecting forecasts for the adoption of
EVs. This test confirmed the recoverability of the allocated goodwill
and showed a headroom of about €1 billion which would go to zero
under no reasonable assumption.
15 Reversals (Impairments) of tangible and intangible assets and right-of-use assets.
Sensitivity of outcomes to alternative scenarios.
The recoverability test of carrying amounts of Oil & Gas cash
genenerating units (CGUs) is the most important of the critical
accounting estimates in the preparation of Eni’s consolidated
financial statements. This owes to the relative weight of the
invested capital in the sector on total consolidated assets.
Future expected cash flows associated with the use of Oil
& Gas assets are based on management’s judgment and
subjective evaluation about highly uncertain matters like future
hydrocarbons prices, assets’ useful lives, projections of future
operating and capital expenditures, including CO2 emission costs
relating to geographies where legal obligations are present, the
volumes of reserves that will ultimately be recovered and costs of
decommissioning Oil & Gas assets at the end of their useful lives.
Forecasts of hydrocarbons prices adopted by Eni are based on
the review of the fundamentals of supply and demand in the long
term, considering the possible evolution of the global energy mix
by 2050 in relation to the decarbonisation commitments of the
countries and the EU in view of the achievement of the goals of
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 284
the Paris Agreement, the pace of the energy transition, global
economic and demographic growth, the evolution of technologies
and the evolution in consumers’ preferences. These assumptions
are reflected in the corporate strategies and investment decisions,
as well as being used in recoverability assessments of the carrying
amount of oil & gas projects.
In the short term, market forward prices are also considered as
well as projections made by investment banks and other market
observatories.
Eni recognizes and fully endorses the transition of the economy
towards a low carbon development model and the goals of the Paris
COP21 agreements and based on this, has designed a strategy
to achieve the decarbonization of the Company’s products and
industrial processes targeting carbon neutrality by 2050. Consistent
with this long-term path and with the progressive evolution of the
Company’s product portfolio, management is assuming a mid-
cycle scenario for the price of the Brent crude oil and other price
benchmarks, which assumes a balance between global supply
and demand, a moderation in economic growth and inflationary
pressures and a gradual reduction in the consumption of crude oil
in view of achieving the goals of the Paris agreement. The forecast
prices of the mid-cycle scenario represent management’s best
estimate and form the basis for investment decisions, operational
plans and recoverability tests of Eni’s Oil & Gas assets.
Below are the main price assumptions for assessing the
recoverability of Oil & Gas assets, expressed in 2021 real terms.
Brent $/bbl
TTF natural gas price $mmBtu
2023
73
23.5
2025
63
13.5
2030
62
6.0
2040
53
6.0
2050
43
5.3
This scenario does not differ significantly from the one adopted in
the previous reporting year.
The discount rate of the future cash flows of the CGUs was
estimated as the weighted average cost of equity (Ke) and net
borrowings, based on the Capital Asset Pricing Model methodology.
Specifically, the cost of equity considers both a premium for the
non-diversifiable market risk measured on the basis of the long-
term returns of the S&P500, and an additional premium that
considers exposure to operational risks of the countries of activity
and the risks of the energy transition. For 2022, a Group cost of
capital (“WAAC”) of approximately 7% was estimated unchanged
compared to 2021 due to a lower cost of equity as a consequence
of the reduction in the company’s financial risk as a result of the
deleveraging process carried out, which offset the increased yields
on risk-free assets. The Group WACC is adjusted to account for the
specific operational risks of each geography against the average
portfolio, where Oil & Gas activities are conducted, by adding a
corrective factor (WACC adjusted on a country-by-country basis).
The impairment test was performed at all of the Group’s Oil & Gas
CGUs based on the price scenario of the management and the
country WACCs described above, which substantially confirmed
the carrying amounts of the properties, with the exception of few
assets which were marked to their lower recoverable values due to
downward reserves revisions and costs updates, recognizing €432
million of net impairment losses. The impaired assets were mainly
located in Congo, Egypt, USA and Algeria, in this latter case due
to the release of a concession. Furthermore, a residual goodwill
amount was written-off in UK. The post-tax discount rates were
comprised in a 6.2% - 11.1% range.
The value in use (VIU) of the Oil & Gas CGUs under the
management’s scenario assumptions displayed a headroom
(difference between VIU and book values) of approximately 100%
of the assets’ carrying amounts, also discounting the expected
expenses associated with the purchase of carbon credits as part
of the Company’s strategy to decarbonize its Oil & Gas operations
through participation in forestry conservation projects, which
belong to the REDD+ framework defined by the United Nations.
Considering the subjectivity of the assumptions underlying the
estimates of the VIU, management has elaborated the following
sensitivity analysis of the Oil & Gas CGUs values to different
scenarios: (i) a linear cut of -10% of hydrocarbon prices in all
the years of the cash flows projections; (ii) the projections of
hydrocarbon prices and CO2 costs of the decarbonization scenario
Net Zero Emission 2050 (NZE 2050) elaborated by IEA. Those
sensitivity analysis included assets of all consolidated entities,
joint ventures and associates, excluding Vår Energi ASA, Azule
Energy Holdings Ltd and an asset under arbitration procedure.
The results of the sensitivity test in terms of changes in the
cumulated headroom of Oil & Gas CGUs and potential pre-tax
income statement impacts are provided below:
Value in use of the O&G CGUs
Headroom vs. Carrying amounts
Assumption at 2050 in real terms USD 2021
Eni's scenario
10% haircut of Eni's prices assumptions
IEA NZE 2050 scenario
(*) Prices relating to advanced/emerging economies.
>100%
80%
55%
tax-deductible
CO2 charges
non tax-deductible
CO2 charges
Brent
price
European
gas price
-
-
43 $/bbl
5.3 $/mmBTU
39 $/bbl
4.8 $/mmBTU
Cost of
CO2
CO2 costs projections in the EU/ETS
+ projections of forestry costs
CO2 costs projections in the EU/ETS
+ projections of forestry costs
49%
24 $/bbl
3.8 $/mmBTU
250-180$ per tonne of CO2
(*)
ENI ANNUAL REPORT 2022 Sensitivity - 10% to Eni prices assumptions
(€ billion)
Exploration & Production assets
Hydrocarbon prices and CO2 costs of the IEA NZE 2050 scenario
(€ billion)
Exploration & Production assets
285
Sensitivity
(0.7)
Sensitivity
Tax-deductible
CO2 charges
(2.1)
Non tax-deductible
CO2 charges
(2.8)
These sensitivities do not consider possible actions to mitigate
a changed price environment, such as rescheduling and/or
cancellation of planned development activities, contractual
renegotiations, costs efficiencies or actions aimed at
accelerating the pay-back period. The sensitivity was not applied
to the Chemical business and to the gas-fired power generation
business considering the immateriality of the residual book
values of property, plant and equipment (€595 million and €690
million, respectively) and of economic-technical lives, while no
impact can be associated for refineries considering that their
book values have been completely impaired in past reporting
periods.
16 Investments
EQUITY-ACCOUNTED INVESTMENTS
n
i
s
t
n
e
m
t
s
e
v
n
I
(€ million)
Carrying amount - beginning of the year
Additions and subscriptions
Divestments and reimbursements
Share of profit of equity-accounted investments
Share of loss of equity-accounted investments
Deduction for dividends
Changes in the scope of consolidation
Currency translation differences
Other changes
Carrying amount - end of the year
44
21
(2)
5
(6)
(3)
5
2
(16)
50
2022
e
r
u
t
n
e
V
t
n
o
J
i
i
n
E
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b
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t
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A
n
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s
t
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s
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v
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a
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l
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e
i
t
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t
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t
a
d
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o
s
n
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n
u
d
e
t
a
d
i
l
o
s
n
o
c
n
u
2021
e
r
u
t
n
e
V
t
n
o
J
i
i
n
E
y
b
i
s
e
t
a
c
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s
s
A
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a
t
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T
d
e
l
l
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r
t
n
o
c
s
e
i
t
i
t
n
e
80
1
2,832
3,837
6,749
558
103
662
2,057
3,786
5,887
686
1,607
900
(1)
474
(197)
(483)
(710)
(231)
5,256
(477)
(480)
(21)
(231)
(133)
(385)
1,684
2,163
(82)
(285)
6
(3)
(708)
(1,194)
(25)
(1,122)
(1,827)
230
980
1
6,220
7,065
4,977
12,092
5
2
(1)
44
31
165
202
(910)
(586)
355
83
(75)
(381)
(1,294)
(16)
(627)
360
381
(161)
296
(85)
2,057
3,786
5,887
Acquisitions and share capital increases mainly related for: (i)
€624 million to the capital increase of Saipem SpA; (ii) for €306
million to the partnership agreement for the purchase of a 25%
stake in the joint venture Qatar Liquefied Gas Company Limited
(9) (Eni’s interest 25%) which holds a 12.5% interest in the North
Field East project (NFE) to ensure Eni a 3.125% stake in the
project for the development of the country’s natural gas reserves
by building a multi-train liquefaction plant with a combined
capacity of 32 MTPA; (iii) for €161 million to the acquisition from
Equinor and SSE Renewables of a 20% stake in Doggerbank
Offshore Wind Farm Project 3 Holdco Ltd which is developing the
homonymous offshore wind project in the British North Sea. In
2022, the interest was contributed to the Norwegian joint venture
Vårgrønn AS (Eni’s interest 65%).
Divestments and reimbursement related to: (i) a capital
repayment made by Angola LNG Ltd for €375 million; (ii) the
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
286
sale of a 6% in Vår Energi ASA with a book value of €91 million
following the listing through an IPO at the Oslo Stock Exchange
and a subsequent private placement among
insitutional
investors.
Eni’s share of the results of entities accounted for under
the equity method mainly comprised profit at: (i) Vår Energi
ASA for €691 million; (ii) Azule Energy Holdings Ltd for €455
million; (iii) Abu Dhabi Oil Refining Company (TAKREER) for
€359 million; (iv) Angola LNG Ltd of €290 million; (v) ADNOC
Global Trading Ltd for €170 million; (vi) Coral FLNG SA for
€140 million.
Losses of equity-accounted investments included: (i) Saipem
SpA for €82 million; (ii) Mozambique Rovuma Venture SpA for
€72 million; (iii) Novamont SpA for €53 million.
Reduction for dividends related for €475 million to Azule Energy
Holdings Ltd, for €469 million to Vår Energi ASA, for €142 million
to Abu Dhabi Oil Refining Company (TAKREER) and for €54
million to ADNOC Global Trading Ltd.
Changes in the scope of consolidation referred for €1,122
million to Angola LNG Ltd, which was contributed to Azule
Energy Holdings Ltd and for €731 million to Dogger Bank (A, B
and C) which were contributed to the Vårgrønn AS joint venture.
Business combinations are commented on in note 5 – Business
combinations and other significant transactions.
Other changes included the inclusion of the joint venture Azule
Energy Holdings Ltd for €5,352 million and the joint venture
Vårgrønn AS for €374 million.
Net carrying amounts related to the following companies:
(€ million)
Investments in unconsolidated entities controlled by Eni
Eni BTC Ltd
Other
Joint ventures
Azule Energy Holdings Ltd
Saipem SpA
Cardón IV SA
Vårgrønn AS
Mozambique Rovuma Venture SpA
GreenIT SpA
Lotte Versalis Elastomers Co Ltd
Hergo Renewables SpA
Società Oleodotti Meridionali - SOM SpA
Vår Energi AS
Doggerbank Offshore Wind Farm Project 1 Holdco Ltd
Doggerbank Offshore Wind Farm Project 2 Holdco Ltd
Other
Associates
Abu Dhabi Oil Refining Company (Takreer)
Vår Energi ASA
Coral FLNG SA
Qatar Liquefied Gas Company Limited (9)
Novamont SpA
ADNOC Global Trading Ltd
Novis Renewables Holdings Llc
Bluebell Solar Class A Holdings II Llc
United Gas Derivatives Co
Angola LNG Ltd
Other
December 31, 2022
December 31, 2021
Net carrying
amount
% of the
investment
Net carrying
amount
% of the
investment
100.00
50.00
31.20
50.00
65.00
35.71
51.00
50.00
65.00
70.00
20.00
63.08
25.00
25.00
35.00
20.00
49.00
99.00
33.33
1
49
50
5,073
645
433
370
308
74
41
33
29
59
7,065
2,497
763
330
302
255
158
74
73
72
453
4,977
12,092
100.00
31.20
50.00
69.60
35.71
51.00
50.00
70.00
69.85
20.00
20.00
2
42
44
137
279
3
355
9
54
27
645
246
238
64
2,057
2,151
20.00
156
25.00
20.00
49.00
99.00
33.33
13.60
42
75
71
75
1,084
132
3,786
5,887
ENI ANNUAL REPORT 2022
287
The stake held in Vår Energi ASA was reclassified from joint
venture to associate following the listing through an IPO at the
Oslo stock exchange. The investment in Novamont SpA was
reclassified from other investment to associate following the
agreement reached between Eni and Novamont which settled
all pending disputes over the management of the Matrìca joint
venture, engaged in the development of renewable chemical
feedstocks, with an increase in Eni equity investment in
Novamont.
The results of equity-accounted investments by segment are
disclosed in note 35 – Segment information and information by
geographical area.
The carrying amounts of equity-accounted investments included
differences between the purchase price of acquired interests and
their underlying book value of net assets amounting to €74 million.
As at December 31, 2022, the book and market values of Saipem
SpA and Vår Energi ASA, listed on the Italian and the Norwegian
stock exchange, respectively, were as follows:
Number of ordinary shares held
% of the investment
Share price (€)
Market value (€ million)
Book value (€ million)
Saipem SpA
Vår Energi ASA
622,476,192
1,574,616,035
31.20
1.12750
702
645
63.08
3.19470
5,030
763
At December 31, 2022, the market capitalization of Saipem share
is higher than the book value of the investment by €57 million, in
line with the corresponding fraction of the investee’s book equity.
At December 31, 2022, the market capitalization of the Vår
Energi ASA share for Eni’s stake is €4,267 million higher than
the book value of the investment.
Additional information is included in note 37 – Other information
about investments.
Other investments
(€ million)
Carrying amount - beginning of the year
Additions and subscriptions
Change in the fair value with effect to OCI
Currency translation differences
Other changes
Carrying amount - end of the year
2022
1,294
68
56
42
(258)
1,202
2021
957
175
105
57
1,294
The fair value of the main non-controlling interests in non-listed
investees on regulated markets, classified within level 3 of the
fair value hierarchy, was estimated based on a methodology that
combines future expected earnings and the sum-of-the-parts
methodology (so-called residual income approach) and takes into
account, inter alia, the following inputs: (i) expected net profits, as
a gauge of the future profitability of the investees, derived from
the business plans, but adjusted, where appropriate, to include the
assumptions that market participants would incorporate; (ii) the
cost of capital, adjusted to include the risk premium of the specific
country in which each investee operates. A stress test based on
a 1% change in the cost of capital considered in the valuation did
not produce significant changes at the fair value valuation.
Dividend income from these investments is disclosed in note
32 – Income (expense) from investments.
Other changes comprised the reclassification to associates of
Novamont SpA for €220 million.
The investment book value as of December 31, 2022 primarily
related to Nigeria LNG Ltd for €668 million (€637 million at
December 31, 2021) and Saudi European Petrochemical Co
“IBN ZAHR” for €108 million (€124 million at December 31,
2021).
Investments
joint arrangements and
associates as of December 31, 2022 are presented separately
in the annex “List of companies owned by Eni SpA as of
December 31, 2022”.
in subsidiaries,
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
288
17 Other financial assets
(€ million)
Long-term financing receivables held for operating purposes
Short-term financing receivables held for operating purposes
Financing receivables held for non-operating purposes
Securities held for operating purposes
December 31, 2022
December 31, 2021
Current
Non-current
Current
Non-current
11
8
19
1,485
1,504
1,504
1,911
1,911
1,911
56
1,967
17
39
56
4,252
4,308
4,308
1,832
1,832
1,832
53
1,885
Changes in allowance for doubtful accounts were as follows:
(€ million)
Carrying amount at the beginning of the year
Additions
Deductions
Currency translation differences
Other changes
Carrying amount at the end of the year
2022
2021
403
13
(43)
21
(3)
391
352
41
(15)
25
403
Financing receivables held for operating purposes related
principally to funds provided to joint ventures and associates
in the Exploration & Production segment (€1,823 million) to
execute capital projects of interest to Eni. These receivables
are long-term interests in the initiatives funded. The main
exposure is towards: (i) the joint venture Mozambique Rovuma
Venture SpA (Eni’s interest 35,71%) for €1,187 million (€1,008
million at December 31, 2021); (ii) Coral FLNG SA (Eni’s
interest 25%) for €356 million (€383 million at December 31,
2021); (iii) the joint venture Cardón IV SA (Eni’s interest 50%),
in Venezuela, against which a financing receivable of €20
million (€199 million at December 31, 2021) is outstanding,
valued using the same method as the trade receivables owed
to Eni by PDVSA.
Financing receivables held for operating purposes due beyond
five years amounted to €164 million (€399 million at December
31, 2021).
The fair value of non-current financing receivables held for
operating purposes of €1,911 million has been estimated
based on the present value of expected future cash flows
discounted at rates ranging from 1.8% to 5.1% (-0.3% and 1.7%
at December 31, 2021).
The recoverability of other long-term financial assets was
assessed by considering the expected probability default in the
next twelve months only, as the creditworthiness suffered no
significant deterioration in the reporting period.
Financing receivables held for non-operating purposes related
for €1,266 million (€4,233 million at December 31, 2021)
restricted deposits in escrow to guarantee transactions on
derivative contracts mainly referred to Global Gas & LNG
Portfolio segment.
Financing receivables were denominated in euro and U.S. dollar
for €1,329 million and €2,038 million, respectively.
Securities held for operating purposes related to listed bonds
issued by sovereign states.
Securities for €20 million (same amount at December 31, 2021)
were pledged as guarantee of the deposit for gas cylinders as
provided for by the Italian law.
ENI ANNUAL REPORT 2022
289
The following table analyses securities per issuing entity:
Amortized cost
(€ million)
Nominal value
(€ million)
Fair Value
(€ million)
Nominal rate of return
(%)
Maturity date
Rating - Moody’s
Rating - S&P
Sovereign states
Fixed rate bonds
Italy
Others(*)
Floating rate bonds
Italy
Total sovereign states
20
24
12
56
20
25
12
57
18
23
12
53
from 0.00 to 2.65
from 2022 to 2031
Baa3
BBB
from 0.00 to 0.20
from 2023 to 2026
from Aa1 to Baa1
from AA+ to A-
from 1.51 to 2.96
from 2024 to 2026
Baa3
BBB
(*) Amounts included herein are lower than €10 million.
All securities have maturity within five years.
The fair value of securities was derived from quoted market prices.
Receivables with related parties are described in note 36 – Transactions with related parties.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
290
18 Trade and other payables
(€ million)
Trade payables
Down payments and advances from joint ventures in exploration & production activities
Payables for purchase of non-current assets
Payables due to partners in exploration & production activities
Other payables
December 31, 2022
December 31, 2021
19,527
606
2,561
1,235
1,780
25,709
16,795
552
1,732
1,188
1,453
21,720
The increase in trade payables of €2,732 million refers to Global
Gas & LNG Portfolio segment for €1,281 million and to Refining
& Marketing and Chemical segment for €1,248 million.
Other payables included: (i) the amounts still due to the triggering
of the take-or-pay clause of the long-term supply contracts for
€284 million (€185 million at December 31, 2021); (ii) payroll
payables for €255 million (€328 million at December 31, 2021); (iii)
payables to factoring companies in relation to the derecognition
of Eni’s tax credits for €246 million; (iv) payables for social security
contributions for €100 million (€112 million at December 31, 2021).
is composed of
The remaining amount of €895 million
miscellaneous items, none of which is of material amount.
Trade and other payables were denominated in euro for €14,970
million and in U.S. dollar for €10,048 million.
Because of
the short-term maturity and conditions of
remuneration of trade payables, the fair values approximated the
carrying amounts.
Trade and other payables due to related parties are described in
note 36 – Transactions with related parties.
19 Finance debt
(€ million)
Banks
Ordinary bonds
Convertible bonds
Sustainability-Linked Bond
Commercial papers
Other financial institutions
December 31, 2022
Current
portion of
long-term
debt
Long-term
debt
Short-term
debt
3,645
851
1,999
Total
6,495
Short-term
debt
362
2,140
16,372
18,512
2
996
104
7
998
34
878
34
767
4,446
3,097
19,374
26,917
836
1,101
2,299
December 31, 2021
Current
portion of
long-term
debt
347
913
399
2
Long-term
debt
4,650
Total
5,359
18,049
18,962
996
399
998
836
120
19
1,240
1,781
23,714
27,794
Finance debt decreased by €877 million as disclosed in
table “Changes in liabilities arising from financing activities”
detailed at the end of this paragraph.
As of December 31, 2022, finance debt included €1,300
million of sustainability-linked
financial contracts with
leading banking institutions which provide for an adjustment
mechanism of the funding cost linked to the achievement of
certain sustainability targets.
Eni entered into long-term borrowing facilities with the European
Investment Bank. These borrowing facilities are subject to the
retention of a minimum level of credit rating. According to the
agreements, should the Company lose the minimum credit
rating, new guarantees could be required to be agreed upon with
the European Investment Bank. At December 31, 2022, debts
subjected to restrictive covenants amounted to €862 million
(€899 million at December 31, 2021). Eni was in compliance with
those covenants.
Eni has in place a program for the issuance of Euro Medium
Term Notes up to €20 billion, of which €15.8 billion were
drawn as of December 31, 2022.
Ordinary bonds consisted of bonds issued within the Euro
Medium Term Notes Program for a total of €14,953 million
and other bonds for a total of €3,559 million.
As of December 31, 2022, ordinary bonds maturing within 18
months amounted to €2,723 million. During 2022, Eni did not
issue new ordinary bonds.
ENI ANNUAL REPORT 2022
The following table provides a breakdown of ordinary bonds by issuing entity, maturity date, interest rate and currency as of
December 31, 2022:
291
(€ million)
Issuing entity
Euro Medium Term Notes
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni Finance International SA
Eni Finance International SA
Other bonds
Eni SpA
Eni SpA
Eni SpA
Eni SpA
Eni USA Inc
PLT Wind 2022 SpA
SEF Srl
Amount
Discount on bond issue
and accrued expense
Total Currency
from
to
from
to
Maturity
Rate %
1,200
1,000
1,000
1,000
1,000
1,000
1,000
900
800
750
750
750
650
600
1,639
795
14,834
937
937
937
328
375
18
10
3,542
18,376
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
EUR
USD
USD
USD
USD
USD
EUR
USD
15
29
15
11
10
3
3
2
11
8
(3)
4
(2)
6
7
1,215
1,029
1,015
1,011
1,010
1,003
1,003
900
802
761
758
747
654
598
1,645
802
119
14,953
10
5
1
1
947
942
938
329
375
18
10
17
3,559
136
18,512
2025
2029
2023
2026
2031
2026
2030
2024
2028
2024
2027
2034
2025
2028
2027
2043
2023
2028
2029
2040
2027
2031
2026
3.750
3.625
3.250
1.500
2.000
1.250
0.625
0.625
1.625
1.750
1.500
1.000
1.000
1.125
variable
1.275
5.441
4.000
4.750
4.250
5.700
7.300
variable
7.000
2026
2025
As part of the Euro Medium-Term Notes program, during 2021
Eni issued a sustainability-linked bond for a nominal amount of
€1 billion linked to the achievement of the following sustainability
targets: (i) net carbon footprint upstream (GHG emission Scope 1
and 2) equal to or less than 7.4 million tons of CO2 equivalent by
2024; (ii) renewable energy installed capacity of at least or more
than 5 GW by 2025. If one of the targets is not achieved, a step-up
mechanism will be applied, increasing the interest rate.
Information relating to the sustainability-linked bonds issued by
Eni SpA is as follows:
(€ million)
Eni SpA
Discount on
bond issue
and accrued
expense
Total Currency Maturity
Rate
(%)
(2)
998
EUR
2028
0.375
Amount
1,000
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
292
The following table provides a breakdown by currency of finance debt and the related weighted average interest rates:
Euro
U.S. dollar
Other currencies
Total
December 31, 2022
December 31, 2021
Short-term
debt
(€ million)
Average
rate
(%)
Long-term debt and
current portion of
long-term debt
(€ million)
Average
rate
(%)
Short-term
debt
(€ million)
Average
rate
(%)
Long-term debt and
current portion of
long-term debt
(€ million)
Average
rate
(%)
0.9
2.2
3,994
337
115
4,446
1.8
5.1
2.4
17,171
5,298
2
22,471
1,356
928
15
2,299
0.2
(0.3)
20,399
5,096
1.5
3.8
25,495
As of December 31, 2022, Eni retained committed borrowing
interest
facilities of €8,298 million. Those facilities bore
rates reflecting prevailing conditions
in the marketplace.
The breakdown of committed borrowing facilities are as follows:
(€ million)
December 31, 2022
December 31, 2021
Undrawn long-term sustainability-linked credit facilities
Other undrawn long-term borrowing facilities
Drawn long-term sustainability-linked credit facilities
Other drawn long-term borrowing facilities
Long-term borrowing facilities
Other undrawn short-term borrowing facilities
Other drawn short-term borrowing facilities
Short-term borrowing facilities
8,100
2
70
8,172
43
83
126
8,298
2,800
20
2,050
162
5,032
15
67
82
5,114
As of December 31, 2022, Eni was in compliance with covenants
and other contractual provisions in relation to borrowing facilities.
Fair value of long-term debt, including the current portion of
long-term debt is described below:
(€ million)
Ordinary bonds and Sustainability-Linked Bond
Convertible bonds
Banks
Other financial institutions
December 31, 2022
December 31, 2021
18,167
2,733
111
21,011
23,070
513
5,029
138
28,750
ENI ANNUAL REPORT 2022
293
Fair value of finance debts was calculated by discounting the
expected future cash flows at discount rates ranging from 1.8%
to 5.1% (-0.3% and 1.7% at December 31, 2021).
Because of the short-term maturity and conditions of
remuneration of short-term debt, the fair value approximated
the carrying amount.
Changes in liabilities arising from financing activities
(€ million)
Long-term debt
and current portion
of long-term debt
Short-term
debt
Long-term and current portion
of long-term lease liabilietis
Total
Carrying amount at December 31, 2021
25,495
2,299
5,337
33,131
Cash flows
Currency translation differences
Changes in the scope of consolidation
Other non-monetary changes
(3,944)
1,375
(994)
(3,563)
208
477
235
547
(95)
320
289
1,044
(1,953)
(1,571)
2,272
2,827
Carrying amount at December 31, 2022
22,471
4,446
4,951
31,868
Carrying amount at December 31, 2020
23,804
2,882
5,018
31,704
Cash flows
Currency translation differences
Changes in the scope of consolidation
Other non-monetary changes
666
255
545
225
(910)
153
160
14
(939)
(1,183)
303
103
852
711
808
1,091
Carrying amount at December 31, 2021
25,495
2,299
5,337
33,131
in the scope of consolidation referred to the
Changes
Exploration & Production segment for €2,013 million and to the
Plenitude business line for €580 million.
Other non-monetary changes include €2,401 million of lease
liabilities assumptions (€1,102 million at December 31, 2021).
Lease liabilities are described in note 13 – Right-of-use assets
and lease liabilities.
Transactions with related parties are described in note 36 –
Transactions with related parties.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 294
20 Information on net borrowings
The analysis of net borrowings, as defined in the “Financial Review”, was as follows:
(€ million)
A. Cash
B. Cash equivalents
C. Other current financial assets
D Liquidity (A+B+C)
E. Current financial debt
F. Current portion of non-current financial debt
G. Current financial indebtedness (E+F)
H. Net current financial indebtedness (G-D)
I. Non-current financial debt
J. Debt instruments
K. Non‐current trade and other payables
L. Non-current financial indebtedness (I+J+K)
M. Total financial indebtedness (H+L)
December 31, 2022
December 31, 2021
3,351
6,804
9,736
19,891
6,588
1,839
8,427
2,758
5,496
10,553
18,807
3,613
1,415
5,028
(11,464)
(13,779)
6,073
17,368
23,441
11,977
9,058
19,045
28,103
14,324
Cash and cash equivalents include approximately €97 million
subject to foreclosure measures and payment guarantees.
Other current financial assets include: (i) financial assets at
fair value through profit or loss, disclosed in note 7 – Financial
assets at fair value through profit or loss; (ii) financing
receivables,disclosed in note 17 – Other financial assets.
Finance debts are disclosed in note 19 – Finance debts.
Current portion of non-current financial debt and non-current
financial debt include lease liabilities of €884 million and €4,067
million (€948 million and €4,389 million at December 31, 2021,
respectively) of which €494 million (€1,684 million at December
31, 2021) related to the share of joint operators in upstream
projects operated by Eni which will be recovered through a
partner cash-call billing process. More information on lease
liabilities is reported in note 13 – Right-of-use assets and lease
liabilities.
21 Provisions
(€ million)
Carrying amount at December 31, 2021
New or increased provisions
Initial recognition and changes in estimates
Accretion discount
Reversal of utilized provisions
Reversal of unutilized provisions
Currency translation differences
Changes in scope of consolidation
Other changes
d
n
a
s
t
n
e
m
t
s
u
d
a
s
s
o
L
j
i
s
n
o
s
i
v
o
r
p
l
a
i
r
a
u
t
c
a
s
e
x
a
t
r
o
f
s
n
o
s
i
v
o
r
P
i
e
m
o
c
n
i
n
a
h
t
r
e
h
t
o
s
e
x
a
t
211
54
r
o
f
s
n
o
s
i
v
o
r
P
i
s
n
o
i
t
a
g
i
t
i
l
452
552
l
i
a
c
o
s
d
n
a
t
n
e
m
n
o
d
e
t
i
s
r
o
f
s
n
o
s
i
v
o
r
P
i
-
n
a
b
a
,
n
o
i
t
a
r
o
t
s
e
r
l
a
t
n
e
m
n
o
r
i
v
n
E
i
s
n
o
s
i
v
o
r
p
s
t
c
e
o
r
p
j
9,621
2,206
381
1,923
(80)
218
(18)
(567)
(364)
(5)
(223)
(24)
(51)
3
16
303
(553)
4
(24)
2
(8)
(2)
10
(66)
20
e
c
n
a
r
u
s
n
i
s
’
i
n
E
r
o
f
i
s
e
n
a
p
m
o
c
295
115
(95)
12
Carrying amount at December 31, 2022
9,322
3,503
947
219
327
s
e
s
s
o
l
r
o
f
s
n
o
s
i
v
o
r
P
i
s
t
n
e
m
t
s
e
v
n
i
n
o
195
37
3
(46)
189
e
g
a
r
e
v
o
c
e
c
n
a
r
u
s
n
i
)
L
I
O
x
e
(
n
e
r
e
v
E
r
o
f
i
s
n
o
s
i
v
o
r
P
93
4
r
e
h
t
O
l
a
t
o
T
520
13,593
320
3,386
(80)
199
(1)
(160)
(1,218)
(21)
(302)
9
1
344
(618)
(5)
(37)
97
663
15,267
ENI ANNUAL REPORT 2022
295
Provisions for site restoration, abandonment and social projects
include: (i) for €7,757 million the present value of the estimated
costs that the Company expects to incur for dismantling oil and
natural gas production facilities at the end of the producing lives
of fields, well-plugging, site clean-up and restoration; (ii) for €1,060
million the estimated costs for social projects in the Exploration &
Production segment, referring for €664 million to the estimate of the
costs for social projects to be incurred following the commitments
between Eni SpA and the Basilicata region in relation to the oil
development program in the Val d’Agri concession area; (iii) for €475
million the estimated abandonment costs of production lines and
auxiliary logistics structures of the Refining & Marketing business.
In 2022, the site restoration and abandonment provision related to
the demolition and removal of production lines and auxiliary refining
logistics structures for which management assessed the absence
of economic prospects in the current scenario of refined products,
as well as the non-feasibility of reconversion or reuse options in
decarbonisation processes, in line with Eni’s strategy of progressive
disengagement from the sector. Initial recognition and change in
estimate includes the effect of discounting future decommissioning
costs of oil & gas plants, net of cost revision estimates of the initial
recognition of new projects. The unwinding of discount recognized
through profit and loss was determined based on discount rates
ranging from -0.3% to 6.1% (from -0.4% to 3.8% at December 31,
2021). Changes in the scope of consolidation mainly refer to the
deconsolidation of the Angolan companies merged into JV Azule
Energy Holdings Ltd for €561 million. Main expenditures associated
with decommissioning operations are expected to be incurred over
a fifty-year period.
Provisions for environmental risks included the estimated costs for
environmental clean-up and remediation of soil and groundwater
in areas owned or under concession where the Group performed
in the past industrial operations that were progressively divested,
shut down, dismantled or restructured. The provision was accrued
because at the balance sheet date there is a legal or constructive
obligation for Eni to carry out environmental clean-up and
remediation and the expected costs can be estimated reliably.
The provision included the expected charges associated with
strict liability related to obligations of cleaning up and remediating
polluted areas that met the parameters set by law at the time when
the pollution occurred but presently are no more in compliance
with current environmental laws and regulations, or because
Eni assumed the liability borne by other operators when the
Company acquired or otherwise took over site operations. Those
environmental provisions are recognized when an environmental
project is approved by or filed with the relevant administrative
authorities or a constructive obligation has arisen whereby the
Company commits itself to performing certain cleaning-up and
restoration projects and a reliable cost estimation is available.
In 2022, a provision of €1,245 million was recognized relating to
current groundwater remediation activities at brownfield sites
in Italy, estimated on the basis of management experience and
accumulated know-how on the scope, extent and timing of
implementation of the activities and a more certain regulatory
framework which made it possible to reliably determine future
charges. At December 31, 2022, environmental provision primarily
related to Eni Rewind SpA for €2,391 million and to the Refining &
Marketing business line for €705 million.
Litigation provisions comprised expected liabilities associated
with legal proceedings and other matters arising from contractual
claims, including arbitrations, fines and penalties due to antitrust
proceedings and administrative matters. The provision was
allocated on the basis of the best estimate of the existing liability at
the balance sheet date and refers to the Global Gas & LNG Portfolio
segment for €371 million and to the Exploration & Production
segment for €315 million.
Provisions for uncertain taxes matters related to the estimated
losses that the Company expects to incur to settle tax litigations and
tax claims pending with tax authorities in relation to uncertainties
in applying rules in force were in respect of the Exploration &
Production segment for €194 million.
Loss adjustments and actuarial provisions of Eni’s insurance
company Eni Insurance DAC represented the estimated liabilities
accrued on the basis for third party claims. Against such liability
was recorded receivables of €78 million recognized towards
insurance companies for reinsurance contracts.
Provisions for losses on investments included provisions relating
to investments whose loss exceeds the equity and primarily related
to Industria Siciliana Acido Fosforico - ISAF - SpA (in liquidation) for
€154 million.
Provisions for Everen (ex OIL) insurance coverage included
insurance premiums which will be charged to Eni in the next five
years by the mutual insurance company in which Eni participates
together with other oil companies.
22 Provisions for employee benefits
(€ million)
Italian defined benefit plans
Foreign defined benefit plans
FISDE, foreign medical plans and other
Defined benefit plans
Other benefit plans
Provision for employee benefits
December 31, 2022
December 31, 2021
177
142
126
445
341
786
227
129
162
518
301
819
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 296
The liability relating to Eni’s commitment to cover the heal-
thcare costs of personnel is determined based on the contri-
butions paid by the Company.
Other employee benefit plans related to deferred monetary
incentive plans for €115 million, isopensione plans (a post re-
tirement benefit plan applicable to a specific category of em-
ployees) of Eni Plenitude SpA Società Benefit for €99 million,
contratti di espansione (agreed redundancy plans for workers)
for €85 million, Jubilee Awards for €26 million and other long-
term plans for €16 million.
Present value of employee benefits, estimated by applying
actuarial techniques, consisted of the following:
2022
2021
(€ million)
Present value of benefit liabilities at beginning of
year
Current service cost
Interest cost
Remeasurements:
- actuarial (gains) losses due to changes
in demographic assumptions
- actuarial (gains) losses due to changes
in financial assumptions
l
s
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b
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fi
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r
e
h
t
o
d
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a
l
s
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n
e
b
r
e
h
t
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a
t
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s
n
a
p
t
fi
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n
e
b
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fi
e
d
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g
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r
o
F
i
l
s
n
a
p
t
fi
e
n
e
b
i
n
g
e
r
o
f
,
E
D
S
F
I
s
n
a
p
l
l
i
a
c
d
e
m
l
s
n
a
p
t
fi
e
n
e
b
d
e
n
fi
e
D
r
e
h
t
o
d
n
a
l
s
n
a
p
t
fi
e
n
e
b
r
e
h
t
O
l
a
t
o
T
d
e
n
fi
e
d
n
a
i
l
a
t
I
d
e
n
fi
e
d
n
a
i
l
a
t
I
227
761
162
1,150
301
1,451
258
1,140
182
1,580
268
1,848
1
2
11
24
3
2
15
28
52
1
67
29
1
1
16
24
3
1
20
26
49
69
26
(26)
(118)
(33)
(177)
(22)
(199)
(118)
(6)
(124)
(11)
(135)
9
9
(2)
7
(1)
(3)
(4)
(8)
(1)
(9)
(34)
(144)
(35)
(213)
(15)
(228)
(1)
(111)
3
(109)
2
(107)
- experience (gains) losses
8
17
2
27
(5)
22
2
(4)
(5)
(7)
(12)
(19)
Past service cost and (gain) loss on settlements
127
127
107
107
Plan contributions:
- employee contributions
1
1
1
1
1
1
1
1
1
1
1
1
Benefits paid
(28)
(30)
(8)
(66)
(87)
(153)
(36)
(39)
(8)
(83)
(56)
(139)
(4)
(31)
(35)
3
(263)
(10)
(270)
(56)
(326)
Currency translation differences and other changes
1
Present value of benefit liabilities at end of year (a)
177
Plan assets at beginning of year
Interest income
Return on plan assets
Past service cost and (gains) losses settlements
Plan contributions:
- employee contributions
- employer contributions
Benefits paid
Currency translation differences and other changes
Plan assets at end of year (b)
Asset ceiling at beginning of year
Change in asset ceiling
Asset ceiling at end of year (c)
(5)
644
633
18
126
947
341
1,288
227
633
18
633
18
(117)
(117)
(117)
(1)
14
1
13
(21)
(23)
503
1
1
(1)
14
1
13
(21)
(23)
503
1
1
(1)
14
1
13
(21)
(23)
503
1
1
761
648
12
(5)
15
1
14
(28)
(9)
633
1
1
162
1,150
301
1,451
648
12
(5)
15
1
14
(28)
(9)
633
1
1
648
12
(5)
15
1
14
(28)
(9)
633
1
1
Net liability recognized at end of year (a-b+c)
177
142
126
445
341
786
227
129
162
518
301
819
Employee benefit plans included the actuarial liability, net of
plan assets, attributable to partners operating in exploration and
production activities of €22 million (€1 million at December 31, 2021).
Eni recorded a receivable for an amount equivalent to such liability.
ENI ANNUAL REPORT 2022
Costs charged to the profit and loss account, valued using actuarial assumptions, consisted of the following:
297
Total
67
127
29
(18)
11
1
10
Italian
defined
benefit
plans
Foreign
defined
benefit
plans
FISDE,
foreign
medical
plans
and other
Defined
benefit
plans
Other
benefit
plans
1
2
2
2
3
1
2
1
1
1
1
2
1
1
11
24
(18)
6
6
1
18
12
6
16
24
(12)
12
12
28
16
12
3
2
2
2
5
3
2
3
1
1
1
4
3
1
15
28
(18)
10
10
1
26
16
10
20
26
(12)
14
14
34
20
14
52
127
1
1
1
(22)
(22)
158
158
49
107
(11)
145
145
1
184
174
10
69
107
26
(12)
14
14
(11)
179
165
14
(€ million)
2022
Current service cost
Past service cost and (gains) losses on settlements
Interest cost (income), net:
- interest cost on liabilities
- interest income on plan assets
Total interest cost (income), net
- of which recognized in "Payroll and related cost"
- of which recognized in "Financial income (expense)"
Remeasurements for long-term plans
Administrative fees paid
Total
- of which recognized in "Payroll and related cost"
- of which recognized in "Financial income (expense)"
2021
Current service cost
Past service cost and (gains) losses on settlements
Interest cost (income), net:
- interest cost on liabilities
- interest income on plan assets
Total interest cost (income), net
- of which recognized in "Payroll and related cost"
- of which recognized in "Financial income (expense)"
Remeasurements for long-term plans
Total
- of which recognized in "Payroll and related cost"
- of which recognized in "Financial income (expense)"
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
298
Costs of defined benefit plans recognized in other comprehensive income consisted of the following:
2022
2021
(€ million)
Remeasurements:
Actuarial (gains)/losses due to changes in demographic assumptions
Actuarial (gains)/losses due to changes in financial assumptions
Experience (gains) losses
Return on plan assets
Plan assets consisted of the following:
Italian
defined
benefit
plans
Foreign
defined
benefit
plans
FISDE,
foreign
medical
plans and
other
9
(144)
17
117
(1)
(34)
8
(26)
Italian
defined
benefit
plans
Foreign
defined
benefit
plans
FISDE,
foreign
medical
plans and
other
(1)
(1)
2
(3)
(111)
(4)
5
(4)
3
(5)
Total
(8)
(109)
(7)
5
(113)
(6)
(119)
Total
9
(35)
(213)
2
(33)
27
117
(60)
(€ million)
December 31, 2022
Plan assets with a quoted market price
Plan assets without a quoted market price
December 31, 2021
Plan assets with a quoted market price
Plan assets without a quoted market price
Cash and
cash
equivalents
Equity
securities
Debt
securities
Real
estate Derivatives
Investment
funds
Assets held
by insurance
company Other
Total
23
23
95
95
25
25
43
43
260
260
299
299
11
11
8
8
4
4
3
3
4
4
1
1
26
4
30
23
4
27
146
499
4
146
503
157
629
4
157
633
The main actuarial assumptions used in the measurement of the liabilities at year-end and in the estimate of costs expected
for 2023 consisted of the following:
2022
Discount rate
Rate of compensation increase
Rate of price inflation
Life expectations on retirement at age 65
2021
Discount rate
Rate of compensation increase
Rate of price inflation
Life expectations on retirement at age 65
Italian
defined
benefit
plans
Foreign
defined
benefit
plans
FISDE, foreign
medical plans
and other
Other
benefit
plans
(%)
(%)
(%)
(years)
(%)
(%)
(%)
(years)
3.7
3.4
2.4
1.0
2.8
1.8
2.2-15.4
1.9-12.5
1.2-11.5
13-24
0.3-15.3
1.5-12.5
0.7-13.3
13-25
3.7
3.4-3.7
2.4
24
2.4
1.0
0.0-1.0
1.8
24
1.8
ENI ANNUAL REPORT 2022
299
The following is an analysis by geographical area related to the main actuarial assumptions used in the valuation of the principal
foreign defined benefit plans:
Euro
area
Rest of
Europe
Africa
Other
areas
2022
Discount rate
Rate of compensation increase
Rate of price inflation
(%)
(%)
(%)
3.5-3.8
2.2-4.8
3.8-15.4
1.9-3.0
3.0-4.0
1.9-12.5
1.9-2.2
1.2-3.5
3.0-11.5
Life expectations on retirement at age 65
(years)
21-22
23-24
13-17
2021
Discount rate
Rate of compensation increase
Rate of price inflation
(%)
(%)
(%)
0.9-1.2
0.3-1.9
3.0-15.3
1.5-3.0
2.5-4.0
1.9-12.5
1.5-1.9
0.7-3.5
3.0-13.3
Life expectations on retirement at age 65
(years)
21-23
23-25
13-15
7.0
5.0
3.0
6.7
5.0
3.0
Foreign
defined
benefit
plans
2.2-15.4
1.9-12.5
1.2-11.5
13-24
0.3-15.3
1.5-12.5
0.7-13.3
13-25
The effects of a possible change in the main actuarial assumptions at the end of the year are listed below:
(€ million)
December 31, 2022
Italian defined benefit plans
Foreign defined benefit plans
FISDE, foreign medical plans and other
Other benefit plans
December 31, 2021
Italian defined benefit plans
Foreign defined benefit plans
FISDE, foreign medical plans and other
Other benefit plans
Discount rate
Rate of price
inflation
Rate of
increases in
pensionable
salaries
Healthcare
cost trend
rate
Rate of
increases to
pensions in
payment
0.5% Increase
0.5% Decrease
0.5% Increase
0.5% Increase
0.5% Increase
0.5% Increase
(6)
(33)
(6)
(3)
(9)
(49)
(10)
(4)
7
34
7
3
9
55
11
1
4
19
1
6
34
1
10
13
6
11
28
10
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
300
The sensitivity analysis was performed based on the results
for each plan through assessments calculated considering
modified parameters.
The amount of contributions expected to be paid for employee
benefit plans in the next year amounted to €134 million, of
which €40 million related to defined benefit plans.
The following is an analysis by maturity date of the liabilities for
employee benefit plans and their relative weighted average duration:
(€ million)
December 31, 2022
2023
2024
2025
2026
2027
2028 and thereafter
Italian
defined benefit
plans
Foreign
defined benefit
plans
FISDE, foreign
medical plans
and other
Other
benefit plans
14
13
14
17
15
104
29
28
26
35
31
(7)
7
7
7
7
7
91
94
95
85
30
16
21
Weighted average duration (years)
(years)
7.5
13.2
11.5
2.5
December 31, 2021
2022
2023
2024
2025
2026
2027 and thereafter
16
16
18
20
20
137
23
24
29
24
25
4
9
7
7
7
7
125
83
80
69
25
11
33
Weighted average duration (years)
(years)
9.8
17.6
13.6
3.1
23 Deferred tax assets and liabilities
(€ million)
Deferred tax liabilities before offsetting
Deferred tax assets available for offset
Deferred tax liabilities
Deferred tax assets before offsetting (net of accumulated write-down provisions)
Deferred tax liabilities available for offset
Deferred tax assets
December 31, 2022
December 31, 2021
9,315
(4,221)
5,094
8,790
(4,221)
4,569
10,668
(5,833)
4,835
8,546
(5,833)
2,713
ENI ANNUAL REPORT 2022 The most significant temporary differences giving rise to net deferred tax assets and liabilities are disclosed below:
301
(€ million)
Deferred tax liabilities
- accelerated tax depreciation
- derivative financial instruments
- difference between the fair value and the carrying amount of assets acquired
- site restoration and abandonment (tangible assets)
- leasing
- application of the weighted average cost method in evaluation of inventories
- other
Deferred tax assets, gross
- carry-forward tax losses
- site restoration and abandonment (provisions for contingencies)
- timing differences on depreciation and amortization
- impairment losses
- accruals for impairment losses and provisions for contingencies
- leasing
- employee benefits
- unrealized intercompany profits
- derivative financial instruments
- over/Under lifting
- other
Accumulated write-downs of deferred tax assets
Deferred tax assets, net
Carrying amount at
December 31, 2022
Carrying amount at
December 31, 2021
6,707
788
288
276
162
52
1,042
9,315
(6,752)
(1,986)
(1,710)
(1,490)
(1,246)
(182)
(161)
(68)
(60)
(59)
(1,246)
(14,960)
6,170
(8,790)
7,346
916
408
166
1,076
87
669
10,668
(7,374)
(2,400)
(2,354)
(1,095)
(1,417)
(1,091)
(155)
(71)
(343)
(219)
(631)
(17,150)
8,604
(8,546)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 302
The following table summarizes the changes in deferred tax liabilities and assets:
(€ million)
Carrying amount at December 31, 2021
Additions
Deductions
Changes with effect to OCI
Currency translation differences
Changes in scope of consolidation
Other changes
Carrying amount at December 31, 2022
Carrying amount at December 31, 2020
Additions
Deductions
Currency translation differences
Other changes
Deferred tax
liabilities before
offsetting
Deferred tax assets
before offsetting,
gross
Accumulated
write-downs of deferred
tax assets
Deferred tax assets
before offsetting net of
accumulated write-down
provisions
10,668
1,176
(1,351)
382
611
(1,951)
(220)
9,315
8,581
1,977
(765)
683
192
(17,150)
(2,215)
2,532
(147)
(610)
2,279
351
(14,960)
(16,231)
(1,783)
1,804
(682)
(258)
8,604
464
(2,409)
165
(549)
(105)
6,170
9,065
270
(863)
186
(54)
8,604
(8,546)
(1,751)
123
(147)
(445)
1,730
246
(8,790)
(7,166)
(1,513)
941
(496)
(312)
(8,546)
Carrying amount at December 31, 2021
10,668
(17,150)
Carry-forward tax losses amounted to €25,932 million, of which
€19,656 million can be carried forward indefinitely. Carry-
forward tax losses were €14,000 million and €11,932 million
at Italian subsidiaries and foreign subsidiaries, respectively.
Deferred tax assets gross of accumulated write-downs
recognized on these losses amounted to €3,360 million and
€3,392 million, respectively.
Italian taxation law allows the carry-forward of tax losses
indefinitely. Foreign taxation laws generally allow the carry-
forward of tax losses over a period longer than five years, and
in many cases, indefinitely. A tax rate of 24% was applied to tax
losses of Italian subsidiaries to determine the portion of the
carry-forwards tax losses. The corresponding average rate for
foreign subsidiaries was 28.4%.
Accumulated write-downs of deferred tax assets related to
Italian companies for €3,951 million and non-Italian companies
for €2,219 million.
The reduction of accumulated write-downs of €2,434 million was
driven by an improved profitability outlook at Italian subsidiaries
leading to the recognition of higher deferred tax assets in
connection with expected higher taxable earnings.
Taxes are also described in note 33 – Income taxes.
ENI ANNUAL REPORT 2022
24 Derivative financial instruments and hedge accounting
303
(€ million)
Non-hedging derivatives
Derivatives on exchange rate
- Currency swap
- Interest currency swap
- Outright
Derivatives on interest rate
- Interest rate swap
Derivatives on commodities
- Over the counter
- Future
- Options
- Other
Cash flow hedge derivatives
Derivatives on commodities
- Over the counter
- Future
Derivatives on interest rate
- Interest rate swap
Options
- Other options
Gross amount
Offsetting
Net amount
Of which:
- current
- non-current
December 31, 2022
December 31, 2021
Fair value
asset
Fair value
liability
Level of Fair
value
Fair value
asset
Fair value
liability
Level of Fair
value
2
2
2
2
2
1
2
2
1
2
3
110
1
3
114
137
137
9,571
6,886
16,457
16,708
339
339
21
21
360
17,068
(5,863)
11,205
11,076
129
132
144
12
288
58
58
8,663
5,764
2
80
14,509
14,855
192
192
192
144
144
15,191
(5,863)
9,328
9,042
286
2
2
2
2
2
1
1
2
1
2
3
113
30
3
146
13
13
12,152
7,158
1
19,311
19,470
7
193
200
39
7
11
57
43
43
12,060
5,498
55
17,613
17,713
735
1,672
2,407
3
3
200
2,410
62
62
20,185
(7,159)
13,026
19,670
(7,159)
12,511
12,460
12,911
51
115
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
304
Eni is exposed to the market risk, which is the risk that changes
in prices of energy commodities, exchange rates and interest
rates could reduce the expected cash flows or the fair value
of the assets. Eni enters into financial and commodities
derivatives traded on organized markets (like MTF and OTF) and
into commodities derivatives traded over the counter (swaps,
forward, contracts for differences and options on commodities)
to reduce this risk in relation to the underlying commodities,
currencies or interest rates and, to a limited extent, in compliance
with internal authorization thresholds, with speculative purposes
to profit from expected market trends.
Derivatives fair values were estimated based on market
quotations provided by primary info-provider or, alternatively,
appropriate valuation techniques generally adopted in the
marketplace.
Fair values of non-hedging derivatives essentially comprised
forward sale contracts of natural gas for physical delivery which
were not entitled to the own use exemption, as well as derivatives
for proprietary trading activities.
Fair value of cash flow hedge derivatives essentially related to
commodity hedges were entered into by the Global Gas & LNG
Portfolio segment. These derivatives were entered into to hedge
variability in future cash flows associated with highly probable
future trade transactions of gas or electricity or on already
contracted trades due to different indexation mechanisms of
supply costs versus selling prices. A similar scheme applies
to exchange rate hedging derivatives. The existence of a
relationship between the hedged item and the hedging derivative
is checked at inception to verify eligibility for hedge accounting
by observing the offset in changes of the fair values at both
the underlying commodity and the derivative. The hedging
relationship is also stress-tested against the level of credit risk
of the counterparty in the derivative transaction. The hedge ratio
is defined consistently with the Company’s risk management
objectives, under a defined risk management strategy. The
hedging relationship is discontinued when it ceases to meet the
qualifying criteria and the risk management objectives on the
basis of which hedge accounting has initially been applied.
The effects of the measurement at fair value of cash flow hedge
derivatives are given in note 26 – Equity. Information on hedged
risks and hedging policies is disclosed in note 28 – Guarantees,
commitments and risks - Risk factors.
During 2021, Eni entered into sustainability-linked interest
currency swaps with leading banking institutions which provide
for a cost adjustment mechanism linked to the achievement
of certain sustainability targets. At December 31, 2022, the fair
value of these contracts amounted to positive €39 million.
In 2022, the exposure to the exchange rate risk deriving from
securities denominated in U.S. dollars included in the strategic
liquidity portfolio amounting to €2,723 million was hedged by
using, in a fair value hedge relationship, negative exchange
differences for €107 million resulting on a portion of bonds
denominated in U.S. dollars amounting to €2,684 million.
The offsetting of financial derivatives related to Eni Global
Energy Markets SpA.
During 2022, there were no transfers between the different
hierarchy levels of fair value.
Hedging derivative instruments are disclosed below:
(€ million)
Cash flow hedge derivatives
Derivatives on commodity
- Over the counter
- Future
- Other
Derivatives on interest rate
- Interest rate swap
December 31, 2022
December 31, 2021
Nominal
amount of the
hedging
instrument
Change
in fair value
(effective
hedge)
Change in fair
value
(ineffective
hedge)
Nominal
amount of the
hedging
instrument
Change
in fair value
(effective
hedge)
Change in fair
value
(ineffective
hedge)
83
1,350
(4)
(3,912)
9
275
(461)
(364)
(2,016)
534
1,433
(3,907)
275
(825)
(1,482)
(46)
(5)
(51)
127
127
24
24
84
84
3
3
1,560
(3,883)
275
(741)
(1,479)
(51)
ENI ANNUAL REPORT 2022
305
The breakdown of the underlying asset or liability by type of risk hedged under cash flow hedge is provided below:
(€ million)
Cash flow hedge derivatives
Commodity price risk
- Planned sales
Derivatives on interest rate
- hedged flows
December 31, 2022
December 31, 2021
Change of the
underlying
asset used for the
calculation of hedging
ineffectiveness
CFH reserve
Reclassification
adjustments
Change of the
underlying
asset used for the
calculation of hedging
ineffectiveness
CFH reserve
Reclassification
adjustments
4,059
4,059
(15)
(15)
(499)
(499)
16
16
(4,666)
(4,666)
(11)
(11)
4,044
(483)
(4,677)
86
86
(3)
(3)
83
(1,272)
(1,272)
(215)
(215)
3
3
(1,269)
(215)
More information is reported in note 28 — Guarantees, Commitments and Risks — Financial risks.
Effects recognized in other operating profit (loss)
Other operating profit (loss) related to derivative financial instruments on commodity was as follows:
(€ million)
Net income (loss) on cash flow hedging derivatives
Net income (loss) on other derivatives
2022
275
(2,011)
(1,736)
2021
(51)
954
903
2020
(1)
(765)
(766)
Net income (loss) on cash flow hedging derivatives related to
the ineffective portion of the hedging relationship on commodity
derivatives was recognized through profit and loss.
Net income (loss) on other derivatives included the fair value
measurement and settlement of commodity derivatives which
could not be elected for hedge accounting under IFRS because
they related to net exposure to commodity risk and derivatives for
trading purposes and proprietary trading.
Effects recognized in finance income (loss)
(€ million)
Derivatives on exchange rate
Derivatives on interest rate
Options
2022
(70)
81
2
13
2021
(322)
16
2020
391
(40)
(306)
351
Net financial income from derivative financial instruments
was recognized in connection with the fair value valuation
of certain derivatives which lacked the formal criteria to be
treated in accordance with hedge accounting under IFRS, as
they were entered into for amounts equal to the net exposure
to exchange rate risk and interest rate risk, and as such, they
cannot be referred to specific trade or financing transactions.
Exchange rate derivatives were entered into in order to
manage exposures to foreign currency exchange rates arising
from the pricing formulas of commodities.
More information is disclosed in note 36 – Transactions with
related parties.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
306
25 Assets held for sale and liabilities directly associated with assets held for sale
As of December 31, 2022, assets held for sale of €264 million
(€263 million at 31 December 2021) and directly associated
liabilities of €108 million (€124 million at 31 December 2021)
mainly related to: (i) the agreement with Snam SpA relating
to the sale of 49.9% stake in the consolidated subsidiary Eni
Corridor Srl which owns (directly and indirectly) the stakes in
the companies that manage the two groups of international
pipelines linking Algeria to Italy, in particular onshore pipelines
which extend from the Algerian and Tunisian border to the
Tunisian coast (the so-called TTPC pipeline), and the offshore
pipelines linking the Tunisian coast to Italy (the so-called TMPC
pipeline). The consolidated entities covered by the agreement
are Eni Corridor Srl, Trans Tunisian Pipeline Co SpA, Société
pour la Construction du Gazoduc Transtunisien SA - Scogat SA,
Société de Service du Gazoduc Transtunisien SA - Sergaz SA
and Transmediterranean Pipeline Co Ltd. The carrying amount
of assets held for sale and liabilities directly associated
amounted to €211 million (of which current assets €72 million)
and €98 million (of which current liabilities €86 million); (ii) the
agreement for the sale of the exploration activities in Gabon
conducted by the consolidated entity Eni Gabon SA with non-
significant carrying amounts.
During the year, assets indicated in the 2021 financial statements
have been sold, and related to: (i) assets in Pakistan described
in note 5 – Business combinations and other significant
transactions; (ii) the investment Gas Distribution Company of
Thessaloniki – Thessaly SA (EDA Thess) operating in the gas
distribution business in Greece, sold to Depa Infrastructure, a
company of Italgas Group for €165 million with a capital gain
of €30 million.
26 Equity
Non-controlling interest
(€ million)
EniPower Group
Others
Equity attributable to equity holders of Eni
(€ million)
Share capital
Retained earnings
Cumulative currency translation differences
Other reserves and equity instruments:
- Perpetual subordinated bonds
- Legal reserve
- Reserve for treasury shares
- Reserve for OCI on cash flow hedging derivatives net of tax effect
- Reserve for OCI on defined benefit plans net of tax effect
- Reserve for OCI on equity-accounted investments
- Reserve for OCI on other investments valued at fair value
- Other reserves
Treasury shares
Profit for the year
Net Profit
Equity
2022
2021
December 31, 2022 December 31, 2021
54
20
74
7
12
19
373
98
471
30
52
82
December 31, 2022
December 31, 2021
4,005
23,455
7,564
5,000
959
2,937
(342)
(58)
46
53
190
(2,937)
13,887
54,759
4,005
22,750
6,530
5,000
959
958
(896)
(117)
54
141
190
(958)
5,821
44,437
ENI ANNUAL REPORT 2022
307
Share capital
As of December 31, 2022, the parent company’s issued share
capital consisted of €4,005,358,876 (same amount as of
December 31, 2021) represented by 3,571,487,977 ordinary
shares without nominal value (3,605,594,848 ordinary shares at
December 31, 2021).
On May 11, 2022, Eni’s Shareholders’ Meeting resolved: (i) to
distribute a dividend of €0.43 per share, with the exclusion of
treasury shares held at the ex-dividend date, in full settlement
of the 2021 dividend of €0.43 per share, for a total dividend
per share of the year 2021 of €0.86; (ii) the cancellation of
34,106,871 treasury shares, keeping the amount of the share
capital unchanged and proceeding with the reduction of the
related reserve by an amount of €400 million (same amount of
the book value of the canceled shares); (iii) to empower the Board
of Directors to execute a buy-back program of Eni’s shares up to
10% of ordinary shares outstanding, expiring on April 2023, for a
total amount up to €2.5 billion. In execution of this resolution, in
2022 195,550,084 shares were acquired at a cost of €2.4 billion.
Retained earnings
Retained earnings included the interim dividend distribution for
2022 amounting to €1,500 million corresponding to €0.44 per
share. The Board of Directors in accordance with Article 2433-bis,
paragraph 5 of the Italian Civil Code, resolved: (i) on July 28, 2022,
to pay the first tranche of dividend 0f €0.22 for each outstanding
share at the ex-dividend date of the September 19, 2022, with
payment due on September 21, 2022; (ii) on October 27, 2022,
to distribute to shareholders the second tranche of the 2022
dividend of €0.22 for each outstanding share on the ex-dividend
date of November 21, 2022, with payment on November 23, 2022;
(iii) on February 22, 2023 to distribute to shareholders the third (of
four) tranche of the 2022 dividend, out of the available reserves, of
€0.22 for each outstanding share, with the exclusion of treasury
shares in portfolio at the dividend date.
Cumulative foreign currency translation differences
The cumulative foreign currency translation differences arose from the translation of financial statements denominated in
currencies other than euro.
Perpetual subordinated hybrid bonds
The hybrid bonds are governed by English law and are traded
on the regulated market of the Luxembourg Stock Exchange.
As of December 31, 2022, hybrid bonds amounted to €5 billion
(same amount as at December 31, 2021).
The key characteristics of the two bonds are: (i) an issue of
€1.5 billion perpetual 5.25-year subordinated non-call hybrid
notes with a re-offer price of 99.403% and an annual fixed
coupon of 2.625% until the first reset date of January 13, 2026.
As from such date, unless it has been redeemed in whole on
or before the first reset date, which is the last day for the first
optional redemption, the bond will bear interest per annum
determined according to the relevant 5-year Euro Mid Swap
rate plus an initial spread of 316.7 basis points, increased by
an additional 25 basis points as from January 13, 2031 and
a subsequent increase of additional 75 basis points as from
January 13, 2046; (ii) an issue of €1.5 billion perpetual 9-year
subordinated non-call hybrid notes with a re-offer price of
100% and an annual fixed coupon of 3.375% until the first reset
date of October 13, 2029. As from such date, unless it has been
redeemed in whole on or before the first reset date, which is
the last day for the first optional redemption, the bond will bear
interest per annum determined according to the relevant 5-year
Euro Mid Swap rate plus an initial spread of 364.1 basis points,
increased by additional 25 basis points as from October 13,
2034 and a subsequent increase of additional 75 basis points
as from October 13, 2049; (iii) an issue of €1 billion perpetual
6-year subordinated non-call hybrid notes with a re-offer price
of 100% and an annual fixed coupon of 2.000% until the first
reset date of May 11, 2027. As from such date, unless it has
been redeemed in whole on or before the first reset date, which
is the last day for the first optional redemption, the bond will
bear interest per annum determined according to the relevant
5-year Euro Mid Swap rate plus an initial spread of 220.4 basis
points, increased by additional 25 basis points as from May 11,
2032 and a subsequent increase of additional 75 basis points
as from May 11, 2047; (iv) an issue of €1 billion perpetual
9-year subordinated non-call hybrid notes with a re-offer price
of 99.607% and an annual fixed coupon of 2.750% until the first
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 308
reset date of May 11, 2030. As from such date, unless it has
been redeemed in whole on or before the first reset date, which
is the last day for the first optional redemption, the bond will
bear interest per annum determined according to the relevant
5-year Euro Mid Swap rate plus an initial spread of 277.1 basis
points, increased by additional 25 basis points as from May 11,
2035 and a subsequent increase of additional 75 basis points
as from May 11, 2050.
Legal reserve
This reserve represents earnings restricted from the payment of dividends pursuant to Article 2430 of the Italian Civil Code. The
legal reserve has reached the maximum amount required by the Italian Law.
Reserve for treasury shares
The reserve for treasury shares represents the reserve that was established in previous reporting periods to repurchase the
Company shares in accordance with resolutions at Eni’s Shareholders’ Meetings.
Reserves for Other Comprehensive Income
Reserve for OCI on cash flow
hedge derivatives
Reserve for OCI on
defined benefit plans
(€ million)
Gross
reserve
Deferred
tax
liabilities
Net
reserve
Gross
reserve
Reserve as of December 31, 2021
(1,269)
373
(896)
(84)
Changes of the year
(3,883)
1,133
(2,750)
Currency translation differences
Reversal to inventories adjustments
(8)
2
(6)
Reclassification to retained earnings
Changes in scope of consolidation
60
1
3
Deferred
tax
liabilities
(33)
(5)
Net
reserve
(117)
55
1
3
Reclassification adjustments
4,677
(1,367)
3,310
Reserve as of December 31, 2022
(483)
141
(342)
(20)
(38)
(58)
Reserve as of December 31, 2020
(7)
2
(5)
(205)
47
(158)
Changes of the year
(1,479)
434
(1,045)
119
2
(77)
(3)
42
(1)
Reserve for OCI on
equity-accounted
investments(*)
Reserve for OCI
on investments
valued
at fair value
54
92
1
(101)
46
85
(32)
1
141
56
(144)
53
36
105
Currency translation differences
Reversal to inventories adjustments
Reclassification adjustments
Reserve as of December 31, 2021
2
215
(1,269)
(1)
(62)
373
1
153
(896)
(84)
(33)
(117)
54
141
(*) Reserve for OCI on equity-accounted investments at December 31, 2022 includes €1 million relating to defined benefit plans (€-4 million at December 31, 2021).
ENI ANNUAL REPORT 2022
309
Other reserves
Other reserves related to a reserve of €190 million representing the increase in equity attributable to Eni associated with a business
combination under common control, whereby the parent company Eni SpA divested its subsidiaries.
Treasury shares
A total of 226,097,834 of Eni’s ordinary shares (65,838,173
at December 31, 2021) were held in treasury for a total cost
of €2,937 million (€958 million at December 31, 2021). During
2022, 195,550,084 shares were acquired, for a total value of
€2,400 million, 34,106,871 treasury shares have been cancelled
for a total value of €400 million and 1,183,552 treasury shares
were assigned free of charge to Eni executives, following the
conlcusion of the Vesting Period as required by the “Long-
Term Monetary Incentive Plan 2017-2019” approved by Eni’s
Shareholders’ Meeting of April 13, 2017. On May 13, 2022,
the Shareholders Meeting approved the Long-Term Monetary
Incentive Plan 2020-2022 and empowered the Board of Directors
to execute the Plan by authorizing it to dispose up to a maximum
of 20 million of treasury shares in service of the Plan.
Distributable reserves
As of December 31, 2022, equity attributable to Eni included distributable reserves of approximately €45 billion.
Reconciliation of profit and equity of the parent company Eni SpA to the consolidated profit and equity
Profit
Shareholders’ equity
(€ million)
As recorded in Eni SpA's Financial Statements
2022
5,403
7,675
2021 December 31, 2022 December 31, 2021
Excess of net equity stated in the separate accounts of consolidated subsidiaries over the
corresponding carrying amounts of the parent company
7,375
(3,324)
Consolidation adjustments:
- difference between purchase cost and underlying carrying amounts of net equity
- adjustments to comply with Group accounting policies
- elimination of unrealized intercompany profits
- deferred taxation
Non-controlling interest
As recorded in Consolidated Financial Statements
797
124
262
13,961
(74)
13,887
1,855
(176)
(190)
5,840
(19)
5,821
52,520
(1,302)
153
4,468
(533)
(76)
55,230
(471)
54,759
51,039
(9,910)
153
4,266
(654)
(375)
44,519
(82)
44,437
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
310
27 Other information
Supplemental cash flow information
(€ million)
Investment in consolidated subsidiaries and businesses
Current assets
Non-current assets
Net borrowings
Current and non-current liabilities
Net effect of investments
Fair value of investments held before the acquisition of control
Non-controlling interests
Purchase price
less:
Cash and cash equivalents acquired
Consolidated subsidiaries and businesses net of cash and cash equivalent acquired
Disposal of consolidated subsidiaries and businesses
Current assets
Non-current assets
Net borrowings
Current and non-current liabilities
Net effect of disposals
Current value of the stake held for business combinations
Reclassification among other items of OCI
Gain on disposal of business combinations
Credits for divestments
Selling price
less:
Cash and cash equivalents sold
Consolidated subsidiaries and businesses net of cash and cash equivalent disposed of
Business combination Unión Fenosa Gas
Investment in Unión Fenosa Gas sold
less:
Investments and businesses acquired
Current assets
Non-current assets
Net borrowings
Long-term and short-term liabilities
Total investments and businesses acquired
Total net disposals
less:
Cash and cash equivalents acquired
Business combination Unión Fenosa Gas net of cash and cash equivalent acquired
Consolidated subsidiaries and businesses net of cash and cash equivalent disposed of
(60)
2022
2021
2020
147
2,463
(541)
(366)
1,703
(21)
(15)
262
2,698
(486)
(349)
2,125
(99)
(4)
1,667
2,022
(31)
1,636
(121)
1,901
15
193
(64)
(17)
127
(15)
112
(3)
109
1,377
8,618
(2,085)
(2,351)
5,559
(5,726)
(918)
2,704
(1,609)
10
(70)
(60)
2
2
2
2
232
370
378
(128)
(420)
200
32
42
74
76
ENI ANNUAL REPORT 2022
311
Investments and disposals in 2022 are disclosed in note 5 –
Business Combinations and other significant transactions.
Investments in 2021 concerned: (i) the acquisition of a 100% stake
of Aldro Energía y Soluciones SLU (now Eni Plenitude Iberia SLU)
active in the market for the sale of power, gas and services in the
retail business with a portfolio of around 250 thousand customers
mainly in Spain and Portugal; (ii) the acquisition of a 100% stake of
the company FRI-EL Biogas Holding (now EniBioCh4in SpA) active
in the sector of power production from bioenergy with 21 plants
each with a nominal power of 2 megawatts. The acquired assets
include a plant for the treatment of OFMSW - the Organic Fraction
of Municipal Solid Waste; (iii) the acquisition from Glennmont
Partners and PGGM Infrastructure Fund of a portfolio of thirteen
operating onshore wind farms, with a total capacity of 315 MW;
(iv) the acquisition of Dhamma Energy Group, owner of a pipeline
of photovoltaic plant in France and Spain at various stages of
maturity of approximately 3 GW, as well as plants in operation or
under construction with a capacity of approximately 120 MW; (v)
the acquisition from Azora Capital of a portfolio of nine renewable
energy projects consisting of three wind farms in operation and
one under construction for a total of 234 MW and five photovoltaic
projects in an advanced stage of development for approximately
0.9 GW; (vi) the acquisition of control of Finproject by exercising
the call option on the remaining 60% of the share capital, after
the initial investment of 40% made in 2020; (vii) a 100% stake in
Be Power, acquired by Zouk Capital and Aretex, companies active
in the segment of charging infrastructure for power mobility with
about 6,000 charging points, the second largest operator in Italy,
with which it was a co-branding agreement for the Be Charge
charging stations is in place.
Disposals in 2021 related to the restructuring of the joint venture
Unión Fenosa Gas SA following the agreements with the authorities
of the Arab Republic of Egypt (ARE) and the Spanish partner Naturgy
for the resolution of all outstanding issues of the joint venture with
Egyptian partners which resulted in an overall cash adjustment for
the benefit of Eni, represented in the disposals.
Investments in 2020 related to the acquisition by Eni gas e luce
SpA Società Benefit (now Eni Plenitude SpA Società Benefit) of a
70% controlling stake in Evolvere, a group operating in the business
of distributed generation from renewable sources for €97 million,
net of acquired cash of €3 million, and to the acquisition by Eni
New Energy SpA of the whole capital of three companies holding
authorization rights for the construction of three wind projects in
Puglia for €12 million.
Business combinations and other significant transactions
The provisional and definitive price allocation of the net assets acquired in 2021 is shown below:
i
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f
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l
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f
t
r
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P
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i
t
a
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l
l
a
l
i
a
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e
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B
n
o
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P
e
B
23
38
80
15
(14)
(9)
133
(1)
132
23
144
9
15
(14)
(44)
133
(1)
132
32
423
302
43
31
209
307
252
2
119
120
15
(215)
(214)
(101)
(100)
(100)
485
485
485
485
(12)
143
(3)
140
3
94
124
33
(97)
(11)
146
(3)
143
7
57
81
25
(32)
(20)
118
7
21
79
68
(38)
(21)
116
22
29
22
29
728
718
10
9
(34)
764
22
10
(37)
764
118
116
764
764
(€ million)
Current assets
Property, plant and equipement
Goodwill
Current and non current assets
Cash and cash equivalent
(Net borrowings)
Current and non current liabilities
Net effects of investments
Non-controlling interests
Total purchase price
Following the definitive allocation of the 2021 Business Combinations, financial statements were not restated taking into account
the irrelevance of the changes.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
312
28 Guarantees, commitments and risks
Guarantees
(€ million)
Consolidated subsidiaries
Unconsolidated subsidiaries
Joint ventures and associates
Others
December 31, 2022 December 31, 2022
7,082
202
9,802
477
6,432
190
3,358
180
17,563
10,160
Guarantees issued on behalf of consolidated subsidiaries
primarily consisted of: (i) autonomous guarantee contracts
given to third parties relating to bid bonds and performance
bonds for €3,282 million (€3,601 million at December 31, 2021);
(ii) autonomous guarantee contracts issued by the Exploration
& Production segment primarily in relation to oil & gas activities
for €1,098 million (€943 million at December 31, 2021); (iii)
autonomous guarantee contracts issued to cover the sale of
gas stored, gas transportation and potential exposures to the
gas system in Italy for €388 million (€16 million at December
31, 2021); autonomous guarantee contracts issued to third
parties for the purchase of equity investments for €252 million
(€913 million at December 31, 2021). At December 31, 2022,
the underlying commitment issued on behalf of consolidated
subsidiaries covered by these guarantees was €7,003 million
(€6,267 million at December 31, 2021).
Guarantees issued on behalf of joint ventures and associates
primarily consisted of: (i) autonomous guarantee contracts and
other personal guarantees given to the Azule Group for €3,164
million relating to leasing contracts of FPSO vessels to be used
as part of the development projects in Angola; (ii) autonomous
guarantee contracts and other personal guarantees given to
third parties relating to bid bonds and performance bonds for
€1,891 million (€1,764 million at December 31, 2021), of which
€1,378 million (€1,260 million at December 31, 2021) related
to guarantees issued towards the contractors who were
building a floating vessel for gas liquefaction and exportation
(FLNG) as part of the Coral development project offshore
Mozambique; (iii) autonomous guarantee contracts issued
towards banks and other lending institutions for €1,499 million
(€1,413 million at December 31, 2021) in relation to loans
and credit lines received as part of the Coral development
project offshore Mozambique with respect to the financing
agreements of the project with Export Credit Agencies and
banks; (iv) autonomous guarantee contracts issued in favor
to third parties for the investment in the offshore wind project
of Dogger Bank for €1,259 million (€494 million at December
31, 2021). In 2022, the consolidated company Eni North Sea
Wind Ltd, owner of the 20% stake in the Dogger Bank A, B and C
projects was conferred to the Norwegian joint venture Vårgrønn
AS (Eni’s interest 65%). At December 31, 2022, the underlying
commitment issued on behalf of joint ventures and associates
covered by these guarantees was €6,859 million (€1,816 million
at December 31, 2021).
As provided by the contract that regulates the petroleum
activities in Area 4 offshore Mozambique, Eni SpA in its capacity
as parent company of the operator has provided concurrently
with the approval of the development plan of the reserves
which are located exclusively within the concession area, an
irrevocable and unconditional parent company guarantee in
respect of any possible claims or any contractual breaches in
connection with the petroleum activities to be carried out in
the contractual area, including those activities in charge of the
special purpose entities like Coral FLNG SA, to the benefit of the
Government of Mozambique and third parties. The obligations
of the guarantor towards the Government of Mozambique
are unlimited (non-quantifiable commitments), whereas they
provide a maximum liability of €1,405 million in respect of
third-parties claims. This guarantee will be effective until the
completion of any decommissioning activity related to both
the development plan of Coral as well as any development plan
to be executed within Area 4 (particularly the Mamba project).
This parent company guarantee issued by Eni covering 100%
of the aforementioned obligations was taken over by the other
concessionaires (Kogas, Galp and ENH) and by ExxonMobil and
CNPC shareholders of the joint venture Mozambique Rovuma
Venture SpA, in proportion to their respective participating
interest in Area 4.
Guarantees issued on behalf of third parties consisted of: (i)
a guarantee issued in favor of Gulf LNG Energy and Gulf LNG
Pipeline on behalf of Angola LNG Supply Service Llc (Eni’s
interest 13.60%) to cover contractual commitments of paying re-
gasification fees for €190 million (€179 million at December 31,
2021). During 2022, the company Angola LNG Supply Service Llc
was conferred to Azule Energy Holdings Ltd (Eni’s interest 50%);
(ii) related for €167 million (€157 million at December 31, 2021) to
the share of the guarantee attributable to the State oil Company
of Mozambique ENH, which was assumed by Eni in favor of
the consortium financing the construction of the Coral project
FLNG vessel. At December 31, 2022, the underlying commitment
issued on behalf of third parties covered by these guarantees
was €323 million (€124 million at December 31, 2021).
ENI ANNUAL REPORT 2022 Commitments and risks
(€ million)
Commitments
Risks
313
December 31, 2022 December 31, 2022
77,481
1,228
78,709
75,201
934
76,135
Commitments related to: (i) parent company guarantees that were
issued in connection with certain contractual commitments for
hydrocarbon exploration and production activities and quantified,
based on the capital expenditures to be incurred, to be €73,334
million (€70,039 million at December 31, 2021). The increase was
primarily determined by exchange rate differences; (ii) a parent
company guarantee of €3,748 million (€3,532 million at December
31, 2021) given on behalf of Eni Abu Dhabi Refining & Trading BV
following the Share Purchase Agreement to acquire from Abu Dhabi
National Oil Company (ADNOC) a 20% equity interest in ADNOC
Refining and the set-up of ADNOC Global Trading Ltd dedicated to
marketing petroleum products. The parent company guarantee still
outstanding has been issued to guarantee the obligations set out
in the Shareholders Agreements and will remain in force as long
as the investment is maintained; (iii) commitments of the Plenitude
business line for the purchase of renewable energy projects in
Spain, United States and Italy for €210 million.
Risks relate to potential risks associated with: (i) contractual
assurances given to acquirers of certain investments and
businesses of Eni for €262 million (€246 million at December
31, 2021); (ii) assets of third parties under the custody of Eni for
€957 million (€688 million at December 31, 2021).
Other commitments and risks
A parent company guarantee was issued on behalf of Cardón
IV SA (Eni’s interest 50%), a joint venture operating the Perla
gas field located in Venezuela, for the supply to PDVSA GAS
of the volumes of gas produced by the field until the end of
the concession agreement (2036). In case of failure on part
of the operator to deliver the contractual gas volumes out of
production, the claim under the guarantee will be determined by
applying the local legislation. Eni’s share (50%) of the contractual
volumes of gas to be delivered to PDVSA GAS amounted to a
total of around €13 billion. Notwithstanding this amount does
not properly represent the guarantee exposure, nonetheless
such amount represents the maximum financial exposure at risk
for Eni. A similar guarantee was issued by PDVSA on behalf of
Eni for the fulfillment of the purchase commitments of the gas
volumes by PDVSA GAS.
Other commitments include the agreements entered into for
forestry initiatives, implemented within the low carbon strategy
defined by the Company, concerning the commitments for the
purchase, until 2038, of carbon credits produced and certified
according to international standards by subjects specialized in
forest conservation programs.
On February 5, 2021, EniServizi SpA (EniServizi) signed on behalf
of Eni SpA (Eni) an addendum to the lease contract of a property
to be built signed between Eni and the management company of
the real estate investment fund owner of the new complex under
construction in San Donato Milanese (the Property), including the
postponement of the delivery date of the property from July 28,
2020 to December 31, 2021. As of December 31, 2022, the real
estate complex was not yet available to Eni which, therfore, claimed
penalties for late delivery of approximately €18 million to the
landlord, as provided for in the lease agreement and supported by
a first demand guarantee. In this context, the landlord complained
that the delays would not be entirely attributable to itself because
of the following reasons: (i) effects of the pandemic crisis; (ii)
alleged defects found in relation to the preparatory works for the
sale of the area; (iii) alleged design defects. Also on the basis of
these complaints, the landlord expressed its intention to charge
EniServizi and/or Eni at least part of the claims made against the
owner. In this regard, confirming the complete impartiality and
neutrality of Eni and EniServizi with respect to the contractual
relationships between the landlord and its contractor (confirmed
in several communications), the Company reaffirmed that the
delays relating to points (i) and (ii) have already been object of
a settlement in the aforementioned agreement of February 5,
2021 and therefore comprised in the updated delivery date of
December 31, 2021. With regard to point (iii), the landlord in the
purchase contract of the area declared to accept the project
without any reservation or exception assuming all the consequent
risks and responsibilities, as well as to not to be entitled to any
higher payment, compensation or extension of terms for errors,
omissions or other defects in the project. The above concerns out-
of-court communications between the parties, as no litigation has
been initiated to date. At the moment, therefore, it is not known
what could be the object, the reasons or the probative allegations
of a possible legal action brought by the counterparty.
In addition, Eni, subsequent to the divestiture of certain Eni
assets, including businesses and investments, is liable for
certain non-quantifiable risks related to contractual guarantees
against certain contingent liabilities deriving from tax, social
security contributions, environmental issues and other matters
applicable to periods during which such assets were operated
by Eni or as a result of the loss of control in subsidiaries. Eni
believes such matters will not have a material adverse effect on
Eni’s results of operations and cash flow.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 314
Risk factors
The following is the description of financial risks and their
management and control. With reference to the issues related
to credit risk, the parameters adopted for the determination of
expected losses and the estimates of the probability of default
and the loss given default have been updated to take into account
the impacts associated with the conflict between Russia and
Ukraine and the current energy crisis.
As of December 31, 2022, the Company retains liquidity
reserves that management deems enough to meet the financial
obligations due in the next eighteen months.
Financial risks
Financial risks are managed in respect of the guidelines issued
by the Board of Directors of Eni SpA in its role of directing and
setting the risk limits, targeting to align and centrally coordinate
Group companies’ policies on financial risks (“Guidelines on
financial risks management and control”). The “Guidelines”
define for each financial risk the key components of the
management and control process, such as the target of the
risk management, the valuation methodology, the structure of
limits, the relationship model and the hedging and mitigation
instruments.
Market risk
Market risk is the possibility that changes in currency exchange
rates, interest rates or commodity prices will adversely affect
the value of the Group’s financial assets, liabilities or expected
future cash flows. The Company actively manages market
risk in accordance with a set of policies and guidelines that
provide a centralized model of handling finance, treasury
and risk management transactions based on the Company’s
departments of operational finance: the parent company’s
(Eni SpA) finance department, Eni Finance International SA
and Banque Eni SA, which is subject to certain bank regulatory
restrictions preventing the Group’s exposure to concentrations
of credit risk, and Eni Trade & Biofuels SpA and Eni Global
Energy Markets SpA that are in charge to execute certain
activities relating to commodity derivatives. In particular, Eni
Corporate finance department and Eni Finance International
SA manage subsidiaries’ financing requirements in and outside
Italy, respectively, covering funding requirements and using
available surpluses. All transactions concerning currencies and
derivative contracts on interest rates and currencies different
from commodities of Eni are managed by Eni Corporate finance
department, while Eni Trade & Biofuels SpA and Eni Global
Energy Markets SpA execute the negotiation of commodity
derivatives over the market. Eni SpA, Eni Trade & Biofuels
SpA and Eni Global Energy Markets SpA (also through the
subsidiary Eni Trading & Shipping Inc) perform trading activities
in financial derivatives on external trading venues, such as
European and non-European regulated markets, Multilateral
Trading Facility (MTF), Organized Trading Facility (OTF), or
similar and brokerage platforms (i.e. SEF), and over the counter
on a bilateral basis with external counterparties. Other legal
entities belonging to Eni that require financial derivatives
enter into these transactions through Eni Trade & Biofuels
SpA, Eni Global Energy Markets SpA and Eni SpA based on
the relevant asset class expertise. Eni uses derivative financial
instruments (derivatives) in order to minimize exposure to
market risks related to fluctuations in exchange rates relating
to those transactions denominated in a currency other than the
functional currency (the euro) and interest rates, as well as to
optimize exposure to commodity prices fluctuations taking into
account the currency in which commodities are quoted. Eni
monitors every activity in derivatives classified as risk-reducing
directly or indirectly related to covered industrial assets, so as
to effectively optimize the risk profile to which Eni is exposed or
could be exposed. If the result of the monitoring shows those
derivatives should not be considered as risk reducing, these
derivatives are reclassified in proprietary trading. As proprietary
trading is considered separately from the other activities in
specific portfolios of Eni Trade & Biofuels SpA and Eni Global
Energy Markets SpA, their exposure is subject to specific
controls, both in terms of Value at Risk (VaR) and Stop Loss and
in terms of nominal gross value. For Eni, the gross nominal value
of proprietary trading activities is compared with the limits set
by the relevant international standards. The framework defined
by Eni’s policies and guidelines provides that the valuation and
control of market risk is performed on the basis of maximum
tolerable levels of risk exposure defined in terms of limits of
Stop Loss, which expresses the maximum tolerable amount of
losses associated with a certain portfolio of assets over a pre-
defined time horizon; limits of revision strategy, which consist
in the triggering of a revision process of the strategy in the
event of exceeding the level of profit and loss given and VaR,
which measures the maximum potential loss of the portfolio,
given a certain confidence level and holding period, assuming
adverse changes in market variables and taking into account the
correlation among the different positions held in the portfolio.
Eni’s finance department defines the maximum tolerable levels
of risk exposure to changes in interest rates and foreign currency
exchange rates in terms of VaR, pooling Group companies’ risk
positions maximizing, when possible, the benefits of the netting
activity. Eni’s calculation and valuation techniques for interest
rate and foreign currency exchange rate risks are in accordance
with banking standards, as established by the Basel Committee
for bank activities surveillance. Tolerable levels of risk are based
on a conservative approach, considering the industrial nature
of the Company. Eni’s guidelines prescribe that Eni Group
companies minimize such kinds of market risks by transferring
risk exposure to the parent company finance department. Eni’s
guidelines define rules to manage the commodity risk aiming
at optimizing core activities and pursuing preset targets of
stabilizing industrial and commercial margins. The maximum
tolerable level of risk exposure is defined in terms of VaR, limits
of revision strategy, Stop Loss and volumes in connection
with exposure deriving from commercial activities, as well as
exposure deriving from proprietary trading, exclusively managed
ENI ANNUAL REPORT 2022 315
by Eni Trade & Biofuels SpA and Eni Global Energy Markets SpA.
Internal mandates to manage the commodity risk provide for
a mechanism of allocation of the Group maximum tolerable
risk level to each business unit. In this framework, Eni Trade &
Biofuels SpA and Eni Global Energy Markets SpA, in addition to
managing risk exposure associated with their own commercial
activity and proprietary trading, pool the requests for negotiating
commodity derivatives and execute them in the marketplace.
According to the targets of financial structure included in the
financial plan approved by the Board of Directors, Eni decided
to retain a cash reserve to face any extraordinary requirement.
Eni’s finance department, with the aim of optimizing the
efficiency and ensuring maximum protection of capital,
manages such reserve and its immediate liquidity within the
limits assigned. The management of strategic cash is part of
the asset management pursued through transactions on own
risk in view of optimizing financial returns, while respecting
authorized risk levels, safeguarding the Company’s assets and
retaining quick access to liquidity. The four different market
risks, whose management and control have been summarized
above, are described below.
Market risk - Exchange rate
Exchange rate risk derives from the fact that Eni’s operations
are conducted in currencies other than euro (mainly U.S. dollar).
Revenues and expenses denominated in foreign currencies
may be significantly affected by exchange rate fluctuations
due to conversion differences on single transactions arising
from the time lag existing between execution and definition of
relevant contractual terms (economic risk) and conversion of
foreign currency-denominated trade and financing payables
and receivables (transactional risk). Exchange rate fluctuations
affect the Group’s reported results and net equity as financial
statements of subsidiaries denominated in currencies other
than euro are translated from their functional currency into
euro. Generally, an appreciation of U.S. dollar versus euro
has a positive impact on Eni’s results of operations, and vice
versa. Eni’s foreign exchange risk management policy is to
minimize transactional exposures arising from foreign currency
movements and to optimize exposures arising from commodity
risk. Eni does not undertake any hedging activity for risks
deriving from the translation of foreign currency denominated
profits or assets and liabilities of subsidiaries, which prepare
financial statements in a currency other than euro, except for
single transactions to be evaluated on a case-by-case basis.
Effective management of exchange rate risk is performed
within Eni’s finance departments, which pool Group companies’
positions, hedging the Group net exposure by using certain
derivatives, such as currency swaps, forwards and options. Such
derivatives are evaluated at fair value based on market prices
provided by specialized info-providers. The VaR techniques are
based on variance/covariance simulation models and are used
to monitor the risk exposure arising from possible future changes
in market values over a 24-hour period within a 99% confidence
level and a 20-day holding period.
Market risk - Interest rate
Changes in interest rates affect the market value of financial
assets and liabilities of the Company and the level of finance
charges.
Eni’s interest rate risk management policy is to minimize risk
with the aim to achieve financial structure objectives defined
and approved in management’s “Finance plan”. The Group’s
central departments pool borrowing requirements of the Group
companies in order to manage net positions and fund portfolio
developments consistent with management plan, thereby
maintaining a level of risk exposure within prescribed limits.
Eni enters into interest rate derivative transactions, in particular
interest rate swaps, to effectively manage the balance between
fixed and floating rate debt. Such derivatives are evaluated at fair
value based on market prices provided from specialized sources.
VaR deriving from interest rate exposure is measured daily based
on a variance/covariance model, with a 99% confidence level and
a 20-day holding period.
long-term storage functional to the
Market risk - Commodity
Price risk of commodities is identified as the possibility that
fluctuations in the price of materials and basic products produce
significant changes in Eni’s operating margins, determining an
impact on the economic result such as to compromise the
targets defined in the four-year plan and in the budget. The
commodity price risk arises in connection with the following
exposures: (i) strategic exposure: exposures directly identified
by the Board of Directors as a result of strategic investment
decisions or outside the planning horizon of risk management.
These exposures include, for example, exposures associated
with the program for the production of Oil & Gas reserves, long-
term gas supply contracts for the portion not balanced by sales
contracts (already stipulated or expected), the margin deriving
from the chemical transformation process, the refining margin
logistic-industrial
and
activities; (ii) commercial exposure: concerns the exposures
related to components underlying the contractual arrangements
of industrial and commercial (contracted exposure) activities
normally related to the time horizon of the four-year plan and
budget, components not yet under contract but which will be
with reasonable certainty (commitment exposure) and the
relevant activities of risk management. Commercial exposures
are characterized by a systematic risk management activity
conducted based on risk/return assumptions by implementing
one or more strategies and subjected to specific risk limits
(VaR, revision strategy limits and Stop Loss). In particular, the
commercial exposures include exposures subjected to asset-
backed hedging activities, arising from the flexibility/optionality
of assets; (iii) proprietary trading exposure: transactions
carried out autonomously for speculative purposes in the short
term and normally not aimed at delivery with the intention of
exploiting favorable price movements, spreads and/or volatility
implemented autonomously and carried out regardless of
the exposures of the commercial portfolio or physical and
contractual assets. They are usually carried out in the short-
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 316
term, not necessarily aimed at the delivery and carried out
by using financial or similar instruments in accordance with
specific limits of authorized risk (VaR, Stop Loss). Strategic
risk is not subject to systematic activity of management/
coverage that is eventually carried out only in case of specific
market or business conditions. Because of the extraordinary
nature, hedging activities related to strategic risks are delegated
to the top management, previously authorized by the Board
of Directors. With prior authorization from the Board of
Directors, the exposures related to strategic risk can be used in
combination with other commercial exposures in order to exploit
opportunities for natural compensation between the risks
(natural hedge) and consequently reduce the use of financial
derivatives (by activating logics of internal market). With regard to
exposures of a commercial nature, Eni’s risk management target
is to optimize the “core” activities and preserve the economic/
financial results. Eni manages the commodity risk through the
trading units (Eni Trade & Biofuels SpA and Eni Global Energy
Markets SpA) and the exposure to commodity prices through
the Group’s finance departments by using financial derivatives
traded on the regulated markets MTF, OTF and financial
derivatives traded over the counter (swaps, forward, contracts
for differences and options on commodities) with the underlying
commodities being crude oil, gas, refined products, power or
emission certificates. Such financial derivatives are valued at
fair value based on market prices provided from specialized
sources or, absent market prices, based on estimates provided
by brokers or suitable valuation techniques. VaR deriving from
commodity exposure is measured daily based on a historical
simulation technique, with a 95% confidence level and a one-day
holding period.
Market risk - Strategic liquidity
Market risk deriving from liquidity management is identified
in prices of financial
as the possibility that changes
instruments (bonds, money market instruments and mutual
funds) affect the value of these instruments in case of
sale or when they are valued at fair value in the financial
statements. The setting up and maintenance of the
liquidity reserve are mainly aimed to guarantee a proper
financial flexibility. Liquidity should allow Eni to fund any
extraordinary need (such as difficulty in access to credit,
exogenous shock, macroeconomic environment, as well
as merger and acquisitions) and must be dimensioned to
provide a coverage of short-term debts and of medium and
long-term finance debts due within a time horizon of 24
months. In order to manage the investment activity of the
strategic liquidity, Eni defined a specific investment policy
with aims and constraints in terms of financial activities and
operational boundaries, as well as governance guidelines
regulating management and control systems. In particular,
strategic liquidity management is regulated in terms of VaR
(measured based on a parametrical methodology with a one-
day holding period and a 99% confidence level), Stop Loss
and other operating limits in terms of concentration, issuing
entity, business segment, country of emission, duration,
ratings and type of investing instruments in portfolio, aimed
to minimize market and liquidity risks. Financial leverage or
short selling is not allowed. Activities in terms of strategic
liquidity management started in the second half of the year
2013 (Euro portfolio) and throughout the course of the year
2017 (U.S. dollar portfolio). As at 31 December 2022, the
rating of the Strategic liquidity investment portfolio was
A/A-, showing a slightly improving compared to 2021.
The following tables show amounts in terms of VaR, recorded
in 2022 (compared with 2021), relating to interest rate and
exchange rate risks in the first section and commodity risk
(aggregated by type of exposure). Regarding the management
of strategic liquidity, the table reports the sensitivity to changes
in interest rate.
ENI ANNUAL REPORT 2022 317
(Value at Risk - parametric method variance/covariance; holding period: 20 days; confidence level: 99%)
(€ million)
Interest rate(a)
Exchange rate(a)
High
9.05
0.95
2022
Low
2.61
0.09
Average
At year end
5.19
0.29
3.22
0.34
High
11.04
0.28
2021
Low
1.29
0.11
Average
At year end
3.32
0.18
3.66
0.12
(a) Value at risk deriving from interest and exchange rates exposures include the following finance departments: Eni Corporate Finance Department, Eni Finance International SA and Banque Eni SA.
(Value at Risk - Historic simulation method; holding period: 1 day; confidence level: 95%)
(€ million)
High
Low
Average
At year end
Commercial exposures - Management
Portfolio(a)
Trading(b)
800.39
1.63
30.65
0.01
261.41
0.36
30.65
0.04
High
42.76
1.03
2022
2021
Low
2.91
0.12
Average
At year end
23.80
0.37
2.91
0.20
(a) Refers to Global Gas & LNG Portfolio business area, Power Generation & Marketing, Green/Traditional Refining & Marketing, Plenitude, Eni Trading & Biofuels, Eni Global Energy Markets
(commercial portfolio). VaR is calculated on the so-called Statutory view, with a time horizon that coincides with the year considering all the volumes delivered in the year and the relevant
financial hedging derivatives. Consequently, during the year the VaR pertaining to GGP, Power G&M, GTR&M and Plenitude during the year presents a decreasing trend following the progressive
reaching of the maturity of the positions within the annual horizon.
(b) Cross-commodity proprietary trading, through financial instruments, refers to Eni Trading & Biofuels SpA and Eni Global Energy Markets SpA (London-Bruxelles-Singapore) and Eni Trading
& Shipping Inc (Houston).
(Sensitivity - Dollar Value of 1 basis point - DVBP)
(€ million)
Strategic liquidity - € Portfolio(a)
High
0.30
2022
Low
0.16
Average
At year end
0.23
0.16
High
0.40
2021
Low
0.29
Average
At year end
0.33
0.30
(a) Management of strategic liquidity portfolio starting from July 2013.
(Sensitivity - Dollar Value of 1 basis point - DVBP)
($ million)
Strategic liquidity - US dollar Portfolio(a)
High
0.13
2022
Low
0.04
Average
At year end
0.08
0.04
High
0.14
2021
Low
0.05
Average
At year end
0.11
0.13
(a) Management of strategic liquidity portfolio in US dollar currency starting from August 2017.
Credit risk
Credit risk is the potential exposure of the Group to losses in
case counterparties fail to perform or pay amounts due. Eni
defined credit risk management policies consistent with the
nature and characteristics of the counterparties of commercial
and financial transactions regarding the centralized finance
model.
The Company adopted a model to quantify and control the
credit risk-based on the evaluation of the expected loss which
represents the probability of default and the capacity to recover
credits in default that is estimated through the so-called Loss
Given Default.
In the credit risk management and control model, credit
exposures are distinguished by commercial nature, in relation
to sales contracts on commodities related to Eni’s businesses,
and by financial nature, in relation to the financial instruments
used by Eni, such as deposits, derivatives and securities.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 318
Credit risk for commercial exposures
Credit risk arising from commercial counterparties is managed
by the business units and by the specialized corporate finance
and dedicated administration departments and is operated
based on formal procedures for the assessment of commercial
counterparties, the monitoring of credit exposures, credit
recovery activities and disputes. At a corporate level, the
general guidelines and methodologies for quantifying and
controlling customer risk are defined, in particular the riskiness
of commercial counterparties is assessed through an internal
rating model that combines different default factors deriving
indicators, payment
from economic variables, financial
experiences and information from specialized primary info
providers. The probability of default related to State Entities
or their closely related counterparties (e.g. National Oil
Company), essentially represented by the probability of late
payments, is determined by using the country risk premiums
adopted for the purposes of the determination of the WACCs
for the impairment of non-financial assets. Finally, for retail
positions without specific ratings, risk is determined by
distinguishing customers in homogeneous risk clusters based
on historical series of data relating to payments, periodically
updated.
Credit risk for financial exposures
With regard to credit risk arising from financial counterparties
deriving from current and strategic use of liquidity, derivative
contracts and transactions with underlying financial assets
valued at fair value, Eni has established internal policies
providing exposure control and concentration through maximum
credit risk limits corresponding to different classes of financial
counterparties defined by the Company’s Board of Directors and
based on ratings provided for by primary credit rating agencies.
Credit risk arising from financial counterparties is managed
by the Eni’s operating finance departments, Eni Global Energy
Markets SpA (EGEM), Eni Trade & Biofuels SpA (ETB) and Eni
Trading & Shipping Inc (ETS Inc) specifically for commodity
derivatives transactions, as well as by companies and
business areas limitedly to physical transactions with financial
counterparties, consistently with the Group centralized finance
model. Eligible financial counterparties are closely monitored by
each counterpart and by group of belonging to check exposures
against the limits assigned daily and the expected loss analysis
and the concentration periodically.
Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the
Group may not be available, or the Group is unable to sell its
assets in the marketplace in order to meet short-term finance
requirements and to settle obligations. Such a situation would
negatively affect Group results, as it would result in the Company
incurring higher borrowing expenses to meet its obligations or
under the worst of conditions the inability of the Company to
continue as a going concern.
Eni’s risk management targets include the maintaining of an
adequate level of financial resources readily available to deal with
external shocks (drastic changes in the scenario, restrictions on
access to capital markets, etc.) or to ensure an adequate level
of operational flexibility for the development projects of the
Company. The strategic liquidity reserve is employed in short-
term marketable financial assets, favoring investments with very
low risk profile. At present, the Group believes to have access
to more than sufficient funding to meet the current foreseeable
borrowing requirements due to available cash on hand financial
assets and lines of credit and the access to a wide range of
funding opportunities which can be activated through the credit
system and capital markets.
Due to the increased volatility of commodity markets and the
related higher financial commitment linked to the margin of
commodity derivatives, Eni has further strengthened its financial
flexibility through the activation of new financing lines.
Eni has in place a program for the issuance of Euro Medium-Term
Notes up to €20 billion, of which €15.8 billion were drawn as of
December 31, 2022 (€13.4 billion drawn by Eni SpA). The Group
has credit ratings of A- outlook Stable and A-2, respectively, for
long and short-term debt, assigned by Standard & Poor’s; Baa1
outlook Negative and P-2, respectively, for long and short-term
debt, assigned by Moody’s; A- outlook Stable and F1, respectively
for long and short-term debt, assigned by Fitch. Eni’s credit rating
is linked, in addition to the Company’s industrial fundamentals
and trends in the trading environment, to the sovereign credit
rating of Italy. Based on the methodologies used by the credit
rating agencies, a downgrade of Italy’s credit rating may trigger a
potential knock-on effect on the credit rating of Italian issuers such
as Eni. During 2022, Moody’s revised Eni’s outlook from stable to
negative, due to the worsening of the Italian outlook.
During 2022 Eni renegotiated and expanded its portfolio of
committed credit lines through the stipulation of a sustainability-
linked bond facility agreed with a pool of banks for €6.0 billion.
At December 31, 2022 the available committed borrowing facility
amounted to €8.1 billion.
ENI ANNUAL REPORT 2022 319
Expected payments for financial debts and lease liabilities
The table below summarizes the Group main contractual obligations for finance debt and lease liability repayments, including
expected payments for interest charges and liabilities for derivative financial instruments.
(€ million)
December 31, 2022
Non-current financial liabilities (including the current portion)
Current financial liabilities
Lease liabilities
Fair value of derivative instruments
Interest on finance debt
Interest on lease liabilities
Financial guarantees
December 31, 2021
Non-current financial liabilities (including the current portion)
Current financial liabilities
Lease liabilities
Fair value of derivative instruments
Interest on finance debt
Interest on lease liabilities
Financial guarantees
2023
2024
2025
2026
2027
2028 and
thereafter
Total
Maturity year
2,883
4,446
851
9,042
2,339
2,640
3,298
1,927
9,246
22,333
584
1
445
51
365
54
347
2,312
180
4,446
4,904
9,328
17,222
2,924
3,136
3,717
2,274
11,738
41,011
590
235
825
1,668
494
209
703
459
184
643
365
165
530
284
147
431
716
685
1,401
2,908
1,625
4,533
1,668
Maturity year
2022
2023
2024
2025
2026
2027 and
thereafter
Total
1,903
2,299
920
12,911
18,033
475
282
757
1,599
4,339
2,272
2,616
3,910
10,668
25,708
688
3
565
61
508
481
23
2,147
28
5,030
2,898
3,124
4,414
12,843
462
247
709
386
214
600
359
184
543
286
155
441
905
681
1,586
2,299
5,309
13,026
46,342
2,873
1,763
4,636
1,599
Liabilities for leased assets including interest charges for €760 million (€2,370 million at December 31, 2021) pertained to the share of
joint operators participating in unincorporated joint operation operated by Eni which will be recovered through a partner-billing process.
Expected payments for trade and other payables
The table below presents the timing of the expenditures for trade and other payables.
(€ million)
December 31, 2022
Trade payables
Other payables and advances
(€ million)
December 31, 2021
Trade payables
Other payables and advances
Maturity year
2023
2024-2027
2028 and thereafter
Total
19,527
6,182
25,709
77
77
110
110
Maturity year
19,527
6,369
25,896
2022
2023-2026
2027 and thereafter
Total
16,795
4,925
21,720
112
112
109
109
16,795
5,146
21,941
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
320
Expected payments under contractual obligations27
lease, financial, trade and other
In addition to
liabilities
represented in the balance sheet, the Company is subject to
non-cancellable contractual obligations or obligations, the
cancellation of which requires the payment of a penalty. These
obligations will require cash settlements in future reporting
periods. These liabilities are valued based on the net cost for
the company to fulfill the contract, which consists of the lowest
amount between the costs for the fulfillment of the contractual
obligation and the contractual compensation/penalty in the
event of non-performance.
The Company’s main contractual obligations at the balance sheet
date comprise take-or-pay clauses contained in the Company’s
gas supply contracts or shipping arrangements, whereby the
Company obligations consist of off-taking minimum quantities of
product or service or, in case of failure, paying the corresponding
cash amount that entitles the Company the right to collect the
product or the service in future years. The amounts due were
calculated on the basis of the assumptions for gas prices and
services included in the four-year industrial plan approved by the
Company’s management and for subsequent years on the basis
of management’s long-term assumptions.
The table below summarizes the Group principal contractual
obligations for the main existing contractual obligations as
of the balance sheet date, shown on an undiscounted basis.
Amounts expected to be paid in 2023 for decommissioning oil
& gas assets and for environmental clean-up and remediation
are based on management’s estimates and do not represent
financial obligations at the closing date.
(€ million)
Decommissioning liabilities(a)
Environmental liabilities
Purchase obligations(b)
- Gas
- take-or-pay contracts
- ship-or-pay contracts
- Other purchase obligations
Other obligations
- Memorandum of Intent - Val d’Agri
Total
Maturity year
2023
685
591
2024
440
507
2025
376
408
2026
376
317
2027
485
306
2028 and
thereafter
Total
11,622
13,984
1,388
3,517
44,715
39,516
25,737
18,980
14,056
64,976
207,980
40,628
38,547
25,250
18,717
13,926
64,698
201,766
915
3,172
1
1
506
463
419
68
250
13
121
9
249
29
2,460
3,754
1
1
45,992
40,463
26,521
19,673
14,847
77,986
225,482
(a) Represents the estimated future costs for the decommissioning of oil and natural gas production facilities at the end of the producing lives of fields, well-plugging, abandonment and site
restoration.
(b) Represents any agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms.
Capital investment and capital expenditure commitments
In the next four years, Eni expects capital investments and
capital expenditures of €37 billion. The table below summarizes
Eni’s full-life capital expenditure commitments for property,
plant and equipment and capital projects at the closing date. A
project is considered to be committed when it has received the
appropriate level of internal management approval and for which
procurement contracts have usually already been awarded or
are being awarded.
The amounts shown in the table below include committed
expenditures to execute certain environmental projects.
(€ million)
Committed projects
Maturity year
2023
8,080
2024
6,093
2025
3,845
2026
2,047
2027 and
thereafter
Total
3,785
23,850
(27) Contractual obligations related to employee benefits are indicated in note 22 - Provisions for employee benefits.
ENI ANNUAL REPORT 2022
321
Other information about financial instruments
(€ million)
Financial instruments at fair value with effects recognized in profit
and loss account
Financial assets at fair value through profit or loss(a)
Non-hedging and trading derivatives(b)
Other investments valued at fair value(c)
Receivables and payables and other assets/liabilities valued
at amortized cost
Trade receivables and other(d)
Financing receivables(e)
Securities(a)
Trade payables and other(a)
Financing payables(f)
Net assets (liabilities) for hedging derivatives(g)
2022
2021
Income (expense) recognized in
Income (expense) recognized in
Carrying
amount
Profit and
loss account
OCI
Carrying
amount
Profit and
loss account
8,251
2,006
1,202
21,396
3,415
56
25,897
26,917
(129)
(55)
(1,723)
351
31
(16)
53
(692)
(4,677)
56
6,301
(611)
1,294
19,124
6,140
53
21,941
27,794
794
96
11
597
230
(226)
39
(80)
(250)
(215)
OCI
105
(1,264)
(a) Income or expense were recognized in the profit and loss account within “Finance income (expense)”.
(b) In the profit and loss account, economic effects were recognized as loss within “Other operating income (loss)” for €1,736 million (income for €903 million in 2021) and as income within
“Finance income (expense)” for €13 million (expense for €306 million in 2021).
(c) Income or expense were recognized in the profit and loss account within “Income (expense) from investments - Dividends”.
(d) Income or expense were recognized in the profit and loss account as net reversals within “Net (impairments) reversals of trade and other receivables” for €47 million (net impairments for €279
million in 2021) and as expense within “Finance income (expense)” for €16 million (income for €53 million in 2021), including interest income calculated on the basis of the effective interest rate
of €15 million (interest income for €18 million in 2021).
(e) In the profit and loss account, income or expense were recognized as income within “Finance income (expense)”, including interest income calculated on the basis of the effective interest rate
of €86 million (interest income for €53 million in 2021) and net impairments for €111 million (net impairments for €25 million in 2021).
(f) In the profit and loss account, income or expense were recognized as expense within “Finance income (expense)”, including interest expense calculated on the basis of the effective interest
rate of €568 million (€487 million in 2021).
(g) In the profit and loss account, income or expense were recognized within “Sales from operations” and “Purchase, services and other”.
Disclosures about the offsetting of financial instruments
(€ million)
December 31, 2022
Financial assets
Trade and other receivables
Other current assets
Other non-current assets
Financial liabilities
Trade and other liabilities
Other current liabilities
Other non-current liabilities
December 31, 2021
Financial assets
Trade and other receivables
Other current assets
Other non-current assets
Financial liabilities
Trade and other liabilities
Other current liabilities
Other non-current liabilities
Gross amount of financial
assets and liabilities
Gross amount of financial
assets and liabilities subject
to offsetting
Net amount of financial
assets and liabilities
23,546
18,684
2,236
28,415
18,336
3,234
20,461
20,791
1,031
23,331
22,913
2,248
2,706
5,863
2,706
5,863
1,611
7,157
2
1,611
7,157
2
20,840
12,821
2,236
25,709
12,473
3,234
18,850
13,634
1,029
21,720
15,756
2,246
The offsetting of financial assets and liabilities related to: (i)
receivables and payables pertaining to the Exploration & Production
segment towards state entities for €2,651 million (€1,540 million
at December 31, 2021) and trade receivables and trade payables
pertaining to Eni Trading & Shipping Inc for €55 million (€71 million
at December 31, 2021); (ii) other current and non-current assets
and liabilities for derivative financial instruments of €5,863 million
(€7,159 million at December 31, 2021).
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
322
Legal Proceedings
Eni is a party in a number of civil actions and administrative
arbitral and other judicial proceedings arising in the ordinary
course of business. Based on information available to date,
taking into account the existing risk provisions disclosed in note
21 — Provisions and that in some instances it is not possible
to make a reliable estimate of contingency losses, Eni believes
that the foregoing will likely not have a material adverse effect
on the Group Consolidated Financial Statements.
In addition to proceedings arising in the ordinary course of
business referred to above, Eni is party to other proceedings,
and a description of the most significant proceedings currently
pending is provided in the following paragraphs. Generally, and
unless otherwise indicated, these legal proceedings have not
been provisioned because Eni believes a negative outcome to
be unlikely or because the amount of the provision cannot be
estimated reliably.
1. Environment, health and safety
1.1 Criminal proceedings
in
the matters of
environment, health and safety
iii)
i)
Eni Rewind SpA (company incorporating EniChem
Agricoltura SpA — Agricoltura SpA in liquidation —
EniChem Augusta Industriale Srl — Fosfotec Srl)
— Proceeding about the industrial site of Crotone.
In 2010 a criminal proceeding started before the
Public Prosecutor of Crotone relating to allegations of
environmental disaster, poisoning of substances used in
the food chain and omitted clean-up due to the activity
at a landfill site which was taken over by Eni in 1991.
Subsequently to Eni’s takeover, any activity for waste
conferral was stopped.
The defendants are certain managers of Eni Group
companies, that have managed the landfill since 1991.
The Municipality of Crotone is acting as plaintiff. In
March 2019, the public prosecutor requested the
acquittal of all defendants. The proceeding is ongoing.
Although the public prosecutor requested the acquittal
of all the defendants, on January 17, 2020, the Court
asked the Public Prosecutor to amend the charges in
order to clarify the modalities and timing of each alleged
conduct. At the preliminary hearing of July 1, 2020, the
Court acquitted all the defendants, some for not having
committed the alleged crime and others for expiration of
the statute of limitations. The Company has decided to
appeal the decision to obtain an acquittal on the merits.
The decision on the appeal is pending.
project presented by the Company was deemed feasible
by the Italian Ministry for the Environment. Pending
the decision of the Public Prosecutor, a defense brief
was filed to summarize the activity carried out by the
subsidiary Eni Rewind SpA (former Syndial SpA) in terms
of reclamation, pointing to willingness of executing a
decisive plan of action, and to obtain the dismissal of the
criminal proceedings. On March 3, 2020, the Ministerial
Decree approving the POB Phase 2 was issued. The Public
Prosecutor has submitted a filing request and the judge
for the preliminary investigations has set a chamber
hearing. By a court order of January 10, 2022, the judge of
the preliminary hearing of Crotone ordered the execution
of a CTU following which it was ascertained how Eni
Rewind carried out the environmental activities in its own
areas in compliance with the authorizations. A decision of
the Public Prosecutor is awaiting following the filing of this
supplementary consultancy.
Eni Rewind SpA and Versalis SpA — Porto Torres dock.
In 2012, following a request of the Public Prosecutor of
Sassari, an Italian court ordered presentation of evidence
relating to the functioning of the hydraulic barrier of Porto
Torres site (ran by Eni Rewind SpA) and its capacity to
avoid the dispersion of contamination released by the site
into the nearby sea. Eni Rewind and Versalis were notified
that its chief executive officers and certain other managers
were being investigated. The Public Prosecutor of the
Municipality of Sassari requested that these individuals
stand trial. The plaintiffs, the Ministry for Environment and
the Sardinia Region claimed environmental damage in an
amount of €1.5 billion. Other parties referred to the judge’s
equitable assessment. At a hearing in July 2016, the court
acquitted all defendants of Eni Rewind and Versalis with
respect to the crimes of environmental disaster. Three
Eni Rewind managers were found guilty of environmental
disaster relating to the period limited to August 2010 -
January 2011 and sentenced to one-year prison, with a
suspended sentence. Eni Rewind filed an appeal against
this decision. The trial before the Second Instance
Court of Cagliari ended on December 14, 2021, with the
confirmation of the sentence against the three defendants
to one-year prison for the crime of environmental disaster,
as well as the consequent civil rulings. Due to the omitted
assessment during the sentence of the scientific arguments
put forward by the technical consultants of the defense in
a technical report filed in court, which demonstrated the
total absence of a danger to public safety in the area, an
appeal is pending against the Third Instance Court pending
the date of the hearing.
ii)
Eni Rewind SpA – Crotone omitted clean-up. In April 2017,
a new criminal case was opened by the Public Prosecutor
of Crotone relating to reclamation activities at the Crotone
site. Meanwhile, in the first half of 2018, the new clean-up
iv)
Eni Rewind SpA – The illegal landfill in Minciaredda
area, Porto Torres site. The Court of Sassari, on request
of the Public Prosecutor, seized the Minciaredda landfill
ENI ANNUAL REPORT 2022
323
area, near the western border of the Porto Torres site
(Minciaredda area). All the indicted have been served
a notice of investigation for alleged crimes of carrying
out illegal waste disposal and environmental disaster.
The seizure order also involved Eni Rewind pursuant to
Legislative Decree No. 231/01, whereby companies are
liable for the crimes committed by their employees when
performing their duties. The court determined that Eni
Rewind can be sued for civil liability and resolved that all
defendants and the Eni subsidiary be put on trial before
the Court of Sassari. Upon start of the trial, the Italian
Ministry for Energy Transition (MITE) was allowed to
enter the judgment as plaintiff and the Court, partially
accepting the grievances of the defense, declared invalid
the indictment decree against Eni Rewind as entity liable
pursuant to Legislative Decree No. 231/01, returning
the case to the judge, who subsequently proceeded to
celebrate a new preliminary hearing. In the following
hearing held on March 31, 2022, Eni Rewind was
acquitted due to the inability to proceed with the action
against it pursuant to Legislative Decree No. 231/01 and
definitively excluded from the criminal trial.
In the context of the criminal proceedings against the
managers of Eni Rewind, however, on November 13, 2022,
the Court of Sassari pronounced an acquittal sentence
for the non-existence of the crime of illegal waste and
for not having committed the crime of environmental
disaster.
Due to the effects of the acquittal, the requests for
compensation made by the civil parties against the
defendants and Eni Rewind were not accepted as
plaintiff. Since the public prosecutor and the civil parties
have filed an appeal against the first instance sentence,
the judgment is still pending against the Second Instance
Court.
Eni Rewind SpA — The Phosphate deposit at Porto
Torres site. In 2015, the Court of Sassari, accepting a
request of the Public Prosecutor of Sassari, seized — as
a preventive measure — the area of “Palte Fosfatiche”
(phosphates deposit)
located on the territory of
Porto Torres site, in relation to alleged crimes of
environmental disaster, carrying out of unauthorized
disposal of hazardous wastes and other environmental
crimes. Eni Rewind SpA is being investigated pursuant
to Legislative Decree No. 231/01. In November 2019,
a request for referral to trial was served on the Eni
subsidiary. The preliminary hearing was held on
September 9, 2020. At the outcome of the preliminary
hearing, during which the municipality of Porto Torres
filed a civil action, the Judge pronounced against all
the defendants a sentence of no place to proceed due
to the statute of limitation in relation to the crimes of
unauthorized management of landfills and disposal of
vi)
hazardous wastes as well as against Eni Rewind SpA
in relation to the liability pursuant to Legislative Decree
No. 231/01. The Judge also ordered the indictment of
the defendants before the Court of Sassari in 2021,
limited to the alleged crime of environmental disaster.
Upon start of the trial, the MITE was allowed to enter
the judgement as plaintiff. The Court, accepting the
defense’s objections, declared the indictment invalid
and returned the case that is ongoing to the judge of
the preliminary hearing of Sassari, identified as the
competent judge to decide.
Raffineria di Gela SpA and Eni Mediterranea Idrocarburi
SpA — Alleged environmental disaster. A criminal
proceeding is pending in relation to crimes allegedly
committed by the managers of the Raffineria di Gela
SpA and Eni Mediterranea Idrocarburi SpA relating to
environmental disaster, unauthorized waste disposal
and unauthorized spill of industrial wastewater. The
Gela Refinery has been prosecuted for administrative
offence pursuant to Legislative Decree No. 231/01.
This criminal proceeding initially regarded soil pollution
allegedly caused by spills from 14 tanks of the refinery
storage, which had not been provided with double
bottoms, and pollution of the sea water near the coastal
area adjacent to the site due to the failure of the barrier
system implemented as part of the clean-up activities
conducted at the site. At the closing of the preliminary
investigation, the Public Prosecutor of Gela merged
into this proceeding the other investigations related to
the pollution that occurred at the other sites of the Gela
refinery as well as hydrocarbon spills at facilities of Eni
Mediterranea Idrocarburi SpA. The proceeding is still
ongoing.
vii) Eni SpA — Val d’Agri. In March 2016, the Public
Prosecutors of Potenza started a criminal investigation
into alleged illegal handling of waste material produced
at the Viggiano oil center (COVA), part of the Eni
operated Val d’Agri oil complex. After a two-year
investigation, the Prosecutors ordered the house arrest
of 5 Eni employees and the seizure of certain plants
functional to the production activity of the Val d’Agri
complex which, consequently, was shut down. From
the commencement of the investigation, Eni has carried
out several technical and environmental surveys, with
the support of independent experts of international
standing, who found a full compliance of the plant
and the industrial process with the requirements of
the applicable laws, as well as with best available
technologies and international best practices. The
Company implemented certain corrective measures
to upgrade plants which were intended to address the
claims made by the Public Prosecutor about an alleged
v)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
324
ix)
operation of blending which would have occurred during
normal plant functioning. Those corrective measures
were favorably reviewed by the Public Prosecutor. The
Company restarted the plant in August 2016. In relation
to the criminal proceeding, the Public Prosecutor’s
Office requested the indictment of all the defendants
for alleged illegal trafficking of waste, violation of the
prohibition of mixing waste, unauthorized management
of waste and other violations, and the Company
for administrative offenses pursuant to Legislative
Decree No. 231/01. The trial started in November
2017. At the conclusion of the preliminary hearings,
the Court of Potenza, on March 10, 2021, acquitted
all the defendants in relation to the allegation of false
statements in an administrative deed, while in relation
to the alleged administrative offenses, the Court found
that there was no need to proceed due to the statute
of limitations. Finally, in relation to the alleged crime
of illegal trafficking of waste, the Court acquitted two
former employees of the Southern District for not having
committed the crime, convicted six former officials
of the same District with suspension of the sentence
and sentenced Eni pursuant to Legislative Decree No.
231/01 to pay a fine of €700,000, with the contextual
confiscation of a sum of €44,248,071 deemed to
constitute the unfair profit obtained from the crime,
from which Eni will deduct the amount incurred for the
plant upgrade carried out in 2016.
Following the filing of the merits of the sentence by
the Court, an appeal was promptly filed against all the
condemnations. An analysis was carried out on the
profiles of the first instance sentence, concluding, in
agreement with the lawyers in charge, for the reasonable
expectation in the subsequent revocation of the sentence
itself; the setting of the appeal judgment is pending.
viii) Eni SpA - Health investigation related to the COVA
center. Beside the criminal proceeding for
illegal
trafficking of waste, the Public Prosecutor of Potenza
started another investigation in relation to alleged
health violations. The Public Prosecutor requested
the formal opening of an investigation with respect to
nine people in relation to alleged violations of the rules
providing for the preparation of a Risk Assessment
Document of the working conditions at the Val d’Agri Oil
Center (COVA). In March 2017, following the request of
the consultant of the Prosecutor, the Labor Inspectorate
of Potenza issued a fine against the employers of the
COVA for omitted and incomplete assessment of the
chemical risks for the COVA center. In October 2017, the
Prosecutor’s Office changed the criminal allegations
to disaster, murder and negligent personal injury, also
alleging breaches of health and safety regulations. The
proceeding is ongoing.
Proceeding Val d’Agri — Tank spill. In February 2017, the
Italian police department of Potenza found a stream of
water contaminated by hydrocarbon traces of unknown
origin, flowing inside a small shaft located outside the
COVA. Eni carried out activities at the COVA aimed
at determining the origin of the contamination and
identified the cause in a failure of a tank (the “D” tank)
outside of the COVA, that presented a risk of extension
of the contamination in the downstream area of the
plant. In executing these activities, Eni performed all
the communications provided for by Legislative Decree
No. 152/06 and started certain emergency safe-keeping
operations at the areas subject to potential contamination
outside the COVA. Furthermore, the characterization plan
of the areas inside and outside the COVA was approved
by the relevant authorities, to which the Risk Analysis
document was subsequently submitted. Following this
event, a criminal investigation was initiated in order to
ascertain whether there had been illegal environmental
disaster by the former COVA officers, the Operation
Managers in charge since 2011 and the HSE Manager in
charge at the time of the accident, and also against Eni
in relation to the same offense pursuant to Legislative
Decree No. 231/01 and of some public officials belonging
to local administrations for official misconduct, false and
fraudulent public statements committed in 2014 and
of the crime for environmental disaster and of culpable
conduct committed in February 2017. The Company
has paid damages of an immaterial amount almost to
all the landlords of areas close to the COVA, which were
affected by a spillover. Discussions are ongoing with
other claimants. The likely disbursements relating to
these transactions have been provisioned. Furthermore,
Eni is carrying out all the necessary remediation and
safety measures.
In February 2018, Eni contested the reports presented
in October and in December 2017 by the Italian Fire
Department stating that it does not consider itself
obliged to carry out the integration required, considering
that the data acquired in the area affected by the event
indicate, according to Eni’s assessments, that the
loss was promptly and efficiently controlled and there
were no situations of serious danger to human health
and the environment. In April 2019, precautionary
measures were ordered against three Eni employees
at the COVA which, following an appeal, were canceled
by the Third Instance Court. In September 2019, the
Public Prosecutor requested one of those employees to
be put on trial with expedited proceeding, accepted by
the Judge for preliminary investigations. The judgment
is currently pending in the preliminary stages of the
hearing.
As part of the concomitant procedure against the
remaining employees and Eni as the legal entity being
ENI ANNUAL REPORT 2022
325
held liable pursuant to Legislative Decree No. 231/01, the
Public Prosecutor, after issuing a notice of conclusion
of the preliminary investigations, made a request for
indictment. At the outcome of the preliminary hearing,
with reference to the imputation to Eni pursuant to
Legislative Decree No. 231/01, the judge of the preliminary
issued a sentence not to prosecute the Company for the
events up to 2015 because the fact was not envisaged by
the law as a crime to claim a legal entity liable for. With
reference to the events subsequent to 2015, the judge
acknowledged the nullity of the request for indictment,
thus returning the documents to the Public Prosecutor.
Finally, the judge of the preliminary hearing approved
to put on trial two Eni employees before the Court
of Potenza, with the allegation of unnamed disaster,
rejecting the request of the Public Prosecutor for
qualifying the alleged crime as a new type of legal
offence (environmental disaster).In the context of this
proceeding, several parties filed an application to bring
a civil action and, pending assessment of the requests
for exclusion presented by the defense with respect to
the latter, the Court issued a summons decree from
Eni, as civil liability. The proceedings against natural
persons, both pending in the preliminary stages of the
hearing, will be combined by the Court in a single hearing
process. With regards to Eni SpA as entity pursuant to
Legislative Decree No. 231/01, the Public Prosecutor
has issued a new notice of conclusion of the preliminary
investigations.
Raffineria di Gela SpA and Eni Mediterranea Idrocarburi
SpA — Waste management of the landfill Camastra.
In June 2018, the Public Prosecutor of Palermo (Sicily)
notified Eni’s subsidiaries Raffineria di Gela SpA and Eni
Mediterranea Idrocarburi SpA of a criminal proceeding
relating to allegations of unlawful disposal of industrial
waste resulting from the reclaiming activities of soil,
which were discharged at a landfill owned by a third party.
The Prosecutor charged the then chief executive officers
of the two subsidiaries, and the legal entities have been
charged with the liability pursuant to Legislative Decree
No. 231/01. The alleged wrongdoing related to the
willful falsification of the waste certification for purpose
of discharging at the landfill. The charges against the
CEO of the Refinery of Gela SpA and the company itself
were dismissed, while a request to put on trial the CEO
of Eni Mediterranea Idrocarburi SpA and the company
was approved. The proceeding is in progress before the
Court of Agrigento, to which the proceeding has been
transferred due to territorial jurisdiction.
x)
xi)
Versalis SpA — Preventive seizure at the Priolo Gargallo
plant. In February 2019, the Court of Syracuse at the
request of the Public Prosecutor of Siracusa ordered the
seizure of the Priolo/Gargallo plant as part of an ongoing
investigation concerning the offenses of dangerous
disposal of materials and environmental pollution, by the
former plant manager of Versalis, pursuant to Legislative
Decree No. 231/01. The Public Prosecutor’s thesis,
according to the consultants, is that the seized plants
have points of emissions that do not comply with the
Best Available Techniques (BAT), therefore resulting in
violation of the applicable legislation. Versalis has already
implemented certain plant upgrades designed to comply
with measures requested by the Public Prosecutor and
its consultants. Based on this, an appeal was filed against
the measure of precautionary seizure of the plant, which
determined the revocation of the seizure of the plants on
March 26, 2019. In March 2021, a notice of conclusion
of the preliminary investigations was notified, with the
formulation by the Public Prosecutor of the allegations
already previously stated.
xii) Versalis SpA. Seizure of the treatment plant managed
by IAS SpA- Priolo Gargallo. On 3 February 2022,
Versalis was notified of a request to extend the
deadline for the preliminary
investigations by the
Public Prosecutor of Syracuse which - in relation to the
industrial waste discharge system of the Versalis plant
in the Priolo treatment plant managed by IAS SpA -
hypothesized the crimes of environmental disaster and
violation of the legislation on discharges, against two
former directors of the Versalis plant in Priolo, as well
as an employee of Versalis, having then a managerial
role in Priolo Servizi.
Similar disputes were hypothesized against other
employees of the companies co-located at the industrial
site of Priolo Gargallo as well as of IAS SpA, while the
legal entities Versalis, Priolo Servizi and the other co-
located companies were under investigation pursuant to
Legislative Decree 231/01.
On June 15, 2022, the order for a precautionary measure
and the preventive seizure decree were notified with
which the Judge for Preliminary Investigations ordered
the seizure of the purification plant and the company
shares of IAS SpA, with the appointment of a judicial
administrator of the assets subject to seizure.
With the same deed, the interdictive measure of the ban
on carrying out duties in the companies involved in the
investigations as well as in competing companies or in
any case operating in the same production sector was
also ordered against various subjects under investigation,
including a former Versalis director of the Priolo plant
and the former Technical Director of Priolo Servizi, for
a 12-month period, subsequently revoked. In the same
date, Versalis was also notified of a “Request for Delivery”
issued by the Public Prosecutor’s Office in relation to the
implementation protocols of the organizational models
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
326
the
as well as any relevant related documentation on the
subject of Legislative Decree 231/01; Versalis promptly
delivered
required documents. The company
presented a technical note demonstrating that Versalis
SpA’s contribution to the purification plant managed by
IAS was fully compliant with the regulations and in any
case irrelevant with respect to the indictment.
On September 23, 2022, a request for an evidentiary
hearing was notified by the Public Prosecutor of
Syracuse, extended to the current Director of the Versalis
plant and to the CEO of Priolo Servizi. The assignment is
ongoing.
On October 31, 2022, Versalis appealed the AIA issued to
IAS before the Regional Administrative Court for the part
in which the provision is interpreted as imposing new
and different limits on discharges with respect to those
contained in the authorizations in head of the company.
In the meantime, the AIA issued for the management, by
IAS, of the purifier has been suspended by the Region.
The judgment is still pending in the investigation stage.
xiii) Eni SpA - Fatal accident Ancona offshore platform. On
March 5, 2019, a fatal accident occurred at the Barbara F
platform in the offshore of Ancona. During the unloading
phase of a tank from the platform to a supply vessel, there
was a sudden failure of a part of the structure on which a
crane was installed, causing the death of an Eni employee
who was inside the control cabin of the crane and injuries
to two other workers. Two contract workers and the family
of the Eni employee were all fully compensated. The Public
Prosecutor of Ancona initially opened an investigation
against unknown persons and ordered further technical
appraisals relating to the crane. As part of the technical
assessment of the incident, the Public Prosecutor resolved
to put under investigation two Eni employees who were in
charge of safety standards at the involved facility. Also,
the Company has been put under investigation as entity
liable pursuant to Legislative Decree No. 231/01, and
two employees of the contractor company that owned
the boat. In May 2021 the Public Prosecutor Office of
Ancona issued a notice of conclusion of the preliminary
investigations and, following the subsequent formulation
of the request for indictment, a preliminary hearing was
set. At the outcome of the preliminary hearing, the Judge
ordered the indictment for all the defendants and Eni as
an entity pursuant to Legislative Decree No. 231/01 before
the Court of Ancona for the hearing on February 6, 2023.
The proceeding is currently pending in the preliminary
hearing phase.
inspection and seizure of the area called Isola 32 within
the refinery of Gela, where old and new monitored
landfills are located. The proceeding concerns criminal
allegations of environmental pollution, omitted
clean-up, negligent personal injury and illegal waste
management, as part of the execution of clean-up of
soil and groundwater as well as decommissioning
activities in the area currently managed by Eni Rewind
SpA, also on behalf of the companies Raffineria di Gela
SpA, ISAF SpA (in liquidation) and Versalis SpA with
respect to the efficiency and efficacy of the barrier
system. The Public Prosecutor acquired documents
and evidence at the Syndial office in Gela and at the
refinery of Gela, which, during the period January 1,
2017 – March 20, 2019, managed the facilities involved
in cleaning up the groundwater area (TAF Syndial, site
TAF-TAS and pumping wells and hydraulic barrier).
Subsequently a decree was issued for the seizure of
11 piezometers of the hydraulic barrier system with
contextual guarantee notice, issued by the Public
Prosecutor of Gela against nine employees of the Gela
Refinery and four employees of Syndial SpA. Upon
conclusion of unrepeatable technical investigations
and analyses both on the piezometers placed under
seizure, and on the TAF and TAS plants, on October
11, 2021, a preventive seizure order was notified by
the judge of the preliminary investigations of Gela,
at the request of the Public Prosecutor’s Office, with
reference to the plants used for the remediation of the
site’s underground water (groundwater extraction wells
and TAF treatment) managed today by Eni Rewind as
well as the plant areas intended for the implementation
of the groundwater remediation project. A judicial
administrator was appointed
those
facilities. Eni companies are collaborating with the
Judge to continue the remediation activities and
to provide a clear picture of the correctness of their
actions.
The Public Prosecutor’s Office of Gela also served the
notice of conclusion of the preliminary investigations,
challenging the suspects only with the crime of failure to
clean up. At the same time, the judicial administrator in
charge filed an initial technical report in which he confirms
that the clean-up activities are continuing in compliance
with the legislation and with a series of implementation
improvements by the company in agreement with other
parties in charge. The Public Prosecutor’s Office also
issued the summons decree and the proceeding is now
pending in the hearing phase.
to manage
xiv) Raffineria di Gela SpA and Eni Rewind SpA -
Groundwater pollution survey and reclamation process
of the Gela site. Following complaints made by former
contractors, the Public Prosecutor of Gela ordered an
xv)
Eni Rewind SpA and Versalis SpA - Mantua. Environmental
crime investigation. With regard to the Mantua site,
the company is proceeding with all the appropriate
environmental activities. In August and September
ENI ANNUAL REPORT 2022
327
2020, the Public Prosecutor notified the conclusion
of the preliminary investigations relating to several
criminal proceedings. Several employees of the Eni’s
subsidiaries Versalis SpA and Eni Rewind SpA as well
as of the third-party company Edison SpA were notified
of being under investigation. Furthermore, the above-
mentioned entities were being investigated pursuant to
Legislative Decree No. 231/01. The Public Prosecutor is
alleging, with respect to some specific areas related to
the Mantua industrial hub, the crimes of unauthorized
waste management, environmental damage and
pollution, omitted communication of environmental
contamination and omitted clean-up. Following the
filing of defense briefs addressed to the investigating
authority, the case has been dismissed against some
individuals and archived. The Public Prosecutor’s
Office then requested the indictment of the remaining
defendants. During the Preliminary Hearing, the MITE,
the Province of Mantua, the Municipality of Mantua
and Mincio Regional Park were allowed in the trial as
plaintiffs, while the companies Eni Rewind, Versalis
and Edison were instead sued as civil parties and
therefore they appeared in court. The Preliminary
Hearing Phase ended with the provision of GUP, which
ordered the indictment of all the defendants and of
the abovementioned companies, with the exception
of a former employee of Versalis and of two Edison
employees. The proceeding is on the trial phase.
xvi) Eni SpA R&M Depot of Civitavecchia - Criminal
proceedings for groundwater pollution. In the period
in which Eni was in charge of the Civitavecchia
storage hub (2008-2018), pending the approval of
a characterization plan of the environmental status
of the site, the Company, in coordination with public
authorities, adopted measures to preserve the safety of
the groundwaters and to pursue the clean-up process
of the site until its disposal.
issued a
The Public Prosecutor of Civitavecchia
notice of conclusion of the preliminary investigations,
contesting, among others, the former manager of
the Eni fuel storage hub of Civitavecchia, the alleged
crime of environmental pollution in relation to the
mismanagement of the hydraulic barrier placed over
the site aimed at putting under emergency safety the
contaminated groundwater, as part of the clean-up
process in progress. This circumstance would have
been reported by officials of a local authority (ARPA),
to whom technical feedback has been provided several
times over the years. Eni is under investigation pursuant
to Legislative Decree No. 231/01. The prosecutor made
a request for indictment.
At the preliminary hearing a procedural defect was
detected, and the documents were again sent to the
Public Prosecutor’s Office. Following the renewed
preliminary hearing, the judge ordered the indictment of
the people involved, setting the hearing for June 2023,
and declared the nullity of the request for indictment
for legal persons, due to lack of notification committal
for trial, thus returning the documents to the Public
Prosecutor for its renewal.
xvii) Eni SpA R&M Refinery of Livorno - Criminal proceedings
for accidents at work. On October 20, 2020, a notice was
served at the Livorno refinery for Eni as entity subjected
to preliminary investigations in the context of a criminal
proceeding pending before the Public Prosecutor’s Office
of Livorno, in relation to an accident at work occurred in
summer of 2019 at an electrical substation of the Refinery
and as consequence two employees were injured. The
company provided compensation to the employee who
suffered the greatest consequences of the accident.
The allegation is of aggravated personal injury while the
Company is accused of being the entity liable pursuant
to Legislative Decree No. 231/01.
The Judicial Police, delegated by the Public Prosecutor’s
Office, has made
for documentary
presentation in order to acquire useful elements
for assessing whether the company has adopted a
suitable 231 model with the related procedures and
management and organization systems to prevent the
alleged crime.
The Company collected and promptly provided the
required documentation. In September 2021, the Public
Prosecutor’s Office issued a notice of conclusion of the
preliminary investigations. Subsequently, the summons
order was notified and the proceeding is now pending in
the hearing phase.
requests
xviii) Eni SpA R&M Genoa Pegli depot - Criminal proceeding
for crude oil spill September 2022. Following the
incidental event that occurred at the Genoa Pegli depot
on September 27, 2022, an event which generated
the loss of crude oil from a pipeline inside the depot
itself and which partly also affected areas outside
the production site, the Public Prosecutor’s Office
of Genoa instituted criminal proceedings in which
was initially ordered the seizure of part of the plant
subjected to the disservice, subsequently released. On
October 12, 2022, the notice of unrepeatable technical
investigations was served, aimed at ascertaining the
causes and dynamics of the accident. In the context of
the proceeding, the crime being prosecuted is that of a
culpable environmental disaster, charged against four
Eni employees, while the Company is charged with an
administrative offense pursuant Legislative Decree No.
231/01. The proceeding is pending in the preliminary
investigation phase.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
328
1.2 Civil and administrative proceedings
matters of environment, health and safety
in the
i)
Eni Rewind SpA — Versalis SpA — Eni SpA (R&M) —
Augusta Harbor. The Italian Ministry for the Environment
with various administrative acts required companies
that were operating plants in the petrochemical site of
Priolo to perform safety and environmental remediation
works in the Augusta harbor. Companies involved
include Eni subsidiaries Versalis, Eni Rewind and Eni’s
Refining & Marketing Division. Pollution has been
detected in this area primarily due to a high mercury
concentration that is allegedly attributed to the industrial
activity of the Priolo petrochemical site. The above-
mentioned companies contested these administrative
actions, objecting in particular to the nature of the
remediation works decided and the methods whereby
information on the pollutant’s concentration has been
gathered. A number of administrative proceedings
started on this matter were subsequently merged
before the Regional Administrative Court. In October
2012, the Court ruled in favor of Eni’s subsidiaries
against the Ministry’s requirements for the removal
of the pollutants and the construction of a physical
barrier. In September 2017, the Ministry served all the
companies involved with a formal notice for the start
of remediation and environmental restoration of the
Augusta harbor within 90 days, basing its request on
an alleged ascertainment of liability on the basis of
the 2012 provision of Regional Administrative Court.
In June 2019, the Italian Ministry for the Environment
set up a permanent technical committee to review the
matter of the clean-up and reclamation of the Augusta
harbor. The report, recalling the warning of 2017,
confirmed the thesis of the parties on the responsibility
of the companies co-located for the contamination of
the Rada and affirmed a breach of the aforementioned
warning by the companies, also communicated to the
Public Prosecutor’s Office. In agreement with all the
other companies involved, this report and other parallel
internal technical investigations were challenged for
defensive purposes. Eni’s subsidiaries proposed to the
Italian Environmental Ministry to start a collaboration
with other
interested parties to find remediation
measures based on new available environmental data
collected by independent agencies, without prejudice to
the need for the parties to correctly identify the legal
entity responsible for the contamination detected. In the
meantime, the Company requested, in full compliance
with applicable environmental laws, to establish a
roadmap for identifying the companies accountable for
the environmental pollution and their respective shares
of responsibility in order to implement a clean-up and
remediation project.
ii)
In September 2020, the Company took part in the
Investigation Services Conference convened by the
Ministry of the Environment on the results of the
technical investigations and exhibited, together with its
consultants, the in-depth analyzes on the environmental
state of the Rada and its observations to the report
which would lead to the exclusion of any involvement
of the Group companies in the contamination detected.
On September 23, 2020, the company took part to a
preliminary investigation with the Italian MITE and the
competent bodies, and presented, together with the
technical consultants in charge, important insights on
the issue of the environmental state of the Augusta
harbor. In January 2021, the Company, having received
communication of the calling of a second environmental
review of the same subject to the first scheduled for
February 10, 2021, requested also to take part to this
second review and to be able to view the technical
documents subject to discussion.
However, in February 2021, the General Directorate for
Environmental Remediation of the Ministry deemed the
request unacceptable. Following a decision-making
conference, in April 2021, the Ministry decided that it
could intervene in the procedure aimed at identifying
any reclamation and clean-up activities to be carried
out in the harbor which costs are to be charged to
the companies operating in the area, on the basis
of questionable assumptions, such as the alleged
non-compliance of those companies with the formal
notice of September 7, 2017 which had ordered those
companies to commence reclamation and clean-up
activities. The company filed an appeal and urged the
Free Consortium of Syracuse (LCCS) to start the process
of identifying the responsible for the pollution, which,
in June 2022, was found, postponing the investigation
until the conclusion of the technical investigations on
the contamination.
Eni SpA – Eni Rewind SpA – Priolo – Malformation civil
lawsuits. In February 2022 Eni Rewind received two writs
of summons from two citizens of Augusta, who, stating
that they were born with serious malformations due to
mercury spills deriving from the mercury cell chlor-alkali
plant in Priolo, summoned the company before the Court
of Syracuse, asking for the liability of the latter and, as a
result, the sentence to pay damages quantified in a total
of €800,000 for each of the plaintiffs.
Eni Rewind filed an appearance in court filing a claim and
indemnification against Edison, taking into account that
the chlor-soda plant was received by Eni group as part of
the Enimont transaction, therefore in a period following
the alleged exposure to the mercury by the actors, which
necessarily occurred between 1972 and 1975 (years of
birth of the actors). The proceeding is pending.
ENI ANNUAL REPORT 2022
329
iii)
iv)
Eni SpA – Eni Rewind SpA (former Syndial SpA) –
Raffineria di Gela SpA – Claim for preventive technical
inquiry and judgments on the merits. In February 2012,
Eni’s subsidiaries Raffineria di Gela SpA and Eni Rewind
SpA and the parent company Eni SpA (involved in this
matter through the operations of the Refining & Marketing
Division) were notified of a claim issued by the parents
of children with birth defects in the Municipality of Gela
between 1992 and 2007. The claim called for an inquiry
aimed at determining any causality between the birth
defects suffered by these children and any environmental
pollution caused by the Gela site, quantifying the alleged
damages suffered and eventually identifying the terms
and conditions to settle the claim. The same issue was
the subject of previous criminal proceedings, of which
one closed without determining any illegal behavior
on the part of Eni or its subsidiaries, while a further
criminal proceeding is still pending. In December 2015,
the three companies involved were sued in relation to
a total of 30 cases of compensation for damages in
civil proceedings. In May 2018, the Court issued a first
instance judgment concerning one case. The Judge
rejected the claim for damages, acknowledging the
arguments of the defendant companies in relation to
the absence of evidence concerning the existence of
a causal link between the birth defects and the alleged
industrial pollution. The judgment has been appealed by
the claimants.
In June 2021 the Civil Court of Gela issued a second
judgment
for compensation,
the claim
recognizing the validity of the arguments of the
defendant companies regarding the lack of evidence on
the existence of a cause between the pathology and the
alleged industrial pollution. The counterparties filed an
appeal and a hearing was set for March 17, 2022, then
postponed to April 20, 2022. The trial was postponed to
October 31, 2024, for the clarification of the conclusions.
rejecting
Environmental claim relating to the Municipality of
Cengio. Since 2008 a brought by the Italian Ministry
for the Environment and the Delegated Commissioner
for Environmental Emergency in the territory of the
Municipality of Cengio is pending before the Court of
Genoa. Those parties summoned Eni Rewind before
a Civil Court and demanded that Eni’s subsidiary
compensate for the environmental damage relating
to the site of Cengio. The request for environmental
damage amounted to €250 million plus an additional
amount for health damage to be quantified during
the proceeding. The plaintiffs accused Eni Rewind of
negligence in performing the clean-up and remediation
of the site.
Between 2014 and 2021, Eni and the Ministry of the
Environment tried to settle the proceeding, without
v)
review
however reaching a definitive agreement. The Judge
restarted the proceeding with the filing, on December
30, 2021, of the definitive technical review from an
is particularly
appointed consultant. This
positive for Eni Rewind as it highlighted the story of
the contamination, setting the baseline at 1989/1990
(date of Enimont transfer) and considering there was no
subsequent deterioration. The appraisal, among other
things, highlighted the Ministry’s negligence towards the
settlement proposals advanced by Eni and which would
have brought benefits to the territory. At the hearing
of February 24, 2022, following a request for filing
of documentation received by the plaintiff, the judge
ordered the admission of part of the documentation and
withheld the case for decision, allowing the parties 60
days for the filing of final briefs and 20 days for the reply
notes.
With a sentence of June 21, 2022, the Court of Genoa
rejected all the plaintiffs’ claims, fully accepting the
defense’s arguments and ordering the plaintiffs to
compensate the company for the costs of the litigation.
In particular, the sentence excludes that Eni Rewind can
be identified as the successor of Enimont, then owner of
the Cengio site.
In October 2022, the Ministry filed an appeal against the
sentence. Eni Rewind will appeal the judgement.
Val d’Agri - Eni / Vibac. In September 2019 a claim was
brought in the Court of Potenza against Eni. The plaintiffs
are 80 people, living in different municipalities of the
Val d’Agri area, who are complaining of economic, non-
economic, biological and moral damages, all deriving
from the presence of Eni’s oil facilities in the territory.
In particular, the claim refers to certain events which
allegedly caused damage to the local community and the
territory (such as a 2017 spill, flaring events since 2014,
smelly and noisy emissions). The Judge has been asked
to ascertain Eni’s responsibility for causing emissions of
polluting substances into the atmosphere. The plaintiffs
have also requested that Eni be ordered to interrupt any
polluting activity and be allowed to resume industrial
activities on condition that all the necessary remediation
measures be implemented to eliminate all of the alleged
dangerous situations. Finally, they are asking that Eni
compensate all direct and indirect property damages,
current and future, to an extent that will be quantified in
the course of the case. At the end of the trial phase, the
Judge submitted to the parties the proposal for an extra-
judicial settlement, fixing a deadline to present further
proposals on the matter.
The parties did not adhere to the conciliatory proposal.
During the last hearing on February 19, 2021, the Judge
set the hearing for the clarification of the conclusions on
June 30, 2023.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
330
vi)
Eni SpA - Climate change. In 2017 and 2018, local
government authorities and a fishing association brought
in the courts of the State of California seven proceedings
against Eni subsidiary Eni Oil & Gas Inc. and other
companies. These proceedings claim compensation for
the damages attributable to the increase in sea level and
temperature, as well as to hydrogeological instability.
The cases have been transferred, by request of the
defendants, from the State Courts to the Federal Courts.
A specific request has been filed, highlighting the lack of
jurisdiction of the State Courts.
In 2019, the Federal Court referred the cases to the
State Courts. The defendants then appealed to the
Ninth Circuit Court of Appeals, challenging the order
for postponement. All proceedings were suspended
pending the appeal before the Ninth Circuit Court. On
May 26, 2020, the proceedings resumed in the State
Courts. On July 9, 2020, Eni Oil & Gas Inc, together with
other defendants, signed a petition for rehearing “en
banc” to request a review of the postponement decision
by the competent 9th Circuit Court. The dispute was
suspended until a decision is made on the petition for
rehearing. The Court rejected the petition for rehearing
en banc but, at the request of the defendants, granted
a suspension of the proceedings for 120 days (until
January 2021) to allow the defendants to present a
petition for certiorari to the Supreme Court of the United
States in order to obtain the revision of the rejection.
The petition was then presented in January 2021. The
Supreme Court, accepting the petition, ordered the Ninth
Circuit Court to reconsider the question of jurisdiction
by evaluating all the legal arguments in favor of federal
jurisdiction.
In June 2021, defendants filed a motion (“Consent
Motion”) in the Ninth Circuit Court setting out arguments
in favor of federal jurisdiction in addition to the initial
defenses.
In early July 2021, Consent Motion was rejected by the
Ninth Circuit Court which, in April 2022, then confirmed
its previous referral order to the Court. Eni Oil & Gas Inc.,
together with the other defendants, therefore presented
another petition for rehearing en banc to the same Ninth
Circuit in May 2022, in order to request the revision of the
postponement decision. In June 2022, the Ninth Circuit
Court rejected the petition. The defendants therefore
presented to the Ninth Circuit Court a so-called ‘Motion to
Stay’, trying to suspend the referral order to state courts.
With orders of June 30, 2022, and August 31, 2022, a
suspension was granted until November 24, 2022, for the
purpose of filing a petition for certiorari to the Supreme
Court for further review of the decision, which was
followed on February 14, 2023, by the filing of a further
brief in support of their positions. The proceeding is
ongoing.
vii)
Eni Rewind SpA / Province of Vicenza – Clean-up
process for Trissino site. On May 7, 2019, the Province of
Vicenza issued a warning, imposing on certain individuals
and companies as MITENI SpA in bankruptcy, Mitsubishi
and ICI the obligation to clean-up the Trissino site where
MITENI carried out its industrial activity. Based on the
analysis carried out by administrative parties, significant
concentrations of substances considered highly toxic and
carcinogenic were allegedly discovered in groundwater
and in surface water at this site. The analysis carried out
by the Province of Vicenza with the direct involvement
of the Istituto Superiore di Sanità reported the presence
of these substances in the blood of about 53,000 people
in the area. The action of health analysis and monitoring
by the institutions is expected to increase. The Province
warned some individuals, including a former employee
who served between 1988 and 1996 as CEO of a company
that was subsequently acquired by Eni Rewind.
In an initial phase of the administrative procedure,
there were no references to former company EniChem
Synthesis, which Eni Rewind acquired, therefore the legal
assistance and the defense strategy were concentrated
supporting only the persons involved. However, Eni
Rewind was called into question as the “successor”
of EniChem in several appeals before the Regional
Administrative Court as the majority shareholder of
MITENI. In February 2020, the Province extended the
proceeding also to Eni Rewind, which filed a counterclaim
for having its position taken out of the procedure.
However, on October 5, 2020, the Province summoned
Eni Rewind to take part in the remediation interventions
on the site, including participation in technical meetings
and at the conferences that would be convened by the
public entities in relation to the site remediation activities.
Eni Rewind appealed to a Regional Administrative
Court against the Province claims and orders. Eni
Rewind is participating in these meetings, carrying out
the environmental interventions and has made itself
available to carry out - as part of the project approved
by the territorial administrations in charge- further anti-
pollution interventions on a voluntary basis and without
giving any acquiescence with respect to the liability
charges for the pollution by chemical agents.
2. Proceedings concerning criminal/administrative
corporate responsibility
i)
Block OPL 245 — Nigeria. A first-degree judgment of
acquittal was issued by a tribunal in Milan in March
2021 in a criminal case pending against certain of Eni’s
employees and the Company itself as entity liable as
per Italian Legislative Decree No. 231/01 for alleged
international corruption in connection with the acquisition
in 2011 of the OPL 245 exploration block in Nigeria. The
ENI ANNUAL REPORT 2022
331
case dates back to July 2014, when the Public Prosecutor
of Milan served Eni with a notice of investigation
pursuant to Italian Legislative Decree No. 231/01. The
proceeding was commenced following a claim filed by
NGO ReCommon relating to alleged corruptive practices
which, according to the Public Prosecutor, allegedly
involved the Resolution Agreement made on April 29,
2011, relating to the so-called Oil Prospecting License of
the offshore oilfield that was discovered in OPL 245. Eni
fully cooperated with the Public Prosecutor and promptly
filed the requested documentation. Furthermore, Eni
voluntarily reported the matter to the US Department
of Justice (“DoJ”) and the US SEC. In July 2014, Eni’s
Board of Statutory Auditors jointly with the Eni Watch
Structure resolved to engage an independent, US-based
law firm, expert in anticorruption, to conduct a forensic,
independent review of the matter, upon informing the
Judicial Authorities. After reviewing the matter, the US
lawyers concluded that they detected no evidence of
wrongdoing by Eni in relation to the 2011 transaction
with the Nigerian government for the acquisition of the
OPL 245 license.
In December 2016, the Public Prosecutor of Milan notified
Eni of the conclusion of the preliminary investigation and
requested Eni’s CEO, the Chief Development, Operations
and Technology Officer and the Executive Vice President
for international negotiations to stand trial, as well
as Eni’s former CEO and Eni SpA, pursuant to Italian
Legislative Decree No. 231/01.
Upon the notification to Eni of the conclusion of the
investigation by the Public Prosecutor,
preliminary
the independent US-based law firm was requested to
assess whether the new documentation made available
from Italian prosecutors could modify the conclusions
of the prior review. The US law firm was also provided
with the documentation filed in the Nigerian proceeding
mentioned below. The
law firm
concluded that the reappraisal of the matter in light
of the new documentation available did not alter the
outcome of the prior review. In September 2019, the DoJ
notified Eni that based on the information it currently
possessed, the DoJ was closing its investigation of Eni
in connection with OPL 245 without the filing of any
charges. In December 2017, the Judge for preliminary
investigation ordered the indictment of all the parties
mentioned above, and other parties under investigation
by the Public Prosecutor, before the Court of Milan. The
request of the Federal Government of Nigeria (FGN) for
admission as a civil claimant in the proceedings was
granted in July 2018. The first instance trial of the Milan
Prosecutor’s OPL 245 charges began before the Court
of Milan on June 20, 2018. Following the discussion of
the parties, in response to the Milan Prosecutor’s request
for conviction for all of the individuals and companies
independent US
involved, at the hearing of March 17, 2021, the judge fully
acquitted all the defendants, on the ground that there
was no case.
In June 2021, the Second Instance Court of Milan
also acquitted on the same ground certain third-party
defendant unrelated to Eni who had opted for a shortened
procedure and had been convicted in the first acquittal.
This latter decision has become final.
On July 29, 2021, the Public Prosecutor of Milan and the
plaintiff, Government of Nigeria, filed an appeal against
the first-degree acquittal of March 17, 2021.
At the hearing of July 19, 2022, the Attorney General
withdrew the appeal of the first instance sentence.
Consequently, the acquittal due to baseless allegations
has become definitive for all the defendants, individuals
and legal entities. The first instance judgment has
therefore become final.
On November 11, 2022, the Second Instance Court confirmed
the first instance acquittal, thus rejecting the FGN’s appeal of
its civil claims. On March 24, 2023, the FGN appealed the
abovementioned sentence before a Third Instance Court
with a view of pursuing the claim of damage compensation.
Furthermore, only pending proceeding against Eni or any of
its affiliates regarding OPL 245 that remains pending is a
proceeding in Nigeria which is discussed next.
On January 20, 2020, Eni’s subsidiary in Nigeria (“NAE”)
was notified of the beginning of a new criminal case
before the Federal High Court of Abuja.
The proceeding, mainly focused on the accusations
against Nigerian individuals (including the Minister of
Justice in office in 2011, at the time of the disputed facts),
has involved NAE and SNEPCO as co-holders of the OPL
245 license. These Nigerian individuals were accused
in 2011 of illicit corruption, which NAE and SNEPCO
allegedly unlawfully facilitated. The beginning of the
trial, originally scheduled for the end of March 2020, was
postponed as a result of the closure of judicial offices in
Nigeria due to the COVID-19 emergency and resumed at
the beginning of 2021 The proceeding is pending.
3. Other proceedings concerning criminal matters
i)
Eni SpA (R&M) — Criminal proceedings on fuel excise
tax. A criminal proceeding is currently pending, relating to
alleged evasion of excise taxes in the context of retail sales
in the fuel market. In particular, the claim states that the
quantity of oil products marketed by Eni was larger than
the quantity subjected to the excise tax. This proceeding
(No. 7320/2014 RGNR) concerns the combination of
distinct investigations: (i) a first proceeding, opened by
the Public Prosecutor’s Office of Frosinone involved a
company (Turrizziani Petroli) purchaser of Eni’s fuel.
This investigation was subsequently extended to Eni.
The Company fully cooperated and provided all data
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
332
and information concerning the excise tax obligations
for the quantities of fuel coming from the storage sites
of Gaeta, Naples and Livorno. Such proceeding referred
to quantities of oil products sold by Eni, allegedly larger
than the quantity subjected to the excise tax; (ii) a second
proceeding concerning an investigation by the Public
Prosecutor’s Office of Prato, commenced in regard
to the deposit of Calenzano and relates to abduction
of fuel through manipulation of the fuel dispensers,
subsequently extended also to the Refinery of Stagno
(Livorno); (iii) a third proceeding, opened by the Public
Prosecutor’s Office of Rome, concerns alleged missing
payment of excise tax on the surplus of the unloading
products, as the quantity of such products was larger than
he quantity reported in the supporting fiscal documents.
This proceeding represents a development of the first
proceeding mentioned above and substantially concerns
similar facts presenting, however, some differences
with regard to the nature of the alleged crimes and the
responsibility.
The Public Prosecutor’s Office of Rome has alleged the
existence of a criminal conspiracy aimed at habitual
abduction of oil products at all of the 22 storage sites
which are operated by Eni in Italy. Eni is cooperating with
the Prosecutor in order to defend the correctness of its
operation. In September 2014, a search was conducted
at the office of the former chief of the R&M Division
in Rome. The reasons for the search are the same
as the above-mentioned proceeding as the ongoing
investigations also relate to a period of time when the
officer was in charge at Eni’s R&M Division. In March
2015, the Prosecutor of Rome ordered a search at all
the storage sites of Eni’s network in Italy as part of the
same proceeding. The search was intended to verify the
existence of fraudulent practices aimed at tampering
with measuring systems functional to the tax compliance
of excise duties in relation to fuel handling at the storage
sites. In September 2015, the Public Prosecutor of Rome
requested a one-off technical appraisal aimed to verify
the compliance of the software installed at certain
metric heads previously seized with those lodged by the
manufacturer at the Ministry for Economic Development.
The technical appraisal verified the compliance of the
software tested. The proceeding was then extended to a
large number of employees and former employees of the
Company. Eni has continued to provide full cooperation
to the authorities.
During 2018, as part of the proceeding no. 7320/2014,
the Public Prosecutor of Rome notified the conclusion of
the preliminary investigations in relation to the criminal
proceeding concerning the Calenzano, Pomezia, Naples,
Gaeta and Ortona storage sites and the Livorno and
Sannazzaro refineries. Based on the outcome of the
investigations, as far as Eni is concerned, the proceeding
involves former managers and directors of the logistic
sites and refineries indicated above concerning alleged
aggravated and continuous non-payment of excise duties,
alteration and removal of seals, use and possession of
false measures and weights instruments. In addition, for
the Calenzano site, three employees and their manager
of the storage site were accused of alleged procedural
fraud.
In September 2018, Eni received, as injured party, the
notification of the schedule of hearing issued by the
Court of Rome, in relation to criminal association and
other minor claims, against numerous persons under
investigation — including over forty Eni employees
— subject of a separated proceeding (No. 22066/17
RGNR), for which, in May 2017, the Public Prosecutor’s
Office had requested the dismissal. At the end of
the hearing in December 2018, the Judge accepted
the request for dismissal for several persons under
investigation, including 13 Eni employees. The Judge
also initially rejected the request of indictment for
criminal association relating to 28 Eni employees
(including the former managers of the R&M Division).
Following the preliminary hearing, a sentence not to
prosecute was achieved in December 2019 for all the
defendants.
During 2019, also in relation to tax pending, a definition
was reached, and Eni made the payments for the higher
excise duties and other taxes for which it was not
possible to reconstruct the related justification.
For the main proceedings (no.7320/2014 RGNR), in 2019
a detailed preliminary hearing was held before the Judge
of the preliminary hearing of Rome who, following the
outcome of the discussions, ordered the indictment for
all the defendants.
Since 2020, the first instance judgment has been held
before the Monocratic Court of Rome for offenses
relating to excise duties, forgery, and procedural fraud.
At the hearing of November 21, 2022, the Court ordered
the early closure of the ongoing hearing, ascertaining the
statute of limitations, requesting a ruling not to proceed
with an immediate extinction of the offence. For a single
position of Eni, while not renouncing the statute of
limitation, the defense requested acquittal on the merits.
At the hearing of January 31, 2023, the Monocratic Court
of Rome issued an acquittal sentence, acknowledging
the statute of limitations against all employees and
former employees of Eni accused in the proceeding.
At the same time, the judge ordered the release from
seizure of all assets still subject to the precautionary
bond for probative purposes.
ii)
Eni SpA (R&M) – Taranto Refinery - Criminal proceedings
for breach of excise assessment. The proceeding
relates to the alleged lack of tax assessment of an
ENI ANNUAL REPORT 2022
333
iii)
energy product moved, under excise duty suspension,
from a tank of the Taranto refinery.
At the end of the preliminary investigation phase, the
former manager of the refinery and three other employees
resulted under investigation for an alleged continued
hypothesis of subtraction from the assessment of excise
duties, due to multiple movements that took place in the
period from June 30 to September 9, 2021, from the tank
under investigation, the meter of which has been seized
since October 13, 2021. The proceeding is in ongoing.
Eni SpA — Public Prosecutor of Milan — Criminal
proceeding no. 12333/2017. In February 2018, Eni was
notified of a search and seizure decree in relation to
allegations of associative crime aimed at slander and
at reporting false information to a Public Prosecutor.
In the decree, the Prosecutor of Milan included, among
the other persons under investigation, a former external
lawyer and a former Eni manager, at the time of the facts
holding a strategic position with the Company. According
to the decree, the association was allegedly aimed at
interfering with the judicial activity in certain criminal
proceedings involving, among others, Eni and some
of its directors and managers. Eni’s Control and Risks
Committee, having consulted the Board of Statutory
Auditors, and together with the Watch Structure, agreed
to engage an auditing firm to perform an internal audit
of relevant facts and circumstances and records and
documentation relating to the matter with respect to the
events of the aforementioned proceeding, including a
forensic review. The final report, submitted to the Control
and Risks Committee, the Watch Structure and the Board
of Statutory Auditors on September 12, 2018, concluded
that following the review carried out with respect to the
allegations made by the Public Prosecutor of Milan,
there was not sufficient factual evidence to prove the
involvement of the aforementioned former manager of
Eni in the alleged crimes. On April 19, 2018, the Board of
Directors appointed two external consultants, a criminal
lawyer and a civil lawyer to provide independent legal
advice in relation to the facts under investigation. Their
report, dated November 22, 2018, did not find facts that
could suggest any involvement of any Eni employees in
the crimes alleged by the Public Prosecutor. On June 4,
2018, Consob, the Italian markets regulator, requested to
be informed about the above-mentioned proceeding. The
request was addressed to the Company and to its Board
of Statutory Auditors.
Specifically, Consob asked about the outcome of the
forensic review and to be updated about any other audit
action taken in relation to the matter by the Company
and by its Board of Statutory Auditors. The Board of
Statutory Auditors was also requested to report about
the findings of the additional audit program agreed with
an external auditor regarding the matter and to keep
Consob updated about any further initiatives adopted.
The Company answered the request on June 11, 2018.
its response
Subsequently, the Company finalized
by sending further documentation including the final
report of the independent third party and the reports of
the consultants of the Board of Directors. The Board of
Statutory Auditors has periodically updated Consob on
the initiatives taken as part of the Board’s monitoring
responsibilities with several communications, the last
of which was on July 25, 2018. On June 13, 2018, Eni
was notified of a request from the Prosecutor’s Office to
transmit certain documentation in accordance with the
Italian Code of Criminal Procedure. The request targeted
evidence and documents relating to the internal audit
performed by the Company and any possible external
review concerning certain tasks that had been assigned
to the former external lawyer with respect to Eni. This
lawyer appears to be under investigation as part of this
proceeding. The reports of the independent third party
and of the consultant of the Board of Directors were also
sent to the Public Prosecutor.
In May and June 2019, in the context of the same
proceeding, the Court of Milan notified Eni and three of
its subsidiaries (ETS SpA, Versalis SpA, Ecofuel SpA)
of various requests for documentation in accordance
with the Italian Code of Criminal Procedure. At the same
time, on May 23, 2019, Eni was served a notice that the
Company was being investigated for administrative
offences pursuant to Legislative Decree No. 231/01, with
reference to the crime sanctioned by the Italian Penal
Code concerning “inducement not to make statements
or to make false statements to the judicial authority”.
The object of the aforementioned requests particularly
concerned the relations with two business partners,
access to Eni offices of certain third parties, also on
behalf of one of the above-mentioned business partners,
the mailbox of some employees and former employees,
the documentation concerning the relations (and the
interruption of those relations) with the former external
lawyer investigated in the proceeding, the internal audit
reports and the reports of the Company’s bodies that
dealt with assessing these relationships. Following
internal audits, on June 21, 2019, the Company sued for
fraud a former employee at its subsidiary ETS, who was
fired on May 28, 2019, and also filed a complaint before
the Judicial Authority to ascertain possible complicity
in fraud of other third parties. On August 14, 2019, the
Italian tax police sent a new request for information to
Eni, concerning the economic relations between Eni
Group companies and an external professional.
In November 2019, Eni received a notice of extension
of the preliminary
investigations. The notice also
covered the investigations of the alleged breach by
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
334
Eni of certain provisions of Legislative Decree No.
231/01 until May 2020. Furthermore, certain former
Eni employees have been charged with various criminal
allegations. Those employees were a former manager
of Eni’s legal department, the former Chief Upstream
Officer of Eni and an employee that was fired in 2013. A
number of third parties have also been indicted, among
them, two former legal consultants of Eni. On January
23, 2020, a search decree and an indictment were
notified to the Company’s Chief Services & Stakeholder
Relations Officer, the Senior Vice President for Security
and a manager of the legal department. Following the
requests for review of the aforementioned decree, the
material deposited by the Public Prosecutor’s Office was
made available to the Company, which requested its
examination by the same consultants appointed in 2018
to examine the documentation. Subsequently, in June,
July and September 2020, Eni was notified by the Public
Prosecutor of Milan of several requests for documentation
concerning, in particular: the results of the inquiries
carried out by the internal audit department following
an anonymous report relating to a hospitality event in
2017; some clarifications regarding an invoice issued by
an external law firm; the internal audit report on relations
with a commercial third party; work commitments of the
Chief Services & Stakeholder Relations Officer relating to
certain dates of 2014 and 2016; and the documentation
concerning the dismissal of a former Eni employee. All the
required documentation has been produced over time to
the Judicial Authority.
On November 9, 2020, the Company was informed that
Eni’s CEO was notified about his right to participate,
through
in the scheduled
technical review of the content of a telephone device
seized from a former Eni employee. In relation to what
was previously requested by the Judicial Authorities
in July 2020 and to supplement the already produced
information, in the period January - March 2021 all the
additional documentation concerning an ongoing dispute
with a commercial counterpart was delivered over time.
On December 10, 2021, a notice of conclusion of the
preliminary
twelve
individuals and five companies. A former Eni executive
fired in 2013 and a former external Eni lawyer are accused
of having slandered the Chief Executive Officer and the
Human Capital Director & Procurement Coordination of Eni.
The Chief Executive Officer, the Human Capital Director &
Procurement Coordination, the Senior Vice President for
Security and Eni SpA itself, however, do not appear in the
request for indictment. The Eni subsidiary ETS SpA (ETS),
has been charged as entity liable in connection with the
crime of inducement at omitting to provide information
and/or rendering misleading information to the judicial
authority, for which also the former top manager is being
investigations was sent against
its technical consultant,
investigated. ETS has already been placed in voluntary
liquidation with a resolution of Eni’s Board of Directors of
July 2020 which became effective on January 1, 2021.
With respect to the Public Prosecutor’s allegations
against ETS SpA (ETS) of administrative responsibility
pursuant to Legislative Decree No. 231/01, ETS and
the Public Prosecutor negotiated a settlement of a
penalty and a hearing was set for October 2022 for the
assessment of the settlement terms.
As a result of the delayed discovery of further investigative
documents, not known at the time of the request for
a settlement, ETS’s counsel filed an application for
revocation of the settlement, in view of the hearing. At
the hearing of October 5, 2022, the Judge consequently
rejected the plea deal.
On June 30, 2022, the Public Prosecutor requested the
excerpted dismissal of the proceeding, in favor of the
Chief Executive Officer, the Human Capital Director &
Procurement Coordination, the Senior Vice President
for Security and the legal entity Eni SpA, the latter for its
alleged liability of legal entities in relation to the crimes
committed by employees as per Legislative Decree
231/01. The Public Prosecutor’s confirmed the non-
involvement of the above-mentioned individuals and
entities in the disputes as already stated in the notice of
conclusions of the investigations of December 2021. A
request of dismissal was filed in relation to the allegations
of corruption between private parties relating to Eni
representatives and to some external lawyers who had
been registered following Piero Amara’s statements.
Subsequently the proceeding was transferred to the Public
Prosecutor’s Office of Brescia following the decision of
the General Prosecutor at the Third Instance Court on the
basis of the request presented by certain suspects’ defense
counsel. The Public Prosecutor of Brescia, having received
the documents, ordered the dismissal of allegations of
slander and defamation and sent the proceeding back to the
Milan Public Prosecutor for jurisdiction about the remaining
allegations. The Public Prosecutor’s Office requested the
dismissal in favor of the Chief Executive Officer, the Human
Capital Director & Procurement Coordination and the Senior
Vice President for Security and also requested the dismissal
of the Company, ordering the other plaintiffs to stand trial.
The dismissal decree of Eni SpA defined that the alleged
inducement to make false statements by Vincenzo
Armanna in the context of the criminal proceeding
“OPL 245” was based solely on personal statements
(Mr. Amara, Mr. Armanna and Mr. Calafiore) who lacked
independence and whose statements had been proved to
be groundless. Therefore, their statements were found to
be false, leading to the indictment of the aforementioned
natural persons due to the statements made against the
Chief Executive Officer and the Human Capital Director &
Procurement Coordination of the Company.
ENI ANNUAL REPORT 2022
335
4. Tax proceedings
i)
Dispute for omitted payment of a property tax for some
oil offshore platforms located in territorial waters. Tax
disputes are pending with some Italian local authorities
regarding whether oil&gas offshore platforms located
within territorial boundaries should be subject to a
property tax in the period 2016-2019.
In 2016 the tax regulatory framework changed due
to enactment of Law No. 208/2015, which excluded
from the scope of the property tax the value of
plants instrumental to specific production processes.
In addition,
recognized
the Finance Department
that offshore platforms met the requirements for
classification as instrumental plants and consequently
are excluded from the scope of the property tax
(resolution no. 3 of June 1, 2016). Based on this
interpretation, Eni did not pay any property tax for the
years 2016-2019. However, the ruling of the Department
of Finance is not binding for local authorities with taxing
powers as recognized by the Third Instance Court
and some of these have issued assessment notices
for 2016-2019. The Company filed an appeal against
these notices. Although Eni believes that oil platforms
located in the territorial sea should be excluded from
the tax base of the property tax on the base of the
interpretation of the law in the light of the resolution of
the Department of Finance, having assessed the risks
of losing in pending disputes, the Company accrued
a risk provision, the amount of which excludes fines
since Eni’s conduct was based on the administrative
resolution, as well as taking into account the reduction
of the tax base excluding the “plant component” as
provided by the law. The proceeding is still ongoing.
Law Decree 124/19 (enacted with Law 157/19) has
established, starting from 2020, that marine platforms
are subject to a new property tax that will replace and
supersede any other ordinary local property tax eventually
levied on these plants up to 2019. This rule has therefore
sanctioned, starting from 2020, the existence of the tax
requirement for these plants.
ii)
5. Settled proceedings
i)
Congo. The proceeding concerned investigations by
the Public Prosecutor’s of Milan into alleged crimes of
international corruption in relation to Eni’s oil activities
in Congo, with reference to the contracts awarded in
the years 2013-2015. The proceeding involved some
former Eni employees. The Company was investigated
pursuant to Legislative Decree no.231/01. As part
of the proceedings, the prosecution had also made
a request for restrictive measures relating to the
activities covered by oil contracts under investigation.
Following the reclassification of the hypothesis of
international corruption into the statute of undue
induction to give or promise benefits, in 2021 Eni
approved a settlement amounting to €11.8 million and
the revocation of the request for restrictive measures.
A second investigation related an alleged conflict of
interest in the assignment of contracts to third-party
suppliers of Eni Congo involving the Chief Executive
Officer.
In March 2023, following the dismissal request presented
by the Public Prosecutor’s Office, the GUP ordered the
dismissal of the proceedings for all natural persons
under
investigation. The dismissal concerned both
the hypothesis of undue induction to give or promise
benefits, which had concerned, among others, the former
Chief Development, Operations & Technology Officer
of Eni; and the hypothesis of omitted declaration of a
conflict of interest. The Judge excluded any evidence
of a potential interest of the CEO with reference to the
commercial transactions between (not Eni SpA but) the
subsidiaries of Eni SpA and the third-party supplier, since
the CEO is not in any position of conflict of interests
which could give rise to the obligation to report at the
time he assumed the position of Chief Executive Officer
of Eni in May 2014.
Eni Rewind SpA — Proceeding relating to the asbestos
at the Ravenna site. A criminal proceeding is pending
before the Tribunal of Ravenna relating to the crimes
of culpable manslaughter, injuries and environmental
disaster, which have been allegedly committed by
former Eni Rewind employees at the site of Ravenna.
The site was acquired by Eni Rewind following a number
of corporate mergers and acquisitions. The alleged
crimes date back to 1991. In the proceeding there are
75 alleged victims. The plaintiffs include relatives of
the alleged victims, various local administrations, and
other institutional bodies, including local trade unions.
Eni Rewind asserted the statute of limitations as a
defense to the instance of environmental disaster for
certain instances of diseases and deaths. The court at
Ravenna decided that all defendants would stand trial
and held that the statute of limitations only applied with
reference to certain instances of crime of culpable injury.
Eni Rewind reached some settlements. In November
2016, the Judge acquitted the defendants in all the
contested cases except for one, an asbestos case, for
which a conviction was handed down. The defendants,
the Prosecutor and the plaintiffs appealed the decision;
the second instance judge ordered a complex inquiry.
Eni’s defenders recused a member of the expert panel
who conducted the inquiry, and the Second Instance
Court rejected the request for recusal with an order
subsequently canceled by the Third Instance Court. On
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
336
the referral, at the request of Eni’s lawyers, the Court
of Appeals of Bologna, given the different composition
of the judging panel, ordered the renewal of the appeal
trial and, consequently, the subsequent revocation of
the order with which it had initially ordered the inquiry.
On May 25, 2020, the Court acquitted the defendants
and the persons sued for damages in relation to 74
cases of mesothelioma, lung cancer, pleural plaques
and asbestosis, took note of the res judicata with
regards to the acquittal for the disaster complaint while
confirming the conviction for one case of asbestosis.
The Court also declared inadmissible the appeal of
several claimants. The Company filed an appeal with
the Third Instance Court against the conviction for
asbestosis; some claimants challenged the acquittal
for the other pathologies.
On November 24, 2021, the Third Instance Court:
(i) annulled, without postponement, the contested
sentence against a defendant for extinction of the crime;
(ii) annulled without referral to the criminal effects the
sentence contested for the crime of negligent injury in
relation to the case of asbestosis because it fell under
statute of limitations, rejecting the appeals of Eni’s
lawyers for civil purposes; (iii) rejected the appeals of the
civil parties. Therefore, the criminal proceeding is closed.
At the moment there is no information on the activation
of any civil disputes.
iii) Versalis SpA– Brindisi - criminal proceedings on plant
factory flares and odor emissions. On May 18, 2018,
the manager of the Versalis plant in Brindisi and two
other employees were summoned in order to provide
information regarding two episodes that occurred in
April 2018 which led to the activation of the plant torches.
The company cooperated with the judicial authorities to
provide information and exclude that such events had a
negative impact on air quality.
At the end of May 2020, in conjunction with a scheduled
shutdown of the plant, anomalous concentrations of
benzene and toluene were detected; on that basis, the
mayor of Brindisi ordered the plant shutdown. From
these events, a criminal case was instituted, as a result
of which the two pro-tempore directors of the plant and
the Operations manager for the crimes referred to the
disposal of hazardous wastes.
On May 19, 2022, the judge, in acceptance of the
request made by the Public Prosecutor’s Office, ordered
the dismissal of the proceeding, highlighting that the
lighting of torches that took place starting from 2018
were due to disservices or momentary failures, again in
compliance with the AIA requirements and specifying
that the consultants’ assessments did not reveal any
violations of the constraints imposed by the legislation
in force.
Assets under concession arrangements
Eni operates under concession arrangements mainly
in
the Exploration & Production segment and the Refining &
Marketing business line. In the Exploration & Production
segment, contractual clauses governing mineral concessions,
licenses and exploration permits regulate the access of Eni to
hydrocarbon reserves. Such clauses can differ in each country.
In particular, mineral concessions, licenses and permits are
granted by the legal owners and, generally, entered into with
government entities, State oil companies and, in some legal
contexts, private owners. Pursuant to the assignment of
mineral concessions, Eni sustains all the operational risks and
costs related to the exploration and development activities and
it is entitled to the productions realized. In respect of the mining
concessions received, Eni pays royalties in accordance with the
tax legislation in force in the country and is required to pay the
income taxes deriving from the exploitation of the concession.
In production sharing agreement and service contracts, realized
productions are defined based on contractual agreements
with State oil companies, which hold the concessions. Such
contractual agreements regulate the recovery of costs incurred
for the exploration, development and operating activities (Cost
Oil) and give entitlement to the own portion of the realized
productions (Profit Oil). In the Refining & Marketing business
line, several service stations and other auxiliary assets of the
distribution service are located in the motorway areas and they
are granted by the motorway concession operators following
a public tender for the sub-concession of the supplying of oil
products distribution service and other auxiliary services. In
exchange for the granting of the services described above,
Eni provides to the motorway companies fixed and variable
royalties based on quantities sold. At the end of the concession
period, all non-removable assets are transferred to the grantor
of the concession for no consideration.
Environmental regulations
In the future, Eni will sustain significant expenses in relation
to compliance with environmental, health and safety laws
and regulations and for reclaiming, safety and remediation
works of areas previously used for industrial production and
dismantled sites. In particular, regarding the environmental risk,
management does not currently expect any material adverse
effect upon Eni’s Consolidated Financial Statements, taking
account of ongoing remediation actions, existing insurance
policies and the environmental risk provision accrued in the
Consolidated Financial Statements. However, management
believes that it is possible that Eni may incur material losses
and liabilities in future years in connection with environmental
matters due to: (i) the possibility of as yet unknown
contamination; (ii) the results of ongoing surveys and other
possible effects of statements required by Legislative Decree
152/2006; (iii) new developments in environmental regulation
(i.e. Law No. 68/2015 on crimes against the environment and
European Directive 2015/2193 on medium combustion plants);
ENI ANNUAL REPORT 2022
337
(iv) the effect of possible technological changes relating to
future remediation; and (v) the possibility of litigation and the
difficulty of determining Eni’s liability, if any, as against other
potentially responsible parties with respect to such litigation
and the possible insurance recoveries.
Emission trading
From 2021, the fourth phase of the European Union Emissions
Trading Scheme (EU-ETS) came in force. The award of free
emission allowances
is performed based on emission
benchmarks defined at European level specific to each
industrial segment, except for the electric power generation
sector that is not eligible for allocations for no consideration.
This regulatory scheme implies for Eni’s plants subject to
emission trading a lower assignment of emission permits
compared to the emissions recorded in the relevant year
and, consequently, the necessity of covering the amounts in
excess by purchasing the relevant emission allowances on the
open market. In 2022, the emissions of carbon dioxide from
Eni’s plants were higher than the free allowances assigned
to Eni. Against emissions of carbon dioxide amounting to
approximately 16.73 million tonnes, Eni was awarded free
emission allowances of 4.98 million tonnes, determining
a deficit of 11.75 million tonnes. This deficit was entirely
covered through the purchase of emission allowances in the
open market.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 338
29 Revenues and other income
Sales from operations
(€ million)
2022
Sales from operations
Products sales and service revenues
Sales of crude oil
Sales of oil products
Sales of natural gas and LNG
Sales of petrochemical products
Sales of power
Sales of other products
Services
Exploration
& Production
Global Gas
& LNG Portfolio
Refining
& Marketing
and Chemical
Plenitude &
Power
Corporate
and Other
activities
Total
12.896
41.230
58.470
19.726
190
132.512
5.438
1.070
6.108
68
212
20.839
29.700
65
6.241
411
1.214
40.840
390
5.571
12.448
223
1.484
26.277
30.770
52.584
6.244
12.448
704
3.485
132.512
131.441
1.071
3
2
185
190
58
132
Products sales and service revenues
12.896
41.230
58.470
19.726
Transfer of goods/services
Goods/Services transferred in a specific moment
Goods/Services transferred over a period of time
12.592
304
41.047
58.145
19.599
183
325
127
2021
Sales from operations
Products sales and service revenues
Sales of crude oil
Sales of oil products
Sales of natural gas and LNG
Sales of petrochemical products
Sales of power
Sales of other products
Services
Transfer of goods/services
Goods/Services transferred in a specific moment
Goods/Services transferred over a period of time
2020
Sales from operations
Products sales and service revenues
Sales of crude oil
Sales of oil products
Sales of natural gas and LNG
Sales of petrochemical products
Sales of power
Sales of other products
Services
Transfer of goods/services
Goods/Services transferred in a specific moment
Goods/Services transferred over a period of time
8.846
16.973
40.051
10.517
188
76.575
3.573
885
4.122
40
226
8.846
8.506
340
14.710
18.739
34
5.652
132
784
16.608
6
359
3.245
5.104
212
1.956
16.973
40.051
10.517
16.823
39.836
10.517
150
215
18.283
19.624
24.009
5.659
5.104
391
3.505
76.575
75.754
821
7
1
180
188
72
116
6.359
5.362
24.937
7.135
194
43.987
1.969
517
3.505
113
255
6.359
5.896
463
9.024
11.852
20
3.277
36
728
5.000
(2)
364
5.362
24.937
2.741
2.345
21
2.028
7.135
5.239
123
24.639
7.135
298
10.993
12.369
11.266
3.296
2.345
170
3.548
43.987
42.987
1.000
19
2
173
194
78
116
ENI ANNUAL REPORT 2022 339
(€ million)
Revenues associated with contract liabilities at the beginning of the period
Revenues associated with performance obligations totally or partially satisfied in previous years
2022
2021
157
1
658
30
2020
818
Sales from operations by industry segment and geographical area of destination are disclosed in note 35 – Segment information
and information by geographical area.
Sales from operations with related parties are disclosed in note 36 – Transactions with related parties.
Other income and revenues
(€ million)
Gains from sale of assets and businesses
Other proceeds
2022
48
1,127
1,175
2021
107
1,089
1,196
2020
10
950
960
Other proceeds include €204 million (€281 million and €357 million in 2021 and 2020, respectively) related to the recovery of the cost
share of right-of-use assets pertaining to partners of unincorporated joint operations operated by Eni.
Other income and revenues with related parties are disclosed in note 36 – Transactions with related parties.
30 Costs
Purchase, services and other charges
(€ million)
Production costs - raw, ancillary and consumable materials and goods
Production costs - services
Lease expense and other
Net provisions for contingencies
Other expenses
less:
- capitalized direct costs associated with self-constructed assets - tangible assets
- capitalized direct costs associated with self-constructed assets - intangible assets
2022
85,139
10,303
2,301
2,985
2,069
2021
41,174
10,646
1,233
707
1,983
2020
21,432
9,710
876
349
1,317
102,797
55,743
33,684
(246)
(22)
(185)
(9)
(128)
(5)
102,529
55,549
33,551
Purchase, services and other charges included prospecting co-
sts, geological and geophysical studies of exploration activities
for €220 million (€194 million and €196 million in 2021 and 2020,
respectively).
Costs incurred in connection with research and development acti-
vities expensed through profit and loss, as they did not meet the
requirements to be recognized as long-lived assets, amounted to
€164 million (€177 million and €157 million in 2021 and 2020, re-
spectively).
Royalties on the extraction rights of hydrocarbons amounted to
€1,570 million (€946 million and €673 million in 2021 and 2020,
respectively).
Additions to provisions net of reversal of unused provisions re-
lated to net additions for environmental liabilities amounting to
€1,700 million (net additions of €279 million and net reversals of
€15 million in 2021 and 2020, respectively) and net additions for li-
tigations amounting to €501 million (net additions of €162 million
and €76 million in 2021 and 2020, respectively). More information
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
340
is provided in note 21 – Provisions. Net additions to provisions
by segment are disclosed in note 35 – Segment information and
information by geographical area.
Information about leases is disclosed in note 13 – Right-of-use
assets and lease liabilities.
Payroll and related costs
(€ million)
Wages and salaries
Social security contributions
Cost related to employee benefit plans
Other costs
less:
- capitalized direct costs associated with self-constructed assets - tangible assets
- capitalized direct costs associated with self-constructed assets - intangible assets
2022
2,311
465
174
194
2021
2,182
455
165
204
2020
2,193
458
102
239
3,144
3,006
2,992
(120)
(9)
3,015
(111)
(7)
2,888
(118)
(11)
2,863
Other costs comprised provisions for redundancy incentives
of €78 million (€94 million and €105 million in 2021 and 2020,
respectively) and costs for defined contribution plans of €103
million (€97 million and €96 million in 2021 and 2020, respectively).
Cost related to employee benefit plans are described in note 22
– Provisions for employee benefits.
Costs with related parties are disclosed in note 36 – Transactions
with related parties.
Average number of employees
The Group average number and breakdown of employees by category is reported below:
(number)
Senior managers
Junior managers
Employees
Workers
2022
2021
2020
Subsidiaries
Joint operation
Subsidiaries
Joint operation
Subsidiaries
Joint operation
957
9,084
15,517
6,074
31,632
19
80
420
288
807
966
9,143
15,747
5,476
31,332
18
78
380
284
760
993
9,280
15,995
4,780
31,048
17
73
349
287
726
The average number of employees was calculated as the average between the number of employees at the beginning and the
end of the period. The average number of senior managers included managers employed in foreign countries, whose position
is comparable to a senior manager’s status.
Long-term monetary incentive plan for the managers of Eni
On April 13, 2017 and on May 13, 2020, the Shareholders Meeting
approved the Long-Term Monetary Incentive Plan 2017-2019 and
2020-2022 and empowered the Board of Directors to execute the
Plan by authorizing it to dispose up to a maximum of 11 million of
treasury shares in service of the plan 2017-2019 and 20 million in
service of the plan 2020-2022.
The Long-Term Monetary Incentive plans provide for three
annual awards (2017, 2018 and 2019 and 2020, 2021 and 2022,
respectively) and are intended for the Chief Executive Officer of
Eni and for the managers of Eni and its subsidiaries who qualify
as “senior managers deemed critical for the business”, selected
among those who are in charge of tasks directly linked to the
ENI ANNUAL REPORT 2022
341
Group results or of strategic clout to the business. The Plans
provide the granting of Eni shares for no consideration to eligible
managers after a three-year vesting period under the condition that
they would remain in office until vesting. Considering that these
incentives fall within the category of employee compensation, in
accordance with IFRS, the cost of the plans is determined based
on the fair value of the financial instruments awarded to the
beneficiaries and the number of shares that are granted at the end
of the vesting period; the cost is accruing along the vesting period.
With reference to the 2017-2019 Plan, the number of shares that
will be granted at the end of the vesting period will depend: (i) for
50%, on the market condition in terms of Total Shareholder Return
(TSR) of the Eni share compared to the TSR of the FTSE Mib index
of the Italian Stock Exchange Market, and to a group of Eni’s
competitors (“Peer Group”)27 and the TSR of their corresponding
stock exchange market28; (ii) for 50%, on the growth in the Net
Present Value (NPV) of proved reserves benchmarked against the
Peer Group.
With reference to the 2020-2022 Plan, the number of shares that
will be granted at the end of the vesting period will depend on
the aiming of the following objectives defined over a three-year
performance period, as follows: (i) for 25% on a market objective
measured with reference to the the Eni’s group of competitors
(Peer Group) as the difference between the Total Shareholder
Return (TSR) of Eni Shares and the TSR of the FTSE Mib Index
of the Italian Stock Exchange, adjusted with Eni’s correlation
index, compared with the benchmark stock index; (ii) for 20% on
an industrial objective measured with respect to the Peer Group
in terms of annual unit value ($/boe) of the Net Present Value of
Proven Reserves (NPV); (iii) for 20% on an economic-financial
objective measured as the Organic Free Cash Flow accumulated
in the three-year reference period, compared to the value provided
for by the Strategic Plan; (iv) for 35% on an environmental
sustainability and energy transition objective in a three-year
period consisting of three objectives measured with respect to
the Strategic Plan as follows: (a) for 15% to Upstream Scope 1
and Scope 2 CO2eq. equity emissions (tCO2eq./kboe); (b) for 10%
on the installed capacity of power generation from renewable
sources; (c) for 10% from the progress of three projects of circular
economy.
Depending on the performance of the parameters mentioned
above, the number of shares that will vest free of charge after
three years may range between 0% and 180% of the initial award.
Furthermore, a 50% of these is subject to a lock-up clause of one
year after the vesting date.
The number of shares awarded at the grant date was: (i) 2,069,685
shares in 2022; with a weighted average fair value of €9.20 per
share; (ii) 2,365,581 shares in 2021, with a weighted average fair
value of €8.15 per share; (iii) 2,922,749 shares in 2020, with a
weighted average fair value of €4.67 per share.
The estimation of the fair value was calculated by adopting
specific valuation techniques regarding the different performance
parameters provided by the plan (the stochastic method for the
component related to the TSR and the Black-Scholes model for the
component related to the NPV of the reserves, for the 2017-2019
Plan; the stochastic method for the 2020-2022 Plan), taking into
account the fair value of the Eni share at the grant date (between
€12.918 and €14.324 depending on the grant date in relation to
the 2022 award; between €11.642 and €12.164 depending on
the grant date in relation to the 2021 award; between €5.885 and
€8.303 depending on the grant date in relation to the 2020 award),
reduced by dividends expected along the vesting period (between
6.1% and 6.8% of the share price at vesting date in 2022; 7.1% and
7.4% of the share price at vesting date in 2021; 7.1% and 10% of
the share price at vesting date in 2020), considering the volatility
of the stock (between 30% and 31% in relation to the 2022 award;
between 44% and 45% in relation to the 2021 award; 41% and 44%
in relation to the 2020 award), the forecasts for the performance
parameters, as well as the lower value attributable to the shares
considering the lock-up period at the end of the vesting period.
In 2022, the costs related to the Long-Term Monetary Incentive
Plan, recognized as a component of the payroll cost, amounted
to €18 million (€16 million and €7 million in 2021 and 2020,
respectively) with a contra-entry to equity reserves.
Compensation of key management personnel
Compensation, including contributions and collateral expenses,
of personnel holding key positions in planning, directing and
controlling the Eni Group subsidiaries, including executive and
non-executive officers, general managers and managers with
strategic responsibilities in office during the year consisted of
the following:
(€ million)
Wages and salaries
Post-employment benefits
Other long-term benefits
Indemnities upon termination of employment
2022
2021
2020
37
3
17
9
66
29
3
15
47
30
2
12
21
65
(27) The Peer Group consists of the following oil companies: Apache, bp, Chevron, ConocoPhillips, Equinor, ExxonMobil, Marathon Oil, Occidental, Royal Dutch Shell and
Total.
(28) The performance condition connected with the TSR in accordance with the international accounting standards represents a so-called market condition.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 342
Compensation of Directors and Statutory Auditors of Eni SpA
Compensation of Directors amounted to €11.12 million,
€10.13 million and €7.54 million in 2022, 2021 and 2020,
respectively. Compensation of Statutory Auditors amounted
to €0.589 million, €0.550 million and €0.571 million in 2022,
2021 and 2020, respectively.
Compensation included emoluments and social security
benefits due for the office as Director or Statutory Auditor held
at the parent company Eni SpA or other Group subsidiaries,
which was recognized as a cost to the Group, even if not
subject to personal income tax.
31 Finance income (expense)
(€ million)
Finance income
Finance expense
Net finance income (expense) from financial assets at fair value through profit or loss
Income (expense) from derivative financial instruments
Finance income (expense)
The analysis of finance income (expense) was as follows:
2022
8,450
2021
3,723
2020
3,531
(9,333)
(4,216)
(4,958)
(55)
13
(925)
11
(306)
(788)
31
351
(1,045)
(€ million)
2022
2021
2020
Finance income (expense) related to net borrowings
- Interest and other finance expense on ordinary bonds
- Net finance income (expense) on financial assets held for trading
- Net expenses on other financial assets valued at fair value with effects on profit and loss
- Interest and other expense due to banks and other financial institutions
- Interest on lease liabilities
- Interest from banks
- Interest and other income on financial receivables and securities held for non-operating purposes
Exchange differences
Income (expense) from derivative financial instruments
Other finance income (expense)
- Interest and other income on financing receivables and securities held for operating purposes
- Capitalized finance expense
- Finance expense due to the passage of time (accretion discount)(a)
- Other finance income (expense)
(*) The item related to the increase in provisions for contingencies that are shown at present value in non-current liabilities.
(507)
(53)
(2)
(128)
(315)
57
9
(939)
238
13
128
38
(199)
(204)
(237)
(925)
(475)
11
(94)
(304)
4
9
(849)
476
(306)
67
68
(144)
(100)
(109)
(788)
(517)
31
(102)
(347)
10
12
(913)
(460)
351
97
73
(190)
(3)
(23)
(1,045)
Information about leases is disclosed in note 13 – Right-of-use
assets and lease liabilities.
The analysis of derivative financial income (expense) is disclosed in
note 24 – Derivative financial instruments and hedge accounting.
Finance income (expense) with related parties are disclosed in
note 36 – Transactions with related parties.
ENI ANNUAL REPORT 2022
343
32 Income (expense) from investments
Share of profit (loss) of equity-accounted investments
More information is provided in note 16 – Investments.
Share of profit or loss of equity accounted investments by
industry segment is disclosed in note 35 – Segment informa-
tion and information by geographical area.
Other gain (loss) from investments
(€ million)
Dividends
Net gain (loss) on disposals
Other net income (expense)
2022
351
483
2,789
3,623
2021
230
1
(8)
223
2020
150
(75)
75
Dividend income primarily related to Nigeria LNG Ltd for €247
million (€144 million in 2021 and €113 million in 2020) and to
Saudi European Petrochemical Co “IBN ZAHR” for €77 million (€54
million in 2021 and €28 million in 2020).
Gains on disposals referred for €448 million to the capital gains
realized following the listing, through an IPO on the Oslo Stock
Exchange, of the investee Vår Energi ASA and subsequent sales
made on the market.
Other net income refers for €2,542 million to the capital gain from
the fair value measurement of the business combination between
Eni and bp with the establishment of the joint venture Azule
Energy Holdings Ltd and includes realized exchange differences
on translation of €764 million.
33 Income taxes
(€ million)
Current taxes:
- Italian subsidiaries
- subsidiaries of the Exploration & Production segment - outside Italy
- other subsidiaries - outside Italy
Net deferred taxes:
- Italian subsidiaries
- subsidiaries of the Exploration & Production segment - outside Italy
- other subsidiaries - outside Italy
2022
2021
2020
1,920
7,027
944
9,891
(2,191)
713
(325)
(1,803)
8,088
439
3,609
157
4,205
(45)
552
133
640
199
1,517
84
1,800
672
73
105
850
4,845
2,650
Current income taxes payable by Italian subsidiaries include foreign
taxes for €69 million.
Income taxes included to an extraordinary solidarity tax for the year
2022 (€1,036 million) enacted in Italy by Law No. 51/2022, a similar
tax enacted in Germany (€163 million) as well as the UK Energy
profit levy. The total 2022 income taxes included an extraordinary
contribution as enacted by Law No. 197/2022 (Italian 2023
Budget Law) calculated on the 2022 taxable income, determined
considering the distribution of certain revaluation reserves of the
parent company.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
344
The reconciliation between the statutory tax charge calculated by applying the Italian statutory tax rate of 24% (same amount
in 2021 and 2020) and the effective tax charge is the following:
(€ million)
Profit (loss) before taxation
Tax rate (IRES) (%)
Statutory corporation tax charge (credit) on profit or loss
Increase (decrease) resulting from:
- higher tax charges related to subsidiaries outside Italy
- extraordinary contribution effect for Italian companies in energy sector
- impact pursuant to foreign tax effects of italian entities
- effect of the valuation of the investments under the equity method
- effect due to the tax regime provided for intercompany dividends
- Italian regional income tax (IRAP)
- tax effects related to previous years
- effect of reversals (impairments) of deferred tax assets
- impact pursuant to (reversal) impairment of deferred tax assets
- other adjustments
Effective tax charge
2022
22,049
24.0
5,292
3,388
1,971
66
50
11
(18)
(19)
(241)
(2,087)
(325)
2,796
8,088
2021
2020
10,685
(5,978)
24.0
2,564
24.0
(1,435)
2,301
1,980
108
180
54
140
52
(666)
112
2,281
4,845
108
97
96
107
(30)
1,785
(58)
4,085
2,650
The higher tax charges at non-Italian subsidiaries related to the
Exploration & Production segment for €2,940 million (€2,040
million and €1,777 million in 2021 and 2020, respectively).
In 2020, the Group incurred income taxes, despite a pre-tax
loss of €5,978 million, due to the economic crisis caused by
the COVID-19 having an enduring impact on the hydrocarbons
demand and by the revision of the long-term prices and of
future cash flows in Eni’s activities. The lower projections of
future taxable income had two impacts: the recognition of
tax charges due to a write-down of deferred tax assets and
a reduced capacity to recognize deferred taxes on the losses
of the period.
34 Earnings (loss) per share
Basic earnings (loss) per ordinary share are calculated by dividing
net profit (loss) for the period attributable to Eni’s shareholders
by the weighted average number of ordinary shares issued and
outstanding during the period, excluding treasury shares.
Diluted earnings (loss) per share are calculated by dividing the net
profit (loss) of the period attributable to Eni’s shareholders by the
weighted average number of shares fully-diluted, excluding treasury
shares, and including the number of potential shares to be issued.
As of December 31, 2022, the shares that could be potentially issued
related the estimation of new shares that will vest in connection
with the 2020-2022 Long-Term Monetary Incentive Plans.
In determining basic and diluted earnings (loss) per share, the net
profit (loss) for the period attributable to Eni is adjusted to take
into account the remuneration of perpetual subordinated bonds,
net of tax effect, calculated by using the amortized cost method.
Reconciliation of the weighted average number of shares used
for the calculation for both basic and diluted earnings (loss) per
share was as follows:
Weighted average number of shares used for basic earnings (loss) per share
3,483,633,816
3,565,973,883
3,572,549,651
Potential shares to be issued for ILT incentive plan
6,319,989
7,598,593
Weighted average number of shares used for diluted earnings (loss) per share
3,489,953,805
3,573,572,476
3,572,549,651
2022
2021
2020
Eni’s profit (loss)
Remuneration of subordinated perpetual bonds net of tax effect
Eni’s profit (loss) for basic and diluted earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
(€ million)
(€ million)
(€ million)
(€ per share)
(€ per share)
13,887
(109)
13,778
3.96
3.95
5,821
(95)
5,726
1.61
1.60
(8,635)
(8,635)
(2.42)
(2.42)
ENI ANNUAL REPORT 2022
345
35 Segment information and information by geographic area
Segment information
Eni’s segmental reporting reflects the Group’s operating
segments, whose results are regularly reviewed by the Chief
Operating Decision Maker (the CEO) to assess segment
performance and to make decisions about resources to be
allocated to each segment.
The organization is based on two General Departments:
• Natural Resources, to build up the value of Eni’s Oil & Gas
upstream portfolio, with the objective of reducing its carbon
footprint by scaling up energy efficiency and expanding
production in the natural gas business, and its position in the
wholesale market. Furthermore, it will focus its actions on the
development of carbon capture and compensation projects.
The General Department incorporates the Company’s Oil & Gas
exploration, development and production activities, natural
gas wholesale via pipeline and LNG, forests conservation
(REDD+) and CO2 storage projects;
• Energy Evolution, focused on the evolution of the businesses
of power generation, transformation and marketing of
products from fossil to bio and blue. The responsibility of this
Department include the growth of power generation from
renewable energy and biomethane, the coordination of the
bio and circular evolution of the Company’s refining system
and chemical business, and the development of Eni’s retail
portfolio, providing increasingly more decarbonized products
for mobility, household consumption and small enterprises.
The General Department incorporates the activities of power
generation from natural gas and renewables, the refining
and chemicals businesses, Retail Gas & Power and mobility
Marketing. The companies Versalis (chemical products), Eni
Rewind (environmental activities) and Eni Plenitude, in their
current structure, are consolidated in this General Department.
In relation to financial reporting purposes, management
evaluated that the components of the Company whose
operating results are regularly reviewed by the Chief Operating
Decision Maker (CEO) to make decisions about the allocation
of resources and to assess performances would continue
being the single business units which are comprised in the
two newly-established General Departments, rather than the
two groups themselves. Therefore, in order to comply with the
provisions of the international reporting standard that regulates
the segment reporting (IFRS 8), the new reportable segments of
Eni, substantially confirming the pre-existing setup, are identified
as follows:
Exploration & Production: research, development and production
of oil, condensates and natural gas, forestry conservation
(REDD+) and CO2 capture and storage projects;
Global Gas & LNG Portfolio (GGP): supply and sale of wholesale
natural gas via pipeline, international transport and purchase and
marketing of LNG. It includes gas trading activities finalized to
hedging and stabilizing the trade margins, as well as optimising
the gas asset portfolio;
Refining & Marketing and Chemicals: supply, processing,
distribution and marketing of fuels and chemicals. The results
of the Chemicals segment were aggregated with the Refining &
Marketing performance in a single reportable segment, because
these two operating segments have similar economic returns. It
comprises the activities of trading oil and products with the aim
to execute the transactions on the market in order to balance the
supply and stabilize and cover the commercial margins;
Plenitude & Power: retail sales of gas, electricity and related
services, production and wholesale sales of electricity from
thermoelectric and renewable plants, services for E-mobility.
It includes trading activities of CO2 emission certificates and
forward sale of electricity with a view to hedging/optimising the
margins of the electricity;
Corporate and Other activities: includes the main business
support functions, in particular holding, central treasury, IT,
insurance
human resources, real estate services, captive
activities,
technologies,
business digitalization and the environmental activity developed
by the subsidiary Eni Rewind.
Segment information presented to the CEO (i.e. the Chief
Operating Decision Maker, ex IFRS 8) includes: revenues,
operating profit and directly attributable assets and liabilities.
research and development, new
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 346
Segment Information
(€ million)
2022
Exploration
& Production
Global Gas
& LNG
Portfolio
Refining &
Marketing
and
Chemicals
Plenitude &
Power
Corporate
and
Other
activities
Adjustments
of intragroup
profits
Total
Sales from operations including intersegment sales
31,200
48,586
59,178
20,883
1,879
Less: intersegment sales
Sales from operations
Operating profit
Net provisions for contingencies
Depreciation and amortization
Impairments of tangible and intangible assets and right-of-use assets
Reversals of tangible and intangible assets and right-of-use assets
Write-off of tangible and intangible assets and right-of-use assets
Share of profit (loss) of equity-accounted investments
Identifiable assets(a)
Unallocated assets(b)
Equity-accounted investments
Identifiable liabilities(a)
Unallocated liabilities(b)
(18,304)
(7,356)
(708)
(1,157)
(1,689)
41,230
58,470
19,726
190
132,512
12,896
15,908
(147)
(6,018)
(613)
181
(596)
1,526
3,730
(393)
(217)
(6)
18
(1)
4
460
(1,110)
(506)
(752)
35
(2)
446
(825)
(14)
(358)
(125)
162
(20)
60,473
12,282
14,925
11,987
7,314
1
17,385
12,572
3,084
9,011
663
4,787
(1,901)
(1,340)
(139)
(71)
31
(115)
1,491
1,030
4,416
138
17,510
19
33
(2,985)
(7,205)
(1,567)
427
(599)
1,841
(472)
100,686
51,444
12,092
(68)
48,103
48,797
Capital expenditure in tangible and intangible assets
6,362
23
878
631
166
(4)
8,056
2021
Sales from operations including intersegment sales
21,742
20,843
40,374
11,187
1,698
Less: intersegment sales
Sales from operations
Operating profit
Net provisions for contingencies
Depreciation and amortization
Impairments of tangible and intangible assets and right-of-use assets
Reversals of tangible and intangible assets
Write-off of tangible and intangible assets
Share of profit (loss) of equity-accounted investments
Identifiable assets(a)
Unallocated assets(b)
Equity-accounted investments
Identifiable liabilities(a)
Unallocated liabilities(b)
(12,896)
(3,870)
(323)
(670)
(1,510)
8,846
16,973
40,051
10,517
188
76,575
10,066
(221)
(5,976)
(194)
1,438
(384)
8
899
(139)
(174)
(28)
2
45
2,355
(137)
(512)
(1,342)
(2)
(333)
(1)
(286)
(132)
112
(1)
61,753
10,022
13,326
8,343
2,639
17
17,046
10,072
2,366
6,796
667
3,786
(816)
(186)
(148)
(27)
4
(766)
1,439
198
3,338
(208)
12,341
(23)
(707)
33
(7,063)
(1,723)
1,556
(387)
(1,091)
(591)
94,292
43,473
5,887
(49)
40,989
52,257
Capital expenditure in tangible and intangible assets
3,861
19
728
443
187
(4)
5,234
2020
Sales from operations including intersegment sales
Less: intersegment sales
Sales from operations
Operating profit
Net provisions for contingencies
Depreciation and amortization
Impairments of tangible and intangible assets and right-of-use assets
Reversals of tangible and intangible assets
Write-off of tangible and intangible assets
Share of profit (loss) of equity-accounted investments
Identifiable assets(a)
Unallocated assets(b)
Equity-accounted investments
Identifiable liabilities(a)
Unallocated liabilities(b)
13,590
(7,231)
6,359
(610)
(98)
(6,273)
(2,170)
282
(322)
(980)
7,051
25,340
(1,689)
(403)
5,362
24,937
(332)
(64)
(125)
(2,463)
(118)
(575)
(2)
(1,605)
334
(15)
(363)
7,536
(401)
7,135
660
2
(217)
(56)
55
(7)
6
59,439
4,020
10,716
4,387
2,680
17,501
259
3,785
2,605
5,460
217
2,426
1,559
(1,365)
194
(563)
(26)
(146)
(22)
1
(381)
1,444
988
3,316
43,987
33
(3,275)
(45)
(349)
32
(7,304)
(3,855)
672
(329)
(1,733)
(402)
79,604
30,044
6,749
(83)
32,405
39,750
Capital expenditure in tangible and intangible assets
3,472
11
771
293
107
(10)
4,644
(a) Include assets/liabilities directly associated with the generation of operating profit.
(b) Include assets/liabilities not directly associated with the generation of operating profit.
ENI ANNUAL REPORT 2022
347
Information by geographical area
Identifiable assets and investments by geographical area of origin
(€ million)
2022
Identifiable assets(*)
Capital expenditure in tangible and intangible assets
2021
Identifiable assets(*)
Capital expenditure in tangible and intangible assets
2020
Identifiable assets(*)
Capital expenditure in tangible and intangible assets
(*) Include assets directly associated with the generation of operating profit.
Other
European
Union
Italy
Rest of
Europe Americas
Asia
Africa
Other
areas
Total
29,195
1,475
23,718
1,333
17,228
1,198
7,689
415
6,902
199
4,159
152
6,564
8,892
18,653
28,167
1,526
100,686
205
1,266
1,390
3,163
142
8,056
6,114
5,718
17,483
33,499
858
94,292
202
659
1,203
1,604
34
5,234
3,174
4,485
16,360
33,341
857
79,604
119
441
1,267
1,443
24
4,644
Sales from operations by geographical area of destination.
(€ million)
Italy
Other European Union
Rest of Europe
Americas
Asia
Africa
Other areas
2022
60,090
25,413
21,748
6,929
9,062
9,191
79
2021
29,968
14,671
12,470
4,420
7,891
7,040
115
2020
14,717
9,508
8,191
2,426
4,182
4,842
121
132,512
76,575
43,987
36 Transactions with related parties
In the ordinary course of its business, Eni enters into tran-
sactions mainly regarding:
(a) purchase/supply of goods and services and the provision of
financing to joint ventures, associates and non-consolidated
subsidiaries;
b) purchase/supply of goods and services to entities controlled
by the Italian Government;
c) purchase/supply of goods and services to companies rela-
ted to Eni SpA through members of the Board of Directors.
Most of these transactions are exempt from the application
of the Eni internal procedure “Transactions involving intere-
sts of Directors and Statutory Auditors and transactions with
related parties” pursuant to the Consob Regulation, since
they relate to ordinary transactions conducted at market or
standard conditions, or because they fall below the materia-
lity threshold provided for by the procedure;
d) contributions to non-profit entities correlated to Eni with
the aim to develop solidarity, culture and research initia-
tives. In particular these related to: (i) Eni Foundation,
established by Eni as a non-profit entity with the aim of
pursuing exclusively solidarity initiatives in the fields of
social assistance, health, education, culture and environ-
ment, as well as scientific and technological research; and
(ii) Eni Enrico Mattei Foundation, established by Eni with
the aim of enhancing, through studies, research and trai-
ning initiatives, knowledge enrichment in the fields of eco-
nomics, energy and environment, both at the national and
international level.
Transactions with related parties were conducted in the interest
of Eni companies and, with exception of those with entities who-
se aim is to develop charitable, cultural and research initiatives,
are related to the ordinary course of Eni’s business.
Investments in subsidiaries, joint arrangements and associa-
tes as of December 31, 2022 are presented in the annex “List of
companies owned by Eni SpA as of December 31, 2022”.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
348
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Name
Joint ventures and associates
Agiba Petroleum Co
Angola LNG Ltd
Coral FLNG SA
Azule Group
Saipem Group
Vårgrønn Group
Karachaganak Petroleum Operating BV
Mellitah Oil & Gas BV
Petrobel Belayim Petroleum Co
Société Centrale Electrique du Congo SA
Società Oleodotti Meridionali SpA
Vår Energi ASA
Other(*)
Unconsolidated entities controlled by Eni
Eni BTC Ltd
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)
Other
Entities controlled by the Government
Cassa Depositi e Prestiti Group
Enel Group
Italgas Group
Snam Group
Terna Group
GSE - Gestore Servizi Energetici
ITA Airways - Italia Trasporto Aereo SpA
Other
Other related parties
Groupement Sonatrach – Eni “GSE”
Total
(*) Each individual amount included herein was lower than €50 million.
December 31, 2022
2022
(€ million)
Receivables
and other
assets
Payables
and other
liabilities
Guarantees
Revenues
Revenues
Other
operating
(expense)
income
17
10
320
3
27
58
33
47
6
58
127
706
139
8
147
853
2
438
218
763
119
207
3
12
1,762
179
2,794
71
517
195
251
144
595
433
722
76
3,004
4
10
14
3,018
47
264
8
25
159
225
35
763
2
114
1,378
3,268
9
1,259
2,378
9
8,301
190
1
11
202
8,503
224
79
1,152
452
1,347
234
944
14
4,085
338
8,869
15
15
12
46
9
9
74
16
84
167
417
15
7
22
(597)
(597)
439
8,884
(597)
3
97
84
1,767
612
7,786
179
27
86
275
873
701
4,039
33
484
(18)
3,437
10,555
6,007
3,903
1
33
39
417
3,897
8,503
11,028
15,347
3,306
ENI ANNUAL REPORT 2022
349
December 31, 2021
2021
(€ million)
Receivables
and other
assets
Payables
and other
liabilities
Guarantees
Revenues
Costs
Other
operating
(expense)
income
Name
Joint ventures and associates
Agiba Petroleum Co
Angola LNG Ltd
Angola LNG Supply Services Llc
Coral FLNG SA
Saipem Group
Karachaganak Petroleum Operating BV
Mellitah Oil & Gas BV
Petrobel Belayim Petroleum Co
Société Centrale Electrique du Congo SA
Societa' Oleodotti Meridionali SpA
Vår Energi AS
Other(*)
Unconsolidated entities controlled by Eni
Eni BTC Ltd
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)
Other
Entities controlled by the Government
Enel Group
Italgas Group
Snam Group
Terna Group
GSE - Gestore Servizi Energetici
Other(*)
Other related parties
Groupement Sonatrach - Agip “GSA” and Organe Conjoint des
Opérations “OC SH/FCP”
Total
(*) Each individual amount included herein was lower than €50 million.
13
17
4
24
65
24
50
6
62
137
402
124
10
134
536
583
1
160
51
311
10
1,116
170
1,822
57
134
213
290
391
396
526
53
179
1,260
9
495
2
2,060
1,945
1
5
6
179
1
10
190
189
73
174
989
263
651
12
2,224
234
4,809
10
10
43
28
3
2
66
18
104
95
359
13
8
21
(409)
(409)
2,066
2,135
380
4,819
(409)
461
49
152
85
125
33
905
2
79
41
3
159
203
2,216
20
417
560
1,013
309
1,238
60
373
1
4
766
2,642
3,597
1,144
33
222
30
3,052
2,135
3,052
8,671
735
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
350
Name
Joint ventures and associates
Agiba Petroleum Co
Angola LNG Supply Services Llc
Coral FLNG SA
Gas Distribution Company of Thessaloniki - Thessaly SA
Saipem Group
Karachaganak Petroleum Operating BV
Mellitah Oil & Gas BV
Petrobel Belayim Petroleum Co
Societa Oleodotti Meridionali SpA
Société Centrale Electrique du Congo SA
Unión Fenosa Gas SA
Vår Energi AS
Other(*)
Unconsolidated entities controlled by Eni
Eni BTC Ltd
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)
Other
Entities controlled by the Government
Enel Group
Italgas Group
Snam Group
Terna Group
GSE - Gestore Servizi Energetici
Other(*)
Other related parties
Groupement Sonatrach - Agip “GSA” and Organe Conjoint des
Opérations “OC SH/FCP”
December 31, 2020
2020
(€ million)
Receivables
and other
assets
Payables
and other
liabilities
Guarantees
Revenues
Revenues
Other
operating
(expense)
income
6
6
87
25
54
65
3
48
11
39
72
52
13
254
141
250
467
399
4
190
24
165
1,079
509
57
456
1
49
18
2
20
57
9
85
66
416
1,794
2,267
306
1
23
24
165
1
10
176
11
4
15
201
52
350
816
156
556
15
1,126
167
3,439
9
9
(3)
(118)
(121)
1,818
2,443
321
3,448
(121)
165
177
211
62
37
49
701
4
52
51
3
45
152
586
20
857
2
19
551
714
1,012
225
309
63
2,874
53
262
86
8
40
134
112
5
117
533
104
1
189
46
52
8
400
1
87
Total
1,021
2,575
2,443
1,199
6,637
13
(*) Each individual amount included herein was lower than €50 million.
The most significant transactions with joint ventures, associa-
tes and unconsolidated subsidiaries concerned:
• Eni’s share of expenses incurred to develop oil fields from
Agiba Petroleum Co, Karachaganak Petroleum Operating BV,
Mellitah Oil & Gas BV, Petrobel Belayim Petroleum Co, Grou-
pement Sonatrach - Agip “GSE” and, only for Karachaganak
Petroleum Operating BV, purchase of crude oil by Eni Trade &
Biofuels SpA; services charged to Eni’s associates are invoi-
ced on the basis of incurred costs;
• purchase of LNG from Angola LNG Ltd;
• supply of upstream specialist services and a guarantee issued
on a pro-quota basis granted to Coral FLNG SA on behalf of
the Consortium TJS for the contractual obligations assumed
following the award of the EPCIC contract for the construction
of a floating gas liquefaction plant (for more information see
note 28 – Guarantees, commitments and risks);
• receivables for divestment activities linked to the contribu-
tion of Eni’s former subsidiaries in Angola, in exchange of a
participating interest in Azule Holdings, the purchase of cru-
de oils and the issue of guarantees against leasing contracts
of FPSO vessels from the Azule Group;
• engineering, construction and drilling services by Saipem
Group mainly for the Exploration & Production segment;
• a guarantee issued to Vårgrønn Group in relation to the parti-
cipation in the Dogger Bank offshore wind project;
• the sale of gas to Société Centrale Electrique du Congo SA;
ENI ANNUAL REPORT 2022
351
• advances received from Società Oleodotti Meridionali SpA
for the infrastructure upgrade of the crude oil transport sy-
stem at the Taranto refinery;
with Snam Group of natural gas for granting the system ba-
lancing on the basis of prices referred to the quotations of
the main energy commodities;
• guarantees issued in compliance with contractual agree-
ments in the interest of Vår Energi ASA, the supply of upstre-
am specialist services and maritime transport, the purchase
of crude oil, condensates and gas and the realized part of the
forward contracts for the purchase of gas;
• a guarantee issued in relation to Eni BTC Ltd for the con-
struction of an oil pipeline; and
• services for environmental restoration to Industria Siciliana
Acido Fosforico - ISAF SpA (in liquidation).
The most significant transactions with entities controlled by
the Italian Government concerned:
• activities aimed at guaranteeing the operation, upgrading
and efficiency of the plants for the Ansaldo Group of Cassa
Depositi e Prestiti;
• sale of fuel, sale and purchase of gas, purchase of LNG, ac-
quisition of power distribution services and fair value of deri-
vative financial instruments with Enel Group;
• acquisition of domestic electricity transmission service and
sale and purchase of electricity for granting the system ba-
lancing based on prices referred to the quotations of the
main energy commodities, and derivatives on commodities
entered to hedge the price risk related to the utilization of
transport capacity rights with Terna Group;
• sale and purchase of electricity, gas, environmental certifi-
cates, fair value of derivative financial instruments, sale of
oil products and storage capacity with GSE - Gestore Servizi
Energetici for the setting-up of a specific stock held by the
Organismo Centrale di Stoccaggio Italiano (OCSIT) accor-
ding to the Legislative Decree No. 249/12; the contribution
to cover the charges deriving from the performance of OCSIT
functions and activities and the contribution paid to GSE for
the use of biomethane and other advanced biofuels in the
transport sector;
• the sale of jet fuel to ITA Airways - Italia Trasporto Aereo SpA.
• acquisition of natural gas transportation, distribution and
storage services with Snam Group and Italgas Group on the
basis of the tariffs set by the Italian Regulatory Authority for
Energy, Networks and Environment and purchase and sale
Transactions with other related parties concerned:
• provisions to pension funds managed by Eni of €29 million;
• contributions and service provisions to Eni Enrico Mattei
Foundation for €5 million and to Eni Foundation for €5 million.
FINANCING TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Name
(€ million)
December 31, 2022
2022
Receivables
and cash
and cash
equivalents
Payables
Guarantees
Finance
incomes and
derivative
financial
instruments
Finance
Expenses
Gain on
disposals
Joint ventures and associates
Coral FLNG SA
Coral South FLNG DMCC
Mozambique Rovuma Venture SpA
Saipem Group
Other(*)
Unconsolidated entities controlled by Eni
Other
Entities controlled by the Government
Enel Group
Italgas Group
Other
Total
(*) Each individual amount included herein was lower than €50 million.
356
1,187
96
1,639
8
8
10
10
1,657
57
100
28
185
31
31
176
40
216
432
1,499
2
1,501
1
48
16
91
156
5
5
1
1
140
1
5
3
10
159
4
4
1
1
1,501
162
164
30
30
30
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
352
Name
Joint ventures and associates
Cardón IV SA
Coral FLNG SA
Coral South FLNG DMCC
Mozambique Rovuma Venture SpA
Other(*)
Unconsolidated entities controlled by Eni
Other
Entities controlled by the Government
Enel Group
Other
Total
(*) Each individual amount included herein was lower than €50 million.
Name
Joint ventures and associates
Angola LNG Ltd
Cardón IV SA
Coral FLNG SA
Coral South FLNG DMCC
Saipem Group
Société Centrale Electrique du Congo SA
Other
Unconsolidated entities controlled by Eni
Other
Entities controlled by the Government
Other
December 31, 2021
2021
Receivables
and cash
and cash
equivalents
(€ million)
Payables
Guarantees
Finance
incomes
Finance
Expenses
199
383
1,008
70
1,660
38
38
2
2
1,700
2
72
43
117
34
34
109
17
126
277
1,413
1,413
37
4
2
35
78
1
1
1
43
44
1
1
1
1
1,413
79
46
December 31, 2020
2020
(€ million)
Receivables
Payables
Guarantees
Finance
Incomes
Finance
expenses
228
1,304
1
1,533
57
22
7
27
113
1
1
383
288
2
83
15
771
36
36
167
12
179
28
28
11
11
807
218
1,533
114
1
6
18
25
1
1
26
The most significant transactions with joint ventures, associates
and unconsolidated subsidiaries concerned:
• the financing loan granted to Coral FLNG SA for the construction
of a floating gas liquefaction plant in Area 4 offshore Mozambique;
• a bank debt guarantee issued on behalf of Coral South FLNG
DMCC as part of the project financing of the Coral FLNG
development project (for more information see note 28 –
Guarantees, commitments and risks);
• liabilities for leased assets towards Saipem Group related to
long-term contracts for the use of drilling rigs.
The most significant transactions with entities controlled by the
Italian Government concerned:
• financial debts towards Enel Group for margins on derivative
contracts;
• capital gain from the sale of the Gas Distribution Company of
• the loan granted to Mozambique Rovuma Venture SpA for the
Thessaloniki - Thessaly SA to the Italgas Group.
development of gas reserves offshore Mozambique;
ENI ANNUAL REPORT 2022
353
Impact of transactions and positions with related parties on the balance sheet, profit and loss account
and statement of cash flows
The impact of transactions and positions with related parties on the balance sheet accounts consisted of the following:
(€ million)
Cash and cash equivalents
Other current financial assets
Trade and other receivables
Other current assets
Other non-current financial assets
Other non-current assets
Short-term debt
Current portion of long-term debt
Current portion of non-current lease liabilities
Trade and other payables
Other current liabilities
Long-term debt
Non-current lease liabilities
Other non-current liabilities
December 31, 2022
December 31, 2021
Total
10,155
1,504
20,840
12,821
1,967
2,236
4,446
3,097
884
25,709
12,473
19,374
4,067
3,234
Related
parties
Impact
%
10
16
2,427
341
1,631
26
307
36
35
3,203
232
26
28
462
0.10
1.06
11.65
2.66
82.92
1.16
6.91
1.16
3.96
12.46
1.86
0.13
0.69
14.29
Total
8,254
4,308
18,850
13,634
1,885
1,029
2,299
1,781
948
21,720
15,756
23,714
4,389
2,246
Related
parties
Impact
%
2
53
1,301
492
1,645
29
233
21
17
2,298
339
5
1
0.02
1.23
6.90
3.61
87.27
2.82
10.13
1.18
1.79
10.58
2.15
0.02
0.02
415
18.48
The impact of transactions with related parties on the profit and loss accounts consisted of the following:
(€ million)
Sales from operations
Other income and revenues
2022
2021
2020
Total
Related
parties
Impact
%
Total
Related
parties
Impact
%
Total
Related
parties
Impact
%
132,512
10,872
8.20
76,575
3,000
1,175
156
13.28
1,196
52
3.92
4.35
43,987
1,164
960
35
2.65
3.65
Purchases, services and other
(102,529)
(15,327)
14.95
(55,549)
(8,644)
15.56
(33,551)
(6,595)
19.66
Net (impairments) reversals of trade
and other receivables
Payroll and related costs
Other operating income (expense)
Finance income
Finance expense
Derivative financial instruments
Other income (expense) from investments
47
(2)
…
(279)
(3,015)
(1,736)
8,450
(9,333)
13
3,623
(18)
3,306
160
(164)
2
30
0.60
(2,888)
…
1.89
1.76
15.38
0.83
903
3,723
(4,216)
(306)
223
(6)
(21)
735
79
(46)
2.15
(226)
0.73
(2,863)
81.40
2.12
1.09
(766)
3,531
(4,958)
351
75
(6)
(36)
13
114
(26)
2.65
1.26
..
3.23
0.52
Main cash flows with related parties are provided below:
(€ million)
Revenues and other income
Costs and other expenses
Other operating income (loss)
Net change in trade and other receivables and payables
Net interests
Net cash provided from operating activities
Capital expenditure in tangible and intangible assets
Disposal of investments
Net change in accounts payable and receivable in relation to investments
Change in financial receivables
Net cash used in investing activities
Change in financial and lease liabilities
Net cash used in financing activities
Change in cash and cash equivalents
Total financial flows to related parties
2022
11,028
2021
3,052
2020
1,199
(13,749)
(7,814)
(5,789)
3,306
(431)
69
223
(1,596)
165
1,480
(81)
(32)
(88)
(88)
8
111
735
(342)
38
(4,331)
(851)
(20)
(105)
(976)
(13)
(13)
2
13
(136)
73
(4,640)
(842)
(370)
(160)
(1,372)
164
164
(5,318)
(5,848)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
354
The impact of cash flows with related parties consisted of the following:
(€ million)
Net cash provided from operating activities
Net cash used in investing activities
Net cash used in financing activities
2022
2021
2020
Total
17,460
(7,018)
(8,542)
Related
parties
Impact
%
Total
Related
parties
Impact
%
Total
Related
parties
Impact
%
223
(32)
(88)
1.28
12,861
(4,331)
..
4,822
(4,640)
0.46
(12,022)
1.03
(2,039)
(976)
(13)
8.12
0.64
(4,587)
(1,372)
3,253
164
..
29.91
5.04
37 Other information about investments29
Information on Eni’s consolidated subsidiaries with significant non-controlling interest
The following section provides information about economic,
equity and financial data, gross of intragroup elisions, relating
to the Enipower group 51% owned by Eni. The ownership of
the non controlling interest corresponds to voting rights. In
2021, Eni did not have subsidiaries with significant third-party
interests.
(€ million)
Non controlling interest (%)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Revenues
Profit
Total comprehensive income
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Profit attributable to non-controlling interest
Dividends paid to minority interest
2022
Enipower Group
49%
547
812
587
34
1,636
171
171
228
(52)
(11)
(192)
54
59
Equity pertaining to non-controlling interests as of December 31, 2022, amounted to €471 million (€82 million December 31, 2021).
Changes in the ownership interest without loss of control
In 2022, 49% of the capital of the subsidiary Enipower SpA was sold with a gain of €542 million.
In 2021 Eni did not report any changes in ownership interest without loss or acquisition of control.
(29) Investments in subsidiaries, joint arrangements and associates as of December 31, 2022 are presented in the annex “List of companies owned by Eni SpA as of
December 31, 2022”.
ENI ANNUAL REPORT 2022
355
Principal joint ventures, joint operations and associates as of December 31, 2022
Company name
Joint venture
Azule Energy Holdings Ltd
Cardón IV SA
Registered office
Country of operation Segment
% ownership
% equity
ratio
London
(United Kingdom)
Caracas
(Venezuela)
United Kingdom
Exploration & Production
50.00
50.00
Venezuela
Exploration & Production
50.00
50.00
Mozambique Rovuma Venture SpA
San Donato Milanese (MI)
(Italy)
Mozambique
Exploration & Production
35.71
35.71
Saipem SpA
Vårgrønn AS
Joint Operation
Damietta LNG (DLNG) SAE
GreenStream BV
Raffineria di Milazzo ScpA
Associates
ADNOC Global Trading Ltd
Abu Dhabi Oil Refining Company (Takreer)
Coral FLNG SA
Novamont SpA
Qatar Liquefied Gas Company Limited (9)
Vår Energi ASA
Milan
(Italy)
Stavanger
(Norway)
Damietta
(Egypt)
Amsterdam
(Netherlands)
Milazzo (ME)
(Italy)
Abu Dhabi
(United Arab Emirates)
Abu Dhabi
(United Arab Emirates)
Maputo
(Mozambique)
Novara
(Italy)
Doha
(Qatar)
Sandnes
(Norway)
Italy
Corporate and financial
companies
31.19
31.20
Norway
Plenitude
65.00
65.00
Egypt
Libya
Italy
Global Gas & LNG Portfolio
50.00
50.00
Global Gas & LNG Portfolio
50.00
50.00
Refining & Marketing
50.00
50.00
United Arab Emirates Refining & Marketing
20.00
20.00
United Arab Emirates Refining & Marketing
20.00
20.00
Mozambique
Exploration & Production
25.00
25.00
Italy
Qatar
Chemical
35.00
35.00
Exploration & Production
25.00
25.00
Norway
Exploration & Production
63.08
63.08
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 356
Main line items of profit and loss and balance sheet related to the principal joint ventures, represented by the amounts included in
the reports accounted under IFRS of each company, are provided in the table below:
(€ million)
Current assets
- of which cash and cash equivalent
Non-current assets
Total assets
Current liabilities
- current financial liabilities
Non-current liabilities
- non-current financial liabilities
Total liabilities
Net equity
Eni’s % of the investment
Book value of the investment
Revenues and other income
Operating expense
Other operating profit (loss)
Depreciation, amortization and impairments
Operating profit (loss)
Finance income (expense)
Income (expense) from investments
Profit (loss) before income taxes
Income taxes
Profit (loss) - discontinued operations
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
Profit (loss) attributable to Eni
Dividends received from the joint venture
Azule Energy Holdings Ltd
Cardón IV SA
Saipem SpA
Other joint ventures
2022
425
7
1,812
2,237
431
3
940
43
1,371
866
50.00
433
942
(679)
(127)
136
136
(122)
14
30
44
7
7,627
2,052
4,770
12,397
6,932
1,040
3,352
1,993
10,284
2,113
31.20
645
9,991
(9,455)
7
(445)
98
(195)
(65)
(162)
(153)
106
(209)
24
(185)
(82)
3,869
966
21,281
25,150
2,635
159
12,369
4,403
15,004
10,146
50.00
5,073
2,422
(956)
(1,099)
367
(142)
718
943
(33)
910
(516)
394
455
475
741
219
13,639
14,380
1,764
1,278
10,740
10,146
12,504
1,876
915
526
(463)
25
(258)
(170)
(167)
(4)
(341)
62
(279)
119
(160)
7
8
The results for the year and the comprehensive income of the significant joint ventures are shown below:
(€ million)
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
2022
Mozambique Rovuma Venture SpA
Vårgrønn AS
(202)
72
(130)
(17)
(7)
(24)
ENI ANNUAL REPORT 2022
(€ million)
Current assets
- of which cash and cash equivalent
Non-current assets
Total assets
Current liabilities
- current financial liabilities
Non-current liabilities
- non-current financial liabilities
Total liabilities
Net equity
Eni’s % of the investment
Book value of the investment
Revenues and other income
Operating expense
Other operating profit (loss)
Depreciation, amortization and impairments
Operating profit (loss)
Finance income (expense)
Income (expense) from investments
Profit (loss) before income taxes
Income taxes
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
Profit (loss) attributable to Eni
357
2021
Cardón IV SA
Saipem SpA
Vår Energi AS
Altre non rilevanti
285
3
1,947
2,232
373
4
1,301
430
1,674
558
50.00
279
686
(546)
(98)
42
(67)
(25)
(131)
(156)
39
(117)
(78)
6,819
1,632
4,723
11,542
6,844
1,256
4,347
2,679
11,191
351
31.20
137
6,880
(8,532)
2
(616)
(2,266)
(140)
9
(2,397)
(70)
(2,467)
(117)
(2,584)
(752)
1,382
198
16,589
17,971
2,148
390
14,900
4,160
17,048
923
69.85
645
5,191
(1,207)
(51)
(1,825)
2,108
(350)
1,758
(1,729)
29
61
90
20
868
199
7,765
8,633
1,169
300
5,682
5,167
6,851
1,782
996
341
(315)
4
(39)
(9)
(24)
(33)
(3)
(36)
27
(9)
(97)
Dividends received from the joint venture
561
25
(€ million)
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
2021
Doggerbank Offshore Wind
Farm Project 1 Holdco Ltd
Doggerbank Offshore Wind
Farm Project 2 Holdco Ltd
(1)
31
30
(1)
(9)
(10)
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
358
Main line items of profit and loss and balance sheet related to the principal associates represented by the amounts included in the
reports accounted under IFRS of each company are provided in the table below:
(€ million)
Current assets
- of which cash and cash equivalent
Non-current assets
Total assets
Current liabilities
- current financial liabilities
Non-current liabilities
- non-current financial liabilities
Total liabilities
Net equity
Eni’s % of the investment
Book value of the investment
Revenues and other income
Operating expense
Other operating income (expense)
Depreciation, amortization and impairments
Operating profit (loss)
Finance income (expense)
Income (expense) from investments
Profit (loss) before income taxes
Income taxes
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
Profit (loss) attributable to Eni
Dividends received from the joint venture
Abu Dhabi Oil Refining Company (TAKREER)
Vår Energi ASA
Coral FLNG SA
Other associates
2022
3,730
150
17,896
21,626
2,681
6,458
5,366
9,139
12,487
20.00
2,497
36,240
(32,916)
(702)
(741)
1,881
(83)
1,798
1,798
646
2,444
360
142
1,612
417
15,821
17,433
3,044
561
13,179
2,404
16,223
1,210
63.08
763
9,520
(1,280)
(1,881)
6,359
(495)
5,864
(4,768)
1,096
(144)
952
691
469
578
25
7,386
7,964
695
1
5,949
5,926
6,644
1,320
25.00
330
59
(49)
(4)
6
553
559
1
560
29
589
140
4,828
284
8,830
13,658
4,220
411
4,220
4,056
8,440
5,218
1,381
37,846
(36,754)
(10)
(247)
835
(14)
3
824
(26)
798
(81)
717
411
97
The results for the year and the comprehensive income of the significant associates are shown below:
(€ million)
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
Qatar Liquefied Gas Company Limited (9)
Novamont SpA
ADNOC Global Trading Ltd
2022
(16)
(16)
(152)
(107)
(259)
849
5
854
ENI ANNUAL REPORT 2022
359
Abu Dhabi Oil Refining Company (TAKREER)
Angola LNG Ltd
Coral FLNG SA
Other associates
2021
3,070
153
16,936
20,006
3,042
6,208
5,164
9,250
10,756
20.00
2,151
21,758
(20,429)
(3,054)
(1,725)
(85)
(1,810)
(1,810)
892
(918)
(362)
1,234
808
9,736
10,970
1,061
122
1,935
696
2,996
7,974
13.60
1,084
2,739
(2,316)
307
730
(61)
669
669
623
1,292
90
88
8
6,320
6,408
391
1
5,392
5,384
5,783
625
25.00
156
46
46
2,855
419
4,842
7,697
2,577
139
3,857
3,632
6,434
1,263
393
20,098
(19,785)
(117)
(40)
156
(5)
52
203
(16)
187
74
261
52
16
(€ million)
Current assets
- of which cash and cash equivalent
Non-current assets
Total assets
Current liabilities
- current financial liabilities
Non-current liabilities
- non-current financial liabilities
Total liabilities
Net equity
Eni’s % of the investment
Book value of the investment
Revenues and other income
Operating expense
Other operating income (expense)
Depreciation, amortization and impairments
Operating profit (loss)
Finance income (expense)
Income (expense) from investments
Profit (loss) before income taxes
Income taxes
Profit (loss)
Other comprehensive income (loss)
Total other comprehensive income (loss)
Profit (loss) attributable to Eni
Dividends received from the joint venture
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
360
38 Public contributions - Italian Law No. 124/2017 and subsequent modifications
Under art. 1, paragraphs 125 and 126, of the Italian Law No.
124/2017 and subsequent modifications, the disclosures
about: (i) contributions received by Eni SpA and its consolidated
subsidiaries from Italian public authorities and entities with
the exclusion of listed public controlled companies and their
subsidiaries; (ii) contributions granted by Eni SpA and by its fully
consolidated subsidiaries to companies, persons and public
and private entities30, are provided below.
Furthermore, it should be underlined that when Eni acts as
operator31 of unincorporated joint ventures32, a type of joint
venture constituted for the management of oil projects,
each consideration made directly by Eni is reported in its full
amount, regardless of whether Eni is reimbursed proportionally
by the non-operating partners through the mechanism of the
cash calls.
The following disclosure requirements do not apply to:
(i)
those entitled
in accordance with a general assistance aid scheme; (ii)
incentives/subventions granted
to all
in exchange
consideration
for supplied goods/services,
included sponsorships; (iii) reimbursements and indemnities
paid to persons engaged in professional and orientation
trainings; (iv) continuous training contributions to companies
granted by inter-professional funds established in the legal
form of association; (v) membership fees for the participation
to industry trade and territorial associations, as well as to
foundations or similar organizations, which perform activities
linked with the Company’s business; (vi) costs incurred with
reference to social projects linked to the investing activities of
the Company.
Contributions are identified on a cash basis33. The disclosure
includes assistance equal or exceeding €10,000, even though
they are granted through several payments during 2022.
Under Art. 1, subsection 125-quinquies of Law No. 124/2017,
for received contributions see the information included in the
Italian State aid Register, prepared in accordance with the Art.
52 of the Italian Law 24 December 2012, No. 234.
Granted contributions provided herein are mainly referred to foundations, associations and other entities for reputational purposes,
donations and support for charitable and solidarity initiatives:
Granted subject
Fondazione Eni Enrico Mattei (FEEM)
Eni Foundation
Fondazione Teatro alla Scala
Ajuda de Desenvolvimento de Povo para Povo (ADPP)
Fondazione Giorgio Cini
Caritas Italiana
Associazione della Croce Rossa Italiana
Ministero della Salute dell’Angola (MINSA)
Protezione Civile Italiana
WEF - World Economic Forum
Fabbrica di San Pietro
Ara Pacis Initiative For Peace ONLUS
Banco dell’energia Ente Filantropico
Atlantic Council
World Business Council for Sustainable Development
Lebanese Armed Forces (LAF)
Council on Foreign Relations
Extractive Industries Transparency Initiative (EITI)
Associazione Pionieri e Veterani Eni
Amount paid (€)
4,750,000
4,670,000
3,202,992
865,695
500,000
498,000
421,577
394,435
310,091
303,567
180,600
180,000
100,000
95,717
85,825
74,253
66,216
52,715
52,000
(30) The following disclosures do not include contribution granted by foreign subsidiaries to foreign beneficiaries. In case of non-monetary economic benefits, the cash
basis must be assumed substantially referring to the year in which the benefit was enjoyed.
(31) In the oil projects, the operator is the subject who in accordance with the contractual agreements manages the exploration activities and in this role fulfills the
payments due.
(32) “Unincorporated joint ventures” mean a grouping of companies that operate jointly within the project in accordance with a contract.
(33) In case of non-monetary economic benefits, the cash basis must be assumed substantially referring to the year in which the benefit was enjoyed.
ENI ANNUAL REPORT 2022 361
Amount paid (€)
50,000
50,000
50,000
50,000
45,000
43,720
35,000
35,000
35,000
31,759
30,000
27,500
25,000
21,091
21,000
20,000
20,000
17,000
15,000
12,798
11,415
10,000
10,000
10,000
10,000
Granted subject
Bruegel
Cotec - Fondazione per l'Innovazione Tecnologica
IFRI - Institut Français des Relations Internationales
Parrocchia di Santa Barbara - San Donato Milanese
La Semente - Società Agricola Cooperativa Sociale
Carnegie Endowment for International Peace (CEIP)
Aspen Institute Italia
E4Impact Foundation
Italiadecide
Center for Strategic and International Studies
Ospedale "Santo Spirito" e ASL di Pescara
Global Reporting Initiative
Fondazione Centro Studi Investimenti Sociali - CENSIS
AMICAL
Associazione CILLA Liguria
Associazione Amici della Luiss
Centro Studi Americani
GCNI - Fondazione Global Compact Network Italia
Comitato Nazionale del Welfare della Gente di Mare
Voluntary Principles Association (VPA)
Harvard University
Fondazione il Talento all'opera Onlus
FONDAZIONE SERICS
Parks - Liberi e Uguali
Associazione di Volontariato e di promozione Sociale Pro Loco Sannazzaro
39 Significant non-recurring events and operations
In 2022, in 2021 and 2020, Eni did not report any non-recurring events and operations.
40 Positions or transactions deriving from atypical and/or unusual operations
In 2022, in 2021 and 2020, no transactions deriving from atypical and/or unusual operations were reported.
41 Subsequent events
Extraordinary solidarity contributions levied in 2022 on energy companies are disclosed in note 33 – Income taxes.
Apart from being a systemic risk the Russia-Ukraine war does not pose specific risks to the Company going forward in addition to
what has been already disclosed in these notes.
On March 28, 2023, the so-called Law Decree “Energy” was approved by the Italian Government, which has established a change to the
taxable income for the purpose of determining the solidarity contribution enacted by Law 197/2022 (the Italian 2023 Budget Law), to
partially exclude the effects related to the utilization of the revaluations reserves of the parent company. This change will determine a re-
duction in the amount of the levy accrued in the 2022 consolidated financial statements, which will be recognized in the 2023 accounts
for an amount which is currently being determined.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 362
Supplemental Oil & Gas information (unaudited)
The following information prepared in accordance with “International Financial Reporting Standards” (IFRS) is presented based on
the disclosure rules of the FASB Extractive Activities - Oil and Gas (Topic 932). Amounts related to minority interests are immaterial.
Capitalized costs
Capitalized costs represent the total expenditures for proved and unproved mineral properties and related support equipment and
facilities utilized in oil and gas exploration and production activities, together with related accumulated depreciation, depletion and
amortization. Capitalized costs by geographical area consist of the following:
(€ million)
2022
Consolidated subsidiaries
Proved property
Unproved property
Support equipment and facilities
Incomplete wells and other
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
18,687
6,629
17,490 22,969
29,784
13,705
12,846
19,192
1,480
142,782
22
309
767
330
24
237
613
1,645
1,282
44
270
543
2,411
1,128
1,970
7
132
936
1,462
13
1,457
931
24
379
204
12
115
6,024
3,557
7,686
Gross Capitalized Costs
19,785
7,220
21,030 23,826
35,293
14,780
15,778
20,526
1,811
160,049
Accumulated depreciation, depletion
and amortization
(15,677)
(6,214)
(15,949) (16,212)
(25,024)
(4,147)
(10,133)
(15,341)
(1,001)
(109,698)
Net Capitalized Costs consolidated subsidiaries(a)
4,108
1,006
5,081
7,614
10,269
10,633
5,645
5,185
810
50,351
Equity-accounted entities
Proved property
Unproved property
Support equipment and facilities
Incomplete wells and other
Gross Capitalized Costs
Accumulated depreciation, depletion
and amortization
Net Capitalized Costs equity-accounted entities(a)(b)
7,387
118
996
31
3,872
12,286
(3,492)
8,794
8
9
135
(68)
67
27,959
91
262
1,530
29,842
(20,280)
9,562
287
2,100
48
335
8
241
2,349
(1,466)
335
883
37,851
1,087
309
5,700
44,947
(25,306)
19,641
2021
Consolidated subsidiaries
Proved property
Unproved property
Support equipment and facilities
Incomplete wells and other
18,644
6,953
16,218
21,125
43,947
12,606
12,947
16,407
1,413
150,260
20
308
735
322
22
133
492
1,552
1,293
34
248
237
2,306
1,342
1,562
11
121
958
1,518
38
1,073
878
21
719
193
12
53
5,774
3,664
6,763
Gross Capitalized Costs
19,707
7,430
19,555 21,644
49,157
13,696
15,576
18,025
1,671
166,461
Accumulated depreciation, depletion
and amortization
(15,506)
(6,194)
(14,244) (14,209)
(36,317)
(3,514)
(10,443)
(13,874)
(902)
(115,203)
Net Capitalized Costs consolidated subsidiaries(a)
4,201
1,236
5,311
7,435
12,840
10,182
5,133
4,151
769
51,258
Equity-accounted entities
Proved property
Unproved property
Support equipment and facilities
Incomplete wells and other
Gross Capitalized Costs
Accumulated depreciation, depletion
and amortization
Net Capitalized Costs equity-accounted entities(a)
11,483
128
2,235
36
3,179
16,933
(7,387)
9,546
8
9
145
(63)
82
1,517
3
1,323
2,843
(313)
2,530
12
1,987
7
227
12
2,221
(1,324)
12
897
15,115
2,247
54
4,738
22,154
(9,087)
13,067
(a) The amounts include net capitalized financial charges totalling €725 million in 2022 and €767 million in 2021 for the consolidates subsidiaries and €565 million in 2022 and €360 million in
2021 for equity-accounted entities.
(b) Includes allocation at fair value of the assets of Azule Energy Holdings Ltd.
ENI ANNUAL REPORT 2022
Costs incurred
Costs incurred represent amounts both capitalized and expensed in connection with oil and gas producing activities. Costs incurred
by geographical area consist of the following:
363
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
(€ million)
2022
Consolidated subsidiaries
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(a)
Total costs incurred consolidated subsidiaries
Equity-accounted entities
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(b)
Total costs incurred equity-accounted entities
2021
Consolidated subsidiaries
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(a)
Total costs incurred consolidated subsidiaries
Equity-accounted entities
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(b)
Total costs incurred equity-accounted entities
2020
Consolidated subsidiaries
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(a)
Total costs incurred consolidated subsidiaries
Equity-accounted entities
Proved property acquisitions
Unproved property acquisitions
Exploration
Development(b)
Total costs incurred equity-accounted entities
4
2
12
216
234
101
(129)
(28)
73
1,690
1,763
16
182
198
96
96
92
936
1,028
51
111
68
343
573
(8)
(8)
6
33
497
536
59
59
57
452
509
19
472
491
20
235
255
55
69
278
402
2
67
422
491
47
1,481
1,528
3
3
179
795
974
11
295
1,458
1,764
82
26
1,292
253
835
1,088
1,400
4
277
281
1
117
118
137
124
939
5,204
6,404
291
86
1,847
2,224
8
9
613
3,627
4,257
92
1,001
1,093
57
483
3,694
4,234
47
1,504
1,551
291
49
340
3
185
188
188
785
973
(9)
(9)
8
3
83
657
751
2
2
7
196
203
176
1,024
1,200
63
437
500
14
14
13
125
138
136
842
978
4
4
61
620
681
6
6
1
27
28
1
10
11
(a) Includes the abandonment decrease of the assets for €307 million in 2022, costs €62 million in 2021 and costs €516 million in 2020.
(b) Includes the abandonment decrease of the assets for €111 million in 2022, decrease for €464 million in 2021 and costs for €424 million in 2020.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
364
Results of operations from oil and gas producing activities
those
Results of operations from oil and gas producing activities
revenues and expenses directly
represent only
associated with such activities, including operating overheads.
These amounts do not include any allocation of interest
expenses or general corporate overheads and, therefore, are
not necessarily indicative of the contributions to consolidated
net earnings of Eni. Related income taxes are calculated by
applying the local income tax rates to the pre-tax income from
production activities. Eni is party to certain Production Sharing
Agreements (PSAs), whereby a portion of Eni’s share of oil and
gas production is withheld and sold by its joint venture partners
which are state owned entities, with proceeds being remitted to
the state to fulfil Eni’s PSA related tax liabilities. Revenue and
income taxes include such taxes owed by Eni but paid by state-
owned entities out of Eni’s share of oil and gas production.
Results of operations from oil and gas producing activities by
geographical area consist of the following:
(€ million)
2022
Consolidated subsidiaries
Revenues:
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
1,602
2,982
1,683
1,001
837
307
2,603
3,819
1,990
3
72
75
16,605
12,628
29,233
(326)
(410)
(21)
(3,415)
(16)
(63)
(21)
(295)
(1,578)
(1)
(605)
(707)
(90)
(6,048)
- sales to consolidated entities
1,952
1,854
2,095
- sales to third parties
329
23
3,946
4,897
Total revenues
Production costs
Transportation costs
Production taxes
Exploration expenses
2,281
1,877
6,041
4,897
(387)
(189)
(486)
(484)
(3)
(42)
(50)
(5)
(286)
(11)
(330)
(25)
(162)
(106)
4,434
1,216
5,650
(871)
(29)
(478)
(150)
D.D. & A. and Provision for abandonment(a)
(449)
(158)
(839)
(1,156)
(1,488)
Other income (expenses)
(1,987)
(98)
1,955
(378)
Pretax income from producing activities
(842)
1,365
6,129
2,768
Income taxes
337
(665)
(2,740)
(1,192)
Results of operations from E&P activities
of consolidated subsidiaries
(505)
700
3,389
1,576
Equity-accounted entities
Revenues:
- sales to consolidated entities
- sales to third parties
Total revenues
Production costs
Transportation costs
Production taxes
Exploration expenses
2,937
3,039
5,976
(567)
(131)
(44)
14
14
(6)
(1)
(2)
D.D. & A. and Provision for abandonment
(1,121)
(6)
Other income (expenses)
(64)
Pretax income from producing activities
4,049
(1)
Income taxes
Results of operations from E&P activities
of equity-accounted entities
(a) Includes asset net impairment amounting to €279 million.
(3,076)
973
3
2
(196)
2,438
(979)
1,459
572
1,327
1,899
(244)
(9)
(15)
(7)
(628)
(271)
725
(21)
704
(241)
(147)
(6)
(434)
(127)
(3)
(421)
(123)
(727)
(292)
1,648
1,927
(524)
(1,457)
1,124
470
(13)
(1)
1
(13)
2
775
(41)
734
533
533
(24)
(123)
(63)
(234)
89
(105)
(13)
(16)
(4)
(1,125)
(41)
16,167
47
(7,214)
6
8,953
3,509
4,913
8,422
(841)
(141)
(140)
(64)
(1,819)
(568)
4,849
(3,199)
1,650
ENI ANNUAL REPORT 2022
365
(€ million)
2021
Consolidated subsidiaries
Revenues:
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
- sales to consolidated entities
1,680
790
1,133
- sales to third parties
36
2,602
3,637
3,782
930
1,391
2,020
704
380
734
351
4
11,534
108
8,748
1,680
826
3,735
3,637
4,712
2,095
2,400
1,085
112
20,282
Total revenues
Production costs
Transportation costs
Production taxes
Exploration expenses
D.D. & A. and Provision for abandonment(a)
(326)
(147)
(581)
(399)
(4)
(35)
(45)
(10)
(192)
(72)
(27)
(47)
(128)
(16)
(31)
(816)
(20)
(379)
(238)
(211)
(251)
(288)
(17)
(3,036)
(150)
(5)
(230)
(1)
(135)
(11)
(28)
(21)
(280)
(957)
(1)
(558)
(196)
(357)
(990)
(1,468)
(431)
(665)
(243)
(69)
(4,450)
Other income (expenses)
(395)
11
557
(310)
Pretax income from producing activities
780
387
3,090
1,881
Income taxes
(198)
(156)
(1,450)
(848)
(330)
1,461
(708)
(120)
(173)
(132)
1,182
941
(394)
(739)
Results of operations from E&P activities
of consolidated subsidiaries
582
231
1,640
1,033
753
788
202
Equity-accounted entities
Revenues:
- sales to consolidated entities
- sales to third parties
Total revenues
Production costs
Transportation costs
Production taxes
Exploration expenses
D.D. & A. and Provision for abandonment
Other income (expenses)
Pretax income from producing activities
Income taxes
Results of operations from E&P activities
of equity-accounted entities
(a) Includes asset net reversal amounting to €1,263 million.
12
12
(6)
(1)
(2)
(3)
1,831
1,756
3,587
(388)
(140)
(35)
(879)
(287)
1,858
(1,237)
621
365
365
(25)
(12)
(112)
42
(158)
100
100
362
(17)
345
367
367
(15)
(88)
(154)
(197)
(87)
(66)
(1)
(1)
(1)
(153)
(2)
23
(894)
10,107
(15)
(4,525)
8
5,582
1,831
2,500
4,331
(434)
(153)
(202)
(35)
(994)
(643)
1,870
(1,303)
567
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
366
(€ million)
2020
Consolidated subsidiaries
Revenues:
- sales to consolidated entities
- sales to third parties
Total revenues
Production costs
Transportation costs
Production taxes
Italy
Rest of
Europe
North Africa
Egypt
Africa Kazakhstan
of Asia America
Sub - Saharan
Rest
Australia
and
Oceania
Total
799
799
334
53
387
616
1,610
2,478
2,315
784
788
547
1,333
179
2,226
2,478
3,099
1,335
1,512
434
204
638
1
6,620
109
5,964
110
12,584
(332)
(139)
(371)
(367)
(4)
(30)
(39)
(11)
(111)
(135)
(782)
(21)
(295)
(77)
(246)
(236)
(272)
(17)
(2,762)
(164)
(4)
(133)
(12)
(13)
(285)
(687)
(3)
(104)
(112)
(1)
(510)
Exploration expenses
(19)
(14)
(124)
(56)
D.D. & A. and Provision for abandonment(a)
(1,149)
(252)
(1,158)
(848)
(2,187)
(454)
(1,070)
(678)
(65)
(7,861)
Other income (expenses)
(255)
Pretax income from producing activities
(1,071)
Income taxes
Results of operations from E&P activities
of consolidated subsidiaries
219
(852)
Equity-accounted entities
Revenues:
- sales to consolidated entities
- sales to third parties
Total revenues
Production costs
Transportation costs
Production taxes
Exploration expenses
D.D. & A. and Provision for abandonment
Other income (expenses)
Pretax income from producing activities
Income taxes
Results of operations from E&P activities
of equity-accounted entities
(a) Includes asset net impairment amounting to €1,865 million.
(45)
(93)
69
(24)
862
782
1,644
(350)
(161)
(35)
(1,163)
(90)
(155)
469
314
(360)
(204)
25
(153)
(90)
(71)
6
(1,147)
39
992
(671)
(519)
(632)
473
(238)
(33)
(271)
315
(125)
(520)
33
(668)
(134)
(193)
86
(11)
(1,187)
181
(318)
(434)
22
(1,855)
10
10
(7)
(1)
(2)
(1)
(1)
(2)
1
(1)
131
131
(23)
(11)
(3)
(69)
(35)
(10)
(10)
307
307
(18)
(76)
(50)
(146)
17
(29)
(2)
(2)
(2)
(12)
862
1,230
2,092
(398)
(173)
(81)
(35)
(1,283)
(274)
(152)
441
289
ENI ANNUAL REPORT 2022
367
Proved reserves of oil and natural gas
Eni’s criteria concerning evaluation and classification of proved
developed and undeveloped reserves comply with Regulation S-X
4-10 of the U.S. Securities and Exchange Commission and have
been disclosed in accordance with FASB Extractive Activities - Oil
and Gas (Topic 932).
Proved oil and gas reserves are those quantities of oil and gas,
which, by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be economically
producible, from a given date forward, from known reservoirs,
and under existing economic conditions, operating methods,
and government regulations, prior to the time at which
contracts providing the right to operate expire, unless evidence
indicates that renewal is reasonably certain, regardless of
whether deterministic or probabilistic methods are used for
the estimation. The project to extract the hydrocarbons must
have commenced or the operator must be reasonably certain
that it will commence the project within a reasonable time.
Existing economic conditions include prices and costs at which
economic producibility from a reservoir is to be determined. The
price shall be the average price during the 12-month period prior
to the ending date of the period covered by the report, determined
as an un-weighted arithmetic average of the first-day-of-the-
month price for each month within such period, unless prices
are defined by contractual arrangements, excluding escalations
based upon future conditions.
In 2022, the average price for the marker Brent crude oil was
$101 per barrel. Net proved reserves exclude interests and
royalties owned by others.
Proved reserves are classified as either developed or undeveloped.
Developed oil and gas reserves are reserves that can be expected
to be recovered through existing wells with existing equipment
and operating methods or in which the cost of the required
equipment is relatively minor compared to the cost of a new well.
Undeveloped oil and gas reserves are reserves of any category
that are expected to be recovered from new wells on undrilled
acreage, or from existing wells where a relatively major
expenditure is required for recompletion. Eni has its proved
reserves evaluted on a rotational basis by independent oil
engineering companies35. The description of qualifications of the
person primarily responsible of the reserves audit is included in
the third-party audit report36. In the preparation of their reports,
independent evaluators rely, without independent verification,
upon data furnished by Eni with respect to property interest,
production, current costs of operation and development, sale
agreements, prices and other factual information and data that
were accepted as represented by the independent evaluators.
These data, equally used by Eni in its internal process, include
logs, directional surveys, core and PVT (Pressure Volume
Temperature) analysis, maps, oil/gas/water production/injection
data of wells, reservoir studies and technical analysis relevant to
field performance, long-term development plans, future capital
and operating costs.
In order to calculate the economic value of Eni equity reserves,
actual prices applicable to hydrocarbon sales, price adjustments
required by applicable contractual arrangements, and other
information are provided. In 2022, Ryder Scott
pertinent
Company and Sproule provided an independent evaluation of
about 27% of Eni’s total proved reserves as of December 31,
2022, confirming, as in previous years, the reasonableness of
Eni’s internal evaluations37.
In the three-year period from 2020 to 2022, 90% of Eni’s total
proved reserves were subject to independent evaluation. As of
December 31, 2022, the principal assets which did not undergo
an independent evaluation in the last three years were Nené e
Litchendjli in Congo.
Eni operates under production sharing agreements in several of
the foreign jurisdictions where it has oil and gas exploration and
production activities. Reserves of oil and natural gas to which
Eni is entitled under PSA arrangements are shown in accordance
with Eni’s economic interest in the volumes of oil and natural
gas estimated to be recoverable in future years. Such reserves
include estimated quantities allocated to Eni for recovery of
costs, income taxes owed by Eni but settled by its joint venture
partners (which are state-owned entities) out of Eni’s share of
production and Eni’s net equity share after cost recovery. Proved
oil and gas reserves associated with PSAs represented 54%, 58%
and 57% of total proved reserves as of December 31, 2022, 2021
and 2020 respectively, on an oil-equivalent basis. Similar effects
as PSAs apply to service contracts; proved reserves associated
with such contracts represented 2%, 3%, and 4% of total proved
reserves on an oil-equivalent basis as of December 31, 2022,
2021 and 2020, respectively.
Oil and gas reserves quantities include: (i) oil and natural gas
quantities in excess of cost recovery which the company has an
obligation to purchase under certain PSAs with governments or
authorities, whereby the company serves as producer of reserves.
Reserves volumes associated with oil and gas deriving from
such obligation represent 3%, 4% and 3% of total proved reserves
as of December 31, 2022, 2021 and 2020, respectively, on an oil
equivalent basis; (ii) volumes of proved reserves of natural gas
to be consumed in operations amounted to approximately 2,389
BCF at 2022 year-end (2,335 BCF and 2,337 BCF respectively
(35) For the past three years we have availed of the independent certification service of DeGolyer and Mac Naughton, Ryder Scott, Société Générale de Surveillance and
Sproule.
(36) The reports of independent engineers are available on Eni website eni.com section Publications/Annual Report 2022.
(37) Includes Eni’s share of proved reserves of equity accounted entities.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 368
at 2021 and 2020 year-end); (iii) the quantities of hydrocarbons
related to the Angola LNG plant owned by the JV Azule set up
50% with bp during the year.
Numerous uncertainties are inherent in estimating quantities
of proved reserves,
in projecting future productions and
development costs. The accuracy of any reserve estimate is
a function of the quality of available data and engineering and
geological interpretation and evaluation. The results of drilling,
testing and production after the date of the estimate may require
substantial upward or downward revisions. In addition, changes
in oil and natural gas prices have an effect on the quantities of
Eni’s proved reserves since estimates of reserves are based
on prices and costs relevant to the date when such estimates
are made. Consequently, the evaluation of reserves could also
significantly differ from actual oil and natural gas volumes that
will be produced.
Proved undeveloped reserves
Proved undeveloped reserves as of December 31, 2022 totalled
2,423 mmboe, of which 1,104 mmbbl of liquids and 6,943 BCF
of natural gas particularly located in Africa and Asia. Proved
undeveloped reserves of consolidated subsidiaries amounted to
727 mmbbl of liquids and 4,759 BCF of natural gas. Changes in
proved undeveloped reserves were as follows:
(mmboe)
Proved undeveloped reserves as of December 31, 2021
Transfer to proved developed reserves
Extensions and discoveries
Revisions of previous estimates
Improved recovery
Portfolio
Proved undeveloped reserves as of December 31, 2022
2,020
(317)
152
227
4
337
2,423
In 2022, total proved undeveloped reserves increased by
403 mmboe (proved undeveloped reserves of consolidated
companies increased by 76 mmboe, while those of joint ventures
and associates increased by 327 mmboe).
Main changes derived from:
i) proved undeveloped reserves matured to proved developed
reserves amounted to -317 mmboe, and were driven by
progress in development activities, production start-ups
and project revisions. The main reclassifications to proved
developed reserves related to the Coral in Mozambique (-172
mmboe), to Snorre of Vår Energi in Norway (-22 mmboe),
to Kashagan in Kazakhstan (-19 mmboe) as well as to the
Amoca project in Mexico (-15 mmboe);
ii) new discoveries and extensions of 152 mmboe: (i) an
increase of 121 million barrels of liquids, mainly related to
the investment decision for the Baleine projects in Ivory
Coast (59 mmboe), and in the Azule company in Angola (54
mmboe); (ii) and from an increase of 165 BCF of gas, mainly
related to Baleine in Ivory Coast;
iii) revisions of previous estimates were positive for 227
mmboe, of which 37 mmbbl of oil and 995 BCF of natural
gas. Positive revisions mainly related to the advancement
of development activities at Zohr in Egypt (131 mmboe),
Nené in Congo (85 mmboe) and in Structure E in Libya
(+51 mmboe). Negative revisions mainly in Nigeria (-126
million boe) and Iraq (-24 million boe). Azule and Vår Energi
contributed +51 mmboe and +13 mmboe, respectively;
iv) improved recoveries of 4 mmboe referred to Azule in Angola.
ENI ANNUAL REPORT 2022 Proved reserves of crude oil (including condensate and natural gas liquids)
369
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
(million barrels)
2022
Consolidated subsidiaries
Reserves at December 31, 2021
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2022
Equity-accounted entities
Reserves at December 31, 2021
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2022
Reserves at December 31, 2022
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
197
146
51
1
3
(13)
188
188
139
139
49
49
34
34
6
3
(7)
36
378
175
203
38
4
(33)
(37)
350
386
205
32
173
181
4
177
393
225
168
17
(8)
2
5
210
164
46
(16)
1
(45)
(28)
364
167
9
9
(1)
8
372
209
201
8
163
163
167
135
135
32
32
589
435
154
710
641
69
476
262
214
(62)
(34)
(15)
237
164
73
2
13
4
(32)
(28)
(22)
1
1
2,847
2,072
775
20
(113)
6
70
(226)
(170)
644
433
234
1
2,434
6
6
22
(1)
27
261
198
171
27
63
63
100
100
533
231
231
302
202
100
644
585
585
59
59
414
199
215
232
97
4
58
(48)
(37)
720
3,154
2,050
1,707
343
1,104
727
377
1
1
1
61
(51)
(170)
367
21
9
12
132
37
4
54
(13)
235
602
347
212
135
255
155
100
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
370
(million barrels)
2021
Consolidated subsidiaries
Reserves at December 31, 2020
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2021
Equity-accounted entities
Reserves at December 31, 2020
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2021
Reserves at December 31, 2021
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
178
146
32
32
(13)
197
197
146
146
51
51
34
31
3
8
(1)
(7)
34
400
176
224
17
2
(41)
378
412
209
34
175
203
203
383
243
140
227
172
55
49
11
6
2
(45)
(30)
393
210
12
12
(2)
(1)
9
402
234
225
9
168
168
210
164
164
46
46
624
469
155
21
2
16
(72)
(2)
589
18
15
3
4
(1)
21
610
444
435
9
166
154
12
805
716
89
579
297
282
(58)
(74)
224
143
81
1
21
10
(37)
(29)
(19)
1
1
3,055
2,218
837
1
10
12
23
(252)
(2)
710
476
237
1
2,847
30
30
(23)
(1)
6
243
170
164
6
73
73
460
233
227
(4)
2
(44)
414
3,261
2,271
2,072
199
990
775
215
1
1
1
710
641
641
69
69
476
262
262
214
214
ENI ANNUAL REPORT 2022
371
(million barrels)
2020
Consolidated subsidiaries
Reserves at December 31, 2019
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2020
Equity-accounted entities
Reserves at December 31, 2019
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production
Sales of Minerals in Place
Reserves at December 31, 2020
Reserves at December 31, 2020
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
194
137
57
1
(17)
178
178
146
146
32
32
41
37
4
1
(8)
34
424
219
205
(11)
30
(43)
400
434
207
31
176
227
3
224
468
301
167
264
149
115
694
519
175
746
682
64
491
245
246
225
148
77
1
1
(44)
(14)
10
100
114
16
5
1
4
(41)
(23)
(80)
(41)
(32)
(21)
3,124
2,219
905
184
5
5
(263)
383
227
624
805
579
224
1
3,055
12
12
12
395
255
243
12
140
140
227
172
172
55
55
10
7
3
9
(1)
18
642
484
469
15
158
155
3
31
31
(1)
30
254
173
143
30
81
81
477
269
208
(2)
30
(45)
460
3,515
2,451
2,218
233
1,064
837
227
1
1
1
805
716
716
89
89
579
297
297
282
282
Main changes in proved reserves of crude oil (including condensates and natural gas liquids) reported in the tables above for the
period 2022, 2021 and 2020 are discussed below.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
372
Consolidated subsidiaries
PURCHASE OF MINERALS IN PLACE
In 2020, no purchases were made.
In 2021, there are two acquisitions (totaling 1 mmboe) of Lucius
fields in the U.S. and Conwy in the U.K.
In 2022, 20 mmbbl were booked, mainly for the acquisition of
the BHP share in Algeria and a share in some fields in the United
States Gulf of Mexico.
REVISIONS OF PREVIOUS ESTIMATES
In 2020, revisions of previous estimates amounted to an
increase of 184 mmbbl. Positive revisions of 100 mmbbl
reported in Kazakhstan were driven by higher entitlements and
progress in development activities. In the rest of Asia, positive
revisions of 114 mmbbl were due to higher entitlements in
Iraq (74 mmbbl) and progress at a few projects, among which
the most important was the Umm Shaif/Nasr concession in
the United Arab Emirates. In the Sub-Saharan Africa positive
revisions of 10 mmbbl were due to higher entitlements in Nigeria
(14 mmbbl), Angola (8 mmbbl ) and Ghana (3 mmbbl), partly
offset by negative revisions due to the debooking of the Loango
and Zatchi fields reserves in Congo (-18 mmbbl). In America,
positive revisions of 16 mmbbl were due to higher entitlements
in Mexico (25 mmbbl), partially offset by the removal of
uneconomic reserves at various fields in the United States. In
Egypt, negative revisions of 14 mmbbl were mainly due to the
Abu Rudeis project. In North Africa negative revisions of 44
mmbbl were driven by price effects and capital expenditures
curtailments in Libya (-30 mmbbl) and Algeria (-17 mmbbl).
In 2021, revisions of previous estimates were 10 mmbbl detailed
as follows. In Italy there were positive revisions of 32 mmbbl
mainly due to the Val d’Agri project. In the Rest of Europe 8
mmbbl of positive revisions were registered, mainly in the United
Kingdom. In the Rest of North Africa revisions totaled 49 mmbbl,
comprising positive revisions (+62 mmbbl) of which +42 mmbbl
in Libya (mainly in Area D) and +18 mmbbl in Algeria (BRN
+5 mmbbl and other minor fields) and negative revisions (-13
mmbbl) mainly in Algeria (BRW -4 mmbbl) and other minor fields.
In Egypt there were revisions of 11 mmbbl, consisting of positive
revisions (21 mmbbl) mainly in Meleiha and negative revisions
(-10 mmbbl) mainly in Belayim. In Sub-Saharan Africa, revisions
totaled +21 mmbbl, consisting of positive revisions (+74 mmbbl)
primarily in Nigeria (+42 mmbbl) and Angola (+22 mmbbl) and
negative revisions (-53 mmbbl) including -23 mmbbl in Congo
and -13 mmbbl in Nigeria. In Kazakhstan, revisions were negative
58 mmbbl, mainly related to the Karachaganak field. In the Rest
of Asia revisions (-74 mmbbl) were due to positive revisions (+21
mmbbl) in the United Arab Emirates and negative revisions (-95
mmbbl) mainly in Iraq. In the Americas there were total revisions
of 21 mmbbl, comprising positive revisions (+38 mmbbl) in the
United States and negative revisions (-17 mmbbl) in Mexico.
In 2022, revisions of previous estimates were negative of 113
mmbbl. The main positive revisions were in the United Arab
Emirates (+23 mmbbl) particularly of the Umm Shaif field (19
mmbbl), the United States (+16 mmbbl) mainly at the Triton and
Allegheny fields, and Libya (15 mmbbl) at the Wafa and Structure
E fields. The main negative changes were in Nigeria (-70 mmbbl),
Iraq (-39 mmbbl) and Kazakhstan (-34 mmbbl) due to price effect
and Algeria (-23 mmbbl).
IMPROVED RECOVERY
In 2020, improved recoveries of 5 mmbbl related to the Burun
project in Turkmenistan.
In 2021, 12 mmbbl were totaled from recovery-assisted
improvements primarily on the Oooguruk field in the U.S.
In 2022, 6 mmbbl were booked due to improved recovery mainly
at the Mizton field in Mexico and the BRW field in Algeria.
EXTENSIONS AND DISCOVERIES
In 2020, new discoveries and extensions added 5 mmbbl
related to the Pegasus and Front Runner fields in the United
States and the Mahani field in the United Arab Emirates.
In 2021, new discoveries and extensions total 23 million barrels,
primarily related to Cuica and Ndungu in Block 15/06 and the
New Gas Consortium project in Angola and the BKNEP, Zas and
Ret projects in Algeria.
In 2022, 70 mmbbl of new discoveries and extensions are
realized mainly due to the final investment decision on the
development of the Baleine field in Ivory Coast (59 mmbbl),
the NAHE project in Algeria, and the Talbot field in the United
Kingdom.
SALES OF MINERALS IN PLACE
In 2020, no sales of oil properties were reported.
In 2021, there was a sale of OML 17 in Nigeria for 2 mmbbl.
In 2022, 170 mmbbl were de-booked in connection to the
contribution of Eni’s assets in Angola to the JV Azule set up
50% with bp and the sale of OML 11 in Nigeria.
Equity-accounted entities
PURCHASE OF MINERALS IN PLACE
In 2020 and 2021, no purchases of proved reserves were made.
In 2022, acquisitions amounted to 232 mmbbl due to the
acquisition of a 50% stake in the JV Azule in Angola (132
mmbbl) and to Eni’s joining the NFE project in Qatar (100
mmbbl).
REVISIONS OF PREVIOUS ESTIMATES
In 2020, negative revisions of previous estimates amounted
to 2 mmbbl. In the Rest of Europe negative revisions for 11
ENI ANNUAL REPORT 2022 373
mmbbl were reported mainly at the Ringhorne East and Ekofisk
fields in Norway driven by price effects. These were partially
offset by positive revisions reported in the Sub-Saharan Africa
up by 9 mmbbl driven by an improved performance at the
Angola LNG project.
In 2021, revisions were negative 4 mmbbl, mainly located in the
Rest of Europe (+17 mmbbl) in Norway and the Americas (-23
mmbbl in Venezuela). Minor revisions in Angola, Tunisia and
Mozambique.
In 2022, revisions were a positive 97 mmbbl, located mainly
in Azule in Angola (+38 mmbbl), Vår Energi in Norway (+37
mmbbl) and Venezuela (+21 mmbbl).
EXTENSIONS AND DISCOVERIES
In 2020, extensions and new discoveries of 30 mmbbl were
reported as a result of the final investment decision for the
Bredaiblikk project in Norway.
In 2021, extensions and new discoveries total 2 mmbbl and
were located in Norway.
In 2022, extensions and new discoveries of 58 mmbbl were
reported by Azule in Angola and Vår Energi in Norway.
SALES OF MINERALS IN PLACE
In 2020 and 2021, no sales of proved reserves were made.
In 2022, sales of 37 mmbbl related to the IPO of Vår Energi in Norway.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 374
Proved reserves of natural gas
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
(billion cubic feet)
2022
Consolidated subsidiaries
Reserves at December 31, 2021
of which: developed
undeveloped
Purchase of Minerals in Place
918
729
189
247
242
5
2,272
4,152
781
3,656
1,491
496
6
2,953
1,759
1,194
1,705
1,522
1,705
971
551
274
210
64
2
17
428
14,471
266
162
(1)
10,319
4,152
8
132
1
250
Revisions of Previous Estimates
39
15
280
193
(285)
(73)
(53)
Improved Recovery
Extensions and Discoveries
Production(a)
Sales of Minerals in Place
7
(46)
(88)
1
37
52
(273)
(516)
154
(176)
(305)
(72)
(185)
(29)
(19)
(1,404)
(3)
(308)
Reserves at December 31, 2022
869
223
2,323
3,881
2,341
1,560
1,281
264
408
13,150
Equity-accounted entities
Reserves at December 31, 2021
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production(b)
Sales of Minerals in Place
Reserves at December 31, 2022
Reserves at December 31, 2022
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
654
457
197
144
19
(108)
(63)
646
869
658
214
444
211
9
202
869
695
695
174
174
10
10
(1)
9
2,332
3,881
2,732
2,732
679
670
9
1,653
1,149
1,653
1,149
1,285
165
1,120
194
127
(44)
1,562
3,903
2,376
1,306
1,070
1,527
1,035
492
1,490
1,460
1,460
(10)
(95)
1,490
1,355
3,409
2,092
1,317
1,684
261
19
(248)
(63)
5,062
1,560
2,771
1,619
408
18,212
1,560
1,560
796
796
1,975
485
1,490
1,550
195
1,355
69
69
223
11,269
223
8,391
185
185
2,878
6,943
4,759
2,184
(a) It includes production volumes consumed in operations equal to 208 Bcf.
(b) It includes production volumes consumed in operations equal to 27 Bcf.
ENI ANNUAL REPORT 2022
375
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
(billion cubic feet)
2021
Consolidated subsidiaries
Reserves at December 31, 2020
of which: developed
undeveloped
Purchase of Minerals in Place
474
15,554
315
159
10,851
4,703
1
172
206
348
280
68
208
194
14
2,201
4,692
1,014
4,511
1,187
181
3,864
1,751
2,113
2,003
1,589
2,003
674
915
175
109
66
1
Revisions of Previous Estimates
661
78
321
(2)
(903)
(213)
120
125
(15)
Improved Recovery
Extensions and Discoveries
Production(a)
Sales of Minerals in Place
5
(44)
(91)
13
(263)
(538)
186
(179)
(15)
2
(85)
(189)
(27)
(31)
(1,447)
(15)
Reserves at December 31, 2021
918
247
2,272
4,152
2,953
1,705
1,522
274
428
14,471
Equity-accounted entities
Reserves at December 31, 2020
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production(b)
Sales of Minerals in Place
Reserves at December 31, 2021
Reserves at December 31, 2021
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
510
415
95
234
28
(118)
654
901
699
242
457
202
5
197
918
729
729
189
189
14
14
(3)
(1)
10
2,282
4,152
791
781
10
1,491
1,491
3,656
3,656
496
496
364
170
194
952
(31)
1,285
4,238
1,924
1,759
165
2,314
1,194
1,120
1,559
1,559
(12)
(87)
1,460
2,447
2,158
289
1,171
28
(237)
3,409
1,705
1,522
1,734
428
17,880
1,705
1,705
971
971
551
551
1,670
210
1,460
64
64
266
12,411
266
10,319
162
162
2,092
5,469
4,152
1,317
(a) It includes production volumes consumed in operations equal to 208 Bcf.
(b) It includes production volumes consumed in operations equal to 15 Bcf.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
376
(billion cubic feet)
2020
Consolidated subsidiaries
Reserves at December 31, 2019
of which: developed
undeveloped
Purchase of Minerals in Place
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
752
657
95
262
242
20
2,738
5,191
1,374
4,777
1,364
414
4,103
1,858
2,245
1,969
1,349
1,969
685
664
240
186
54
507
17,111
322
185
12,070
5,041
Revisions of Previous Estimates
(288)
5
(259)
(65)
9
138
356
(33)
Improved Recovery
Extensions and Discoveries
6
54
4
(137)
64
Production(a)
(116)
(59)
(278)
(440)
(248)
(104)
(170)
(36)
(33)
(1,484)
Sales of Minerals in Place
Reserves at December 31, 2020
348
208
2,201
4,692
3,864
2,003
1,589
175
474
15,554
Equity-accounted entities
Reserves at December 31, 2019
of which: developed
undeveloped
Purchase of Minerals in Place
Revisions of Previous Estimates
Improved Recovery
Extensions and Discoveries
Production(b)
Sales of Minerals in Place
Reserves at December 31, 2020
Reserves at December 31, 2020
Developed
consolidated subsidiaries
equity-accounted entities
Undeveloped
consolidated subsidiaries
equity-accounted entities
772
597
175
(128)
(134)
510
718
609
194
415
109
14
95
348
280
280
68
68
14
14
1
(1)
14
2,215
4,692
1,028
4,511
1,014
4,511
14
1,187
1,187
181
181
287
88
199
113
(36)
364
4,228
1,921
1,751
170
2,307
2,113
194
1,648
1,648
(12)
(77)
1,559
2,721
2,347
374
(26)
(248)
2,447
2,003
1,589
1,734
474
18,001
2,003
2,003
674
674
915
915
1,668
109
1,559
66
66
315
13,009
315
10,851
159
159
2,158
4,992
4,703
289
(a) It includes production volumes consumed in operations equal to 223 Bcf.
(b) It includes production volumes consumed in operations equal to 16 Bcf.
Main changes in proved reserves of natural gas reported in the tables above for the period 2020, 2021 and 2022 are discussed below.
ENI ANNUAL REPORT 2022
377
Consolidated subsidiaries
PURCHASE OF MINERALS IN PLACE
In 2020, no purchases were made.
In 2021, 1 BCF of acquisition related to the Lucius field in the
United States is recorded.
In 2022, acquistions of 8 BCF cubic meters were made mainly
for the acquisition of the BHP share in Algeria (6 BCF) and a
share in some fields in the United States Gulf of Mexico.
REVISIONS OF PREVIOUS ESTIMATES
In 2020, revisions of previous estimates were a net negative
of 137 BCF. In Italy, 288 BCF of negative revisions were
reported mainly at the Hera Lacina-Linda, Cervia-Arianna, Luna,
Annamaria, Val d’Agri and Porto Garibaldi-Agostino projects
and other gas fields in the Adriatic sea due to price effects. In
North Africa, 259 BCF of negative revisions were driven by price
effects in Libya (-287 BCF) in particular at Bahr Essalam and
Area E fields and in various fields in Algeria (+18 BCF). In Egypt,
65 BCF of negative revisions were recorded at the Tuna due to
performance revision and at Zohr field due to price effect. In
America, 33 BCF of negative revision were due to price effects at
various US gas fields (-78 BCF), mainly Alliance fields, partially
offset by Area 1 in Mexico (46 BCF ). Revisions were positive for
356 BCF in the Rest of Asia driven by a better performance at
the Merakes projects in Indonesia (227 BCF) and at the Zubair
field in Iraq (97 BCF) due to improved production expectations.
In Kazakhstan, positive revisions of 138 BCF were reported at
the Karachaganak project due to technical appraisal and higher
entitlements.
In 2021, total revisions were 172 BCF as follows: Italy (661
BCF) mainly due to recovery of non-economic cutoffs; Rest of
Europe (78 BCF) in the United Kingdom mainly due to recovery
of non-economic cutoffs; Rest of North Africa (321 BCF)
mainly in Libya due to price effect; Egypt (-2 BCF), consisting
of positive revisions of 110 BCF meters mainly in Baltim SW
and negative revisions 112 BCF mainly in Port Fouad; Sub-
Saharan Africa total revisions of -903 BCF, primarily linked
to the reclassification of the Mozambique project from a
consolidated company to a equity-accounted company (-993
BCF) and positive revisions of 274 BCF, primarily in Nigeria.
In Kazakhstan, reductions of 213 BCF were recorded mainly
in Karachaganak due to the PSA effect; in the Rest of Asia,
positive revisions of 120 BCF meters were mainly located in
Indonesia (Merakes); in the Americas, revisions of 125 BCF
occurred mainly in the United States due to the recovery of
non-economic cutoffs; in Australia and Oceania, revisions
totaled -15 BCF mainly related to the Blacktip project.
In 2022, total revisions were 132 BCF. The main positive
revisions were in Congo (469 BCF) mainly at the Nené field,
Libya (357 BCF) and Egypt (193 BCF). The main negative
revisions were in Nigeria (-764 BCF), Algeria (-74 BCF) and
Kazakhstan (-73 BCF).
IMPROVED RECOVERY
In 2020 and 2021, no material improved recoveries were
recorded.
In 2022, we had 1 BCF of improved recoveries in Algeria on the
BRW and BKNE Alpha fields.
EXTENSIONS AND DISCOVERIES
In 2020, new discoveries and extensions of 64 BCF mainly
related to the Rest of Asia (with an upward revision of 54 BCF)
following the final investment decision for the Mahani field
in the United Arab Emirates, with production started-up in
January 2021, and Egypt for the near-field discoveries in the
Bashrush and Abu Madi West concessions.
In 2021, new discoveries and extensions totaled 206 BCF and
related primarily to the New Gas Consortium project in Angola
and to a lesser extent the Berkine North project in Algeria.
In 2022, new discoveries and extensions amounted to 250 BCF
and mainly related to the final investment decision in Baleine in
Ivory Coast and Bashrush in Egypt.
SALES OF MINERALS IN PLACE
In 2020, no sales were made.
In 2021, there were divestments of 15 BCF related to the exit
from OML 17 in Nigeria.
In 2022, sales were 308 BCF in relation to the contribution of
Eni’s assets in Angola to the JV Azule and 3 BFC related to
Pakistan.
Equity-accounted entities
PURCHASE OF MINERALS IN PLACE
In 2020, no sales were made.
In 2021, there were divestments of 15 BCF related to the exit
from OML 17 in Nigeria.
In 2022, we had acquisition for 1,684 BCF due to Eni’s entry into
the NFE project in Qatar and the acquisition of a 50% stake in
the JV Azule in Angola.
REVISIONS OF PREVIOUS ESTIMATES
In 2020, negative revisions of previous estimates of 26 BCF
essentially related to the Rest of Europe (128 BCF) mainly in
relation to the Grane and Midgard projects in Norway. In Sub-
Saharan Africa, 113 BCF of positive revisions were reported
at Azule in relation to the Angola LNG project due to a better
performance.
In 2021, revisions to previous estimates were 1,171 BCF,
primarily due to the reclassification of the Mozambique project
from a consolidated company to a equity-accounted company.
In 2022, revisions of previous estimates are 261 BCF, mainly
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 378
due to Azule in Angola, Vår Energi in Norway, and Coral in
Mozambique.
EXTENSIONS AND DISCOVERIES
In 2020, there were no extensions or new relevant discoveries.
In 2021, 28 BCF of extensions and new discoveries were
recorded, mainly due to the investment decision in Tommeliten
Alpha in Norway.
In 2022, extensions and new discoveries were 19 BCF due to
Vår Energi in Norway.
SALES OF MINERALS IN PLACE
In 2020 and 2021, no sales were made.
In 2022, sales of 63 BCF were due to the IPO of Vår Energi in
Norway.
Standardized measure of discounted
future net cash flows
Estimated future cash inflows represent the revenues that
would be received from production and are determined by
applying the year-end average prices during the years ended.
Future price changes are considered only to the extent provided
by contractual arrangements. Estimated future development
and production costs are determined by estimating the
expenditures to be incurred in developing and producing the
proved reserves at the end of the year. Neither the effects of
price and cost escalations nor expected future changes in
technology and operating practices have been considered.
The standardized measure is calculated as the excess of
future cash inflows from proved reserves less future costs of
producing and developing the reserves, future income taxes
and a yearly 10% discount factor.
Future production costs include the estimated expenditures
related to the production of proved reserves plus any
production taxes without consideration of future inflation.
Future development costs include the estimated costs of
drilling development wells and
installation of production
facilities, plus the net costs associated with dismantlement
and abandonment of wells and facilities, under the assumption
that year-end costs continue without considering future
inflation. Future income taxes were calculated in accordance
with the tax laws of the countries in which Eni operates.
The standardized measure of discounted future net cash
flows, related to the preceding proved oil and gas reserves,
is calculated
in accordance with the requirements of
FASB Extractive Activities - Oil and Gas (Topic 932). The
standardized measure does not purport to reflect realizable
values or fair market value of Eni’s proved reserves. An
estimate of fair value would also take into account, among
other things, hydrocarbon resources other than proved
reserves, anticipated changes in future prices and costs and
a discount factor representative of the risks inherent in the oil
and gas exploration and production activity.
The standardized measure of discounted future net cash flows
by geographical area consists of the following:
ENI ANNUAL REPORT 2022 379
(€ million)
December 31, 2022
Consolidated subsidiaries
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
Future cash inflows
38,968
7,609
50,838
34,198
48,292
53,529
45,179
21,233
1,525 301,371
Future production costs
(10,267)
(1,752)
(6,675) (11,171)
(15,823)
(7,844)
(12,181)
(5,950)
(230)
(71,893)
Future development and abandonment
costs
(4,484)
(1,296)
(4,894)
(2,941)
(10,057)
(1,873)
(4,562)
(3,063)
(377)
(33,547)
Future net inflow before income tax
24,217
4,561
39,269 20,086
22,412
43,812
28,436
12,220
918 195,931
Future income tax
(6,388)
(3,087)
(23,766)
(7,119)
(7,990)
(11,568)
(21,227)
(4,903)
(81)
(86,129)
Future net cash flows
17,829
1,474
15,503 12,967
14,422
32,244
7,209
7,317
837 109,802
10% discount factor
(7,141)
(344)
(7,176)
(4,562)
(6,456)
(16,087)
(2,980)
(3,443)
(357)
(48,546)
Standardized measure of discounted
future net cash flows
Equity-accounted entities
Future cash inflows
Future production costs
Future development and abandonment
costs
Future net inflow before income tax
Future income tax
Future net cash flows
10% discount factor
Standardized measure of discounted
future net cash flows
Total consolidated subsidiaries
and equity-accounted entities
10,688
1,130
8,327
8,405
7,966
16,157
4,229
3,874
480
61,256
50,468
(7,628)
(6,458)
36,382
(27,333)
9,049
(2,501)
6,548
265
(123)
(57)
85
(3)
82
(15)
67
42,450
(10,579)
(3,508)
28,363
(8,117)
20,246
(9,058)
11,188
33,075
8,133
(9,749)
(2,083)
(560)
(178)
22,766
5,872
(19,393)
(2,469)
3,373
3,403
(2,462)
(1,416)
911
1,987
134,391
(30,162)
(10,761)
93,468
(57,315)
36,153
(15,452)
20,701
10,688
7,678
8,394
8,405
19,154
16,157
5,140
5,861
480
81,957
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
380
(€ million)
December 31, 2021
Consolidated subsidiaries
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
Future cash inflows
18,933
4,679
33,142
31,344
40,929
36,430
32,594
13,607
1,511 213,169
Future production costs
(6,929)
(1,496)
(6,325)
(9,726)
(13,196)
(7,343)
(9,578)
(4,189)
(251)
(59,033)
Future development and abandonment
costs
(4,104)
(865)
(4,688)
(2,036)
(5,117)
(1,750)
(4,278)
(2,298)
(288)
(25,424)
Future net inflow before income tax
7,900
2,318
22,129 19,582
22,616
27,337
18,738
7,120
972 128,712
Future income tax
(2,037)
(1,001)
(12,345)
(6,736)
(8,372)
(6,301)
(12,899)
(2,386)
(75)
(52,152)
Future net cash flows
5,863
1,317
9,784 12,846
14,244
21,036
5,839
4,734
897
76,560
10% discount factor
(2,112)
(170)
(4,516)
(4,211)
(5,608)
(10,703)
(2,295)
(1,980)
(350)
(31,945)
Standardized measure of discounted
future net cash flows
Equity-accounted entities
Future cash inflows
Future production costs
Future development and abandonment
costs
Future net inflow before income tax
Future income tax
Future net cash flows
10% discount factor
Standardized measure of discounted
future net cash flows
Total consolidated subsidiaries
and equity-accounted entities
3,751
1,147
5,268
8,635
8,636
10,333
3,544
2,754
547
44,615
28,037
(8,316)
(6,566)
13,155
(8,591)
4,564
(1,462)
3,102
230
(120)
(85)
25
(9)
16
16
32
8,884
(1,590)
(95)
7,199
(1,286)
5,913
(3,498)
2,415
5,971
(1,454)
(77)
4,440
(1,309)
3,131
(1,399)
1,732
43,122
(11,480)
(6,823)
24,819
(11,195)
13,624
(6,343)
7,281
3,751
4,249
5,300
8,635
11,051
10,333
3,544
4,486
547
51,896
ENI ANNUAL REPORT 2022
381
(€ million)
December 31, 2020
Consolidated subsidiaries
Italy
Rest of
Europe
North
Africa
Sub - Saharan
Rest
Egypt
Africa Kazakhstan
of Asia America
Australia
and Oceania
Total
Future cash inflows
6,120
1,737
19,780 26,003
26,901
21,519
22,528
6,638
1,599 132,825
Future production costs
(3,587)
(753)
(5,431)
(7,515)
(10,909)
(6,224)
(7,241)
(3,382)
(265)
(45,307)
Future development and abandonment
costs
Future net inflow before income tax
Future income tax
Future net cash flows
10 % discount factor
Standardized measure of discounted
future net cash flows
Equity-accounted entities
Future cash inflows
Future production costs
Future development and abandonment
costs
Future net inflow before income tax
Future income tax
Future net cash flows
10 % discount factor
Standardized measure of discounted
future net cash flows
Total consolidated subsidiaries
and equity-accounted entities
(1,925)
(756)
(4,378)
(1,638)
(4,257)
(1,743)
(4,511)
(1,786)
(246)
(21,240)
608
(170)
438
(33)
405
228
(61)
167
108
275
15,306
(5,942)
(6,244)
3,120
(576)
2,544
(1,055)
1,489
9,971 16,850
11,735
13,552
10,776
1,470
1,088
66,278
(4,946)
(5,320)
(2,988)
(2,313)
(6,774)
(441)
(140)
(23,153)
5,025 11,530
8,747
11,239
4,002
1,029
948
43,125
(2,413)
(4,101)
(3,714)
(6,040)
(1,681)
(482)
(383)
(18,739)
2,612
7,429
5,033
5,199
2,321
547
565
24,386
251
(98)
(29)
124
(54)
70
(43)
27
1,253
(982)
(46)
225
(3)
222
(110)
112
6,291
(1,641)
(137)
4,513
(1,375)
3,138
(1,460)
1,678
23,101
(8,663)
(6,456)
7,982
(2,008)
5,974
(2,668)
3,306
405
1,764
2,639
7,429
5,145
5,199
2,321
2,225
565
27,692
Changes in standardized measure of discounted future net cash flows
Changes in standardized measure of discounted future net cash flows for the years ended December 31, 2022, 2021 and 2020, are
as follows:
(€ million)
2022
Consolidated
subsidiaries
Equity-accounted
entities
Total
Standardized measure of discounted future net cash flows at December 31, 2021
44,615
7,281
51,896
Increase (decrease):
- sales, net of production costs
- net changes in sales and transfer prices, net of production costs
- extensions, discoveries and improved recovery, net of future production and development costs
- changes in estimated future development and abandonment costs
- development costs incurred during the period that reduced future development costs
- revisions of quantity estimates
- accretion of discount
- net change in income taxes
- purchase of reserves in-place
- sale of reserves in-place
- changes in production rates (timing) and other
Net increase (decrease)
Standardized measure of discounted future net cash flows at December 31, 2022
(25,987)
56,002
1,519
(7,046)
3,821
(1,295)
7,226
(4,912)
24,343
2,139
(3,169)
2,000
7,134
1,510
(30,899)
80,345
3,658
(10,215)
5,821
5,839
8,736
(18,393)
(21,676)
(40,069)
765
(6,436)
6,465
16,641
61,256
10,200
(4,149)
13,420
20,701
10,965
(6,436)
2,316
30,061
81,957
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
382
(€ million)
2021
Consolidated
subsidiaries
Equity-accounted
entities
Total
Standardized measure of discounted future net cash flows at December 31, 2020
24,386
3,306
27,692
Increase (decrease):
- sales, net of production costs
- net changes in sales and transfer prices, net of production costs
- extensions, discoveries and improved recovery, net of future production and development costs
- changes in estimated future development and abandonment costs
- development costs incurred during the period that reduced future development costs
- revisions of quantity estimates
- accretion of discount
- net change in income taxes
- purchase of reserves in-place
- sale of reserves in-place
- changes in production rates (timing) and other
Net increase (decrease)
Standardized measure of discounted future net cash flows at December 31, 2021
(€ million)
2020
(16,402)
(3,381)
(19,783)
40,864
1,304
(2,737)
2,877
1,963
3,810
9,256
142
(734)
1,385
1,665
514
50,120
1,446
(3,471)
4,262
3,628
4,324
(14,022)
(5,216)
(19,238)
27
(28)
2,573
20,229
44,615
27
(28)
2,917
24,204
51,896
344
3,975
7,281
Consolidated
subsidiaries
Equity-accounted
entities
Total
Standardized measure of discounted future net cash flows at December 31, 2019
45,487
5,410
50,897
Increase (decrease):
- sales, net of production costs
- net changes in sales and transfer prices, net of production costs
- extensions, discoveries and improved recovery, net of future production and development costs
- changes in estimated future development and abandonment costs
- development costs incurred during the period that reduced future development costs
- revisions of quantity estimates
- accretion of discount
- net change in income taxes
- purchase of reserves in-place
- sale of reserves in-place
- changes in production rates (timing) and other
Net increase (decrease)
Standardized measure of discounted future net cash flows at December 31, 2020
(10,046)
(34,188)
123
792
4,147
36
7,136
13,336
(2,437)
(21,101)
24,386
(1,490)
(11,536)
(5,324)
(39,512)
142
(834)
1,192
(285)
1,065
3,814
265
(42)
5,339
(249)
8,201
17,150
(384)
(2,821)
(2,104)
(23,205)
3,306
27,692
ENI ANNUAL REPORT 2022
383
Certification pursuant to rule 154-bis,
paragraph 5 of the Legislative Decree No. 58/1998
(Testo Unico della Finanza)
1. The undersigned Claudio Descalzi and Francesco Esposito, in their quality as Chief Executive Officer and Officer responsible for
the preparation of financial reports of Eni, also pursuant to article 154-bis, paragraphs 3 and 4 of Legislative Decree No. 58 of
February 24, 1998, certify that internal controls over financial reporting in place for the preparation of the consolidated financial
statements as of December 31, 2022 and during the period covered by the report, were:
• adequate to the Company structure, and
• effectively applied during the process of preparation of the report.
2.
Internal controls over financial reporting in place for the preparation of the 2022 consolidated financial statements have been
defined and the evaluation of their effectiveness has been assessed based on principles and methodologies adopted by Eni in
accordance with the Internal Control-Integrated Framework Model issued by the Committee of Sponsoring Organizations of
the Treadway Commission, which represents an internationally-accepted framework for the internal control system.
3. The undersigned officers also certify that:
3.1 2022 consolidated financial statements:
a) have been prepared in accordance with applicable international accounting standards adopted by the European Community
pursuant to Regulation (CE) n. 1606/2002 of the European Parliament and European Council of July 19, 2002;
b) correspond to the accounting books and entries;
c)
fairly and truly represent the financial position, the performance and the cash flows of the issuer and the companies
included in the consolidation as of, and for, the period presented in this report.
3.2 The operating and financial review provides a reliable analysis of business trends and results, including trend analysis of the
issuer and the companies included in the consolidation, as well as a description of the main risks and uncertainties to which
they are exposed.
March 16, 2023
/s/ Claudio Descalzi
Claudio Descalzi
Chief Executive Officer
/s/ Francesco Esposito
Francesco Esposito
Head of Accounting
and Financial Statements
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
ANNEX
Annex to the notes on consolidated financial statements as of December 31, 2022
Investments owned by Eni as of December 31, 2022
Changes in the scope of consolidation for 2022
Independent auditor’s report on the consolidated non-financial statement
Independent auditor’s report on the consolidated financial statements
386
386
426
430
434
386
ANNEX TO THE NOTES ON CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2022
Investments owned by Eni SpA as of
December 31, 2022
In accordance with the provisions of articles 38 and 39 of the
Legislative Decree No. 127/1991 and Consob communication
No. DEM/6064293 of July 28, 2006, the list of subsidiaries,
joint arrangements and associates and significant investmen-
ts owned by Eni SpA as of December 31, 2022, is presented
below. Companies are divided by business segment and, within
each segment, they are ordered between Italy and outside Italy
and alphabetically. For each company are indicated: company
name, registered head office, operating office, share capital,
shareholders and percentage of ownership; for consolidated
subsidiaries is indicated the equity ratio attributable to Eni;
for unconsolidated investments owned by consolidated com-
panies is indicated the valuation method. In the footnotes are
indicated which investments are quoted in the Italian regulated
markets or in other regulated markets of the European Union
and the percentage of the ordinary voting rights entitled to sha-
reholders if different from the percentage of ownership. The
currency codes indicated are reported in accordance with the
International Standard ISO 4217.
As of December 31, 2022, the breakdown of the companies ow-
ned by Eni is provided in the table below:
Fully consolidated subsidiaries
Consolidated joint operations
Investments owned by consolidated companies(b)
Equity-accounted investments
Investments at cost net of impairment losses
Investments at fair value
Investments owned by unconsolidated companies
Owned by controlled companies
Owned by joint arrangements
Subsidiaries
Italy
118
Outside
Italy
240
Total
358
Joint arrangements
and associates
Other significant
investments(a)
Italy
Outside
Italy
Total
Italy
Outside
Italy
Total
3
5
8
31
3
34
1
1
34
8
42
1
1
3
7
10
29
3
32
1
1
36
54
25
83
28
79
111
4
8
12
98
4
9
13
134
3
3
21
21
24
24
3
21
24
Total
126
275
401
(a) Relates to investments other than subsidiaries, joint arrangements and associates with an ownership interest greater than 2% for listed companies or 10% for unlisted companies.
(b) Investments in subsidiaries accounted for using the equity method and at cost net of impairment losses relate to non-significant companies.
SUBSIDIARIES AND JOINT ARRANGEMENTS RESIDENT IN
STATES OR TERRITORY WITH A PRIVILEGED TAX REGIME
The Legislative Decree of November 29, 2018, No. 241,
enforcing the EU Directive rules in the matter of tax
avoidance practices, modified the definition of a State or
territory with a privileged tax regime pursuant to art. 47-
bis of the D.P.R. December 22, 1986, No. 917. Following the
aforementioned amendments and the amendments to art.
167 of the D.P.R. December 22, 1986, No. 917, the provisions
regarding foreign subsidiaries, CFC, are applied if the non-
resident controlled entities jointly present the following
conditions: a) they are subject to an effective taxation of
less than half to which they would have been subject if they
were resident in Italy; b) more than one third of the proceeds
fall into one or more of the following categories: interests,
royalties, dividends, financial leasing income, income from
insurance and banking activities, income and sale from
intra-group services with low or zero added economic value.
As of December 31, 2022, Eni controls 6 companies that
benefit from a privileged tax regime.
These 6 companies are subject to taxation in Italy because
they are included in Eni's tax return.
No subsidiary that benefits from a privileged tax regime has
issued financial instruments. All the financial statements for
2022 are subject to external audit.
ENI ANNUAL REPORT 2022
PARENT COMPANY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Eni SpA(#)
Rome
Italy
EUR
4,005,358,876
Cassa Depositi e Prestiti SpA
Ministero dell’Economia e delle Finanze
Eni SpA
Altri Soci
SUBSIDIARIES
Exploration & Production
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Eni Mediterranea Idrocarburi SpA
Gela (CL)
Italy
EUR
5,200,000
Eni SpA
100.00
100.00
Eni Mozambique SpA
Eni Natural Energies SpA
Eni Timor Leste SpA
Eni West Africa SpA
Floaters SpA
Ieoc SpA
Società Petrolifera Italiana SpA
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Mozambique
EUR
200,000
Eni SpA
100.00
100.00
Italy
EUR
100,000
Eni SpA
100.00
100.00
East Timor
EUR
4,386,849
Eni SpA
100.00
100.00
Angola
EUR
1,000,000
Eni SpA
100.00
Italy
EUR
200,120,000
Eni SpA
100.00
100.00
Egypt
EUR
7,518,000
Eni SpA
100.00
100.00
Italy
EUR
8,034,400
Eni SpA
Third parties
99.96
0.04
99.96
387
p
i
h
s
r
e
n
w
O
%
26.21
4.41
6.33
63.05
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
Eq.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(#) Company with shares quoted on regulated market of Italy or of other EU countries.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
388
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Agip Caspian Sea BV
Agip Energy and Natural
Resources (Nigeria) Ltd
Agip Karachaganak BV
Burren Energy (Bermuda) Ltd(1)
Burren Energy (Egypt) Ltd
Burren Energy Congo Ltd(2)
Burren Energy India Ltd
Burren Energy Plc
Burren Shakti Ltd(1)
Eni Abu Dhabi BV(3)
Eni Albania BV
Eni Algeria Exploration BV
Eni Algeria Ltd Sàrl
Eni Algeria Production BV
Eni Ambalat Ltd
Eni America Ltd
Eni Argentina Exploración y
Explotación SA
Eni Arguni I Ltd
Eni Australia BV
Eni Australia Ltd
Eni Bahrain BV
Eni BB Petroleum Inc
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Amsterdam
(Netherlands)
Abuja
(Nigeria)
Amsterdam
(Netherlands)
Hamilton
(Bermuda)
London
(United
Kingdom)
Tortola
(British Virgin
Islands)
London
(United
Kingdom)
London
(United
Kingdom)
Hamilton
(Bermuda)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Kazakhstan
EUR
20,005
Eni International BV
100.00
100.00
Nigeria
NGN
5,000,000
Eni International BV
Eni Oil Holdings BV
95.00
5.00
100.00
Kazakhstan
EUR
20,005
Eni International BV
100.00
100.00
United
Kingdom
USD
12,002
Burren Energy Plc
100.00
100.00
Egypt
GBP
2
Burren Energy Plc
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
Eq.
Republic
of the Congo
USD
50,000
Burren En. (Berm) Ltd
100.00
100.00
F.C.
United
Kingdom
United
Kingdom
United
Kingdom
GBP
2
Burren Energy Plc
100.00
100.00
F.C.
GBP
28,819,023
Eni UK Holding Plc
Eni UK Ltd
99.99
(..)
100.00
F.C.
USD
213,138
Burren En. India Ltd
100.00
100.00
Amsterdam
(Netherlands)
United Arab
Emirates
EUR
20,000
Eni International BV
100.00
100.00
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Luxembourg
(Luxembourg)
Amsterdam
(Netherlands)
London
(United
Kingdom)
Dover
(USA)
Buenos Aires
(Argentina)
London
(United
Kingdom)
Amsterdam
(Netherlands)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Dover
(USA)
Albania
EUR
20,000
Eni International BV
100.00
100.00
Algeria
EUR
20,000
Eni International BV
100.00
100.00
Algeria
USD
20,000
Eni Oil Holdings BV
100.00
100.00
Algeria
EUR
20,000
Eni International BV
100.00
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
USA
USD
72,000
Eni UHL Ltd
100.00
100.00
Argentina
ARS
31,997,266
Eni International BV
Eni Oil Holdings BV
95.00
5.00
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
Australia
EUR
20,000
Eni International BV
100.00
100.00
Australia
GBP
20,000,000
Eni International BV
100.00
100.00
Bahrain
EUR
20,000
Eni International BV
100.00
100.00
USA
USD
1,000 Eni Petroleum Co Inc
100.00
100.00
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(1) Company that benefits from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the income attributable to the Group
is subject to taxation in Italy.
(2) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company operates with
permanent establishment in Congo and the tax rate is not lower than 50% of that current in Italy.
3) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company operates
with permanent establishment in the United Arab Emirates and the nominal tax rate is not lower than 50% of that current in Italy.
ENI ANNUAL REPORT 2022
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
(United
Kingdom)
y
c
n
e
r
r
u
C
GBP
l
a
t
i
p
a
C
e
r
a
h
S
1
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Eni International BV
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
Canada
USD
3,938,200,001
Eni International BV
100.00
100.00
Indonesia
USD
2,210,728
Eni Lasmo Plc
100.00
China
EUR
20,000
Eni International BV
100.00
100.00
Republic
of the Congo
USD
500,000
Eni E&P Holding BV
100.00
100.00
389
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
F.C.
F.C.
Eq.
F.C.
F.C.
Ivory Coast
GBP
1
Eni Lasmo Plc
100.00
100.00
F.C.
Cyprus
EUR
2,009
Eni International BV
100.00
100.00
Brazil
BRL
1,593,415,000
Eni International BV
Eni Oil Holdings BV
99.99
(..)
F.C.
Eq.
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
F.C.
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
F.C.
United
Kingdom
GBP
100
Eni UK Ltd
100.00
100.00
F.C.
Netherlands
EUR
20,000
Eni International BV
100.00
100.00
Netherlands
EUR
29,832,777.12
Eni International BV
100.00
100.00
Gabon
XAF
57,088,000,000
Eni International BV
100.00
100.00
Indonesia
GBP
2
Eni Indonesia Ltd
100.00
100.00
Australia
EUR
1,013,439
Eni International BV
100.00
100.00
Ghana
GHS
21,412,500
Eni International BV
100.00
100.00
United
Kingdom
GBP
3,036,000
Eni UK Ltd
100.00
100.00
Venezuela
GBP
8,050,500
Eni Lasmo Plc
100.00
India
GBP
44,000,000
Eni Lasmo Plc
100.00
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
Eq.
Indonesia
GBP
100
Eni ULX Ltd
100.00
100.00
F.C.
e
m
a
n
y
n
a
p
m
o
C
Eni BTC Ltd
Eni Bukat Ltd
Eni Canada Holding Ltd
Eni CBM Ltd
Eni China BV
Eni Congo SA
Eni Côte d'Ivoire Ltd
Eni Cyprus Ltd
Eni do Brasil Investimentos
em Exploração e Produção de
Petróleo Ltda
Eni East Ganal Ltd
Eni East Sepinggan Ltd
Eni Elgin/Franklin Ltd
Eni Energy Russia BV
Eni Exploration
& Production Holding BV
Eni Gabon SA
Eni Ganal Ltd
Eni Gas & Power LNG Australia BV
Eni Ghana Exploration
and Production Ltd
Eni Hewett Ltd
Eni Hydrocarbons Venezuela Ltd
Eni India Ltd
Eni Indonesia Ltd
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
London
(United
Kingdom)
(United
Kingdom)
Calgary
(Canada)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Pointe-Noire
(Republic
of the Congo)
London
(United
Kingdom)
Nicosia
(Cyprus)
Rio de Janeiro
(Brazil)
London
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Libreville
(Gabon)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Accra
(Ghana)
Aberdeen
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(4) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company is fiscally resi-
dent in the United Kingdom and operates with a permanent establishment in Indonesia with a tax rate not lower than 50% of that current in Italy.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
390
e
m
a
n
y
n
a
p
m
o
C
Eni Indonesia Ots 1 Ltd(4)
Eni International NA NV Sàrl
Eni Investments Plc
Eni Iran BV
Eni Iraq BV
Eni Ireland BV
Eni Isatay BV
Eni JPDA 03-13 Ltd
Eni JPDA 06-105 Pty Ltd
Eni JPDA 11-106 BV
Eni Kenya BV
Eni Krueng Mane Ltd
Eni Lasmo Plc
Eni Lebanon BV
Eni Liverpool Bay Operating Co Ltd
Eni LNS Ltd
Eni Marketing Inc
Eni Maroc BV
Eni México S. de RL de CV
Eni Middle East Ltd
Eni MOG Ltd
(in liquidation)
Eni Montenegro BV
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Indonesia
USD
1.01
Eni Indonesia Ltd
100.00
100.00
United
Kingdom
United
Kingdom
Iran
Iraq
USD
25,000
Eni International BV
100.00
100.00
GBP
750,050,000
Eni SpA
Eni UK Ltd
99.99
(..)
100.00
EUR
EUR
20,000
Eni International BV
100.00
20,000
Eni International BV
100.00
100.00
Ireland
EUR
20,000
Eni International BV
100.00
100.00
Kazakhstan
EUR
20,000
Eni International BV
100.00
100.00
Australia
GBP
250,000
Eni International BV
100.00
100.00
Australia
AUD
80,830,576
Eni International BV
100.00
100.00
Australia
EUR
50,000
Eni International BV
100.00
100.00
Kenya
EUR
20,000
Eni International BV
100.00
100.00
Indonesia
GBP
2
Eni Indonesia Ltd
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
Eq.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
United
Kingdom
GBP 337,638,724.25
Eni Investments Plc
Eni UK Ltd
99.99
(..)
100.00
F.C.
Lebanon
EUR
20,000
Eni International BV
100.00
100.00
United
Kingdom
United
Kingdom
GBP
GBP
1
Eni UK Ltd
100.00
1
Eni UK Ltd
100.00
100.00
F.C.
USA
USD
1,000
Eni Petroleum Co Inc
100.00
100.00
Marocco
EUR
20,000
Eni International BV
100.00
100.00
Mexico
MXN
3,000
Eni International BV
Eni Oil Holdings BV
99.90
0.10
100.00
1
Eni ULT Ltd
100.00
100.00
F.C.
Eq.
F.C.
F.C.
F.C.
F.C.
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Grand Cayman
(Cayman
Islands)
Luxembourg
(Luxembourg)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
London
(United
Kingdom)
Perth
(Australia)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
London
(United
Kingdom)
London
(United
Kingdom)
Amsterdam
(Netherlands)
London
(United
Kingdom)
London
(United
Kingdom)
Dover
(USA)
Amsterdam
(Netherlands)
Mexico City
(Mexico)
London
(United
Kingdom)
London
(United
Kingdom)
United
Kingdom
United
Kingdom
GBP
GBP
Amsterdam
(Netherlands)
Republic of
Montenegro
EUR
20,000
Eni International BV
100.00
100.00
F.C.
0(a)
Eni Lasmo Plc
Eni LNS Ltd
99.99
(..)
100.00
F.C.
Eni Mozambique Engineering Ltd
Eni Mozambique LNG Holding BV
London
(United
Kingdom)
Amsterdam
(Netherlands)
United
Kingdom
GBP
1
Eni Lasmo Plc
100.00
Eq.
Netherlands
EUR
20,000
Eni International BV
100.00
100.00
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(a) Shares without nominal value.
ENI ANNUAL REPORT 2022
391
e
m
a
n
y
n
a
p
m
o
C
Eni Muara Bakau BV
Eni Myanmar BV
Eni New Energy Egypt SAE
Eni North Africa BV
Eni North Ganal Ltd
Eni Oil & Gas Inc
Eni Oil Algeria Ltd
Eni Oil Holdings BV
Eni Oman BV
Eni Petroleum Co Inc
Eni Petroleum US Llc
Eni Qatar BV
Eni RAK BV(5)
Eni Rapak Ltd
Eni RD Congo SA
Eni Rovuma Basin BV
Eni Sharjah BV(5)
Eni South Africa BV
Eni South China Sea Ltd Sàrl
Eni TNS Ltd
Eni Tunisia BV
Eni Turkmenistan Ltd(6)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Cairo
(Egypt)
Amsterdam
(Netherlands)
London
(United
Kingdom)
Dover
(USA)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Dover
(USA)
Dover
(USA)
Amsterdam
(Netherlands)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Indonesia
EUR
20,000
Eni International BV
100.00
100.00
Myanmar
EUR
20,000
Eni International BV
100.00
100.00
Egypt
EGP
250,000
Eni International BV
Ieoc Exploration BV
Ieoc Production BV
99.98
0.01
0.01
Libya
EUR
20,000
Eni International BV
100.00
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
USA
USD
100,800
Eni America Ltd
100.00
100.00
Algeria
GBP
1,000
Eni Lasmo Plc
100.00
100.00
Netherlands
EUR
450,000
Eni ULX Ltd
100.00
100.00
Oman
EUR
20,000
Eni International BV
100.00
100.00
USA
USA
USD
156,600,000
Eni SpA
Eni International BV
63.86
36.14
100.00
USD
1,000
Eni BB Petroleum Inc
100.00
100.00
Qatar
EUR
20,000
Eni International BV
100.00
100.00
Amsterdam
(Netherlands)
United Arab
Emirates
EUR
20,000
Eni International BV
100.00
100.00
London
(United
Kingdom)
Kinshasa
(Democratic
Republic
of the Congo)
Amsterdam
(Netherlands)
Indonesia
GBP
2
Eni Indonesia Ltd
100.00
100.00
Democratic
Republic
of the Congo
CDF
750,000,000
Eni International BV
Eni Oil Holdings BV
99.99
(..)
Mozambique EUR
20,000
Eni Mozambique LNG
H. BV
100.00
100.00
Amsterdam
(Netherlands)
United Arab
Emirates
Amsterdam
(Netherlands)
Republic of
South Africa
EUR
EUR
20,000
Eni International BV
100.00
100.00
20,000
Eni International BV
100.00
Luxembourg
(Luxembourg)
Aberdeen
(United
Kingdom)
Amsterdam
(Netherlands)
Hamilton
(Bermuda)
China
USD
20,000
Eni International BV
100.00
United
Kingdom
GBP
1,000
Eni UK Ltd
100.00
100.00
Tunisia
EUR
20,000
Eni International BV
100.00
100.00
Turkmenistan USD
20,000
Burren En. (Berm) Ltd
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
Eq.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
F.C.
F.C.
Eq.
Eq.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(5) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n.917: the company operates
with a permanent establishment in the United Arab Emirates and carries out an effective economic activity.
(6) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company operates with
permanent establishment in Turkmenistan and the nominal tax rate is not lower than 50% of that current in Italy.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
London
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
Amsterdam
(Netherlands)
Kiev
(Ukraine)
London
(United
Kingdom)
London
(United
Kingdom)
Dover
(USA)
Dover
(USA)
Dover
(USA)
Amsterdam
(Netherlands)
Bruxelles
(Belgium)
Amsterdam
(Netherlands)
London
(United
Kingdom)
London
(United
Kingdom)
London
(United
Kingdom)
Algeri
(Algeria)
392
e
m
a
n
y
n
a
p
m
o
C
Eni UHL Ltd
Eni UK Holding Plc
Eni UK Ltd
Eni UKCS Ltd
Eni Ukraine Holdings BV
Eni Ukraine Llc
(in liquidation)
Eni ULT Ltd
Eni ULX Ltd
Eni US Operating Co Inc
Eni USA Gas Marketing Llc
Eni USA Inc
Eni Venezuela BV
Eni Venezuela E&P Holding SA
Eni Vietnam BV
Eni West Ganal Ltd
Eni West Timor Ltd
Eni Yemen Ltd
Eurl Eni Algérie
Export LNG Ltd
First Calgary Petroleums LP
First Calgary Petroleums Partner Co ULC
Ieoc Exploration BV
Ieoc Production BV
Lasmo Sanga Sanga Ltd(7)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
United
Kingdom
United
Kingdom
United
Kingdom
United
Kingdom
y
c
n
e
r
r
u
C
GBP
l
a
t
i
p
a
C
e
r
a
h
S
1
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Eni ULT Ltd
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
GBP
424,050,000
Eni Lasmo Plc
Eni UK Ltd
99.99
(..)
100.00
F.C.
GBP
50,000,000
Eni International BV
100.00
100.00
F.C.
GBP
100
Eni UK Ltd
100.00
100.00
F.C.
Netherlands
EUR
20,000
Eni International BV
100.00
Eq.
Ukraine
UAH
98,419,627.51
Eni Ukraine Hold. BV
Eni International BV
99.99
0.01
GBP
93,215,492.25
Eni Lasmo Plc
100.00
100.00
F.C.
GBP
200,010,000
Eni ULT Ltd
100.00
100.00
F.C.
United
Kingdom
United
Kingdom
USA
USA
USA
USD
USD
USD
1,000
Eni Petroleum Co Inc
100.00
100.00
10,000
Eni Marketing Inc
100.00
100.00
1,000
Eni Oil & Gas Inc
100.00
100.00
Venezuela
EUR
20,000
Eni Venezuela E&P H.
100.00
100.00
Belgium
USD
254,443,200
Eni International BV
Eni Oil Holdings BV
99.99
(..)
100.00
Vietnam
EUR
20,000
Eni International BV
100.00
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
Indonesia
GBP
1
Eni Indonesia Ltd
100.00
100.00
F.C.
United
Kingdom
GBP
1,000
Burren Energy Plc
100.00
Algeria
DZD
1,000,000
Eni Algeria Ltd Sàrl
100.00
Hong Kong
(Hong Kong)
Republic
of the Congo
USD
322,325,000
Eni SpA
100.00
100.00
Wilmington
(USA)
Calgary
(Canada)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Hamilton
(Bermuda)
Algeria
USD
1
Eni Canada Hold. Ltd
FCP Partner Co ULC
99.99
0.01
100.00
Canada
CAD
10
Eni Canada Hold. Ltd
100.00
100.00
Egypt
EUR
20,000
Eni International BV
100.00
Egypt
EUR
20,000
Eni International BV
100.00
100.00
Indonesia
USD
12,000
Eni Lasmo Plc
100.00
100.00
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
Eq.
F.C.
F.C.
F.C.
Eq.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(7) Company that does not benefit from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company is fiscally resi-
dent in the United Kingdom and operates with permanent establishment in Indonesia and the nominal tax rate is not lower than 50% of that current in Italy.
ENI ANNUAL REPORT 2022
e
m
a
n
y
n
a
p
m
o
C
Liverpool Bay CCS Ltd
Liverpool Bay Ltd
LLC “Eni Energhia"
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
London
(United
Kingdom)
London
(United
Kingdom)
Moscow
(Russia)
Nigerian Agip CPFA Ltd
Nigerian Agip Exploration Ltd
Nigerian Agip Oil Co Ltd
Zetah Congo Ltd(8)
Zetah Kouilou Ltd(8)
Lagos
(Nigeria)
Abuja
(Nigeria)
Abuja
(Nigeria)
Nassau
(Bahamas)
Nassau
(Bahamas)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
United
Kingdom
United
Kingdom
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
GBP
10,000
Eni UK Ltd
100.00
USD
1
Eni ULX Ltd
100.00
Russia
RUB
2,000,000
Nigeria
NGN
1,262,500
Nigeria
NGN
5,000,000
Nigeria
NGN
1,800,000
Eni Energy Russia BV
Eni Oil Holdings BV
Eni US Op. Co Inc
Eni Petroleum Co Inc
NAOC Ltd
Agip En Nat Res. Ltd
Nigerian Agip E. Ltd
Eni International BV
Eni Oil Holdings BV
Eni International BV
Eni Oil Holdings BV
Republic
of the Congo
USD
Republic
of the Congo
USD
300
Eni Congo SA
Burren En. Congo Ltd
2,000
Eni Congo SA
Burren En. Congo Ltd
Third parties
99.90
0.10
99.90
0.10
98.02
0.99
0.99
99.99
0.01
99.89
0.11
66.67
33.33
54.50
37.00
8.50
100.00
100.00
Mizamtec Operating Company
S. de RL de CV
Mexico City
(Mexico)
Mexico
MXN
3,000
393
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
Eq.
Co.
F.C.
F.C.
Co.
Co.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(8) Company that benefits from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the income attributable to the Group
is subject to taxation in Italy.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
394
Global Gas & LNG Portfolio
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Eni Corridor Srl
Eni Gas Transport Services Srl
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Eni Global Energy Markets SpA
Rome
LNG Shipping SpA
Trans Tunisian Pipeline Co SpA
San Donato
Milanese (MI)
San Donato
Milanese (MI)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
Italy
Italy
Italy
Italy
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
EUR
100,000,000
Eni SpA
100.00
100.00
EUR
120,000
Eni SpA
100.00
EUR
41,233,720
Eni SpA
100.00
100.00
EUR
240,900,000
Eni SpA
100.00
100.00
Tunisia
EUR
1,098,000
Eni Corridor Srl
100.00
100.00
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Eni España Comercializadora
de Gas SAU
Eni G&P Trading BV
Eni Gas Liquefaction BV
Société de Service du Gazoduc
Transtunisien SA - Sergaz SA
Société pour la Construction
du Gazoduc Transtunisien
SA - Scogat SA
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Madrid
(Spain)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Tunis
(Tunisia)
Tunis
(Tunisia)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Spain
EUR
2,340,240
Eni SpA
100.00
100.00
Turkey
EUR
70,000
Eni International BV
100.00
100.00
Netherlands
EUR
20,000
Eni International BV
100.00
100.00
Tunisia
TND
99,000
Tunisia
TND
200,000
Eni Corridor Srl
Third parties
Eni Corridor Srl
Trans Tunis. P. Co SpA
66.67
33.33
99.95
0.05
66.67
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
Co.
F.C.
F.C.
F.C.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ENI ANNUAL REPORT 2022
395
Refining & Marketing and Chemical
Refining & Marketing
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Ecofuel SpA
EniBioCh4in Alexandria Srl
Società Agricola
EniBioCh4in Aprilia Srl
EniBioCh4in Grupellum
Società Agricola Srl
EniBioCh4in Jonica Srl
EniBioCh4in Momo
Società Agricola Srl
EniBioCh4in Pannellia
BioGas Srl Società Agricola
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
EniBioCh4in Quadruvium Srl Società
Agricola
San Donato
Milanese (MI)
EniBioCh4in Service BioGas Srl
EniBioCh4in Società Agricola
Il Bue Srl
EniBioCh4in SpA
Eni Fuel SpA
Eni Sustainable Mobility SpA
(ex Eni4Cities SpA)
Eni Trade & Biofuels SpA
Petroven Srl
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Rome
Rome
Rome
Genova
Po' Energia Srl Società Agricola
Bolzano
Raffineria di Gela SpA
SeaPad SpA
Gela (CL)
Genova
Servizi Fondo Bombole Metano SpA
Rome
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
EUR
52,000,000
Eni SpA
100.00
100.00
EUR
EUR
50,000
EniBioCh4in SpA
Third parties
70.00
30.00
70.00
10,000
EniBioCh4in SpA
100.00
100.00
EUR
100,000
EniBioCh4in SpA
Third parties
98.00
2.00
98.00
EUR
EUR
EUR
20,000
EniBioCh4in SpA
100.00
100.00
20,000
EniBioCh4in SpA
Third parties
95.00
5.00
95.00
50,000
EniBioCh4in SpA
100.00
100.00
EUR
100,000
EniBioCh4in SpA
100.00
100.00
EUR
EUR
50,000
EniBioCh4in SpA
100.00
100.00
10,000
EniBioCh4in SpA
100.00
100.00
EUR
2,500,000
Eni Sust. Mobility SpA
100.00
100.00
EUR
59,944,310
Eni SpA
100.00
100.00
EUR
39,450,000
Eni SpA
100.00
100.00
EUR
22,568,759
Eni SpA
100.00
100.00
EUR
918,520
Ecofuel SpA
100.00
100.00
EUR
10,000
EniBioCh4in SpA
100.00
100.00
EUR
15,000,000
Eni SpA
100.00
100.00
EUR
12,400,000
Ecofuel SpA
Third parties
EUR
13,580,000.20
Eni SpA
80.00
20.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
Co.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
396
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Eni Abu Dhabi Refining
& Trading BV
Eni Abu Dhabi Refining
& Trading Services BV
Eni Austria GmbH
Eni Benelux BV
Eni Deutschland GmbH
Eni Ecuador SA
Eni Energy (Shanghai) Co Ltd
Eni France Sàrl
Eni Iberia SLU
Eni Marketing Austria GmbH
Eni Mineralölhandel GmbH
Eni Schmiertechnik GmbH
Eni Suisse SA
Eni Trading & Shipping Inc
Eni Transporte y Suministro México
S. de RL de CV
Eni USA R&M Co Inc
Esacontrol SA
Esain SA
Oléoduc du Rhône SA
Tecnoesa SA
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Amsterdam
(Netherlands)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Netherlands
EUR
20,000
Eni International BV
100.00
100.00
Amsterdam
(Netherlands)
United Arab
Emirates
EUR
20,000
Eni Abu Dhabi R&T BV
100.00
Wien
(Austria)
Rotterdam
(Netherlands)
Munich
(Germany)
Quito
(Ecuador)
Shanghai
(China)
Lione
(France)
Alcobendas
(Spain)
Wien
(Austria)
Wien
(Austria)
Wurzburg
(Germany)
Losanna
(Switzerland)
Dover
(USA)
Mexico City
(Mexico)
Wilmington
(USA)
Quito
(Ecuador)
Quito
(Ecuador)
Bovernier
(Switzerland)
Quito
(Ecuador)
Austria
EUR
78,500,000
Eni Sust. Mobility SpA
Eni Deutsch. GmbH
75.00
25.00
100.00
Netherlands
EUR
1,934,040
Eni Sust. Mobility SpA
100.00
100.00
Germany
EUR
90,000,000
Ecuador
USD
103,142.08
Eni International BV
Eni Oil Holdings BV
Eni International BV
Esain SA
89.00
11.00
99.93
0.07
100.00
100.00
China
EUR
5,000,000
Eni International BV
100.00
100.00
France
EUR
56,800,000
Eni International BV
100.00
100.00
Spain
EUR
17,299,100
Eni Sust. Mobility SpA
100.00
100.00
Austria
EUR
19,621,665.23
Eni Mineralölh. GmbH
Eni Sust. Mobility SpA
99.99
(..)
100.00
Austria
EUR
34,156,232.06
Eni Austria GmbH
100.00
100.00
Germany
EUR
2,000,000
Eni Deutsch. GmbH
100.00
100.00
Switzerland
CHF
102,500,000
Eni International BV
100.00
100.00
USA
USD
1,000,000
ET&B SpA
100.00
100.00
Mexico
MXN
3,000
Eni International BV
Eni Oil Holdings BV
99.90
0.10
100.00
USA
USD
11,000,000
Eni International BV
100.00
Ecuador
USD
60,000
Ecuador
USD
30,000
Eni Ecuador SA
Third parties
Eni Ecuador SA
Tecnoesa SA
87.00
13.00
99.99
(..)
Switzerland
CHF
7,000,000
Eni International BV
100.00
Ecuador
USD
36,000
Eni Ecuador SA
Esain SA
99.99
(..)
100.00
F.C.
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
Eq.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ENI ANNUAL REPORT 2022
397
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
EUR
446,050,728.65
Eni SpA
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
EUR
18,500,000
Versalis SpA
100.00
100.00
F.C.
Chemical
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Versalis SpA
Finproject SpA
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
San Donato
Milanese (MI)
Morrovalle
(MC)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
Italy
Italy
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
Asian Compounds Ltd
Hong Kong
(Hong Kong)
Hong Kong
HKD
1,000
Finproject Asia Ltd
100.00
100.00
Dunastyr Polisztirolgyártó Zártkörûen
Mûködõ Részvénytársaság
Budapest
(Hungary)
Hungary
HUF
1,577,971,200
Versalis SpA
Versalis Deutschland GmbH
Versalis International SA
96.34
1.83
1.83
100.00
F.C.
Finproject Asia Ltd(9)
Hong Kong
(Hong Kong)
Hong Kong
USD
1,000
Finproject SpA
100.00
100.00
F.C.
Finproject Brasil Industria
De Solados Eireli
Franca
(Brazil)
Brazil
BRL
1,000,000
Finproject SpA
100.00
100.00
F.C.
Finproject Guangzhou Trading Co Ltd
Finproject India Pvt Ltd
Finproject Romania Srl
Finproject Singapore Pte Ltd
Finproject Viet Nam Company Limited
Foam Creations (2008) Inc
Foam Creations México
SA de CV
Guangzhou
(China)
Jaipur
(India)
Valea Lui Mihai
(Romania)
Singapore
(Singapore)
Hai Phong
(Vietnam)
Quebec City
(Canada)
León
(Mexico)
China
USD
180,000
Finproject SpA
100.00
100.00
F.C.
India
INR
100,000,000
Asian Compounds Ltd
Finproject Asia Ltd
99.00
1.00
100.00
F.C.
Romania
RON
67,730
Finproject SpA
100.00
100.00
F.C.
Singapore
SGD
100
Finproject Asia Ltd
100.00
100.00
F.C.
Vietnam
VND 19,623,250,000
Finproject Asia Ltd
100.00
100.00
F.C.
Canada
CAD
1,215,000
Finproject SpA
100.00
100.00
F.C.
Mexico
MXN
19,138,165
Foam Creations (2008)
Finproject SpA
99.99
(..)
100.00
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(9) Company that benefits from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the income attributable to the Group
is subject to taxation in Italy.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
398
e
m
a
n
y
n
a
p
m
o
C
Padanaplast America Llc
Padanaplast Deutschland GmbH
Versalis Americas Inc
Versalis Congo Sarlu
Versalis Deutschland GmbH
Versalis France SAS
Versalis International SA
Versalis Kimya Ticaret Limited Sirketi
Versalis México S. de RL de CV
Versalis Pacific (India) Private Ltd
Versalis Pacific Trading
(Shanghai) Co Ltd
Versalis Singapore Pte Ltd
Versalis UK Ltd
Versalis Zeal Ltd
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Wilmington
(USA)
Hannover
(Germany)
Dover
(USA)
Eschborn
(Germany)
Mardyck
(France)
Bruxelles
(Belgium)
Istanbul
(Turkey)
Mexico City
(Mexico)
Mumbai
(India)
Shanghai
(China)
Singapore
(Singapore)
London
(United
Kingdom)
Tokoradi
(Ghana)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
USA
USD
70,000
Finproject SpA
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
Germany
EUR
25,000
Finproject SpA
100.00
100.00
F.C.
USA
USD
100,000
Versalis International SA
100.00
100.00
Pointe-Noire
(Republic
of the Congo)
Republic
of the Congo
XAF
1,000,000
Versalis International SA
100.00
100.00
Germany
EUR
100,000
Versalis SpA
100.00
100.00
France
EUR
126,115,582.90
Versalis SpA
100.00
100.00
Belgium
EUR
15,449,173.88
Versalis SpA
Versalis Deutsch. GmbH
Dunastyr Zrt
Versalis France
59.00
23.71
14.43
2.86
100.00
Turkey
TRY
20,000
Versalis International SA
100.00
100.00
Mexico
MXN
1,000
India
INR
238,700
Versalis International SA
Versalis SpA
Versalis Singapore P. Ltd
Third parties
99.00
1.00
99.99
(..)
100.00
China
CNY
15,237,236
Versalis SpA
100.00
100.00
Singapore
SGD
80,000
Versalis SpA
100.00
100.00
United
Kingdom
GBP
4,004,042
Versalis SpA
100.00
100.00
Ghana
GHS
5,650,000
Versalis International SA
Third parties
80.00
20.00
80.00
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
F.C.
F.C.
F.C.
(*) F.C. = consolidamento integrale, J.O. = joint operation, Eq. = valutazione al patrimonio netto, Co. = valutazione al costo, F.V. = valutazione al fair value.
ENI ANNUAL REPORT 2022
Plenitude & Power
Plenitude
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
4Energia Srl
Milan
Italy
EUR
400,000
Eni Plenitude SpA SB
100.00
100.00
Agrikroton Srl - Società Agricola
Cesena (FC)
Italy
EUR
10,000
SEF Solar Srl
100.00
100.00
Be Charge Srl
Milan
Be Charge Valle d'Aosta Srl
Milan
Be Power SpA
Milan
Italy
Italy
Italy
EUR
500,000
Be Power SpA
100.00
100.00
EUR
10,000
Be Charge Srl
100.00
100.00
EUR
698,251
Eni Plenitude SpA SB
Third parties
(a) 100.00
99.19
0.81
Borgia Wind Srl
Cesena (FC)
Italy
EUR
100,000
PLT Wind 2020 Srl
100.00
100.00
CEF 3 Wind Energy SpA
Milan
CGDB Enrico Srl
CGDB Laerte Srl
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Italy
Italy
Italy
Corridonia Energia Srl
Cesena (FC)
Italy
Dynamica Srl
Cesena (FC)
Italy
Ecoener Srl
Cesena (FC)
Italy
EUR
101,000
Eni New Energy SpA
100.00
100.00
EUR
EUR
EUR
EUR
EUR
10,000
Eni New Energy SpA
100.00
100.00
10,000
Eni New Energy SpA
100.00
100.00
20,000
SEF Srl
100.00
100.00
50,000
PLT Wind 2022 SpA
100.00
100.00
10,000
PLT Energia Srl
100.00
100.00
Elettro Sannio Wind 2 Srl
Cesena (FC)
Italy
EUR
1,225,000
PLT Wind 2022 SpA
100.00
100.00
Enerkall Srl
Cesena (FC)
Italy
EUR
10,000
PLT Energia Srl
100.00
100.00
Eni New Energy SpA
Eni Plenitude SpA Società Benefit
(ex Eni gas e luce SpA Società
Benefit)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Italy
Italy
EUR
9,296,000
Eni Plenitude SpA SB
100.00
100.00
EUR
770,000,000
Eni SpA
100.00
100.00
Eolica Pietramontecorvino Srl
Cesena (FC)
Italy
EUR
100,000
PLT Energia Srl
100.00
100.00
Eolica Wind Power Srl
Cesena (FC)
Italy
Eolo Energie - Corleone -
Campofiorito Srl
Cesena (FC)
Italy
EUR
EUR
10,000
PLT Wind 2022 SpA
100.00
100.00
10,000
PLT Wind 2020 Srl
100.00
100.00
Evolvere SpA Società Benefit
Milan
Evolvere Venture SpA
Milan
Italy
Italy
EUR
1,130,000
Eni Plenitude SpA SB
Third parties
70.52
29.48
70.52
EUR
50,000
Evolvere SpA Soc. Ben.
100.00
70.52
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(a) Controlling interest: Eni Plenitude SpA SB 100.00.
399
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
400
e
m
a
n
y
n
a
p
m
o
C
Faren Srl
FAS Srl
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Cesena (FC)
Italy
EUR
10,000
SEF Green Srl
100.00
100.00
Cesena (FC)
Italy
EUR
119,000
PLT Energia Srl
100.00
100.00
Finpower Wind Srl
Milan
Italy
EUR
10,000
Eni New Energy SpA
100.00
100.00
Fotovoltaica Pietramontecorvino Srl
Cesena (FC)
Italy
EUR
100,000
SEF Srl
100.00
100.00
FV4P Srl
Forlì (FC)
Italy
Gemsa Solar Srl
Cesena (FC)
Italy
GPC Uno Srl
Cesena (FC)
Italy
GPC Due Srl
Cesena (FC)
Italy
Green Parity Srl
Cesena (FC)
Italy
Lugo Società Agricola Srl
Cesena (FC)
Italy
EUR
EUR
EUR
EUR
EUR
EUR
10,000
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
25,000
SEF Srl
100.00
100.00
12,000
SEF Srl
100.00
100.00
10,000
PLT Energia Srl
100.00
100.00
10,000
SEF Solar Srl
100.00
100.00
Lugo Solar Tech Srl
Cesena (FC)
Italy
EUR
100,000
SEF Solar Srl
100.00
100.00
Marano Solar Srl
Cesena (FC)
Italy
Marano Solare Srl
Cesena (FC)
Italy
Marcellinara Wind Srl
Cesena (FC)
Italy
Micropower Srl
Cesena (FC)
Italy
Molinetto Srl
Cesena (FC)
Italy
Montefano Energia Srl
Cesena (FC)
Italy
Monte San Giusto Solar Srl
Cesena (FC)
Italy
EUR
EUR
EUR
EUR
EUR
EUR
EUR
10,000
SEF Solar Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
35,000
PLT Wind 2022 SpA
100.00
100.00
30,000
PLT Wind 2020 Srl
100.00
100.00
10,000
Faren Srl
100.00
100.00
20,000
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
Olivadi Srl
Cesena (FC)
Italy
EUR
100,000
PLT Wind 2020 Srl
100.00
100.00
Parco Eolico di Tursi e Colobraro Srl Cesena (FC)
Italy
Pescina Wind Srl
Cesena (FC)
Italy
Pieve5 Srl
Cesena (FC)
Italy
EUR
EUR
EUR
31,000
PLT Wind 2022 SpA
100.00
100.00
50,000
PLT Wind 2020 Srl
100.00
100.00
10,000
SEF Solar Srl
100.00
100.00
PLT Energia Srl
Cesena (FC)
Italy
EUR
3,865,474
Eni New Energy SpA
100.00
100.00
PLT Engineering Srl
Cesena (FC)
Italy
EUR
10,000
PLT Energia Srl
100.00
100.00
PLT Puregreen SpA
Cesena (FC)
Italy
EUR
500,000
PLT Energia Srl
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ENI ANNUAL REPORT 2022
401
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
PLT Wind 2020 Srl
Cesena (FC)
Italy
EUR
1,000,000
PLT Energia Srl
100.00
100.00
PLT Wind 2022 SpA
Cesena (FC)
Italy
EUR
1,000,000
PLT Energia Srl
100.00
100.00
Pollenza Sole Srl
Cesena (FC)
Italy
Ravenna 1 FTV Srl
Cesena (FC)
Italy
RF-AVIO Srl
Cesena (FC)
Italy
RF-Cavallerizza Srl
Cesena (FC)
Italy
Ruggiero Wind Srl
Cesena (FC)
Italy
SAV - Santa Maria Srl
Cesena (FC)
Italy
EUR
EUR
EUR
EUR
EUR
EUR
32,500
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
10,000
PLT Energia Srl
100.00
100.00
10,000
PLT Wind 2022 SpA
100.00
100.00
SEA SpA
L'Aquila
Italy
EUR
100,000
Eni Plenitude SpA SB
100.00
100.00
SEF Green Srl
Cesena (FC)
Italy
SEF Miniwind Srl
Cesena (FC)
Italy
SEF Solar Abruzzo Srl
Cesena (FC)
Italy
SEF Solar II Srl
Cesena (FC)
Italy
EUR
EUR
EUR
EUR
500
SEF Srl
100.00
100.00
50,000
SEF Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
1,000
SEF Srl
100.00
100.00
SEF Solar Srl
Cesena (FC)
Italy
EUR
120,000
SEF Srl
100.00
100.00
SEF Srl
Cesena (FC)
Italy
Società Agricola Agricentro Srl
Cesena (FC)
Italy
Società Agricola Casemurate Srl
Cesena (FC)
Italy
EUR
EUR
EUR
25,000
Eni New Energy SpA
100.00
100.00
10,000
SEF Solar Srl
100.00
100.00
10,000
SEF Srl
100.00
100.00
Società Agricola Forestale
Pianura Verde Srl
Cesena (FC)
Italy
EUR
100,000
Soc. Agr. Agricentro Srl
100.00
100.00
Società Agricola Isola d'Agri Srl
Cesena (FC)
Italy
EUR
10,000
SEF Solar Srl
100.00
100.00
Società Agricola L'Albero Azzurro Srl
Cesena (FC)
Italy
EUR
100,000
Soc. Agr. Agricentro Srl
100.00
100.00
Società Agricola SEF Bio Srl
Cesena (FC)
Italy
EUR
10,000
SEF Srl
100.00
100.00
Società Energie Rinnovabili 1 SpA
Rome
Società Energie Rinnovabili SpA
Palermo
Italy
Italy
Timpe Muzzunetti 2 Srl
Cesena (FC)
Italy
Vivaro FTV Srl
Cesena (FC)
Italy
EUR
120,000
SER SpA
CEF 3 Wind Energy
96.00
4.00
100.00
EUR
EUR
EUR
121,636
CEF 3 Wind Energy
100.00
100.00
2,500
PLT Energia Srl
Third parties
10,000
SEF Srl
70.00
30.00
70.00
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
402
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
VRG Wind 127 Srl
Cesena (FC)
Italy
VRG Wind 149 Srl
Cesena (FC)
Italy
W-Energy Srl
Cesena (FC)
Italy
Wind Park Laterza Srl
San Donato
Milanese (MI)
Italy
y
c
n
e
r
r
u
C
EUR
EUR
EUR
EUR
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
10,000
PLT Energia Srl
100.00
100.00
10,000
PLT Wind 2022 SpA
100.00
100.00
93,000
PLT Energia Srl
100.00
100.00
10,000
Eni New Energy SpA
100.00
100.00
Wind Salandra Srl
Cesena (FC)
Italy
EUR
100,000
PLT Wind 2020 Srl
100.00
100.00
Windsol Srl
Cesena (FC)
Italy
EUR
3,250,000
PLT Wind 2020 Srl
100.00
100.00
Wind Turbines Engineering 2 Srl
Cesena (FC)
Italy
EUR
5,450,000
PLT Wind 2020 Srl
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ENI ANNUAL REPORT 2022
403
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Adriaplin Podjetje za distribucijo
zemeljskega plina doo Ljubljana
Ljubljana
(Slovenia)
Slovenia
EUR
12,956,935
Eni Plenitude SpA SB
Third parties
51.00
49.00
51.00
Aleria Solar SAS
Alpinia Solar SLU
Anberia Invest SLU
Argon SAS
Arm Wind Llp
Athies-Samoussy Solar PV1 SAS
Athies-Samoussy Solar PV2 SAS
Athies-Samoussy Solar PV3 SAS
Athies-Samoussy Solar PV4 SAS
Athies-Samoussy Solar PV5 SAS
Belle Magiocche Solaire SAS
Bonete Solar SLU
Brazoria Class B Member Llc
Brazoria County Solar Project Llc
Brazoria HoldCo Llc
Camelia Solar SLU
Celtis Solar SLU
Corazon Energy Class B Llc
Corazon Energy Llc
Corazon Energy Services Llc
Corazon Tax Equity Partnership Llc
Corlinter 5000 SLU
Desarrollos Empresariales Illas SL
Desarrollos Energéticos
Riojanos SLU
France
EUR
100
Eni Plen. Op. Fr. SAS
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
France
EUR
180,000
Eni Plen. Op. Fr. SAS
100.00
100.00
Kazakhstan
KZT 19,069,100,000
Eni Energy Solutions BV
100.00
100.00
France
EUR
68,000
Krypton SAS
100.00
100.00
France
EUR
40,000
Krypton SAS
100.00
100.00
France
EUR
36,000
Krypton SAS
100.00
100.00
France
EUR
14,000
Xenon SAS
100.00
100.00
France
EUR
14,000
Xenon SAS
100.00
100.00
France
EUR
10,000
Eni Plen. Op. Fr. SAS
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
USA
USA
USA
USD
USD
1,000
Eni New Energy US Inc
100.00
100.00
1,000
Brazoria HoldCo Llc
100.00
89.27
USD
206,355,897.15
Brazoria Class B
Third parties
89.27
10.73
89.27
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
USA
USA
USA
USA
USD
USD
USD
100
Eni New Energy US Inc
100.00
100.00
100
Corazon Tax Eq. Part. Llc
100.00
91.74
100
Eni New Energy US Inc
100.00
100.00
USD
199,142,207.16
Corazon En. Class B Llc
Third parties
91.74
8.26
91.74
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
876,042
Eni Plenitude SpA SB
Energías Amb. Outes
60.00
40.00
100.00
Bastia
(France)
Madrid
(Spain)
Madrid
(Spain)
Argenteuil
(France)
Astana
(Kazakhstan)
Argenteuil
(France)
Argenteuil
(France)
Argenteuil
(France)
Argenteuil
(France)
Argenteuil
(France)
Bastia
(France)
Madrid
(Spain)
Dover
(USA)
Dover
(USA)
Dover
(USA)
Madrid
(Spain)
Madrid
(Spain)
Dover
(USA)
Dover
(USA)
Dover
(USA)
Dover
(USA)
Madrid
(Spain)
Madrid
(Spain)
Villarcayo de
Merindad
de Castilla la
Vieja
(Spain)
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
404
e
m
a
n
y
n
a
p
m
o
C
Ecovent Parc Eolic SAU
Ekain Renovables SLU
Energía Eólica Boreas SLU
Energías Ambientales de Outes SLU
Energías Alternativas Eolicas Riojanas SL
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Madrid
(Spain)
Madrid
(Spain)
Madrid
(Spain)
Madrid
(Spain)
Logroño
(Spain)
Eni Energy Solutions BV
Eni Gas & Power France SA
Amsterdam
(Netherlands)
Levallois Perret
(France)
Eni New Energy Australia Pty Ltd
Eni New Energy Batchelor Pty Ltd
Eni New Energy Katherine Pty Ltd
Eni New Energy Manton Dam Pty Ltd
Eni New Energy US Holding Llc
Eni New Energy US Inc
Eni New Energy US Investing Inc
Perth
(Australia)
Perth
(Australia)
Perth
(Australia)
Perth
(Australia)
Dover
(USA)
Dover
(USA)
Dover
(USA)
Eni Plenitude Iberia SLU
(ex Aldro Energía y Soluciones SLU)
Eni Plenitude Operations France SAS
(ex Dhamma Energy SAS)
Santander
(Spain)
Argenteuil
(France)
Eni Plenitude Renewables France SAS
(ex Dhamma Energy Development SAS)
Argenteuil
(France)
Eni Plenitude Renewables Hellas
Single Member SA
Atene
(Greece)
Eni Plenitude Renewables
Luxembourg Sàrl
(ex Dhamma Energy Group Sàrl)
Dudelange
(Luxembourg)
Eni Plenitude Renewables Spain SLU
(ex Dhamma Energy Management SLU)
Madrid
(Spain)
Eni Plenitude Rooftop France SAS
(ex Dhamma Energy Rooftop SAS)
Argenteuil
(France)
Eolica Cuellar de la Sierra SLU
Estanque Redondo Solar SLU
Fotovoltaica Escudero SLU
Madrid
(Spain)
Madrid
(Spain)
Valencia
(Spain)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Spain
EUR
1,037,350
Eni Plenitude SpA SB
100.00
100.00
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
Spain
EUR
3,000
Eni Plenitude SpA SB
100.00
100.00
Spain
EUR
643,451.49
Eni Plenitude SpA SB
100.00
100.00
Spain
EUR
2,008,901.71
Eni Plenitude SpA SB
Desarrollos Energéticos
57.50
42.50
100.00
Netherlands
EUR
20,000
Eni Plenitude SpA SB
100.00
100.00
France
EUR
239,500,800
Eni Plenitude SpA SB
Third parties
99.99
(..)
100.00
Australia
AUD
Australia
AUD
Australia
AUD
Australia
AUD
USA
USA
USA
USD
USD
USD
4
1
1
1
Eni Plenitude SpA SB
100.00
100.00
Eni New En. Aus. Pty Ltd
100.00
100.00
Eni New En. Aus. Pty Ltd
100.00
100.00
Eni New En. Aus. Pty Ltd
100.00
100.00
100
Eni New Energy US Inc
Eni New Energy US Inv. Inc
99.00
1.00
100.00
100
Eni Plenitude SpA SB
100.00
100.00
1,000
Eni New Energy US Inc
100.00
100.00
Spain
EUR
3,192,000
Eni Plenitude SpA SB
100.00
100.00
France
EUR
1,116,489.72
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
France
EUR
51,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Greece
EUR
627,464
Eni Plenitude SpA SB
100.00
100.00
Luxembourg EUR
10,253,560
Eni Plenitude SpA SB
100.00
100.00
Spain
EUR
6,680
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
France
EUR
40,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
110,999.77
PLT Spain SL
100.00
51.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Gas Supply Company
Thessaloniki - Thessalia SA
Thessaloniki
(Greece)
Greece
EUR
13,761,788
Eni Plenitude SpA SB
100.00
100.00
Guajillo Energy Storage Llc
Guilleus Consulting SLU
Dover
(USA)
Madrid
(Spain)
USA
USD
100
Eni New Energy US H. Llc
100.00
100.00
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
ENI ANNUAL REPORT 2022
405
e
m
a
n
y
n
a
p
m
o
C
Holding Lanas Solar Sàrl
Inveese SAS
Ixia Solar SLU
Krypton SAS
Lanas Solar SAS
Membrio Solar SLU
Miburia Trade SLU
Olea Solar SLU
Opalo Solar SLU
Pistacia Solar SLU
PLT Colombia SAS
PLT Engineering Colombia SAS
PLT Engineering Romania Srl
PLT Engineering Spain SLU
PLT Spain SL
POP Solar SAS
Punes Trade SLU
SKGRPV1 Single Member Private
Company
SKGRPV2 Single Member Private
Company
SKGRPV3 Single Member Private
Company
SKGRPV4 Single Member Private
Company
SKGRPV5 Single Member Private
Company
SKGRPV6 Single Member Private
Company
SKGRPV7 Single Member Private
Company
SKGRPV8 Single Member Private
Company
SKGRPV9 Single Member Private
Company
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
France
EUR
100
Eni Plen. Op. Fr. SAS
100.00
100.00
Colombia
COP
100,000,000
PLT Colombia SAS
Third parties
75.00
25.00
38.25
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
France
EUR
180,000
Eni Plen. Op. Fr. SAS
100.00
100.00
France
EUR
100
Holding Lanas Solar
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Colombia
COP
510,840,000
Colombia
COP
1,000,000
Romania
RON
4,400
PLT Energia Srl
Third parties
PLT Engineering Srl
Third parties
PLT Engineering Srl
Micropower Srl
51.00
49.00
60.00
40.00
95.00
5.00
51.00
60.00
100.00
Spain
EUR
3,000
PLT Engineering Srl
100.00
100.00
Spain
EUR
100,000
PLT Energia Srl
Third parties
51.00
49.00
51.00
France
EUR
1,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
Spain
EUR
3,000
PLT Eng. Spain SLU
100.00
100.00
Greece
EUR
14,600
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
14,600
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
14,600
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
13,600
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
13,600
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,300
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
31,000
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,200
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,200
Eni Plen. Renew. Hellas
100.00
100.00
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Argenteuil
(France)
Bogotá
(Colombia)
Madrid
(Spain)
Argenteuil
(France)
Argenteuil
(France)
Madrid
(Spain)
Madrid
(Spain)
Madrid
(Spain)
Madrid
(Spain)
Madrid
(Spain)
Bogotá
(Colombia)
Bogotá
(Colombia)
Cluj-Napoca
(Romania)
Madrid
(Spain)
Madrid
(Spain)
Argenteuil
(France)
Madrid
(Spain)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
406
e
m
a
n
y
n
a
p
m
o
C
SKGRPV10 Single Member Private
Company
SKGRPV11 Single Member Private
Company
SKGRPV12 Single Member Private
Company
SKGRPV13 Single Member Private
Company
SKGRPV14 Single Member Private
Company
SKGRPV15 Single Member Private
Company
SKGRPV16 Single Member Private
Company
SKGRPV17 Single Member Private
Company
SKGRPV18 Single Member Private
Company
SKGRPV19 Single Member Private
Company
SKGRPV20 Single Member Private
Company
Tebar Solar SLU
Xenon SAS
Zinnia Solar SLU
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Greece
EUR
18,800
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
25,300
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,000
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
30,900
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
39,900
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,000
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
19,000
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
10,200
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
5,200
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
12,200
Eni Plen. Renew. Hellas
100.00
100.00
Greece
EUR
12,200
Eni Plen. Renew. Hellas
100.00
100.00
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
France
EUR
1,500,100
Eni Plen. Op. Fr. SAS
Third parties
(a) 100.00
0.01
99.99
Spain
EUR
3,000
Eni Plen. Ren. Lux. Sàrl
100.00
100.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Atene
(Greece)
Madrid
(Spain)
Argenteuil
(France)
Madrid
(Spain)
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(a) Controlling interest: Eni Plenitude Operations France SAS 100.00.
ENI ANNUAL REPORT 2022
407
Power
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
EniPower Mantova SpA
EniPower SpA
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
San Donato
Milanese (MI)
San Donato
Milanese (MI)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
Italy
Italy
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
EUR
144,000,000
EUR
200,000,000
EniPower SpA
Third parties
Eni SpA
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
o
i
t
a
r
y
t
i
u
q
E
%
44.12
51.00
F.C.
p
i
h
s
r
e
n
w
O
%
86.50
13.50
51.00
49.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
408
Corporate and Other activities
Corporate and financial companies
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Agenzia Giornalistica Italia SpA
Rome
Italy
EUR
2,000,000
Eni SpA
100.00
100.00
D-Share SpA
Milan
Italy
EUR
121,719.25
AGI SpA
100.00
100.00
Eni Corporate University SpA
Eni Energia Italia Srl
Eni Trading & Shipping SpA
(in liquidation)
EniProgetti SpA
EniServizi SpA
Eniverse Ventures Srl
(ex Eni Nuova Energia Srl)
Serfactoring SpA
(in liquidation)
Servizi Aerei SpA
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Banque Eni SA
Eni Finance International SA
Eni Finance USA Inc
Eni Insurance DAC
Eni International BV
Eni International Resources Ltd
Eni Next Llc
EniProgetti Egypt Ltd
Italy
EUR
3,360,000
Eni SpA
100.00
100.00
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Italy
EUR
50,000
Eni SpA
Rome
Italy
EUR
334,171
Eni SpA
100.00
100.00
Venezia
Marghera (VE)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Bruxelles
(Belgium)
Bruxelles
(Belgium)
Dover
(USA)
Dublin
(Ireland)
Amsterdam
(Netherlands)
London
(United
Kingdom)
Dover
(USA)
Cairo
(Egypt)
Italy
EUR
2,064,000
Eni SpA
100.00
100.00
Italy
EUR
13,427,419.08
Eni SpA
100.00
100.00
Italy
EUR
50,000
Eni SpA
100.00
Italy
EUR
5,160,000
Eni SpA
100.00
100.00
Italy
EUR
48,205,536
Eni SpA
100.00
100.00
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Belgium
EUR
50,000,000
Belgium
USD
1,480,365,336
Eni International BV
Eni Oil Holdings BV
Eni International BV
Eni SpA
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
99.90
0.10
66.39
33.61
100.00
100.00
USA
USD
2,500,000
Eni Petroleum Co Inc
100.00
100.00
Ireland
EUR
500,000,000
Eni SpA
100.00
100.00
Netherlands
EUR
641,683,425
Eni SpA
100.00
100.00
United
Kingdom
GBP
50,000
Eni SpA
Eni UK Ltd
99.99
(..)
100.00
USA
USD
100
Eni Petroleum Co Inc
100.00
100.00
Egypt
EGP
50,000
EniProgetti SpA
Eni SpA
99.00
1.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
Co.
Co.
F.C.
F.C.
Co.
F.C.
F.C.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ENI ANNUAL REPORT 2022
Other activities
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Eni Rewind SpA
Industria Siciliana Acido
Fosforico - ISAF - SpA
(in liquidation)
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Eni Rewind International BV
Oleodotto del Reno SA
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
San Donato
Milanese (MI)
Gela (CL)
Italy
Italy
EUR
101,950,844.46
EUR
1,300,000
Eni SpA
Third parties
Eni Rewind SpA
Third parties
o
i
t
a
r
y
t
i
u
q
E
%
100.00
p
i
h
s
r
e
n
w
O
%
99.99
(..)
52.00
48.00
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Amsterdam
(Netherlands)
Coira
(Switzerland)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Netherlands
EUR
20,000
Eni International BV
100.00
Switzerland
CHF
1,550,000
Eni Rewind SpA
100.00
409
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.C.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
410
JOINT ARRANGEMENTS AND ASSOCIATES
Exploration & Production
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Agri-Energy Srl(†)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Jolanda di Savoia
(FE)
Italy
EUR
50,000
Eni Natural
Energies SpA
Third parties
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
50.00
50.00
Azule Energy Angola SpA
(ex Eni Angola SpA)
Mozambique Rovuma Venture SpA(†)
San Donato
Milanese (MI)
San Donato
Milanese (MI)
Angola
EUR
20,200,000
Azule Energy Hold. Ltd
100.00
Mozambique
EUR
20,000,000
Eni SpA
Third parties
35.71
64.29
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Agiba Petroleum Co(†)
Angola JVCO Ltd
Ashrafi Island Petroleum Co
(in liquidation)
Azule Energy Gas Supply Services Inc
Azule Energy Holdings Ltd(†)
Barentsmorneftegaz Sàrl(†)
BP Angola (Block 18) BV
BP Exploration Angola
(Kwanza Benguela) Ltd
BP Exploration (Angola) Ltd
BP Gas Supply (Angola) LLc
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Cairo
(Egypt)
Sunbury-On-
Thames
(United
Kingdom)
Cairo
(Egypt)
Houston
(USA)
London
(United
Kingdom)
Luxembourg
(Luxembourg)
Rotterdam
(Netherlands)
Sunbury-On-
Thames
(United
Kingdom)
Sunbury-On-
Thames
(United
Kingdom)
Wilmington
(USA)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Egypt
EGP
20,000
Ieoc Production BV
Third parties
50.00
50.00
Angola
USD
1,000
Azule Energy Hold. Ltd
100.00
Egypt
EGP
20,000
Ieoc Production BV
Third parties
25.00
75.00
1,000
Azule Energy Hold. Ltd
100.00
USA
United
Kingdom
USD
USD
1,000,000
Eni International BV
Third parties
Russia
USD
20,000
Eni Energy Russia BV
Third parties
Angola
EUR
2,275,625.42
Angola JVCO Ltd
Angola
USD
1
Angola JVCO Ltd
100.00
Angola
USD
1,000,000
Angola JVCO Ltd
100.00
50.00
50.00
33.33
66.67
100.00
Cabo Delgado Gas Development
Limitada(†)
Maputo
(Mozambique)
Mozambique MZN
2,500,000
Angola
USD
12,800,000
Azule En. Gas Sup. S.
Inc
100.00
Eni Mozambique LNG
H. BV
Third parties
50.00
50.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Co.
Co.
Eq.
Eq.
Co.
ENI ANNUAL REPORT 2022
e
m
a
n
y
n
a
p
m
o
C
Cardón IV SA(†)
Compañia Agua Plana SA
Coral FLNG SA
Coral South FLNG DMCC
East Delta Gas Co
(in liquidation)
East Kanayis Petroleum Co(†)
East Obaiyed Petroleum Co(†)
El Temsah Petroleum Co
El-Fayrouz Petroleum Co(†)
(in liquidation)
Eni Angola Exploration BV
Eni Angola Production BV
Fedynskmorneftegaz Sàrl(†)
Isatay Operating Company Llp(†)
Karachaganak Petroleum
Operating BV
Khaleej Petroleum Co Wll
Liberty National
Development Co Llc
Mediterranean Gas Co
Meleiha Petroleum Company(†)
Mellitah Oil & Gas BV(†)
Nile Delta Oil Co Nidoco
Norpipe Terminal HoldCo Ltd
North Bardawil Petroleum Co
(in liquidation)
North El Burg Petroleum Co
Petrobel Belayim Petroleum Co(†)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Caracas
(Venezuela)
Caracas
(Venezuela)
Maputo
(Mozambique)
Dubai
(United Arab
Emirates)
Cairo
(Egypt)
Cairo
(Egypt)
Cairo
(Egypt)
Cairo
(Egypt)
Cairo
(Egypt)
Amsterdam
(Netherlands)
Amsterdam
(Netherlands)
Luxembourg
(Luxembourg)
Astana
(Kazakhstan)
Amsterdam
(Netherlands)
Safat
(Kuwait)
Wilmington
(USA)
Cairo
(Egypt)
Cairo
(Egypt)
Amsterdam
(Netherlands)
Cairo
(Egypt)
London
(United
Kingdom)
Cairo
(Egypt)
Cairo
(Egypt)
Cairo
(Egypt)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
Venezuela
VED
Venezuela
VED
l
a
t
i
p
a
C
e
r
a
h
S
0
0
Mozambique MZN
100,000,000
United Arab
Emirates
AED
500,000
Egypt
EGP
20,000
Egypt
EGP
20,000
Egypt
EGP
20,000
Egypt
EGP
20,000
Egypt
EGP
20,000
s
r
e
d
l
o
h
e
r
a
h
S
Eni Venezuela BV
Third parties
Eni Venezuela BV
Third parties
Eni Mozambique LNG
H. BV
Third parties
Eni Mozambique LNG
H. BV
Third parties
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Ieoc Exploration BV
Third parties
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
50.00
50.00
26.00
74.00
25.00
75.00
25.00
75.00
37.50
62.50
50.00
50.00
50.00
50.00
25.00
75.00
50.00
50.00
Angola
EUR
20,000
Azule Energy Hold. Ltd
100.00
Angola
EUR
20,000
Azule Energy Hold. Ltd
100.00
Russia
USD
20,000
Kazakhstan
KZT
400,000
Kazakhstan
EUR
20,000
Kuwait
KWD
250,000
Eni Energy Russia BV
Third parties
Eni Isatay
Third parties
Agip Karachaganak BV
Third parties
Eni Middle E. Ltd
Third parties
USA
USD
0(a) Eni Oil & Gas Inc
Third parties
Egypt
EGP
20,000
Egypt
EGP
20,000
Libia
EUR
20,000
Egypt
EGP
20,000
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Eni North Africa BV
Third parties
Ieoc Production BV
Third parties
Norway
GBP
55.69
Eni SpA
Third parties
Egypt
EGP
20,000
Egypt
EGP
20,000
Egypt
EGP
20,000
Ieoc Exploration BV
Third parties
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
33.33
66.67
50.00
50.00
29.25
70.75
49.00
51.00
32.50
67.50
25.00
75.00
50.00
50.00
50.00
50.00
37.50
62.50
14.20
85.80
30.00
70.00
25.00
75.00
50.00
50.00
40.00
60.00
PetroBicentenario SA(†)
Caracas
(Venezuela)
Venezuela
VED
0
Eni Lasmo Plc
Third parties
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
(a) Shares without nominal value.
411
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Co.
Eq.
Eq.
Co.
Co.
Co.
Co.
Eq.
Co.
Co.
Eq.
Eq.
Co.
Co.
Co.
Co.
Eq.
Co.
Co.
Eq.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
412
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
PetroJunín SA(†)
PetroSucre SA
Pharaonic Petroleum Co
Port Said Petroleum Co(†)
Qatar Liquefied Gas
Company Limited (9)
Raml Petroleum Co
Ras Qattara Petroleum Co
Rovuma LNG Investment
(DIFC) Ltd
Rovuma LNG SA
Shorouk Petroleum Company
Société Centrale Electrique
du Congo SA
Société Italo Tunisienne
d’Exploitation Pétrolière SA(†)
Sodeps - Société de Developpement
et d’Exploitation du Permis du Sud SA(†)
Solenova Ltd(†)
Thekah Petroleum Co
(in liquidation)
United Gas Derivatives Co
Vår Energi ASA(#)
VIC CBM Ltd(†)
Virginia Indonesia Co CBM Ltd(†)
West Ashrafi Petroleum Co(†)
(in liquidation)
Caracas
(Venezuela)
Caracas
(Venezuela)
Venezuela
VED
Venezuela
VED
0.02
Eni Lasmo Plc
Third parties
0
Eni Venezuela BV
Third parties
Cairo
(Egypt)
Cairo
(Egypt)
Doha
(Qatar)
Cairo
(Egypt)
Cairo
(Egypt)
Dubai
(United Arab
Emirates)
Maputo
(Mozambique)
Cairo
(Egypt)
Pointe-Noire
(Republic
of the Congo)
Tunis
(Tunisia)
Tunis
(Tunisia)
London
(United
Kingdom)
Cairo
(Egypt)
New Cairo
(Egypt)
Sandnes
(Norway)
London
(United
Kingdom)
London
(United
Kingdom)
Cairo
(Egypt)
Egypt
EGP
20,000
Egypt
EGP
20,000
Qatar
USD
1,175,885,000
Egypt
EGP
20,000
Egypt
EGP
20,000
Mozambique USD
50,000
Mozambique MZN
100,000,000
Egypt
EGP
20,000
Republic
of the Congo
XAF
44,732,000,000
Tunisia
TND
5,000,000
Tunisia
TND
100,000
Angola
USD
1,580,000
Egypt
EGP
20,000
Egypt
USD
153,000,000
Norway
NOK
399,425,000
Indonesia
USD
52,315,912
Indonesia
USD
25,631,640
Egypt
EGP
20,000
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Eni Qatar BV
Third parties
Ieoc Production BV
Third parties
Ieoc Production BV
Third parties
Eni Mozambique LNG
H. BV
Third parties
Eni Mozambique LNG
H. BV
Third parties
Ieoc Production BV
Third parties
Eni Congo SA
Third parties
Eni Tunisia BV
Third parties
Eni Tunisia BV
Third parties
Eni E&P Holding BV
Third parties
Ieoc Exploration BV
Third parties
Eni International BV
Third parties
Eni International BV
Third parties
Eni Lasmo Plc
Third parties
Eni Lasmo Plc
Third parties
Ieoc Exploration BV
Third parties
40.00
60.00
26.00
74.00
25.00
75.00
50.00
50.00
25.00
75.00
22.50
77.50
37.50
62.50
25.00
75.00
25.00
75.00
25.00
75.00
20.00
80.00
50.00
50.00
50.00
50.00
50.00
50.00
25.00
75.00
33.33
66.67
63.08
36.92
50.00
50.00
50.00
50.00
50.00
50.00
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Co.
Co.
Eq.
Co.
Co.
Eq.
Eq.
Co.
Eq.
Eq.
Co.
Co.
Eq.
Eq.
Eq.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(#) Company with shares quoted on regulated market of extra-EU countries.
(†) Jointly controlled entity.
ENI ANNUAL REPORT 2022
413
Global Gas & LNG Portfolio
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Mariconsult SpA(†)
Milan
Italy
EUR
120,000
Transmed SpA(†)
Milan
Italy
EUR
240,000
Eni Corridor Srl
Third parties
Eni Corridor Srl
Third parties
OUTSIDE OF ITALY
e
m
a
n
y
n
a
p
m
o
C
Blue Stream Pipeline Co BV(†)
Damietta LNG (DLNG) SAE(†)
DLNG Service SAE(†)
(ex SEGAS Services SAE)
GreenStream BV(†)
Premium Multiservices SA
SAMCO Sagl
Société Energies Renouvelables
Eni-ETAP SA(†)
Transmediterranean
Pipeline Co Ltd(†)(10)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Amsterdam
(Netherlands)
Damietta
(Egypt)
Damietta
(Egypt)
Amsterdam
(Netherlands)
Tunis
(Tunisia)
Lugano
(Switzerland)
Tunis
(Tunisia)
St. Helier
(Jersey)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Russia
USD
22,000
Egypt
USD
375,000,000
Egypt
USD
1,000,000
Libia
EUR
200,000,000
Tunisia
TND
200,000
Switzerland CHF
20,000
Tunisia
TND
1,000,000
Jersey
USD
10,310,000
Eni International BV
Third parties
Eni Gas Liquef. BV
Third parties
Damietta LNG
Eni Gas Liquef. BV
Third parties
Eni North Africa BV
Third parties
Sergaz SA
Third parties
Transmed. Pip. Co Ltd
Eni Corridor Srl
Third parties
Eni International BV
Third parties
Eni Corridor Srl
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
J.O.
J.O.
J.O.
o
i
t
a
r
y
t
i
u
q
E
%
o
i
t
a
r
y
t
i
u
q
E
%
74.62(a)
50.00
50.00
50.00
J.O.
Eq.
Eq.
Eq.
50.00
J.O.
p
i
h
s
r
e
n
w
O
%
50.00
50.00
50.00
50.00
p
i
h
s
r
e
n
w
O
%
50.00
50.00
50.00
50.00
98.00
1.00
1.00
50.00
50.00
49.99
50.01
90.00
5.00
5.00
50.00
50.00
50.00
50.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
(a) Equity ratio equal to the Eni's working interest.
(10) Company that benefits from a privileged tax regime pursuant to art. 167, paragraph 4 of the D.P.R. of December 22, 1986, n. 917: the company is subjected to taxation
in Italy because it is included in Eni's tax return. The company is considered as a controlled entity pursuant to art. 167, paragraph 2 of the TUIR.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
414
Refining & Marketing and Chemical
Refining & Marketing
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
65.00
J.O.
Eq.
Eq.
50.00
J.O.
Ecofuel SpA
Third parties
Ecofuel SpA
Third parties
Ecofuel SpA
Third parties
Ecofuel SpA
Third parties
Ecofuel SpA
Third parties
Ecofuel SpA
Third parties
Eni SpA
Third parties
Eni SpA
Third parties
Ecofuel SpA
Third parties
Eni SpA
Third parties
Eni SpA
Third parties
50.00
50.00
44.78
55.22
25.00
75.00
65.00
35.00
25.00
75.00
40.50
59.50
50.00
50.00
25.00
75.00
35.00
65.00
70.00
30.00
50.00
50.00
Arezzo Gas SpA(†)
Arezzo
Italy
EUR
394,000
CePIM Centro Padano
Interscambio Merci SpA
Fontevivo (PR)
Italy
EUR
6,642,928.32
Consorzio Operatori GPL di Napoli
Napoli
Costiero Gas Livorno SpA(†)
Livorno
Italy
Italy
EUR
102,000
EUR
26,000,000
Disma SpA
Segrate (MI)
Italy
EUR
2,600,000
Porto Petroli di Genova SpA
Genova
Italy
EUR
2,068,000
Raffineria di Milazzo ScpA(†)
Milazzo (ME)
Italy
EUR
171,143,000
Seram SpA
Fiumicino (RM)
Italy
EUR
852,000
Sigea Sistema Integrato
Genova Arquata SpA
Società Oleodotti
Meridionali - SOM SpA(†)
Genova
Rome
South Italy Green Hydrogen Srl(†)
Rome
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Italy
Italy
Italy
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
EUR
3,326,900
EUR
3,085,000
EUR
10,000
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Abu Dhabi Oil Refining Company
(TAKREER)
ADNOC Global Trading Ltd
Abu Dhabi
(United Arab
Emirates)
Abu Dhabi
(United Arab
Emirates)
United Arab
Emirates
United Arab
Emirates
AED
500,000,000
Eni Abu Dhabi R&T
Third parties
USD
100,000,000
Eni Abu Dhabi R&T
Third parties
AET - Raffineriebeteiligungsgesellschaft
mbH(†)
Schwedt
(Germany)
Germany
EUR
27,000
Bayernoil Raffineriegesellschaft mbH(†)
City Carburoil SA(†)
Vohburg
(Germany)
Monteceneri
(Switzerland)
Germany
EUR
10,226,000
Switzerland
CHF
6,000,000
Eni Deutsch. GmbH
Third parties
Eni Deutsch. GmbH
Third parties
Eni Suisse SA
Third parties
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
o
i
t
a
r
y
t
i
u
q
E
%
20.00
p
i
h
s
r
e
n
w
O
%
20.00
80.00
20.00
80.00
33.33
66.67
20.00
80.00
49.91
50.09
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Co.
Eq.
Eq.
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
J.O.
Eq.
ENI ANNUAL REPORT 2022
415
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Co.
Eq.
Eq.
Co.
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Egypt
EGP
100,000,000
Singapore
SGD
12,000,000
Eni International BV
Third parties
Eni International BV
Third parties
France
EUR
0
Eni France Sàrl
Third parties
Tunisia
TND
1,000,000
Eni International BV
Third parties
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
40.00
60.00
22.50
77.50
25.00
75.00
34.00
66.00
Netherlands
EUR
67,500
Eni Sust. Mobility SpA
Routex BV
Third parties
(a)
20.00
20.00
60.00
Switzerland
CHF
420,000
Eni Suisse SA
Third parties
Venezuela
VED
0
Ecofuel SpA
Supermetanol CA
Third parties
Austria
EUR
43,603.70
Germany
EUR
409,034
Eni Marketing A. GmbH
Third parties
Eni Deutsch. GmbH
Third parties
20.00
80.00
34.51
30.07
35.42
50.00
50.00
20.00
80.00
50.00(b)
J.O.
Eq.
Eq.
e
m
a
n
y
n
a
p
m
o
C
Egyptian International
Gas Technology Co
ENEOS Italsing Pte Ltd
Fuelling Aviation Services GIE
Mediterranée Bitumes SA
Routex BV
Saraco SA
Supermetanol CA(†)
TBG Tanklager
Betriebsgesellschaft GmbH(†)
Weat Electronic Datenservice GmbH
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
New Cairo
(Egypt)
Singapore
(Singapore)
Tremblay-en-
France
(France)
Tunis
(Tunisia)
Amsterdam
(Netherlands)
Meyrin
(Switzerland)
Jose Puerto La
Cruz
(Venezuela)
Salisburgo
(Austria)
Düsseldorf
(Germany)
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
(a) Controlling interest:
Eni Sustainable Mobility SpA 25.00
75.00
Third parties
(b) Equity ratio equal to the Eni's working interest.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
416
Chemical
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Brindisi Servizi Generali Scarl
Brindisi
Italy
EUR
1,549,060
IFM Ferrara ScpA
Ferrara
Italy
EUR
5,304,464
Matrìca SpA(†)
Novamont SpA
Porto Torres
(SS)
Novara
Italy
Italy
EUR
37,500,000
EUR
20,000,000
Priolo Servizi ScpA
Melilli (SR)
Italy
EUR
28,100,000
Ravenna Servizi Industriali ScpA
Ravenna
Italy
EUR
5,597,400
Servizi Porto Marghera Scarl
Venezia
Marghera (VE)
Italy
EUR
8,695,718
Versalis SpA
Eni Rewind SpA
EniPower SpA
Third parties
Versalis SpA
Eni Rewind SpA
S.E.F. Srl
Third parties
Versalis SpA
Third parties
Versalis SpA
Third parties
Versalis SpA
Eni Rewind SpA
Third parties
Versalis SpA
EniPower SpA
Ecofuel SpA
Third parties
Versalis SpA
Eni Rewind SpA
Third parties
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Lotte Versalis Elastomers Co Ltd(†)
Versalis Chem-invest Llp(†)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Yeosu
(South Korea)
Uralsk City
(Kazakhstan)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
South Korea KRW 551,800,000,000
Versalis SpA
Third parties
Kazakhstan
KZT
64,194,000
Versalis International SA
Third parties
VPM Oilfield Specialty Chemicals Llc(†)
Abu Dhabi
(United Arab
Emirates)
United Arab
Emirates
AED
1,000,000
Versalis International SA
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
o
i
t
a
r
y
t
i
u
q
E
%
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
49.00
20.20
8.90
21.90
19.61
11.51
10.63
58.25
50.00
50.00
35.00
65.00
37.22
5.65
57.13
42.13
30.37
1.85
25.65
48.44
38.39
13.17
p
i
h
s
r
e
n
w
O
%
50.00
50.00
49.00
51.00
49.00
51.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
ENI ANNUAL REPORT 2022
417
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
Eq.
Eq.
o
i
t
a
r
y
t
i
u
q
E
%
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
50.00
50.00
50.00
50.00
45.45
54.55
51.00
49.00
65.00
35.00
40.00
60.00
51.00
49.00
36.00
64.00
p
i
h
s
r
e
n
w
O
%
99.00
1.00
40.00
60.00
51.00
49.00
25.00
75.00
49.00
51.00
Plenitude & Power
Plenitude
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
Bettercity SpA
E-Prosume Srl(†)
(in liquidation)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Bergamo
Milan
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
Italy
Italy
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
EUR
50,000
EUR
100,000
Eni Plenitude SpA SB
Third parties
Evolvere Venture SpA
Third parties
Evolvere Venture SpA
Third parties
Evogy Srl Società Benefit
Seriate (BG)
Italy
EUR
11,785.71
GreenIT SpA(†)
Hergo Renewables SpA(†)
Renewable Dispatching Srl
San Donato
Milanese (MI)
Milan
Milan
Italy
Italy
Italy
EUR
EUR
50,000
Eni Plenitude SpA SB
Third parties
50,000
Eni Plenitude SpA SB
Third parties
EUR
200,000
Evolvere Venture SpA
Third parties
Siel Agrisolare Srl(†)
Cesena (FC)
Italy
EUR
10,000
Tate Srl
Bologna
Italy
EUR
408,509.29
SEF Srl
Third parties
Evolvere Venture SpA
Third parties
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Bluebell Solar Class A Holdings II Llc
Wilmington
(USA)
USA
USD
82,351,634
Eni New Energy US Inc
Third parties
Clarensac Solar SAS
Enera Conseil SAS(†)
EnerOcean SL(†)
Meyreuil
(France)
Clichy
(France)
Malaga
(Spain)
France
EUR
25,000
France
EUR
9,690
Spain
EUR
409,784
Eni Plen. Op. Fr. SAS
Third parties
Eni G&P France SA
Third parties
Eni Plenitude SpA SB
Third parties
Novis Renewables Holdings Llc
Wilmington
(USA)
USA
USD
100
Eni New Energy US Inc
Third parties
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
418
e
m
a
n
y
n
a
p
m
o
C
Novis Renewables Llc(†)
POW - Polish Offshore
Wind-Co Sp zoo(†)
Vårgrønn AS(†)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Wilmington
(USA)
Warsaw
(Poland)
Stavanger
(Norway)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
USA
USD
100
Eni New Energy US Inc
Third parties
Polonia
PLN
5,000
Norway
NOK
400,000
Eni En. Solutions BV
Third parties
Eni En. Solutions BV
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
50.00
50.00
95.00
5.00
65.00
35.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
ENI ANNUAL REPORT 2022
Power
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
Società EniPower Ferrara Srl(†)
San Donato
Milanese (MI)
Italy
EUR
140,000,000
EniPower SpA
Third parties
51.00
49.00
26.01
419
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
J.O.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
420
Corporate and Other activities
Corporate and financial companies
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Consorzio per l'attuazione del Progetto
Divertor Tokamak Test DTT Scarl(†)
Frascati (RM)
Italy
EUR
1,000,000
Saipem SpA(#)(†)
Milan
Italy
EUR
501,669,790.83
Eni SpA
Third parties
Eni SpA
Saipem SpA
Third parties
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Avanti Battery Company(b)
Commonwealth Fusion Systems Llc(b)
Cool Planet Technologies Ltd(b)
CZero Inc(b)
Form Energy Inc(b)
M2X Energy Inc(b)
(ex Obantarla Corp.)
sHYp BV PBC(b)
Tecninco Engineering
Contractors Llp(†)
Thiozen Inc(b)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Natick
(USA)
Wilmington
(USA)
London
(United
Kingdom)
Wilmington
(USA)
Somerville
(USA)
Wilmington
(USA)
Wilmington
(USA)
Aksai
(Kazakhstan)
Wilmington
(USA)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
USA
USA
United
Kingdom
USA
USA
USA
USA
y
c
n
e
r
r
u
C
USD
USD
GBP
USD
USD
USD
USD
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
683
890
Eni Next Llc
Third parties
Eni Next Llc
Third parties
1,000
Eni Next Llc
Third parties
334
Eni Next Llc
Third parties
1,129
Eni Next Llc
Third parties
99
86
Eni Next Llc
Third parties
Eni Next Llc
Third parties
Kazakhstan
KZT
29,478,455
EniProgetti SpA
Third parties
49.00
51.00
USA
USD
351
Eni Next Llc
Third parties
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
25.00
75.00
(a)
31.19
0.02
68.79
p
i
h
s
r
e
n
w
O
%
o
i
t
a
r
y
t
i
u
q
E
%
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Co.
Eq.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(#) Company with shares quoted on regulated market of Italy or of other EU countries.
(†) Jointly controlled entity.
(a) Controlling interest: Eni SpA
Third parties
31.20
68.80
(b) The information relating to the share capital refers to ordinary shares.
ENI ANNUAL REPORT 2022
421
Other activities
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
HEA SpA(†)
Bologna
Italy
Progetto Nuraghe Scarl
Porto Torres (SS)
Italy
y
c
n
e
r
r
u
C
EUR
EUR
l
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
50,000
Eni Rewind SpA
Third parties
10,000
Eni Rewind SpA
Third parties
o
i
t
a
r
y
t
i
u
q
E
%
p
i
h
s
r
e
n
w
O
%
50.00
50.00
48.55
51.45
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
Co.
Eq.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(†) Jointly controlled entity.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
422
Other significant investments
Exploration & Production
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
BF SpA(#)
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Jolanda di Savoia
(FE)
Italy
EUR
187,059,565
Eni Natural Energies SpA
Third parties
Consorzio Universitario in Ingegneria
per la Qualità e l’Innovazione
Pisa
Italy
EUR
138,000
Eni SpA
Third parties
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
Administradora del Golfo de Paria Este SA
Brass LNG Ltd
Darwin LNG Pty Ltd
New Liberty Residential Co Llc
Nigeria LNG Ltd
North Caspian Operating Co NV
Petrolera Güiria SA
Torsina Oil Co
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Caracas
(Venezuela)
Lagos
(Nigeria)
West Perth
(Australia)
West Trenton
(USA)
Port Harcourt
(Nigeria)
The Hauge
(Netherlands)
Caracas
(Venezuela)
Cairo
(Egypt)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Venezuela
VED
0
Eni Venezuela BV
Third parties
Nigeria
USD
1,000,000
Australia
AUD
187,569,921.42
Eni Int. NA NV Sàrl
Third parties
Eni G&P LNG Aus. BV
Third parties
USA
USD
0(a) Eni Oil & Gas Inc
Third parties
Nigeria
USD
1,138,207,000
Kazakhstan
EUR
128,520
Eni Int. NA NV Sàrl
Third parties
Agip Caspian Sea BV
Third parties
Venezuela
VED
0
Eni Venezuela BV
Third parties
Egypt
EGP
20,000
Ieoc Production BV
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
F.V.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
p
i
h
s
r
e
n
w
O
%
3.32
96.68
16.67
83.33
p
i
h
s
r
e
n
w
O
%
19.50
80.50
20.48
79.52
10.99
89.01
17.50
82.50
10.40
89.60
16.81
83.19
19.50
80.50
12.50
87.50
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(#) Company with shares quoted on regulated market of Italy or of other EU countries.
(a) Shares without nominal value.
ENI ANNUAL REPORT 2022
Global Gas & LNG Portfolio
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
Norsea Gas GmbH
Friedeburg-Etzel
(Germany)
Germany
EUR
1,533,875.64
Eni International BV
Third parties
13.04
86.96
423
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
424
Refining & Marketing and Chemical
Refining & Marketing
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
BFS Berlin Fuelling Services GbR
Compañia de Economia Mixta "Austrogas"
Dépôt Pétrolier de la Côte d’Azur SAS
Dépôts Pétroliers de Fos SA
Joint Inspection Group Ltd
Saudi European Petrochemical Co
"IBN ZAHR"
S.I.P.G. Société Immobilière Pétrolière
de Gestion Snc
Sistema Integrado de Gestion
de Aceites Usados
Tanklager - Gesellschaft Tegel (TGT) GbR
TAR - Tankanlage Ruemlang AG
Tema Lube Oil Co Ltd
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
Berlin
(Germany)
Cuenca
(Ecuador)
Nanterre
(France)
Fos-Sur-Mer
(France)
Cambourne
(United
Kingdom)
Al Jubail
(Saudi Arabia)
Tremblay-en-
France
(France)
Madrid
(Spain)
Amburgo
(Germany)
Ruemlang
(Switzerland)
Accra
(Ghana)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
Germany
EUR
89,199
Eni Deutsch. GmbH
Third parties
Ecuador
USD
6,863,493
France
EUR
207,500
France
EUR
3,954,196.40
Eni Ecuador SA
Third parties
Eni France Sàrl
Third parties
Eni France Sàrl
Third parties
United
Kingdom
GBP
0(a)
Eni SpA
Third parties
Saudi Arabia SAR
1,200,000,000
France
EUR
40,000
Spain
EUR
175,713
Ecofuel SpA
Third parties
Eni France Sàrl
Third parties
Eni Iberia SLU
Third parties
Germany
EUR
4,953
Eni Deutsch. GmbH
Third parties
Switzerland
CHF
3,259,500
Ghana
GHS
258,309
Eni Suisse SA
Third parties
Eni International BV
Third parties
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
F.V.
p
i
h
s
r
e
n
w
O
%
12.50
87.50
13.38
86.62
18.00
82.00
16.81
83.19
12.50
87.50
10.00
90.00
12.50
87.50
15.45
84.55
12.50
87.50
16.27
83.73
12.00
88.00
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(a) Shares without nominal value.
ENI ANNUAL REPORT 2022
Corporate and Other activities
Corporate and financial companies
OUTSIDE ITALY
e
m
a
n
y
n
a
p
m
o
C
New Energy One Acquisition
Corporation Plc(#)
Other activities
IN ITALY
e
m
a
n
y
n
a
p
m
o
C
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
London
(United
Kingdom)
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
United
Kingdom
GBP
71,875
Eni International BV
Third parties
3.92
96.08
e
c
ffi
o
d
e
r
e
t
s
i
g
e
R
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
y
c
n
e
r
r
u
C
a
t
i
p
a
C
e
r
a
h
S
s
r
e
d
l
o
h
e
r
a
h
S
p
i
h
s
r
e
n
w
O
%
Ottana Sviluppo ScpA
(in bankruptcy)
Nuoro
Italy
EUR
516,000
Eni Rewind SpA
Third parties
30.00
70.00
425
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
)
*
(
d
o
h
t
e
m
n
o
i
t
a
t
u
l
a
v
r
o
n
o
i
t
a
d
i
l
o
s
n
o
C
F.V.
(*) F.C. = full consolidation, J.O. = joint operation, Eq. = equity-accounted, Co. = valued at cost, F.V. = valued at fair value.
(#) Company with shares quoted on regulated market of Italy or of other EU countries.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
426
Changes in the scope of consolidation for 2022
Fully consolidated subsidiaries
COMPANIES INCLUDED (No. 113)
Agrikroton Srl - Società Agricola
Anberia Invest SLU
Borgia Wind Srl
Brazoria Class B Member Llc
Brazoria HoldCo Llc
Corazon Energy Class B Llc
Corazon Energy Llc
Corazon Tax Equity Partnership Llc
Corlinter 5000 SLU
Corridonia Energia Srl
Dynamica Srl
Ecoener Srl
Ekain Renovables SLU
Elettro Sannio Wind 2 Srl
Energía Eólica Boreas SLU
Enerkall Srl
Eni Corridor Srl
Cesena (FC)
Madrid
Cesena (FC)
Dover
Dover
Dover
Dover
Dover
Madrid
Cesena (FC)
Cesena (FC)
Cesena (FC)
Madrid
Cesena (FC)
Madrid
Cesena (FC)
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Acquisition
Acquisition
Acquisition
Relevancy
Relevancy
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
San Donato Milanese (MI)
Global Gas & LNG Portfolio
Relevancy
Eni Transporte y Suministro México S. de RL de CV
Mexico City
Refining & Marketing
Eni New Energy Australia Pty Ltd
Eni New Energy Batchelor Pty Ltd
Eni New Energy Katherine Pty Ltd
Eni New Energy Manton Dam Pty Ltd
Perth
Perth
Perth
Perth
Eni Plenitude Renewables Hellas Single Member SA
Athens
Eni Qatar BV
Eni Sustainable Mobility SpA
Amsterdam
Rome
Eolica Cuellar de la Sierra SLU
Eolica Pietramontecorvino Srl
Eolica Wind Power Srl
Eolo Energie - Corleone - Campofiorito Srl
Export LNG Ltd
Faren Srl
FAS Srl
Fotovoltaica Escudero SLU
Fotovoltaica Pietramontecorvino Srl
FV4P Srl
Gemsa Solar Srl
GPC Uno Srl
Madrid
Cesena (FC)
Cesena (FC)
Cesena (FC)
Hong Kong
Cesena (FC)
Cesena (FC)
Valencia
Cesena (FC)
Forlì (FC)
Cesena (FC)
Cesena (FC)
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Relevancy
Relevancy
Relevancy
Relevancy
Acquisition
Exploration & Production
Relevancy
Refining & Marketing
Plenitude
Plenitude
Plenitude
Plenitude
Relevancy
Relevancy
Acquisition
Acquisition
Acquisition
Acquisition
Exploration & Production
Acquisition
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Acquisition
Acquisition
Acquisition of control
Acquisition
Acquisition
Acquisition
Acquisition
ENI ANNUAL REPORT 2022 427
GPC Due Srl
Green Parity Srl
Guajillo Energy Storage Llc
Guilleus Consulting SLU
Inveese SAS
Lugo Società Agricola Srl
Lugo Solar Tech Srl
Marano Solar Srl
Marano Solare Srl
Marcellinara Wind Srl
Miburia Trade SLU
Micropower Srl
Molinetto Srl
Monte San Giusto Solar Srl
Montefano Energia Srl
Olivadi Srl
Parco Eolico di Tursi e Colobraro Srl
Pescina Wind Srl
Pieve5 Srl
PLT Colombia SAS
PLT Energia Srl
PLT Engineering Colombia SAS
PLT Engineering Romania Srl
PLT Engineering Spagna SLU
PLT Engineering Srl
PLT Puregreen SpA
PLT Spagna SL
PLT Wind 2020 Srl
PLT Wind 2022 SpA
Pollenza Sole Srl
Punes Trade SLU
Ravenna 1 FTV Srl
RF-AVIO Srl
RF-Cavallerizza Srl
Ruggiero Wind Srl
SAV - Santa Maria Srl
SEF Green Srl
Cesena (FC)
Cesena (FC)
Dover
Madrid
Bogotá
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Madrid
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Bogotá
Cesena (FC)
Bogotá
Cluj-Napoca
Madrid
Cesena (FC)
Cesena (FC)
Madrid
Cesena (FC)
Cesena (FC)
Cesena (FC)
Madrid
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 428
SEF Miniwind Srl
SEF Solar Abruzzo Srl
SEF Solar II Srl
SEF Solar Srl
SEF Srl
SKGRPV1 Single Member Private Company
SKGRPV2 Single Member Private Company
SKGRPV3 Single Member Private Company
SKGRPV4 Single Member Private Company
SKGRPV5 Single Member Private Company
SKGRPV6 Single Member Private Company
SKGRPV7 Single Member Private Company
SKGRPV8 Single Member Private Company
SKGRPV9 Single Member Private Company
SKGRPV10 Single Member Private Company
SKGRPV11 Single Member Private Company
SKGRPV12 Single Member Private Company
SKGRPV13 Single Member Private Company
SKGRPV14 Single Member Private Company
SKGRPV15 Single Member Private Company
SKGRPV16 Single Member Private Company
SKGRPV17 Single Member Private Company
SKGRPV18 Single Member Private Company
SKGRPV19 Single Member Private Company
SKGRPV20 Single Member Private Company
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Athens
Società Agricola Agricentro Srl
Società Agricola Casemurate Srl
Cesena (FC)
Cesena (FC)
Società Agricola Forestale Pianura Verde Srl
Cesena (FC)
Società Agricola Isola d'Agri Srl
Società Agricola L'Albero Azzurro Srl
Società Agricola SEF Bio Srl
Timpe Muzzunetti 2 Srl
Vivaro FTV Srl
VRG Wind 127 Srl
VRG WIND 149 Srl
W-Energy Srl
Wind Salandra Srl
Wind Turbines Engineering 2 Srl
Windsol Srl
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Cesena (FC)
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Plenitude
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
ENI ANNUAL REPORT 2022 429
COMPANIES EXCLUDED (No. 30)
EniBioCh4in Annia Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Appia Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Briona Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Calandre Energia Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Gardilliana Società Agricola Srl
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Maddalena Società Agricola Srl
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Medea Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Mortara Società Agricola Srl
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Plovera Società Agricola Srl
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Rhodigium Società Agricola Srl
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in San Benedetto Po Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Vigevano Srl Società Agricola
San Donato Milanese (MI)
Refining & Marketing
EniBioCh4in Villacidro Agricole Società Agricola a
responsabilità limitata
San Donato Milanese (MI)
Refining & Marketing
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Fusion
Eni AEP Ltd
Eni Angola SpA
Eni Angola Exploration BV
Eni Angola Production BV
Eni New Energy Pakistan (Private) Ltd
Eni North Sea Wind Ltd
Eni Mozambique Engineering Ltd
Eni Pakistan Ltd
Eni Pakistan (M) Ltd Sàrl
Eni South Africa BV
Eni West Africa SpA
Eolica Lucana Srl
Green Energy Management Services Srl
London
Exploration & Production
Sale
San Donato Milanese (MI)
Exploration & Production
Loss of control
Amsterdam
Amsterdam
Karachi
London
London
London
Luxembourg
Amsterdam
Exploration & Production
Loss of control
Exploration & Production
Loss of control
Exploration & Production
Sale
Plenitude
Loss of control
Exploration & Production
Irrelevancy
Exploration & Production
Exploration & Production
Sale
Sale
Exploration & Production
Irrelevancy
San Donato Milanese (MI)
Exploration & Production
Irrelevancy
Milan
Rome
Plenitude
Plenitude
Fusion
Fusion
Sale
Fusion
Ing. Luigi Conti Vecchi SpA
Assemini (CA)
Others activities
Instalaciones Martínez Díez SLU
Torrelavega
Plenitude
Mizamtec Operating Company S. de RL de CV
Mexico City
Exploration & Production
Irrelevancy
Padanaplast Srl
Roccabianca (PR)
Chemical
Fusion
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT 430
Independent auditor’s report on the consolidated
non-financial statement
ENI SPA
INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED
NON-FINANCIAL STATEMENT PURSUANT TO ARTICLE 3,
PARAGRAPH 10, OF LEGISLATIVE DECREE NO. 254/2016 AND
ARTICLE 5 OF CONSOB REGULATION NO. 20267 OF JANUARY
2018
YEAR ENDED DECEMBER 31, 2022
ENI ANNUAL REPORT 2022
431
Independent auditor’s report on the consolidated non-
financial statement
pursuant to article 3, paragraph 10, of Legislative Decree No. 254/2016 and article 5 of
CONSOB Regulation no. 20267 of January 2018
To the Board of Directors of Eni SpA
Pursuant to article 3, paragraph 10, of Legislative Decree No. 254 of December 30, 2016 (the “Decree”)
and article 5 of CONSOB Regulation No. 20267/2018, we have undertaken a limited assurance
engagement on the consolidated non-financial statement of Eni SpA and its subsidiaries (the “Group”)
for the year ended December 31, 2022 prepared in accordance with article 4 of the Decree, presented
in the specific section of the report on operations and approved by the Board of Directors on March 16,
2023 (hereinafter the “NFS”).
Our review does not extend to the information set out in the “European Taxonomy” paragraph of the
NFS, required by article 8 of European Regulation 2020/852.
Responsibilities of the Directors and the Board of Statutory Auditors for the NFS
The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of the
Decree and with the “Global Reporting Initiative Sustainability Reporting Standards” defined in 2016,
and subsequent versions, by the GRI - Global Reporting Initiative (the “GRI Standards”), disclosed in
the chapter “Reporting principles and criteria” of the NFS, identified by them as the reporting
standards.
The Directors are also responsible, in the terms prescribed by law, for such internal control as they
determine is necessary to enable the preparation of a NFS that is free from material misstatement,
whether due to fraud or error.
Moreover, the Directors are responsible for identifying the content of the NFS, within the matters
mentioned in article 3, paragraph 1, of the Decree, considering the activities and characteristics of the
Group and to the extent necessary to ensure an understanding of the Group’s activities, its
performance, its results and related impacts.
Finally, the Directors are responsible for defining the business and organisational model of the Group
and, with reference to the matters identified and reported in the NFS, for the policies adopted by the
Group and for the identification and management of risks generated and/or faced by the Group.
The Board of Statutory Auditors is responsible for overseeing, in the terms prescribed by law,
compliance with the Decree.
Auditor’s Independence and Quality Control
We are independent in accordance with the principles of ethics and independence set out in the Code
of Ethics for Professional Accountants published by the International Ethics Standards Board for
Accountants, which are based on the fundamental principles of integrity, objectivity, competence and
professional diligence, confidentiality and professional behaviour. Our audit firm adopts International
Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains an overall quality control
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ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
432
system which includes processes and procedures for compliance with ethical and professional
principles and with applicable laws and regulations.
Auditor’s responsibilities
We are responsible for expressing a conclusion, on the basis of the work performed, regarding the
compliance of the NFS with the Decree and the GRI Standards. We conducted our work in accordance
with International Standard on Assurance Engagements 3000 (Revised) – Assurance Engagements
Other than Audits or Reviews of Historical Financial Information (“ISAE 3000 Revised”), issued by
the International Auditing and Assurance Standards Board (IAASB) for limited assurance
engagements. The standard requires that we plan and apply procedures in order to obtain limited
assurance that the NFS is free of material misstatement. The procedures performed in a limited
assurance engagement are less in scope than those performed in a reasonable assurance engagement
in accordance with ISAE 3000 Revised, and, therefore, do not provide us with a sufficient level of
assurance that we have become aware of all significant facts and circumstances that might be
identified in a reasonable assurance engagement.
The procedures performed on the NFS were based on our professional judgement and consisted in
interviews, primarily of company personnel responsible for the preparation of the information
presented in the NFS, analyses of documents, recalculations and other procedures designed to obtain
evidence considered useful.
In detail, we performed the following procedures:
1.
2.
3.
4.
analysis of the relevant matters reported in the NFS relating to the activities and
characteristics of the Group, in order to assess the reasonableness of the selection process
used, in accordance with article 3 of the Decree and with the reporting standard adopted;
analysis and assessment of the criteria used to identify the consolidation area, in order to
assess their compliance with the Decree;
comparison of the financial information reported in the NFS with the information reported in
the Eni Group’s consolidated financial statements for the year ended December 31, 2022;
understanding of the following matters:
a) business and organizational model of the Group with reference to the management of
the matters specified in article 3 of the Decree;
b) policies adopted by the Group with reference to the matters specified in article 3 of the
Decree, actual results and related key performance indicators;
c) key risks generated or faced by the Group with reference to the matters specified in
article 3 of the Decree.
With reference to those matters, we compared the information obtained with the information
presented in the NFS and carried out the procedures described under point 5 a) below;
5.
understanding of the processes underlying the preparation, collection and management of the
significant qualitative and quantitative information included in the NFS.
In detail, we held meetings and interviews with the management of Eni SpA and we performed
limited analyses of documentary evidence, to gather information about the processes and
procedures for the collection, consolidation, processing and submission of the non-financial
information to the function responsible for the preparation of the NFS.
Moreover, for material information, considering the activities and characteristics of the Group:
-
at a holding level,
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ENI ANNUAL REPORT 2022
433
a)
b)
with reference to the qualitative information included in the NFS, and in
particular to the business model, the policies adopted and the main risks, we
carried out interviews and acquired supporting documentation to verify its
consistency with available evidence;
with reference to quantitative information, we performed analytical procedures
as well as limited tests, in order to assess, on a sample basis, the accuracy of
consolidation of the information.
-
for the following companies and sites, Eni Australia BV (Blacktip YGP site), Eni
Tunisia BV (Tazerka site), Nigerian Agip Oil Co Ltd (OB/OB plant), Versalis SpA
(Brindisi plant), Eni New Energy SpA (Assemini plant), Eni Rewind SpA (Porto Torres
plant) and Eni SpA (GTR&M - Robassomero plant), which were selected on the basis
of their activities, their contribution to the performance indicators at a consolidated
level and their location, we carried out on-site visits during which we discussed with
local management and gathered supporting documentation regarding the correct
application of the procedures and calculation methods used for the key performance
indicators.
Conclusion
Based on the work performed, nothing has come to our attention that causes us to believe that the NFS
of the Eni Group for the year ended December 31, 2022 is not prepared, in all material respects, in
accordance with articles 3 and 4 of the Decree and with the GRI Standards.
Our conclusions on the NFS of the Eni Group do not extend to the information set out in the
“European Taxonomy” paragraph of the NSF, required by article 8 of European Regulation 2020/852.
Rome, April 5, 2023
PricewaterhouseCoopers SpA
Signed by
Massimo Rota Paolo Bersani
(Partner) (Authorised signatory)
This report has been translated from the Italian original solely for the convenience of international
readers. We have not performed any controls on the NFS 2022 translation.
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Independent auditor’s report on the consolidated
financial statements
Independent auditor’s report
in accordance with article 14 of Legislative Decree No. 39 of 27 January
2010 and article 10 of Regulation (EU) No. 537/2014
Eni SpA
Consolidated Financial Statements
as of December 31, 2022
ENI ANNUAL REPORT 2022
435
Independent auditor’s report
in accordance with article 14 of Legislative Decree No. 39 of 27 January 2010 and article 10 of
Regulation (EU) No. 537/2014
To the shareholders of
Eni SpA
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Eni Group (the Group), which comprise the
consolidated balance sheet as of December 31, 2022, the consolidated profit and loss account, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity, the
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the financial position
of the Group as of December 31, 2022, and of the result of its operations and cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the
European Union, as well as with the regulations issued to implement article 9 of Legislative Decree
No. 38/05.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of this report. We are independent of Eni
SpA (the Company) pursuant to the regulations and standards on ethics and independence applicable
to audits of financial statements under Italian law. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
436
Key Audit Matters
Auditing procedures performed in
response to key audit matters
Evaluation of hydrocarbon reserves,
measurement of mineral assets and of
other financial statement line items
related thereto, also considering the
impacts of the energy transition and
climate changes
Note 1 “Significant accounting policies, estimates
and judgements”, Note 12 “Property, plant and
equipment”, Note 13 “Right-of-use assets and
lease liabilities”, Note 14 “Intangible assets”, Note
15 “Reversals (Impairments) of tangible and
intangible assets and right-of-use assets.
Sensitivity of outcomes to alternative scenarios”,
Note 16 “Investments” and Note 21 “Provisions”
of the consolidated financial statements
The items “Property, plant and equipment”,
“Right-of-use assets” and “Intangible assets”
include significant amounts related to mineral
assets, more specifically referring to “E&P wells,
plant and machinery” in an amount of Euro
40,492 million, “E&P exploration assets and
appraisal” amounting to Euro 1,395 million, “E&P
tangible assets in progress” equal to Euro 7,627
million, right-of-use assets amounting to Euro
2,653 million, “Exploration rights” in an amount
of Euro 793 million.
The carrying amount of the mineral assets also
comprises estimated costs for decommissioning
and restoration costs and social projects, the
provision of which amounted to Euro 8,817
million at December 31, 2022.
Furthermore, the Group holds investments in the
E&P segment, accounted for under the equity
method, for a total amount of Euro 7,314 million
at December 31, 2022.
Mineral assets are depreciated according to the
unit of production method (also UOP method)
based on the units produced during the year and
the estimated hydrocarbon reserves that can be
produced. At December 31, 2022 depreciation of
mineral assets related to the E&P segment
amounted to Euro 6,018 million.
Our audit procedures consisted in the
comprehension, assessment and verification
of the operating effectiveness of relevant
controls implemented by management in
respect of the measurement of hydrocarbon
reserves, the measurement of mineral assets,
of investments in the E&P segment accounted
for under the equity method and of additional
financial statement items related thereto.
The audit procedures on the estimate of the
hydrocarbon reserves included, inter alia, the
analysis of the movements in reserves during
the year also compared to the year in which
these reserves were set up, an understanding
of the main assumptions and verification of
their reasonableness.
With reference to the estimate of
abandonment costs, the following audit
procedures were also carried out:
(i) understanding of the legislative and
regulatory framework and of the
underlying mineral arrangements;
(ii) comparison between the costs and
related timing of expenses at year-end
with the previous year’s forecasts and,
when significant, investigating the
differences identified and verifying the
consistency of the expected expenses
and timing in comparison with actual
data.
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ENI ANNUAL REPORT 2022
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Key Audit Matters
At year-end, in accordance with IAS 36
“Impairment of assets”, the mineral assets
recognised in the consolidated financial
statements are subject to specific tests on their
recoverable value (“impairment test”), if changes
or circumstances have highlighted that (i) their
carrying value may no longer be recoverable
and/or (ii) impairments recognised in previous
years have ceased to exist or their amount has
changed. The recoverable amount of mineral
assets is generally taken as being equal to their
value in use and determined discounting the
expected future cash flows from the use of the
assets.
As at December 31, 2022 impairments, net of
reversals, of tangible and intangible assets and
right-of-use assets related to the E&P segment,
amounted to Euro 432 million.
The estimate of hydrocarbon reserves and the
determination of the value of mineral assets and
of the related items are based on a series of
factors, assumptions and variables, including:
(i)
(ii)
the accuracy of the estimate of the reserves
which depends on the quality of the
available geological, technical and economic
data, as well as the related interpretation
and evaluation by the Group’s internal and
external experts;
the estimate of future production units and
related flows of income, operating costs,
including within the charges for carbon
offset relating to the geographical areas
where there are legal obligations,
development and abandonment costs, as
well as the timing when these costs are
incurred;
(iii) changes in the tax legislation, in
administrative regulations and changes in
the underlying contract types;
(iv) long-term hydrocarbon price projections,
developed on the basis of the analysis of
long-term supply and demand fundamentals,
considering the possible evolution of the
global energy mix to 2050 in relation to the
decarbonization commitments by the
countries and the EU with a view to
achieving the objectives of the Paris
Auditing procedures performed in
response to key audit matters
Regarding the valuation of exploration rights
and exploration activities and E&P appraisal,
we discussed the prospects of the main
exploration projects with management, for
which we verified the consistency with the
planned investment provided in the Group’s
forecast plans including, among others, the
achievement of the decarbonization targets in
2050, also through interim targets by 2030
and 2040, established by the Group and
reflected in the 2023-2026 Strategic Plan.
The audit procedures relating to depreciation
and amortization also included verifying the
use of the UOP rates resulting from the
valuation of the reserves and re-calculations,
on a sample basis, of
amortization/depreciation charges.
With regard to the impairment test the
following audit procedures were also carried
out:
(i) We verified the consistency of the
method used by the Group with the
requirements of IAS 36 and particularly
the appropriateness of the cash flows
used and related consistency with the
Group’s forecast plans;
(ii) For a sample of cash generating units
(CGUs), we verified the reasonableness
of the assumptions used by
management to estimate cash flows and
we checked they were in line with the
estimated reserves and site
abandonment and restoration costs and
that they were, taken as a whole,
consistent with the strategic
decarbonization objectives;
(iii) We verified the sensitivity analysis
performed by the Group which include
assumptions on the projected
hydrocarbon prices and CO2 costs in the
decarbonization scenario “Net Zero
Emissions 2050” (NZE 2050)
elaborated by the IEA;
(iv) We held specific meetings with
management to discuss the main
assumptions used to prepare the
impairment exercises consistent with
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Key Audit Matters
Agreement, the speed of the energy
transition process, economic and
demographic growth, the evolution of
technologies and the change in consumer
preferences that may lead, in the medium to
long term, to a structural decline in demand
for hydrocarbons, an increase in operating
costs as well as an increased risk of non-
producible reserves; these variables have
been considered in the context of the Group's
strategy to achieve carbon neutrality in 2050
through interim targets by 2030 and 2040;
the production of oil and natural gas actually
extracted and subsequent reservoir analyses,
which can entail significant revisions; and
(v)
(vi) the discount rate used.
In consideration of the significance and
subjectivity of the aforementioned assumptions,
Eni management carried out sensitivity analyses
of the oil & gas asset values which take into
account: (i) a 10% linear cut in hydrocarbon
prices in all years of the cash flow projections, (ii)
projected hydrocarbon prices and CO2 costs in
the decarbonization scenario, compatible with
keeping global warming within the 1.5° C
threshold, called Net Zero Emissions 2050 (NZE
2050) elaborated by the IEA (International
Energy Agency).
We paid special attention to the risk of incorrect
quantification of the estimates carried out by
management in relation to the valuation of
hydrocarbon reserves and the measurement of
mineral assets and the other financial statement
line items related thereto considering (i) the high
degree of uncertainty of the estimates and
measurements (ii) the technical complexity of the
valuation models used and (iii) the materiality of
the related financial statement line items.
Auditing procedures performed in
response to key audit matters
the Group's 2023-2026 Strategic Plan
and medium/long-term objectives.
We evaluated the technical expertise and
objectivity of the Group’s internal and
external experts involved in the valuation
process, as well as the methods used by them.
Our Valuations & Economics experts and
those of the Enterprise Risk Management
function supported us in the verification of
the consistency of the assumptions contained
in the 2023 – 2026 Strategic Plan with the
changed macroeconomic perspectives of the
E&P segment, and in particular (i) the
examination of the different valuation models
used, (ii) the verification of the methods
adopted to estimate a sample of
medium/long-term prices of commodities
including the verification of the consistency of
such prices with the most recent market
consensus, (iii) the verification of inflation
rates, also in comparison with the market
prices and those expressed by sector analysts,
and (iv) the examination of the different
discount rates adopted.
Moreover, we checked the reasonableness
and accuracy of the costs the Group will incur
to reach the reduction in net CO2 emissions
in line with the decarbonization strategy in
2050, through interim targets by 2030 and
2040, set by the Group and reflected in the
2023-2026 Strategic Plan.
Finally, we verified the disclosures provided
in the notes to the financial statements on all
the above-reported matters relating to
mineral assets and the other financial
statement line items related thereto, as well
as their consistency, where applicable, with
the information contained in the consolidated
non-financial disclosure on the achievement
of carbon neutrality and the related climate
risks, including energy transition.
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ENI ANNUAL REPORT 2022
439
Responsibilities of the Directors and the Board of Statutory Auditors for the
Consolidated Financial Statements
The directors are responsible for the preparation of consolidated financial statements that give a true
and fair view in accordance with International Financial Reporting Standards as adopted by the
European Union, as well as with the regulations issued to implement article 9 of Legislative Decree
No. 38/05 and, in the terms prescribed by law, for such internal control as they determine is necessary
to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
The directors are responsible for assessing the Group’s ability to continue as a going concern and, in
preparing the consolidated financial statements, for the appropriate application of the going concern
basis of accounting, and for disclosing matters related to going concern. In preparing the consolidated
financial statements, the directors use the going concern basis of accounting unless they either intend
to liquidate Eni SpA or to cease operations or have no realistic alternative but to do so.
The board of statutory auditors is responsible for overseeing, in the terms prescribed by law, the
Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not
a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA
Italia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the consolidated financial
statements.
As part of our audit conducted in accordance with International Standards on Auditing (ISA Italia), we
exercised professional judgement and maintained professional scepticism throughout the audit.
Furthermore:
●
●
●
●
We identified and assessed the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error; we designed and performed audit procedures
responsive to those risks; we obtained audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
We obtained an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control;
We evaluated the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors;
We concluded on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
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ANNEXCONSOLIDATED FINANCIAL STATEMENTSMANAGEMENT REPORT
440
to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern;
●
●
We evaluated the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
We obtained sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion on the consolidated financial
statements.
We communicated with those charged with governance, identified at an appropriate level as required
by ISA Italia regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identified
during our audit.
We also provided those charged with governance with a statement that we complied with the
regulations and standards on ethics and independence applicable under Italian law and communicated
with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, actions taken to eliminate the related risks, or safeguards
applied.
From the matters communicated with those charged with governance, we determined those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We described these matters in our auditor’s report.
Additional Disclosures required by Article 10 of Regulation (EU) No. 537/2014
On May 10, 2018, the shareholders of Eni SpA in general meeting engaged us to perform the legal
audit of the stand-alone and consolidated financial statements for the years ending December 31,
2019 to December 31, 2027.
We declare that we did not provide any prohibited non-audit services referred to in article 5,
paragraph 1, of Regulation (EU) No. 537/2014 and that we remained independent of the Company in
conducting the statutory audit.
We confirm that the opinion on the consolidated financial statements expressed in this report is
consistent with the additional report to the board of statutory auditors, in its capacity as audit
committee, prepared pursuant to article 11 of the aforementioned Regulation.
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ENI ANNUAL REPORT 2022
441
Report on Compliance with other Laws and Regulations
Opinion on compliance with the provisions of Commission Delegated Regulation (EU)
2019/815
The directors of Eni SpA are responsible for the application of the provisions of Commission Delegated
Regulation (EU) 2019/815 concerning regulatory technical standards on the specification of a single
electronic reporting format (ESEF - European Single Electronic Format) (hereinafter, the
“Commission Delegated Regulation”) to the consolidated financial statements as of December 31,
2022, to be included in the annual report.
We have performed the procedures specified in auditing standard (SA Italia) No. 700B in order to
express an opinion on the compliance of the consolidated financial statements with the provisions of
the Commission Delegated Regulation.
In our opinion, the consolidated financial statements as of December 31, 2022, have been prepared in
the XHTML format and have been marked up, in all significant respects, in compliance with the
provisions of the Commission Delegated Regulation.
Due to certain technical limitations, some information included in the notes to the consolidated
financial statements when extracted from the XHTML format to an XBRL instance may not be
reproduced in an identical manner with respect to the corresponding information presented in the
consolidated financial statements in the XHTML format.
Opinion in accordance with Article 14, paragraph 2, letter e), of Legislative Decree
No. 39/10 and Article 123-bis, paragraph 4, of Legislative Decree No. 58/98
The directors of Eni SpA are responsible for preparing a report on operations and a report on the
corporate governance and ownership structure of the Eni Group as of December 31, 2022, including
their consistency with the relevant consolidated financial statements and their compliance with the
law.
We have performed the procedures required under auditing standard (SA Italia) No. 720B in order to
express an opinion on the consistency of the report on operations and of the specific information
included in the report on corporate governance and ownership structure referred to in article 123-bis,
paragraph 4, of Legislative Decree No. 58/98, with the consolidated financial statements of the Eni
Group as of December 31, 2022 and on their compliance with the law, as well as to issue a statement
on material misstatements, if any.
In our opinion, the report on operations and the specific information included in the report on
corporate governance and ownership structure mentioned above are consistent with the consolidated
financial statements of Eni Group as of December 31, 2022 and are prepared in compliance with the
law.
With reference to the statement referred to in article 14, paragraph 2, letter e), of Legislative Decree
No. 39/10, issued on the basis of our knowledge and understanding of the Company and its
environment obtained in the course of the audit, we have nothing to report.
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442
Statement in accordance with article 4 of Consob’s Regulation implementing
Legislative Decree No. 254 of 30 December 2016
The directors of Eni SpA are responsible for the preparation of the non-financial disclosure pursuant
to Legislative Decree No. 254 of 30 December 2016.
We have verified that the directors approved the non-financial disclosure.
Pursuant to article 3, paragraph 10, of Legislative Decree No. 254 of 30 December 2016, the non-
financial disclosure is the subject of a separate attestation of compliance issued by ourselves.
Rome, April 5, 2023
PricewaterhouseCoopers SpA
Signed by
Massimo Rota
(Partner)
As disclosed by the Directors, the accompanying consolidated financial statements of Eni SpA
constitute a non-official version which is not compliant with the provisions of the Commission
Delegated Regulation (EU) 2019/815. This independent auditor’s report has been translated into the
English language solely for the convenience of international readers. Accordingly, only the original
text in Italian language is authoritative.
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ENI ANNUAL REPORT 2022
Eni SpA
Headquarters
Piazzale Enrico Mattei, 1 - Rome - Italy
Capital Stock as of December 31, 2022: € 4,005,358,876.00 fully paid
Tax identification number 00484960588
Branches
Via Emilia, 1 - San Donato Milanese (Milan) - Italy
Piazza Ezio Vanoni, 1 - San Donato Milanese (Milan) - Italy
Contacts
eni.com
+39-0659821
800940924
segreteriasocietaria.azionisti@eni.com
Investor Relations
Piazza Ezio Vanoni, 1 - 20097 San Donato Milanese (Milan)
Tel. +39-0252051651 - Fax +39-0252031929
e-mail: investor.relations@eni.com
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